The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-05-06

seek the place of some other wage-earner
and endeavor to supplant him by offering
to work cheaper. Moreover, as the wage
Garner is thrown out Of employment, or
obliged to accept smaller pay, he is forced
in like degree as his income is cut down,
to restrict his purchases and economic in
every way. And the result is, as prices
fall, there is less demand for the surplus
products of others or for others services.
Thus, as the output of mill and factory is
restricted, the demand for transportation
services is c,lrtai.ed, and the railroads are
enabled to dispense with the services of
many of their employees, and cut the wages
Of those remaining.
Falling prices admittedly lead to poverty
misery, distress. And when money appre-
ciates prices must fall. Consequently the
last bond issue, contracting our currency,
leading to an increased value of money
and lower prices, has not resulted in a re-
vival of prosperity On the contrary, as
money has become dearer and prices have
fallen, times have become harder, failures
mere numerous and the lack of employ
ment and distress more general.
So long as prices continue to fall there
can be no revival of prosperity, and every
farmer, manufacturer, or merchant, wheth-
er observation-disclosures or bi-metalliSt is
looking longingly for higher prices. For
many, farther fall in prices means ire
trievable ruin, and but few can profit in the
face Of falling prices. But as much as
higher prices are desired is there any prom
Use Of higher prices or even any sign that
prices will not go lower?
But before answering this question let US
take retrospect of the course of prices in
the past and see what lessons can be drawn
from experience. In 1849 prices were lower
than at any previous time during the nine
teenth century. Commencing with the re-
sumption of specie payment in England
following the Napoleonic wars, resulting in
an increased demand for gold, and with
the decreased output Of the silver mines Of
South America during the wars to throw off
the yoke of Spanish oppression and the
consequent decreased supply of silver,
money appreciated and the general trend of
prices was downward until 1849. In that
year gold was discovered in California, a
few years later in Australia, and with the
increased supply of gold, prices rose, the
general trend of prices being upward to
1872, when prices in general were nearly
80 per cent higher than in 1S49.
The next year the mints of the United
Staes and Germany were closed to silver,
mints was restricted, and as the demand for
silver was thus curtailed, silver commenced
to fall, while gold, with increased demand
thrown upon it by discarding silver, COM
menced to appreciate and prices to fall.
And this fall in prices has been almost con-
tinuous ever since During a few years fol-
lowing the passage of the Bland Act and
coinage of silver under that act the fall in
prices was checked and again in the years
1887-S9, an expansion of credit led to
slight rise in prices But this expansion of
credit led to the collapse of 1890 and a fur
ther fall of prices.
The fall in prices between 1872 and 1891
is shown by tae following table Of index
numbers based on the senate report on
prices made to the second session Of the
Ffty-second Congress, and prepared by
Professor r. P. Faulkner. The index num-
ber indicate that $100 in 1891 would pur
chase as great a quantity Of commodities
in general as s132.32 in 1873 or $129.5O in
1874 and so on. The parallel column show
ing fluctuations in silver shows that silver
was worth 24.36 per cent more in 1873 than
in 1891 The marked rise Of silver in 1890
followed the passage of the Sherman Act: