The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-09-21
A FALLACIOUS THEORY
NO BASIS FOR THE STATEMENT
THAT GOLD HAS APPRECIATED.
An Argument of SiIvercrafs Knocked
Out by Henry CIews in Answering
John w. Rays Question.

Sivercrats, headed by Bryan, Altgeld
| Tillman and others, are harping on the ap-
probation of gold. Is it true? If so, has
this appreciation affected prices in Eng
land. France. Germany or any of the coun-
tries of the old world? 1 believe the state
| ment is false
In answering Mr.. Rays question, Mr..
Clews said:
1.-The statement that gold has appreci-
ated, like a great many others emanatng
from the Silvercrats is without reason;
and outside of the bare assertion that II
is SO, they produce no facts worthy of Sc
rious attention to support such theory.
The silver people, in trying to win the
farmers vote and show that gold has APP
preciated, merely call attention TO the low
prices prevailing for products of the SOIL,
So soch as wheat, corn, oats ana eottpn' % pu u.
that improved agricultural implements,
wearing apparel, ETC., are also much cheap
er, and that where transportation rates
from Chicago to New York are now less
than cents per bushel they were q cents
per bushel in 1873. They also. ignore the
fact that products of the soil have de-
cl1ned in price owing to the labor-sav1ng
machinery, where one mans work of to-
day is equal to ten or, fifteen mems work
twenty-five years ago. A further reason
for the decline in prices of grains is to be
found in the competitive fields, which have
greatly increased the production. Where
this country used to make up the deficien-
cy supplies of wheat in Europe we are
now in trade competition with such coun-
tries as Russia, India and the Argentine,
which now produce more wheat than for
merry and at cheaper prices, owing in a
large measure to the building of railroads.
Owing to this competition, therefore, in
disposing of our surplus, we have to meet
supplies on hand. From the talk daily
heard from the advocates of free silver to
the effect that the decline in the white
metal has also caused the decline in cere-
ais, and that the free and unlimited coiH-
age OF silver would cause enhanced prices
for them, one would imagine that the
products
country. 1t should not be forgotten that
the United States alone cannot establish
the price of any article which is univer-
sally used and raised in nearly all coun-
tries. America is only one country among
many in doing SO, the law of supply and
demand being the real regulator.
SILvERITES' MISTAKE.
"The great trouble with the silver people
is that they measure the price of gold by
the prices of products. and because the lat
ter have gone down argue that the price
of gold has gone up. What they should do
is to measure the prices of products by the
price of gold (Which has a fixed value and
is the standard all over the WORLD and
they will find that the commodities of life
in every country using gold have fallen in
price, owing to the supply having exceeded
the demand.
per pound. Adopting the theory of the
Popocrats, therefore, that the value of gold
must be measured by the ruling price of
products to ascertain whether it has ap-
preciated or deprecated, it would appear
that with an advance since then of cents
q pound in cotton now selling al So cents
per pound gold has actually deprecated in
value 35 per cent. Again, if gold has APP
preciated to the extent that the silver men
claim then the farmer apparently gets as
much for his product as ever. because he
gets paid in gold or its equivalent. This of
son that gold has remained at fixed value
the world over, while the prices of COM
modities have gone down owing to the sup
ply exceeding the demand.
Take the crop of wheat for instance. in
1919. The total number of bushels raised
in this country was 292, 1856, O00 while in 1895
"a short crop year, We garnered 467, 100, 900;
and in some of the intervening years the
crop was even much larger, as, for, in
stance, in 1891 when the aggregate amount
raised was GIL, 600 bushels. The same
showing was made in corn in 1875, the yield
enormous total of of 2.15l 13y, 900 bushels was
reached. Any one familiar with grain sta
tistics understands, of course, that the in
crease in quantity is not alone confined to
this country. Taking the world S figures for
1859, we find that 2,150 555, 00O bushels were
raised, while six years later Q895) the to-
tai yield had increased to 2,4S5 335, 600 1t
will therefore be seen that a good and suffi-
Gent reason exists why the prices of grains
before stated, of supply and demand. which
has always regulated values since the be-
ginning Of the world and always will
THAT gold has not appreciated in value
Is proven by the fact that the holder who
puts it out at interest gets less income
from it nowadays than he did in former
years. Whether 1t is deposited in a bank
trust company or other financial institu-
ton, invested in gilt-edged bonds, or put
out on bond and mortgage, the income re-
turned is considerably less. 1t was only a.
few years ago that nearly all issues of rail-
road bonds bore and per cent, whereas
to-day the maximum rate on new issues is
per cent, and in a majority of cases the
rate is per cent
UNFAIR COMPARISON
appreciated, it is unfair for the silver peo-
pie to only pick out certain commodities
having fallen in price which, as known,
have declined owing to natural trade con-
ditions Having proven that invested cap
itai gets less income than formerly. it
might be also well to state that improv ed
property is as high. if not higher in all
cities and towns of the country than ever
and notwithstanding the erection of count
less sky-scraper office buildings, dwelling
houses, etc, rents command top-notch fig
ures. If gold is to be measured by commod-
tiles of the soil, why not by real estate,
where increased production does not cut 50
much of a figure. The production of gold
in the last thirty-fiye years has increased
twenty-five times as fast as the popula ton
but geld being in demand in nearly ali
parts of the world the demand for it has
been no depreciation. If the rich and i'm
portant nations of the world would agree
now do gold, and in the same manner it
would be easy matter then to keep the
price at any reasonable figure agreed upon,
for the reason that the demand would be
equal to the supply. For the United States
to undertake TO do this alone is, of course
ridiculous.
I'VE trust that the foregoing will con-
vince you that the arguments used by the
silver people to show that gold has appre-
ciated are fallacious, and born simply from
ina gination. However, If anything else is
needed to show you the absurdity of their
claims, compare the price of labor in 1889
with that paid in 1890. While it is not fair
to measure the value of gold by the prices
value by the price of mans labor, which is
recognized in this country as being enti-
tied to command the best price possible.
From a report of the United States Senate
committee, made up of both political par
ties in 1892, it shows that in 1880 the en-
ployes in manufacturing establishments in
this country numbered 2.732. 600, and that
their total wages amounted to S947, DOC. 000:
while in 1890 the employees had increased to
Ale, 900 and their wages to S2,263 600, 600
that is TO say. an increase of 30 per cent.
in ten years in the average of wages paid.
The Senate committees report also showed
that wages were 60 per cent. higher in 1890
than the average paid in 1860. The per-
centage is considerably larger If we take
into consideration the fact that the cost
of living, owing to the decline in the nee
essaries of life has deprecated"
ShiveIy's Insult to Jews.
To the Editor of the indianapolis Journal:
Every hook-nosed Shylock from Jeru-