The San Francisco call., 1896-10-27
MINISTER BUcHANAN'S VIEWS.
Makes a Report to the State Department
on Money Prices in Foreign
HoUrfries

WASHINGTON, D. c., Oct. 26.-W. I.
Buchanan, United States Minister to the
Argentine Republic, in report to the
State Department. on money and prices in
foreign countries says:
majority OF those who have written to me
from the United States regarding wages and
prices have invariably asked me TO give them
the result of my observations with regard to
the practical workings of the cheap-money
sys TEN of this country as it has affected and
affects the farmer and wage-earner.
On this point let me say that from an ex.
tended and careful personal observation l Am
convinced that with possibly few exceptions,
all classes of workmen are here to-day receiv-
ing less wages the purchasing power of their
money being considered, than they were ten
years ago.
1t is true and easily understood that as long
his products as he had always done and con-
tinues to do, on gold price, fixed outside OF
the country, was steadily receiving higher
paper prices for all that he had TO sell. and was
in consequence direct gamer by high gold
1t is equally true that he has been the
gamer in other ways; he has paid but little
more rent if any Tor his land than ne paid five
years ago. Strange as Its seems, he has paid
and is to-day paying but a trihe more to his
laborers than when gold Was on par ten
years ago, ana as he produces on his farm the
meat, vegetables, etc., necessary for his fam
ily he has had the lions share of the gain in
the rise in gold.
On the other hand, the workman found 1t
very difficult to get an increase in his wages
as gold advanced. It required four years for
him to get an average increase of 20 per cent
in his earnings. while the farmer has been re-
ceiving the benefits of an increase in the gold
premium averaging moro than 30 per
cent for the same period. In the mean
time the merchant found it easy and
profitable to increase the price of
his goods, in keeping with the rise of
gold. Rents likewise increased, althoug h
more slowly. and as the prices of all commodi-
ties rose the laborer found himself daily being
made poorer. Agitate as he would, he could
not get his salary increased in any reasonable
proportion to the increased premium of gold.
Strikes were resorted to; all sorts OF efforts
made to bring about an increase in his re-
ceipts, until finally the last year reached what
we uay call "wage high-water mark"
Since then gold has steadily fallen. The
first person to feel the decline has been the
farmer, who is complaining bitterly OF the
relatively low prices he is receiving for his
products, while he finds himself obliged to
pay the same prices for what he buys that he
did when he received So SO more for every 100
kilos of wheat that he now receives.
Low gold does not induce the merchant to
"mark down" his goods with the same good
will he manifested when he advanced their
price Notwithstanding the decline in the
employers income as gold falls, the workman
will not, in all probability, consent to a de-
crease in his present wages without bitter
fight; nor can he do so unless there is a sharp
decline in rents and in the cost of living.