The times. [volume] (Richmond, Va.) 1890-1903, 1895-01-13

during the war very largely. NeVerthe-
less. its notes never at any time depre-
ciated more than one or two per cent
All men knew the bank was perfectly
sound and able to pay all It's obli5anons'
that It's very life depended upon the ex-
act fulfillment by IL of all It's obligations,
and they knew. therefore, that all its
obligations would be performed to the
letter
In the summer OF 1895 We all saw the
Richmond banks, as was done In many
other places. come 10 a resolution that
they would pay no checks above nifty
dollars. This state of things remained In
force month or more, yet the credit
OF the Richmond banks was not iart in
the smallest particular. Men knew that
this suspension Of payments WIS only
made in obedience to an overwhelming
public calamity. for which the Richmond
banks were in nowise responsible. and
they knew that as soon as they had a
little time to readjust themselves to the
new state Of things they would perform
fdence then, is the pivot upon which all
business and progress turns. Business
consists of exchanges Of commodities. 1t
is almost entirely independent Of money
or the quantity OF money. and, when
such conditions exist as ensure The con-
hdence of all men in the performance G
contracts just as made. business rams Its
course with whoop. AS soon DIS threat
TO lower the standard of value is iaade.
as with a cheap dollar. business hastens
TO liqudate and secure what 1t has then
realized. and further business transactions
come TO an end
AS closely connected with what we have
said We think 1t as we'll 10 notice the
repetition in a recent article in the Spec
tator. Of London, OF the erroneous state
ment that prices of commodities rose
under the influence OF the enormous IN
crease OF the worlds money from CaSifor-
MIA and Australia about the middle of me
century. But this is not fact. The
worlds supply of gold was increased be-
tween 1850 and 1859, the porioi when the
great increase took place, ~ ii. TO. go.
What was the course Of prices in thai
time? We answer from the ciart OF
prices recently published by that EN- lnnt
English statisticlan, Mr.. Augustus SAVER
beck. He expresses the average IN Index
numbers" taking the number 100 as ex
pressing par, or normal average. In
wh psfn
ming to get fairly under way, prices stood
at an average of 90. Four years later this
immense imitation of the volume OF money
had enormously stimulated rash specula-
ton, and this produced the panic Of ,s57,
and in 1858 the average of prices was 81
and in 1859 was "a, or respectively and
per cent below the normal standard.
and lower than at the early stage of the
discoveries. Surely there is no such ad
vance in prices during this period as to
digious increase Of metallic money causes
corresponding rise in prices.
Prices undoubtedly fiuctuated considera-
bly, in this period, but it is to be borne
in mind that it was a period OF great rail-
road imitation, during which 5000 miles
Of road were built in the United States,
and similar expansion Of this form Of
enterprise took place in Great Britain
and on the Continent, the effect of all
which was to largely divert capital and
labor from normal production and produce
a relative scarcity of commodities, and.
therefore, some advance in prices, which
had then been for some time exceptionally
low.
If the facts of the case are looked at.
then, just as they are, it is not possible
TO say that the immense increase Of gold
that California and Australia added to the
worlds stock between 1850 and 1860 in
creased prices. Prices depend upon the
supply of the commodity and the demand
for it. The inventions of an advancing
civilization are always driving them lower
and lower, and Heaven be praised that
they are, and the effort of the silver men
TO keep them up by cheapening the dol
lar is the same thing as stimulating a
man whose nervous system is shattered
by drink with more whisky, while the
effort Of the protective tariff men TO keep
them up by protection Is nothing but a
cheme TO rob the many for the few,
while the gradual fall of prices Is COM
ing along through the operation of natural
laws.