People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1896-05-21

methods Of production tend to cause
a fall Of prices. But if the quantity
Of money happens to be increased so
as to more than Offset the increased
demand, prices will rise despite
ClcapeniDg Of the cost of production,
while on the contrary, if the value Of
money is contracted simultaneously
with the introduction Of labor saving
machinery. resulting in increased
production and increased demand for
money, prices will fall much further
than they otherwise would.
"Thus the period Of lS49-lS72 was
one of general rising prices, although
this period was marked by an unex-
ampled rapidity in the perfection of
labor saving machinery, introduction
Of economies in manufacture, and of
great extension of transportation
facilities. Production went forward
with leaps and bounds. The demand
for money was greatly increased; yet
money did not rise in value, but fel !,
and prices did not fall, but rose. And
why? Simply because the discovery of
gold in California and Australia led
to an addition to the quantity Of mon
ey in circulation, which was more
than sufficient to Offset the increased
demand. As shown by the Senate
report on comparative prices, prepar-
ed by Prof. R. P. Faulkner, prices
were nearly 30 per cent higher in 1872
than in lS49.
"This is positive proof that cheap
ening of the real cost of production
does not always lead to lower prices.
When prices do not fall as a result Of
the introduction of labOr-Saving
machinery, the wage Garner, whose
wages are of necessity dependent up
on the price received by the capitalist
for the joint product of labor and
capital, benefits By receiving higher
wages. When prices fall as a result
of improved methods of production,
the wage Garner may be benefited
by being able to buy cheaper; but he
will not be benefited to the same de-
gree, for he buys at retail and his
wages are fixed by wholesale prices.
and retail prices do not fall dS rapid
ly as wholesale prices.
Since 1873 prices have fallen, as
shown by the Senate report before re-
fered to, down to 1891, and by tables
prepared especially for The American
since, 1915 per cent. The question is,
what has been the cause of this fall?
Gold mOnOmetalliStS have attributed
1t to the introduction of labOr-Saving
machinery and a general saving Of
labor and time in production.
Progress has undoubtedly been
made in cheapening the actual cost
of production since 1873, with ten
denCy to lower prices, but there can
be no doubt that the fall in prices is
due primarily and chiefly to the rise
in the value Of money. The greatest
advance in improved methods of pro-
duCtiOn has been made in manufac-
turing establishments, and if the
cause of the falling prices was the
cheapening of production, the
products of such factories would nat
urally show the greatest decline in
prices. But such is not the case.
On the other hand, it is agricultural
products that have fallen furthest,
As shown by tables based on 1OC
staple commodities, which we have
prepared, the general level Of prices
has fallen AL per cent since Jan.
uary lst, 1891, For the same period
bread Stuffs have fallen 404l per cent
while manufactures of iron and steel
have fallen but 2S.51 per cent, and
manufactures CT textiles but 9.44 pei
cent, while raw cotton has fallen Ii
per cent, and wool over 30 per cent.
During these five years there ha,
been little il any cheapening in the
cost of production of agricultural
staples, yet they have fallen in prict
much further than manufactured
articles in the manufacture Of which
the greatest advances have beer
made toward cheapening production
by the constant improvement Of
machinery. This fact disproyes tn,
assertion that the fall in prices is due
to cheapeDing Of the actual cost Of
production.
For the fact that agricultural pro
ducts have fallen much more rapidly
than manufactured articles there i
only one explanation, and that is tina
our agricultural products were tut
first to come into direct competition
} with the products of silver-usins
countries. The appreciation of golf
OF the money which silver-using PEG
pies receive in payment for what the
sell to gOld-using peoples, and which
they can exchange for double tn,