The Portland daily press., 1895-07-01

up with by the most auolous lrlyS Is
there any limit to pur demsl 2,a eEDa
ments, for architeGure, for y f4F aI 81
Tor public endowment and i9f 4civa.t
| eenarltles except our AGILITY 10 say tGE
SSnem? Half the territory 81 SIP pn55ed
1uates IS IN the arid be- Gu5 th sis Is
Iai Iaaiintall diverted to scientific 'El cation
thls fegion would exceed tf3 . fold tbs
productive power of 81 l,.e resi- The
whole OF vast Asia aad Aifioa. 10 gay
nothlng OF more DEVELOP rsgio'u5 ere 40
pe netted With railway, and haib wi5h
cities ana the habitations of Industrious
and peaceaple nen. MonsY is the ~ aeio
power that can create ali bhis eng hsry
and apparatus OF civilization. How oan
it be in over supply?
10 come more closely 10 Che silver con
troversy Mr.. Mill canrot be quoted ss
supporter of the proposition fha5 tbs
great yield of American silver has depre-
ciated its bullion, and so lfs cojn 4alue
The most that he claims is thdt silver, as
economic laws that deter mine the prices
OF other commodities. b. what Is shat
laws Let him state it in his owp Ian
guage.
"Of the three classes into which com
mod lties are divided, viz: a. those ab-
soLluitely limited in supply, (2i, those
W Which n,naay may be be had in unlimlted qaaagit
| OOcO
those which may be had ID unlinited
| quantity, but at an increase cosg Of pro
ductlon-the precious metals being ghe
produce of mines belong 80 the tilifd
class. Their natural value, therefore is,
IN the long rum proportional to GheiI cost
| OF production in the most un2aVoraole Ga
listing circumstances, that is, nj the worst
mine, which it is necessary to work IN
order to obtain the required supply. g.
pound weight of gold will In the gold
producing. countries, ultimately tend 70
exchange for every other commodity pr5-.
uuced at the cost In labor and expense u
goid produced at the least protluotiY
demand makes it necessary t. work, -
FOL: Econ Oh. X, Sec 22
| NOV " was shown in the discussions ~
the monetary. Conference, and agsin in
the DEBATES in the U. S. Senate from
statistical tables of the cost aad pFoduc-
that the market price of silver bullion
instead OF having been determined by
this economic law, that is, tbs eosb in
labor and expense in the least profitable
mine was lower than if the cost o. labor
and expense in all the mines had been
averaged, showing conclusiyely thai there
1 naa teen no operation OF any oyeE,produ.ei' .i
yer must be looked for on the oth5r side
Of the equation, that is in diyniaished
demand caused by its present and pros
pectiye disuse as money. Silver hao
fallen exactly as barley would fal Il
rigid tee-totalism had wholly abolished
the demand for it for malt For its other
uses, viz, for bread stuff and for pfoyon-
| der barley is inferior to wheat, corr, oats
and rye less extensively raised. It's malt
value keeps up its price just as the prii1-
| al monetary value of silver-for lSset
as for gold its principal utility-kept up
it's price, and when that was restricted
and prospectively discontinued its rating
in the market as bullion 1ell exaosAy 0 "a as
posed and to gold itself under the sa1pe
| treatment.
LAWS.OF SUPPLY..AND DEMAHD Y
People whose sole education in fnanss'
is the reading of their commercial news
paper. and who scoff at any thorough
| treatment of the monetary problem as
academic talk and write glibly about over
production, supply and demand, without
considering, apparently without knowing
how oyer-production, or supply and de-
mand affect prices. Let us consider an
other principle concerning which economic
experts seem to be entirely in accord
1--WE must get rid decisevely of all rem
nants of the notion that things exchange
on a basis of equality, because they have
cost an equal amount Of labor. Products
often exchange for only half what they
cost; they often exchange for twice theiI
cost. The cost of production only comes
in as influencing the supply. The past
cost of production has regulated the pres
ent supply; the present cost OF produc
tion will regulate the future supply:
/ The proposition of Prof. Jevons y Labor
once spent has no influence on the future
value Of any article, applies Throughout
the.whole length and breadth of exchange
\ Money, by Pres't. Walker, p. 2S6.
i How just these deductions are may be
. exemplifled by facts of general knowledge.
The farmers Of Cape Elizabeth will raise
as their chief marketable products this
year so many thousand bushels of pota-
toes, so many hundred sstons Of cabbages.
} AS Jevons says the labor and expense be
slowed on this crop has no effect on the
: future value of it, it's value when har
vested Some farmers on the best lands
! with the most skillful and diligent labor
; ers will raise potatoes and cabbages a
one half the cost of those on poor lands
and with unskilful and lazy laborers
} but all, cheap and dear in the cost o.
J production, offered to the same market
must be sold at the same price, price
! fixed by the demand as related to the sup
J ply. But the supply will only be so in
, creased as to knock down the price by
new producers adding to the quantity o.
Gne ordinary supply. anu ondo enoy WILL
not do unless there is profit in it beyond
! that made on the poorest farms.
So in the pulp and paper business in
J this state The present manufacturer
will not be interfered with in maintain
ing prices by the competition of Other
! companies unless taking all the ordinary
, chances of the business those companies
feel SO assured of profit as to justify thu
great expenditure necessary to establish
: another manufacturing plant just Sc
the price Of silver will go down next year
if more miners shall be attracted by thu
) profits this year in the poorest operated
mines to engage in the mining business
. not otherwise.
: There is yet another law which must b,
reckoned with in determining the infu
5 ence which over production has, if any
upon the market price of silver bullion.
Mr. Walker, basing his conclusions on
the reasonings of Mr. Mill-too elaborat
for quotation here-as to the peculiar
conditions under which the materials o
! money can come under the laws of suppl,
) and demand sumsIup in this Language:
1--WE have seen, however, that the in
fiuence of changes in the cost of produc
tion upon the value of money is indirec
and distant giving thus not only grea