Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1896-03-06
AS TO THE FARMER.
HOW PRICE LEVELS ARE DETER
MINED.

About an Era Of Low PriceS-Th
Remedy Is to Return 10 n Ri
metallic Currency, and RestOr
the Equilibrium Between Debt,
Taxes, and the Prices of Com
! modities.
The following monograph by A. !
Warner, President OF the America
Bimetallic League, presents unanswer
able arguments in support of return
to moneyed system under which ou
people were so prosperous and happy
Every farmer understands the i'm
mense difference to him between
scale OF prices indicated by wheat at {
dollar, corn fifty cents, wool twenty
five cents, cotton ten cents, and othe
things in proportion. and one indicat
ed by wheat at fifty cents, corr
twenty-five, wool twelve and a half
cotton five and other things in pro
portion to this scale; but when asked
what it is that determines whether the
one scale or the other shall prevail, he
is at loss for an answer. He knows
we'll enough that the scale indicated
by dollar wheat, fifty cent corn,
twenty-five cent wool and ten cent
cotton, would make him prosperous,
and enable him to pay his debts and
taxes, educate his children and enjoy
some of the comforts his hard labor
entities him to. He knows, too, from
sad experience, thaS the lower scale OF
prices for what he produces, while his
debts and taxes remain the same as
under the higher range of prices,
means ruin to him if he is in debt,
and means hard scratching to make
ends meet, if he is out OF debt, and
leaves nothing for comforts and little
for the education of his children; for
when it takes forty acres of wheat to
send boy to college, as it does when
wheat is worth but fifty cents a
bushel. few farmers boys will be sent
to college.
Now, is il not q fact within the
knowledge Of all farmers who have
worked farms for the past twenty
years, that in that time change in
the price level of farm products equal
to that here indicated, has actually
taken place? The question then for
the farmer TO answer to himself is,
what has caused this change? Have
the farmers brought it about them
selves, Intentionally? Hardly. The
answer the gold standard men make is
improved methods of production,
and consequent over-production."
Let us carefully examine this explans-
ton. What have been the great i'm
provements in agriculture in the last
fifteen or twenty years? That there
have been improvements in imple.
ments of all kinds will not be denied
but none to materially cheaper pro.
duction, much less to greatly increase
production. Is it not true that most
of the modern agricultural machinery,
such as the reaper and mower. horse
rake, gang plow, sowing aud planting
machines, and many others, were all
in use before the end of the third
quarter of the century, or before 1875!
What one of really great importance.
except, perhaps, the self.binder, has
come into general use since 1875? Is
it not also true that during the period
from 1850 to 1875, while these i'm
provements were rapidly coming into
use, and while products really did in.
crease much faster than population,
that prices all this time were slowly
rising? This certainly is true.
Moreover. how does it come about on
the theory Of improved methods Of
production and consequently over
production, that land itself, and many
things in tho production Of which, and
In the supply Of which, there has been
no improvement and no increase
have nevertheless, shared with every
thing else decline in price! Finally,
the bottom fact is that there has been
no increase outrunning population in
any of the great staples.
The increase in the annual produc'
ton of wheat, cotton. wool or cattle
has not kept quite up with the In
crease OF population. There has moi
been quite 80 much wheat on the
average per capita for the population
consuming wheat, in the last five
years, as in the preceding five years
and 40 generally.
Hence, the theory OF improved
methods of production and over-sup
ply fail entirely to account for the fall
OF prices. Moreover, it is we'll set
tied principle in economics that while
there may be disproportionate produc'
ton, over-production of all things II
impossible. That would be equivalent
to saying there is too much wealth tc
divide. And again, as will be shown
further on, while increased production
in particular things may cause fall
in the prices Of such things, or in re'a
tive prices, it cannot cause fall In
general prices. Nor would an increase
in the production of things generally
cause . fall in the general level o
prices if the supply of money increased