The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1895-05-30
PRICES AND GOLD SINCE 1873.


Too much emphasis cannot be put upon
the truth that counters and the things
to be counted are vastly different things.
Once stated, It seems as pNlin as pike.
staff But 1t Is one Of the very common
est Of all fallacies at this hour for people
to suppose that lack of means, or wealth.
Is attributable to lack of money. Many
persons actually think that II they are
unfortunate or poor or unsuccessful in
regard to this worlds goods 1t is because
OF the absence of a proper supply OF
money. TO be sure, they would at once
understand that growing corn or cotton
depends upon the soil and seasons upon
rain and proper heat, upon skill and
judgment, upon the necessary seeding and
waiting, upon the selection of proper soil
and all such things. Then they see at
once that the quantity of money goins
about does not affect the yield Of the cot
ton or the corn crop or course no.
Then what do they mean? Perhaps that
change In the supply of money may
make difference in the level of prices.
This is the only possible basis OF the be-
lief.
And yet 1t was fully shown in these col
umns THAT any Increase In the money
which really affected its value andl raised
prices would affect both the goods
bought by the producer as well MS the
goods he sells And that he would really
be no better off than before. The only
possible gain by a change OF prices, how
ever would be the one by which, If prices
rose, Indebtedness could be more easily
paid off. But on this point 1t becomes
perfectly clear IL the poor try to raise
prices merely to scale Indebtedness, then
the rich would be equally warranted In
trying to lower prices to increase indebt-
edness That is a kind of contest in
which, II entered upon, the rich are more
likely to get the advantage. That Is not
to be recommended. Hence, on any
possible ground, 1t will be useless OF
wrong to try to tamper with the value
Of the standard in which the prices OF
goods arc expressed.
But yet 1t may be seriously believed |
mat prices have already been depressed |
by the creditor class in order to increase |
he load OF indebtedness on the people. II |
$ said that the act Of 1873 established
standard Of gold, that gold is insufficient
n supply, and that prices estimated in
sold have consequently fallen. The
'eader will, however, recall that gold has
,een the standard In which. prices have
,een expressed since soon after 1884 with
he exception OF the period OF deprecated
yaper money, 1S62-1S79) to date, and that
10 silver was driven out by the act or
S73 There was, therefore, no contrac-
Ion whatever of our circulation since
S3. In fact since resumption of specie
payments in 1879 the amount Of our cir
ulatlon has steadily expanded, There
9 more gold and silver by over $1,OOO,-
%, 10000 In circulation In the United States
oday than In 1873.
And It has been shown that the phenom-
mai production of gold since 1850 of S5i,
90, ,O000 900 has made II abundant; that II
; difficult to account for demand for
he whole of It. And 1t Is true that this
ibundance led France from 1850 to 1865
nd even later to absorb gold and let sit.
er go that the United States In 1858
lung to its gold and let the silver be re-
Iuced n weight from Ihgrains TO 1866
rains; that Germany took of the abun-
ant supply OF gold and also let Its silver
lainly go in 1873: that after 1874, when sill
er, finding itself elbowed out of the
of gold, fell In value, then the
ATTN Union refused to accept the de.
reclating silver at Its old value of 15ia
0 / at the mlnts and ceased to allow Its
rec coinage at that price. The whole
lfnculty was that gold, being abundant
nd being. preferred by modern CONNER
lal nations having international trans
ctHons on large sclle, the heavier metal
as discarded. 1t was just the same as
lScardlng the slower stage coach when
ailways became available. Gold as the
etter instrument was preferred to silver.
II legislation merely reflected the COM
lercial needs and preferences OF Europe.
/ was not mere law which caused the
al of silver. 1t was the dlscarding OF
liver by commerce which led to Its fall,
nd this was done because gold had be-
mi nj Nha I
al In the value of silver. back OF legis-
ltlon, was the abundance OF gold.
Nor was the fall Of prices since 1873 due
, the decentralization OF silver and the
onsequent relative scarcity OF gold. AS
fact prices In 1891 are only 92,2, as COM
ared with 100 In 1860. Eut the paper
Ioney period, lS62-1S79. introduced an ex-
ansion and depreciation Of the paper,
reckless speculation and an imitation
Z credit which. In 1873. eliminated IN
ne OF the most destructive panics of
ie century. The fall Of prices since 1913
as fall from an exceptional specula-
We height. The fall was not due to lack
gold, because we have now over $780,
o. 900 more In use today than In 1873.
But Il the fall Of prices since 1873 were
ne (as II was no) to scarcity OF sold,
ny Is II that wages as expressed IN
I'D. have riseng A days labor today
,mmands more gold by per cent. than
1914 In short II Is a mere theory,
by facts. that prices fell |
nee 1873 because OF a lack OF gold. !
rices have fallen. as producers all Z
now, because OF improved means OF Z
anufacture. diminished cost OF produe- ?
on. opening up OF the new wheat ana 2
rr!cultural regions, and 10 all the re- I
Its OF the most marvellous march OF
Ivention the world has ever seen IN any
.ntury. Gold has also fallen In value
gold is o1SlS. .bnku !
scause OF It's lessened cost. and the
int result OF the fall OF goods ana
,e fan of gold Is that prices are not q
luch dinerent ff0m the level Of lseo.
nd labor commands both more gold and
ore goods. Nor could prices have fall
=, sin.,. 1874 hacauae Of the dle1se or