Middlebury register. (Middlebury, Vt.) 1886-1937, 1895-09-13

more than indicate the data.
/ The first question is, in what way and
to what extent have producers in Eng
land suffered loss by the decentralization
of silver?
The loss to producers is the lowered
value of their produce, while wages,
rents and all outgoings remain the same
as before.
What. then, are the causes which have
contributed to lower the prices of com
modites in England and other gold
using countries, specially of agricultural
produce?
Any alteration of prices must be due
to causes affecting the demand, or to
causes affecting the supply, or to changes
in the currency itself.
1t will readily be admitted that there
is no falling off in demand. The world,
generally. is growing in wealth and
population, and so far as demand alone
is concerned prices should be rising
The cause or causes must therefore be
sought in the other two elements.
The causes are, | would submit, the
following, and | enumerate them in
what | consider the order of importance
as affecting agricultural produce, begin
ming with the one which has the least
effect.
n
and lessening of cost of production,
through improvements in machinery,
new chemical discoveries, and other
scientific advances.
(2) The appreciation Of gold, conse-
quent upon the demonstration of silver.
CD An enlarged area of supply con-
sequent on the relative cheapness of sill
yer to gold AS silver prices in Asiatic
countries have not risen. the produce of
those countries can be laid down in Eng
land at almost Asiatic prices.
| shall briefly remark on each of these
in order.
Oo) Lowered cost of transport and
production. This cause is often put for
ward as being the principal element in
the case, and it is necessary to notice it.,
as it has doubtless had some effect. But
it NAV be pointed out, that this cause or
set of causes, rather. had been in opera
ton long before 1873, and did not pre-
vent a great rise of prices between 1850
and 1873. Had these been the only
agents working for a fall, all other
things being equal, though in some COM
modities the fall might have been con-
siderable, it is very improbable that
prices all over would have been reduced
more than few points, possibly 3 to >
per cent.
(2o) The appreciation of gold.
1t will readily be admitted that if gold
were the only currency in the world. a
sudden augmentation or dimnution of
the mass, by. say, one half, would RAISE
or lower prices in nearly the same pro-
portion. Now when gold and silver CIR
culated side by side, at a fixed ratio
maintained by the open mlnts of the
Latin Union, the metallic medium may
I. III I
purposes, either all gold or all silver.
BY the breaking of the Bimetallic link,
the silver using and the gold-using por-
tons of the world parted company. In
the gold-using portion, prices began to
adjust themselves in relation to the mass
of gold and in silver-using portions in
relation to the mass of silver, or, to
speak more correctly, in relation to that
mass of silver which, for the time being,
entered into their currency.
Now, had the two halves of the world
been approximately equal in wealth,
population, and extent of commerce, the
adjustment might have been effected
without any great disturbance of prices.
Ole would have parted with its gold,
and the other with Its silver, as fair
exchange, and no harm would ave been
done to anybody.
As matter of fact, however, the two
halves were very unequal, the gold-using
half being immensely superior; and,
moreover this half was owner of great
part of the floating silver, and of the
silver-producing mines. Anxious as
gold countries might be to get rid of
their surplus silver, they would not part
with it for nothing; and ready and
anxious as silver-using countries might
be to get silver, they could only get it
for value of some sort, either by way of
loans, or in settlement of the annual
balance of trade. This is a process that
takes time. Silver-using countries for
the most part are making additions to
their stock of silver, year by year; but
they are absoi bling it only slowly. Con-
sequently prices IN those countries con
form themselves, not to the whole mass
of silver in the world, but only to that
part of it which has found its way into
their circulation
| may remark here in passing that this
seems TO explain quite satisfactorily how
it Is that prices and wages have risen so
little in those countries, contrary to
what was generally expected. In India,
where the additions to the currency have
been considerable, there has been some
rise in the price of food and wages, par
ticularly in those classes of skilled
labour which the new Industries have
called into existence. So in Japan the
same thing may be observed in a smaller
degree. In China, on the contrary,
There has been no import of silver to
speak of, and no change whatever in
prices and wages. Nor is there likely to
be any material change in tins respect,
whatever the relative value of gold and
silver may be; though, of course, the
lower silver goes, the easier in a way
will it be for China and the other silver
countries named to get it.
In gold-using countries, on the other
hand, which have voluntarily restricted
their circulation to gold inasmuch as
the mass of gold is manifestly insufficient
to carry the commerce and industries
formerly borne by gold plus consider
able portion of silver, prices, of course,
have fallen. The quantity of gold has
to be spread over a greater area, and as
the annual additions are only sufficient
to repair waste. and to meet the increas-
ed demand due to the natural growth of