The Globe-republican., 1896-10-15

The Hon. David A. Wells, author OF
Recent Economic Changes" and the
greatest American authority on the
cause Of falling prices, has full page
article on this subject in the New York
Tribune of Sept. Z. He finds that there
has been a universal fall in prices,
averaging 80 or 40 per cent since 1873,
but that 1t is only in this country that
the fall is attributed to the denoletiza-
ton of silver. Continuing, he says in
part:
Granting, as every intelligent person
must, that the recent universal decline
in prices cannot be due to any local
agency, but must be attributed to some
universal influence, it is claimed that
such an influence is to be found in an
appreciation in the value or purchasing
power of gold, owing to it's limited and
insufficient supply, and also that this
decline in prices followed the so-called
demonetization of silver in some coun-
tries, and the closing of the minis in
other countries to it's coinage.
The appreciation of gold, helped by
an alleged enforced scarcity of silver.
and a decline in price seem, therefore.
to stand to each other in the relation
OF cause and effect. and the cause of the
advocates of silver has accordingly at
the outset much of FEASIBILITY. But
plausibility is not proof, nor assump-
ton truth, as is strikingly illustrated
by the claim OF the Rev. Jasper, pastor
of the First colored church in Rich
mond, Va, that "the sun do move" and
the earth do stand STILL" and who has
more OF seeming facts in support of his
faith than can be adduced by tie ad-
vocates of the gold appreciation theory
for cannot everybody with eyes see
the sun move up every morning in the
east and move down every evening in
the west? And if the earth moves
nineteen miles every second, as the
astronomer bugs tell us, would not
every movable thing fly of its surface
as mud does from a revolving carriage
wheel? And as nothing does fly of, is
:. not certain that the earth stands
still?
Investigation in the case of the Rev.
Jasper and the advocates of the gold
appreciation theory will, however, lead
to different conclusions. 1t is to be
noted. in the first place, that the advo-
Gates OF the latter theory, in stating
what they assert to be the truth. never
express themselves other than gener-
ally, in all that has been written or
spoken in support of the gold theory
on either side of the Atlantic.
No one has ever been able to name a
single commodity that has notably de-
clined in price within the last thirty
years and satisfactorily proved, or even
attempted to prove, that such decline
was due to the appreciation of gold.
And the reason for such default is that
1t cannot be done.
On the other hand, not a single COM
modify that has notably declined in
price within this time can be named
in respect to which clear, abundant and
specific evidence cannot be adduced in
proof that this decline has been due
to decreased cost of production or dis
tribution or to changes in supply and
demand occasioned by wholly fortui:
tous circumstances.
Nobody, furthermore, has ever risen
to explain the motive which has i'm
PEELED the honest sellers of merchandise
all over the world during the last
twenty-five years to take lower prices
for their goods in the face Of an unex-
ampled abundance of capital and re-
markably low rates of interest, except
for one or both of two RESPONSIVENESS
of supply or diminished demand. Has
any one ever attempted to explain how
it has happened that during the recent
period Of the fall of prices the worlds
stock of money, and especially Of sill
yer. has been constantly increasing?
Is it not plain that a phenomenal de-
cline Of prices in two parts of the
world, with entirely different monetary
must have had other causes
than a demonstration of silver in the
United States, which took place, II It
ever did, a comparatively short time
ago (repeal Of the Sherman act in 1899.
and which has not prevented nearly
$500. 900 900 Of silver credit money from
in the country at its full
value?
That the price Of labor measured in
gold has not declined, but increased IN
a marked degree everywhere in the civ
ilized world during the last quarter of
a century, has been already comment
ed on; hence If the purchasing power
Of gold has increased during this period
a given amount Of it would have pur-
chased more labor and not less, or,
what is the same thing. wages would
have fallen. which they have not done.
Measured by the price of labor, gold
has unquestionably deprecated. and
recent careful examinations indicate
that the ratio of its decline has been
from 100 In 1873 to SO in 1893. Measured
also by the decline in the rate of inter-
est on such established gold paying
securities as British consuls, the ratio