The times. (Owosso, Mich.) 1882-1897, 1896-10-02

II
have gained by the change from the old to the
| new conditioner
| Failacy of 80 Cent Dollars.
Money received for wages. like money re.
ceived ON every other account. Is valuable only
| TO the extent that 10 can be exchanged for the
other commodities, and 1t is scarcely necessary
| to suggest that dollar worth 10 cents will
not purchase AS much IN the markets as q dol
lar worth 100 cents. To call dime dollar
would add nothing whatever to It's intrinsic
value or purchasing power: it would still buy
only a dimes worth of goods. If these PROPOSE
lions are correct 1t Is clear that when wages
| are paid In deprecated currency the rates Of
wages must be increased In proportion to the
| depreciation of the money and In proportion
TO the Increase In the prices of other things or
the laborer will suffer loss But affirm that
IL Is the universal rule that the rates Of wages
do not increase In proportion TO the deprecia-
ton in the value of the money in which they
are paid. and that when the currency Is depre-
ciated the rates OF wages do not increase I'm
proportion to the increase In the prices of the
commodities the laborer Is compelled to pur-
chase IL there has been single exception to
this rule In this or In any other country, my
Investigations have not enabled me to find It,
and do not believe one can be found
Our War Experience with Deprecated
Currency.
1t Is not my purpose to weary you by the
"
tedious recital of facts, but the particular
proposition now under consideration Is Of such
great importan CO In the discussion of this sub
ject that you must permit me to call your es
pecial attention to the experience of the labor
ing people In our own country during the years
Immediately following the introduction of de-
preciated paper currency in 1862 and also to
the very low rates Of wages which now prevail
In countries having the silver standard Of val
ne or the 80 called double standard Of value
with coinage of silver at legal ratio not cor
responding with the commercial value of the
metal and. in doing this, will make no state
ment that cannot be fully sustained by reliable
evidence.
On the 3D. of March, 1893, q subcommittee of
the committee on finance in. the United States
senate made report on the course Of prices
and wages In this country for q period of 81
years, embracing the prices of almost every
article OF consumption In common use among
the people and the rates OF wages In almost
every industry carried on during that time
and, In order that you may learn from this Of
fetal and impartial investigation what effect
deprecated currency has on wages and prices,
will briefly state some of the most material
facts and conclusions embodied in that docu-
ment. The subcommittee consisted of five SEN
ators representing both political parties and
both sides Of the currency question, and the
investigation, which lasted nearly two years,
was most thoroughly and impartially made
with no purpose in view except to ascertain
and report the actual facts, and, so far as 10
relates to questions Of fact the report was
unanimous. AS stated heretofore congress-
early In the year of 1892 inaugurated the pol
Icy OF issuing legal tender paper, gold was
driven out OF circulation, specie payments
were suspended, the currency began at once
to depreciate and before the close of the year
the paper dollar was worth less than 20 cents
In gold. From the time the depreciation began
the price OF commodities and the wages of la
Dor were paid In paper currency. and the in
furious effect upon the interests of the labor
ing man is clearly shown in the report re-
ferred to. ''
WorkinGmen the Sufferers.
In 1862 the wages Of labor, paid in depreci-
ated paper. were less than per cent higher in
paper than when paid in gold. but the prices
OF the 223 articles used by the laborers and
other people in the maintenance Of their fam
lilies were nearly Is per cent higher than they
were when paid In gold in 1868 the wages Of
labor paid In deprecated paper worth about
80 cents on the dollar were 1919 per cent higher
than when paid in gold, but the prices Of the
articles the laborer had to buy with his wages
were nearly 40 per cent higher; In 1884 the
wages of labor paid in deprecated paper dol
lars worth 40 cents each had advanced 251f per
cent. but the prices of the necessaries Of life
had advanced 9OH per cent in 1866 wages paid
In paper currency worth CD cents on the dollar
had advance ~ per cent above the rates pre-
viousiy paid In gold, or its equivaient, but tho
prices OF commodities had advanced nearly III
per cent-that is to say. had more than dou-
bled, and III 1885 wages paid In a currency
worth Il cents ON the dollar had advanced
fraction more than 50 per cent from the previ-
GUS rates In gold or Its equivalent but the
prices of commodities had advanced 90 per
cent. The rise in the rates of wages never COR
responded with the rise In the prices of other
things until the year 1869. four years after the
close OF the war. when the value Of our cur
rency was II cents on the dollar and 10 was
quite certain that no further depreciation
would occur. In 1850 this country was ON q
gold basis and and been on that basis for many
years under the operation of the acts of 1884
and 1887. Wages were then paid in gold or its
equivalent and by reducing the wages paid In
deprecated currency to gold basis and
comparing them with the rates paid In gold In
1850 we shall have another demonstration of
the injurious effects Of cheap money on the In
terests Of the laborer.
On this basis the laborer received 20 cents
and mills In 1868. instead of the gold dollar
he received In 1860: In 1884 he received 80 cents
and mills instead of a gold dollar and In 1896
he received % cents and mills instead of
gold dollar.
In other words the wages of labor, meas
ured by gold as they were In 1850, when we had
q sound currency, had fallen about "a per cent
In 1858, more than 10 per cent In 1884, and
nearly A per cent In 1866, when we had
ueprecnieeu CURRENCY hno, gentlenen, the
force of this illustration is greatly augmented
by the facts that these reductions In the rates
Of wages occurred Mt a time when several hun.
dred thousand laborers had been withdrawn
from the field Of competition. when the gov
eminent was engaged In the prosecution of
great war and was expanding money lavishly
for all kinds Of supplies for the army and
navy. and when the prices of all the products
Of labor had largely increased. fiTd rt
Surely II there ever can be time when an
abundance Of cheap money will increase the
wages and improve the condition Of laboring
men these results ought TO have been accom-
plished under the combination Of favorable
circumstances existing, especially In the great
centers Of industry, from 1851 70 1865. and yet
.here has been no other period in our history
when the rates Of wages fell so rapidly or so
low.
Chiles Sad Experience.
The recent experience OF the republic of
Chile furnishes another impressive warning to
the wage Garner against tho evils of depre
ciated currency That country had for long
time the so called double standard of value,
with coinage Of legal tender gold and silver Mt
the rate of 1899 to 1, but as this wns n consid
cradle differentiation of silver the coins of
that metal went out of circulation and gold
constituted the medium Of exchange and actu
~.