The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1896-09-16

4
ricultural or manufactured products,
and to the great detriment of large
number Of good people who own
small capital invested in securities,
besides carrying on some BUSH
ness or profession, and on the eombin-
ed incomes from which they depend for
living.
In 1877 an investment of $4,000
could be relied upon for an annual in
come of $500. To-day the same amount
of money, invested with equal secur-
ity, can not be made to yield more
than 800 per annum. And for this
result which may be fiiriy regarded in
the light of depreciation of ali prop
erty, the conceded increase in the
amount of the worlds capital seeking
investment is clearly accountable. In
contravention of this conclusion, it
is asserted that ''money can not COM
mand as big interest rs formerly, as
borrowers are too poor in collateral to
bid for it." But the fact is, that the
rates of interest are lowest in those
eountries--like England and France
where good colIaterals are most abun-
dant.
Land unquestiOnably in recent years
has also declined in value, due in a
certain and correct sense to Over-pro-
duction. The fixed acreage of the
United States has not increased; but
the tillable acreage has been enormous
ly enlarged. Every railroad that has
been built at the West has brought
millions of acres in competition with
the lands of the older States and of
other countries. 1t is the competitive
supply of cereals and animal products
of the American farmer that has low
cred the price of land and nearly starv-
ed the English agriculturist.
HOW PRACTICAL BUSINESS MEN REA-
son ABOUT THE SITUATION.
1t is most interesting and instructive
in this connection to note how busi-
ness men generally throughout the
world, though not given to much read
ing of economic or fiscal treatises, have
instinctively, as it were, recognized
the axiom that the price of any article
or commodity is fixed simply and sole
| ly by tine quantity proportions of such
articles produced and consumed. Or,
in other words by supply and demand;
and have endeavored to regulate their
/ material interests in accordance with
it. OF recent illustrations of this, the
following are most Instructive.
The business of manufacturing whis-
/ ky in the United States has for some
time past been in a deplorable condi-
ton; and the average of its market
price, exclusive Of taxes, has been re-
ported as below the cost of production.
There is no difference Of opinion on
the part of the distillers that the sole
cause of this state of things is an over
production of whisky; and that there
can be no possible improvement in
their business until the present sur
plus stock, amounting to many mill
ions Of gallons in the United States
bonded warehouses, has passed into
consumption, which will require a
period of many months. Under such
| circumstances what have the Ameri-
can distillers decided to do? To obtain
relief from some radical change in the
| coinage and use of silver? The idea
does not seem TO have been even so
much rs thought of; but all are of one
mind, that it was expedient to entire
ly suspend distilling for a heightened
periOd-at least eighteen months; and
il was claimed that unless this was
done the present low market price of
existing stocks would continue TO de-
! preciate. And in accordance with this
view of the situation nearly all the
large distillers in the United States
have suspended operations
In like manner the cotton manufac-
turers of the United States, recogniz-
ing that an accumulation of many
millions of unsOld yards of their fab
rics was depressing the market price of
the same below the cost of production,
have, within recent period, largely
suspended theiT production.
Bicycles can be bought for about
one-half the price that was charged for
them year ago. Can anybody doubt
that such result has been due to a
glutted market? Does anybody think
that former prices can be restored by
increasing our currency?
Ask an Indian or Chinese merchant
if the great decline which has taken
place in recent years in the price of
opium has been occasiOned by any
change in the money with which it is
bought and sold; and, if his natural
politeness did not prevent, he would
laugh in your face and tell you that lt
was due to the circumstance that the
Chinese had gone into business
and were producing nearly all the
opium they required for themselves.
The American wheat-grower may as
well recognize first rs last that the
prices of wheat will not advance any
where in the world unless there is sub
stantially a complete failure in the
crop of one or more of the great wheat
producing countries. To represent to
him that he is likely TO obtain an in
creased price for his wheat by any
change in the currency of his country
is simply speculative nonsense. Sena-
tor Stewart hit it exactly when he told
the American farmers in 1874: "Your
wheat will be measured by the same
standard-gold-in Illinois as it is in
Liverpool, and any man can figure it.
1t is idle to talk about compromising
on any other measure of value; the
world will not accept it," IL he pro-
duces, as he does, an amount in excess
of domestic consumption, the surplus
must be sold abroad, or not sold at all.
If not sold out of the country and al
lowed to remain at home, the producer
of wheat will be smothered, as it were,
in his own grease. The use of a debas-
ed currency rs a medium of domestic
exchange may augment the nominal
price of wheat in the United States,
but not the price for which its producer
sells his surplus abroad, which fixes
the prices for the whole crop. If he