The times. [volume] (Richmond, Va.) 1890-1903, 1895-05-24

gtHTE Systems
a double standard could be maintained,
hut I'm no case have they succeeded n
keepinR the coins OF two metals In use
AT the same time, except for very short
pericds. Our own country Is not Wllhou'
cxperience upon this subject, and the re
suits here were just the same as they
have been everywhere else. by the acl
Of 1872. which was our first coinage ioW'
the legal ratio between gold and silver
was fixed at 10 TO I. when in fact the
true commercial ratio was or soon be
came about 10 IL TO I. and the result OF
this very small Over-valuatiOn OF silver
IN the coinage was that gold went out Oh
circulation. and we had practically SILVER
monometallism until after the passage
of the act OF 1894. For the purpose ol
restoring gold TO the circulation. Congress
In 1894 changed the ratio from 10 10
TO is 10 J. and as this was an over-valua
ton Of gold in the coinage. silver lefi INC
country. and from that time on until 1872
we had practically gold mOnometallism,
whenever we had any metallic basis al ali
for our currency
PRICES OF COMMODITIES.
II is argued that the existing standard
of value ought TO be abandoned because
since 1913 prices Of commodities nave
fallen. and will continue TO fall, II inc
been. and will continue 10 BE-, more ana
more difficult each succeeding year 60 pay
debts. that this fall in the prices OF al
commodities is attributable 20 tho 'p-
probation Of gold. and that the alpre'
citation in the value Of Eold mas D'FI
caused by the alleged demonetizaloh ol
silver i'm Germant ia 1871 and 1913, inc
omission of the standard silver dollar
from the coinage Of the United states
I'm 1873. and the suspension OF the colha5t
of silver by France I'm 1870 IL Is uu'
that the prices Of many thlngs nave
fallen since 1873. but 80 is true, also lhal
the prices # many things hal iallth iois
before that date. The asscr'~n thal th'
IAN i'm prices since 1873 is due 10 the
,,rrcciafion of gold alone rs based upon
ia. assumption that the relations be-
tween supply and demand nave not
changed. that there has been no dlinll"'
ton Of the cost of production anu ui''
frihution. that the facilities for erecting
financial exchanges have not befh ln
proved. and. I'm brief. that the "cfid mas
made mo- progress in the conduct OF Jus
industrial and commercial operations loi
more than twenty years. rms assIlnI'
tion &C. so inconsistent with WeI-khONh
economic and historical facts that IL
s.eu.s scarcely worth while 90 give IL
serious consideration. Reductions On inc
uriccs Of commodities are sen'idliy que
A. SO many different causes That III j.
scarcely ever possible 10 ascertain tne %
font of their separate influences. pre-
stloe however. that even the most ar
dcnt advocate of free coinage would be
willing 10 admit that the invention dnc
use of lab.T saving machinery the ca
tension of our railroad syst 'ms the lir
movement Of our waterways ana inc
great reductions I'm tho rates fer carry
ing freight the employment - steam
shirs, the Use Of the Telegraph on ~.
land and under the sea. the application Oh
electricity i'm the production OF hshI h'a
and power. the utilization OF hy-pfo"'''
which were formerly wasted. the inifo
duction of more economical methods I'D
the processes Of Production. the wondeIlul
advance made bv our laborrrs do skill ono
efficiency the greatly reduced rates on
interest paid for the use OF capital hl'
many other things which IL would re-
,uire much time to cnumerate and eN
plain. have affected prices I'm some meas
urs at least. and yet they ignore all iN's'
GREAT Influences i'm their rgImcnt upon
th subject and attribute the lower Pc -
of commodities 10 single alleged an ln'
adequat, cause.-The appreciation OF soid'
/ presume. also, that our frec-colhas'
friends will admit that If the change DID
rrices has been caus,d entirely hy the ap
nfaciation Of gold. the reduction woult
h ave affected all things alike, because
IL cannot bc denied that. in the absence "i
sthar ynhucnccs, gold must bear me
same relation to the price OF one arucl'
that IL bears 90 the price of another bul
W. 10 not find that the prices OF all
fhfncs have been reduced i'm the sam,
rroportion. nor do wc find that the prices
of am things have in fact been reduced.
II would require far more time than coulc
bt devoted To the subject upon such an
occasion as this 10 discuss the subject OF
prices in all it's details. nor is 1t neces-
sary TO ito So for the purpose of this argu-
mcnt. because very few illustrations
will serve to- show the weakness Of Oh,
contention that the decline is due alone
TO the appreciation of gold.
The one thing which has been less af
fccted by the changes In the relation he
tween supply and demand, by improve
mcnts in tho methods of production an'
distribution and 10y the other influences
which produce fluctuations i'm prices of
commodities generally. is labor and u
is hv far the most important single source
OF income possessed hy our people
much larger amount being expended every
wear I'm the payment of WAGES than foi
any other one purpose. The cost of labor
ia the manufacturing and mechanical ih-
dustries alone during the census year loN
WAS s. 2,3. 1859. which was nearly tNt
and NnD-nAll tunes lu' value hi an tii'
wheat and cotton produced in this coun
try. and if We add 90 this the amounts
pad for farm labor. for clerical and other
work ion mcr. autilc establishments for
domestic service. and FOR work ON rail
ways of an kinds. on water craft on
streets. and other improvements iu the
cities. ana i'm the many Othcg occupation,
which give employment 10 our people,
We would have sum almost. il not quite
equal To the value of an our agriculture
products 10 Is evident. therefore that
II the alleged depreciation Of gold alone
has caused reduction Of prices. the
wages of labor. the greatest commodity
In the market should have fallen since
1873. but exactly the reverse IS true. Tn
Investigations Il this subject by the uh
committee covered a period Of ftty-tw<
years and embraced all the occupations IN
which our people were engaged. and the
fact. unanimously found was that al.
though eighteen years had elapsed since
the silver legislation. the WA 81 of labor
were higher than In ,S72 or 1913. Wage
were found 10 be nearly 81 per cent. high.
tr than i'm 1860 which was thirteen year
before the silver legislation. and more
than : per cent higher than in 1913
when that legislation was aaop.ed.
FALSE ASSUMPTION OF FACTS
The argument that the reduction Of
prices is due to the appre, citation OF gOlC II
IS necC ssarlly based upon the further as
sumptions that tire legislation in regard &C
silver has produced a scarcity OF redcmp
ti.n tr metallic fpnnnx fr tho World 4uf