New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-01-30
THE FALL IN PRICES.
GREAT BRITAIN AND THE UNITED STATES
COMPARED.
THE DECLINE IN THIS COUNTRY is 81 PER CENT
= GREATER THAN THERE. But THE DIFFER
ENcE IS MORE THAN COUNTERBAL
ANCED BY LESSENED WAGES.

GREATER THAN THERE. But THE DIFFER
ENcE is MORE THAN CoUNTERBAL~
ANCED BY LEssENED WAGES
To the Editor Of The Tribune.
Sir: 1t has been stated that prices in Deem
Der were the lowest ever known in this country
Though records earlier than 1860 are not COM
plete and not very reliable. such as exist indicate
that the lowest point ever reached prior TO the
war was in 1S43 and 20 per cent below the aver
age in 1860. But the last year has several times
recorded prices averaging more than 30 per cent
below those OF 1860. At the lowest point IN 1854
December &c. only sSS % would have bought OF
all commodities much as 500 January j. lSoV'
a fall OF more than 81 per cent In thirty-nNe
years But this fall has been almost equally
great in other countries. THE LONDON ECON
omists" record OF prices makes the index num-
Der December l. 1894 just lips per cent OF the
index number for January l. 1860 so that the
fall there has been 2s64 per cent in thirty-fve
years. On that date the decline here had been
os77 per cent though later in the month ana
also in April MAY and the latter part Of July, 1t
was over 30 per cent
So close a correspondence in the movement or
prices throughout the world for many years de-
serves especial notice as indicating now great
is the interdependence between the chef COM
mercial nations. Great Britain and other coun-
tries rely so largely upon the United states for
supplies of cotton. wheat meats and other I'M
portant articles that a wide and long-continued
divergence in these has become impossible. and II
Is equally so with other articles which We buy
largely from Great Britain or from markets
which Great Britain controls. or from other
countries, in such quantities as to determine the
worlds prices. But while this close general
accord between the commercial markets In move
ment Of prices Is inevitable, considerable huctua-
lions occur from time to time. owing to the con-
dition and prospects OF business in the different
countries 1t is now about ten years since
prices In the United States and Great Britain
practically reached a parity in the sense that
the faal in the two countries had been the same
aimee 1860 In July, 1885. the difference was less
than a fifth Of per cent; then after diver
eence in 1887 the difference in July, 1885, was only
a f1ftieth of per cent. Wide variations Followed
the failure Of crops in Europe. so that IN july
1890 prices here were only 7S7 per cent lower reia
tiyely than in England but the balance was
hearty restored in 1891 and quite In 1892 mus In
October 1892 the month before the Presidential
election. which brought a change Of policy TO
this country. the fall since 1860 had been 24l9
per cent, and in England 2374 per cent.
Since that time the changes may best be
traced by treating the prices of October l.. 1882,
In each country as the base. or 100. and ex-
messing prices for other dates in percentages
The following are derived from THE London
Economists index number for Great Britain.
and from my own record of prices for many
articles at New-York: