The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1896-02-21
DIFFERENTIATION OF PR1CE LEVELS.

DETERMINATION OF PRICE LEVELS.
Every farmer understands the i'm
mense difference to him between q
scale of prices indicated by wheat at &
dollar, corn fifty cents and wool twenty
five, and other things in proportion
and one indicated by wheat at fifty
cents, corn twenty-five and wool twelve
and a half, and other things in proper
ton to this scale; but when asked what
it is that determines whether the one
scale or the other shall prevail, he is al
loss for an answer. He knows well
enough that the scale indicated by the
dollar wheat, fifty cent corn, and twenty
five cent wool would make him prosper
Gus, and enable him to pay his debts
and taxes, educate his children and en-
joy some of the comforts his hard Labor
entities him to. He knows, too, from
sad experience, that the lower scale OF
prices for what he produces, while his
debts and taxes remain the same as
under the higher range of prices, means
ruin to him if he is in debt, and means
hard scratching to make ends meet, if
he is out of debt, and leaves nothing
for comforts and little for the educa-
ton of his children; for when it takes
forty acres Of wheat to send boy to
college, as it does when wheat is worth
but fifty cents a bushel, few farmers
boys will be sent to college.
Now, is it not afact within the knowl-
edge Of ali farmers who have worked
farms for the past twenty years, that
In that time change in the price level
of farm products equal to that here in
dicated. has actually taken place? The
question then for the farmer to answer
to himself is, what has caused this
change? Have the farmers brought ii
about themselves Intentionally? Hardly
that. The answer the gold standard
men make is improved methods of
production, and consequent over pro
duction." Let US carefully examine
this explanation, What have been the
great improvements in agriculture in
the last fifteen or twenty years? That
there have been improvements in i'm
plements Of all kinds will not be denied,
but none to materially cheaper pro-
duction, much less to greatly increase
production. Is it not true that that
most Of the modern agricultural mach
inery, such as the reaper and mower,
horse rake, gang pillow, sowing and
planting machines, and many others,
were all in use before the end Of the
third quarter of the century, OF before
1875? What one of really great import
alce, except, perhaps, the self-binder,
has come into general use since 1875?
Is it not also true that during the per-
iod from 1850 to 1870, while these i'm
proyements were rapidly coming into
use, and while products did really in
crease much faster than population,
that prices all this time were slowly
rising? This certainly is true. More
over, how does it come about on the
theory of improved methods of pro-
duetion and consequently over produc-
ton, that land itself, and many things
Ia the production of which, and in the
supply of which, there has been no i'm
provementald no increase, have, never
theless, shared With everything else a
decline in prioeY Finally, the bottom
fact is that there has been no increase
oatrunning population in any of the
great staples.
The increase in the annual produc-
zion Of wheat, wool Or cattle, has not
kept quite up with the increase of pop.
pulstion. There has not been quite so
much wheat on the average per capita
for the population consuming wheat,
in the last five years, as in the proceed
ing five years, and SO generally.
Hence, the theory Of improved meth
eds Of production and over supply fail
entirely to account for the fall of
prices. Moreover, it is we'll settled
principle in economics that while there
may be disproportionste production,
over predutien Of ali things is impos-
sible. That would be equivalent to say
1ag there is tee much wealth to divide.
And again, as viii be shown further
81, #hiIe increased production in par
tiou.ar things may cause a fall in the
prices Of such things, OF IN relative
prices, II cannot Oa1se q fall in general
pfiess. Nor would an increase in the
sha 1odaetion Of things generally
essss fall u The general iefei Of