The Saint Paul globe., 1896-11-20
THE PROSPERITY TEST.
Many Causes for Present Low Prices
Must BE Considered.

To the Editor of the GlGbe
Nothing better than your editorial on 'The
Prosperity Test" in the l Of the 18th
inst, has come under my notice for many
years. Nothing better, because nothing else
has been so much needed. You say, "The
fact of it is, that in our system Of rushing
into the foolish habit of hanging q regular
department store full of effects upon single
cause that may be remotely connected with
any of them" This foolish habit vttiated
very much that was written and spoken on
the money question during the late cam
paign of education. One side declared that
low prices resulted from money appreciation
alone, while the other side accounted for the
fact by pointing to improved methods of pro-
duction. 1t never seemed to occur to any
one that low prices might be the result Of
both or many causes
The silver partys claim that all goods,
including silver, had fallen in price in about
equal proportion, meant, of course, that gold
appreciation was the only force operating on
prices. And when wheat rose in price just
prior to the election the gold advocates be-
lieved, affected to believe, that their case
clearly won, not seeming to realize that
goods may rise in value in spite of the ap-
probation of money.
But the 10 b did not always avoid the
error it now points out. 1t has always con-
tended that the Sherman law did not affect
the price of silver because it did not raise
it, which is not more logical than to say
that gravity does not affect the balloon, be-
cause it is ascending; or that the buoyant
force of the air is nil, because the balloon
is descending. The balloon ascends in spite
of gravity and descends in spite of the buoy
ancy of the air. So silver may go down in
price in spite of increased demand, which
would not prove the great law of supply and
demand imperative, or that the Sherman law
had no affect. 1t simply proves that some
other force more potent than increased de-
mand was pushing silver down. The statis-
ties published by the o b in this con-
nection bear only one possible Interpretation
viz, that silver under the Sherman law
looking only at supply and demand, ought to
have risen. The fact that the price Except
an initial spurO fell does not justify US in
refusing credence to the laws of the universe
1t proves that another force was operative
and the only force possible in the case, be-
sides supply and demand, is the appreciation
of gold The figures show that the increased
output under the Sherman law was a trile
compared to the increased demand.
Astronomy furnishes a parallel case. The
planet Uranus was found not to conform to
the known forces acting on it. Like silver,
Its motions were unintelligible. Under these
circumstances the great scientists had two
courses open to them. They must either de-
clare the laws of gravitation q farce or look
for new force. They did not hesitate mo-
ment. They began the search for a new
planet, and the result was the discovery of
Neptune. To the writer's mind there is no
more complete demonstration Of money appre-
citation than the G o e silver statistics
for the years 1S90-93. j. W. Raveill.
st. Paul. Nov. IS, 1895.