Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1895-10-31
CHEAP MONEY CHEATS LABOR.
Experience Of This and Other Countries
With Deprecated Currency.

Experience Of This and Other Countries
With Deprecated Currency.
Undoubtedly thousands Of wage earn
ers believe that somehow they would
be benefited by cheap money. The most
modern form of cheap money, as 1t ex-
lists in their childish minds, is the so
cent silver dollar, made of this value by
coming It at ratio Of 10 to with
gold. Such persons are either incapable
Of reasoning or they have never really
applied their reasoning powers to this
question. Neither have they learned the
lessons Of history in regard to cheap
money and wages. A pamphlet entitled
equality Of Money and Wages" has
just been published by the Reform club,
which is intended to teach the lessons
of history and to facilitate clear think
ing on this important question. Its au-
thor, Mr.. Frank l. McVey, first demon
strates in the simplest way that de-
preciating currency must injure the
wage Garner. Here is the way he begins
his discussion:
1.-THE operators in our mills and fac
tories, together with those engaged in
day labor Of other kinds, constitute q
great creditor class. They are creditors
in the sense that they advance labor. At
the end Of day or week the amount
due them for services performed is
greater than that owing to any other
Glass. But in the majority Of cases the
wage Garner is dependent upon his daily
or weekly earnings, so that the vital
question with him is as to their imme-
diate purchasing power.
"What laborer really works for are
the things which he consumes. Every
thing that goes to make goods cheaper
tends to increase the real as compared
with the nominal wages Of the work
man, for he is then getting more goods
for the same money. On the other hand,
every tendency to make things dearer
tends to decrease in a corresponding de-
gree the real wages Of the people
Wages are high or low according to the
abundance Of necessities, comforts or
Injuries obtainable for them.
Mr.. McVey proceeds carefully to in
quire into tfe relations between money,
prices and wages. Here is another Of
his statements:
''The prices Of what wage earners
have to buy respond far more promptly
to changes in the quality Of money than
DO wages-the prices at which labor is
sold. Hence whenever money is getting
better, though nominal wages may tend
to decrease, wage earners are constantly
getting more goods in exchange for the
money they actually get for their labor,
and whenever money is getting poorer,
though nominal wages may tend to in
crease, wage earners are constantly get
ting less Of the necessaries and comforts
of life in return for the wages they re-
ceive. Appreciation Of the dollar in
which wages are paid and consequently
lower prices are therefore constantly and
certainly to the advantage Of the wage
Garner. Depreciation Of the dollar and
consequently higher prices are always
and certainly to his damage"
After reaching conclusions from theo-
retical reasoning he studies the expe-
rience of most of the leading countries
Of the world. He finds that not only are
wages nearly always lower in silver
than in gold standard countries, but
that there is abundant reason why such
should be the case. To cite one instance
he shows by statistics and diagrams
that our wage earners during our civil
war suffered great loss in wages due
to the depreciation Of our currency. In
1865 days labor purchased only four
hfths as much as it purchased in 1860.
Wages had risen only about 48, while
prices had risen 80 per cent since 1861.
This Notwithstanding that the with
drawal Of one-fourth Of our best work
ers to serve as soldiers greatly lessened
the competition among laborers and
that both before and since our greenback
imitation period both nominal and real
wages have been advancing from year
to year.
Mr.. McVey closes with the following
impartial statement:
"The only fair and just currency to
all parties is a stable one. Under such
a currency the conditions of the future
are more easily ascertainable, legitimate
enterprise more confidently entered upon
and progress more sure. Wage earners
have no right to agitate for an apprecia-
tion of currency. Neither have they
any reason to submit to depreciation by
Others.