New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-09-07
PRICE THREE CENTS
BREAKERS AHEAD.
CAUSE OF THE PRESENT CRISIS
FALLING PRICES AND BUSINESS sTAGNA-
TION ACCOUNTED FOR.
NO CONNECTION WHATEVER BETWEEN THE pn1
EASE AND THE REMEDY WHICH THE SILVER
oUAcKs PREscRIBE-AN ANALYSIS
OF. THE SITUATION
BY DAVID A. WELLS.

BY DAVID A. WELLS.
When Mr. Webster rose In his place In the
Senate Of the United States-January 26. 1871
to reply to Mr.. Hayne. of South Carolina. ana
made what Is now admitted to be the most ceie-
brated speech ever delivered in this country on
the character of our political system as gov
ernment he prefaced it with the following
exordium
when the mariner has been tossed for many
days. in thick weather and on an unknown sea,
he naturally avails himself Of the first pause in
the storm to take his latitude and ascertain how
far the elements haze driven him from his true
course Let us initiate his prudence. and bef-D
we float further on the Of debate, refer
to the point from which departed that We
may at least be able to conjecture where We now
are"
What advice could be more applicable TO the
present situation of the country? What could
be more prudent and desirable. before we float
further on the waves Of debate" that antago-
nizes the interests of the people Of common
country, and threatens the stability of it's COM
mon government. that we refer to the points
from which we have drifted that may at
least be able to conjecture where are nowf
ANALYSIS OF THE SITUATION.
Unquestonably the first starting point In
this inquiry is the recognition of the existence
among the masses of an almost universal feei-
ing Of grievance and discomfort The second
point equally unquestonable. is that this feel
ing of grievance and discomfort Is mainly re-
ferable to a comparatively recent and universal
fall in the prices Of the products OF labor e..
commodties-and stagnation Of business. and
limitation of the sphere of employment for labor
which are always the consequences OF faiiihs
markets
;.I rJa ~ INN
sderaton is the cause occasion OF these re-
markable price phenomena; and until consist'
ent clear and truthful answer Is found ana
accepted. it is Of little use to speculate how the
aforementioned grievances and dscontents can
be remeded.
A very general and popular assumption ana
assertion on the part OF many who claim 70
speak with authority and on the basis OF
thorough investigation Of this subject. is that T"
has been occasoned by wnat Is called the de-
monetzation" intentional restriction OF the
use OF silver for money, as medium OF ex-
change.
The following illustrations OF utterances
and assertions of this character:
only issue Of the campaign ,So + sep nsspe Tn: ar
thinking about it The trouble is Is es not rs serf ef
he Tsn Of Ssnes rhe party has
decided that the trouble lies IN the financial sys,,
siiver"Arthur sewall. Pcpust candidate for Vice.
President Bath Maine JnIy e. y 1885 Sr,css Of farm.
n farm for Sn Of BY Speech Of
George +. Williams of Massachusetts,. to the
TRs p1form OF the chicago Convention
clares That the act Of 1873 demonetizing without
the knowedge or of d rod aeG
corresponding fall in the prices OF commodities
But they uhe bimetaists) -. are agreed that
only a prompt return to bmetallism can check the
iiipr,1e'W in rprces~Whartcn Barker. July l. 1896
g6d naf 'S %h " the the Void
and eIe5p sase saSe oeGn & s
If Il nndersaid i the DO ,ition of Mr. Reed. Gem
eral Walker. Mr. Lodge and the Republican party
the situation Of the country is disastrous in the
arsS nSS SsVs not " who % s to 81 r @
tion Of the currency caused by the demonetization
y 20 o yr T an its old pno
lsss SEsecn 0' BROOKS ADAMS esq., DoS'0" August 10
Now for these assumptions and assertions
there is not the slightest warrant. a scntilla
Of confrmatory evidence. Mere assertions. how
ever. in support OF this statement will not do.
and a demand for the most absolute proof is le-
gitimate If II cannot be given to the fullest
and most unanswerablo extent let the jury OF
the great American Republic. without rising
from their seats, give verdict for the defend
ant.
THE PHENOMENAL FALL IN PRICES.
The proof is multiple in its nature. In tho
first place this phenomenal fall OF prices has
been universal. 1t has manifested itself in all
countries whatever may be their medium of
change-copper. silver gold cocoanuts. pigs
bananas the two latter being currency in some
Of the South Pacific islands The Esquimaus Of
Greenland, although they probably have no such
words as money or "cLrrency' In their lam
guage have experienced it, because they have
found out that the mer who come to them in
ships will not give az many coats or knives In
exchange for their peculiar products they for
merly would The Indians who gather Peruvian
bark fcinchona) in the forests OF South America
cannot get as much as p per cent of what they
received twenty years ago in payment for the
products OF their labor The cul,ivators and
dealers In opium in India did not receive in 1898
for the sale Of their product-mainly to the Chi.
nese-as much by many million dollars as they
did ten or fifteen years ago. II the present low
price of wheat is grievance to the American
farmers. II Is equally so TO the Russian peas
ants, the Indian ryots. the growers in Argentina
and Manitoba and the Austro- Hungarian pro-
ducers. For the price of wheat. making allow
ances for variations In the cost of transporta-
ton to the great csrea, market OF the world
namely. Liverpool. IS fixed by its price in that
market. and is always the same to all competi-
tive producers.
THE EXTENT AND CHARACTERISTICS OF
THE FALL IN PRICES.
1t is obvious therefore. that the phenomenal
fall Of prices under consideration could not have
proceeded from any local agency The deter
mining cause. whatever IT may haze been mas
also not acted uniformly In the case OF ma
ior,tv Of the commodities that constitute the
hulk Of the worlds trade and commerce. the av-
eraee decline in price during the last twenty or
twenty-five years--or since 1SI3-as calculated
a.. 49, I-nItod States and Europe with the