New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-08-06
SILVER AND PRICES.

The course of prices this year presents prob
lem which those are bound to face with candor
who believe that silver decentralization has
caused the fall in prices throughout the world
If withdrawal from use of half the worlds
stock of money metals" has doubled the pur-
chasing power Of gold, as silver theorists assert.
if the fall of silver through It's disuse is the
cause of low prices of commodities. whether
brought from India or not then the alleged eff
feet must have been the same In nature if not
in degree throughout the commercial world. But
for more than year British prices have been
gradually rising. while prices I'm this Country
have been falling For British prices the tables
of The London Economist are taken with Ito
Index number reckoned for each date in per
centage to that of January l. 1860. For Amer
can prices tables covering over three hundred
articles. of which details were given in state
ment April Is, are also used in the form of ratio
to prices of the same articles January l, 1860
The result is that British prices have advanced
81 per cent in the aggregate since March /,
1882 while American prices have fallen since
that date IA per cent
The problem for silver theorists is first to ex-
plain why characterization of silver produces so
great n fall here but none in Great Britain. II
would be first and most affected. 1t may be
supposed that American prices were relatively
higher year ago, but. in fact. they were rela
lively lower than British prices 6s07 per cent
of prices here in 1860, while the British ratio
was 1850 per cent of prices there in 1860. 1t
will be found still more difficult for silver theo
rlsts 10 explain why American prices have fall
en- III per cent since March /, 1895, while the
o,fc hui ba Ri 90
of 2747 pence in February and 2S35 pence in
March. 1880 to 81 .46 pence in July 1896. The
effect of temporary speculative influences is
eliminated by using averages Of daily quota
tons for entire months but silver has advanced
l4.5 per cent in the sixteen months ending July
1. 1896. while British commodities have adj.
vanced only 81 per cent. and American COM
modtles have declined ia per cent One would
think that even the most obstinate silver theorist
would have his eyes opened by such glarng con-
trasts, Of which the monetary history or the
last twenty years Is full.
To find the true explanation Of these changes
in prices IL Is necessary to go back to the cleo
ton OF 1897. In the month prior to that election
British and American prices stood at practically
the same ratio TO those Of 1860 the British ratio
being 49, and the American 1862. Both had
declined the same proportion III tnlrty-tWo years.
consumers in both countries had shared equally
The benefits of advance in science and inven-
ton and the cheapening OF production ana Trans
portation. Then came the vote for change.
and from October 1892. to July !. 1876 British
price: have fallen % per cent while American
have fallen 1919 per cent. The prosiration or
business and prices In this country, with which
Great Britain deals most largely. Is OF Itself
enough to explain the small decline In British
prices. but the fall here has been greatest with
In the sixteen months ending July l. In which
British prices were slowly recovering The ex-
PLANTATION which the events themselves suggest
10 every mind t. that American Industries have
been Frustrated by increased foreign compe-
titon under Democratic tariff. but have been
most depressed during the last year and n half,
since 1t became clear that no revision of the
revenue laws would be reached until after a
Presidential election. while British prices have