Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-05-24

Nnere nc eApCCtS 10 sell tnefn, the pur-
chaser here can afford to pay the highest
price that would leave him reasonable
margin OF profit in view of the conditions
existing in the market abroad To Illus
trate my meaning, when silver Is worth go
cents per ounce, She bullion contained in
"A silver dollar is worth as. 4 cents, hut II
the price of silver should advance to 81
cents per ounce, the value of the bullion
contained in silver dollar would DO 4S
conts-an increase of nearly 4 y per cent.
Now the price of cotton or wheat will not
rise in proportion to the depreciation Of
the dollar in which it is to be paid that Is,
the purchaser for export will not pay for
it at the rate of IS cents for each dollar
when silver is worth 80 cents an ounce
because he knows that silver may rise
to 81 or 81 cents per ounce before he can
sell the product abroad and get his money
for it, and he knows that II this happens
the gold he receives abroad cannot DO ex-
changed for as many silver dollars as no
paid the producer here. He will not take
all this risk upon himself, but will compel
the producer TO bear il by receiving less
price for his cotton or wheat and this ar-
gument applies with equal force to all
other articles. Tho assertion that the
fall in prices since 1878 Is duo to the ap-
probation of gold alone is based upon the
assumption that tho relations between
supply and demand have not changed, that
there has been no diminution of the cost
of production and distribution, that the
facilities for effeoting financial exchanges
have not been improved, and, in brief, that
the world has made no progress In the
conduct of its industrial and commercial
operations for more than twenty years
This assumption is so inconsistent with
well known economic and historical facts
that it seems scarcely worth while to give
it a serious consideration. Reductions
in the prices of commodities are general
ly due to so many different causes that It
is scarcely ever possible to ascertain tho
extent of their separate influences. /
presume, however that even tho most ar
dent advocate of free coinage would DO
willing to admit that the invention and
use of labor saving machinery, the extern
son of our railroad systems, the improve
ment of our water ways and the great re-
ductions in the rates for carrying freight,
and many other things which IL would
require much time to enumerate and ex-
plain, have affected prices in some meas
ure, at least, and yet they ignore all these
great influences in their argument upon
the subject and attribute the lower prices
OF commodities to single alleged and in
adequate cause.-The appreciation OF gold.
| presume, also, that our free coinage
friends will admit that If the change In
prices has been caused entirely by the APP
probation of gold, the reduction would
have affected all things alike, because 10
cannot be denied that, in the absence of
other influences, gold must bear the same
relation to the price of one article that It
bears to che price of another. But we do
not find that tho prices of all things have
been reduced in the same proportion. nor
do we find that the prices Of all things
have in fact been reduced.
In 1891, 1892 and part OF 1893 had
the honor to serve on sub committee
charged by the Senate of the United States
with the duty of ascertaining the course
Of prices and wages of labor for as long q
period as authentic records would enable
US to embrace in our Investigation, and,
after most thorough and impartial ex-
animation of tho subject, report was
made which fills four large volumes and
mass Of information upon
these subjects which cannot DO found In
my OUier OIuclal form. AS 60 Jno course
Of prices and wages the committee was
though there were differences
Of opinion among the members as to the
causes that had from time to time pro-
Iiuced tho changes. The prices Of many
articles and the wages OF labor in many
were ascertaincd during each
year as far back as 1870 and for the pur-
poses of comparison the prices Of com
and the wages OF labor in the
year 1860 were adopted as the standard.
In the first place, the committee unani-
mously selected 232 articles in common
use which 1t was agreed constituted the
great bulk Of the consumption and ex-
penditurcs Of the people. and these ar
Licles were separated into eight classes or
groups; that is, clothes and clothing, fuel
and lighting, metals and implements,
lumber and use-building materials.
lrugs and chemicals, house-furnishiDg
good, and miscellaneous commodities.
It was found that the prices OF articles
used for food, taking them altogether,
lad fallen less than ~ per cent since 1878,
while the prices of clothes and clothing
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