, 1896-10-10

The very low rates or Wages which no'S ,r.rai!
in countries having the silver standard Of vsi'
ue or the SO called .1cSS!n standu,d Of valtH
with coinage of silver at q lcsa, -..tio rot cor
responding with the commercial .alue Of the
metal and, in doing this, ! viii make no state
ment that cannot be iully sustained by reliable
evidence.
On he y; IT March, 1855, a subcommittee Of
the committee on finance in the United States
senate made "A report on the course Of prices
and wages in this country for IA period OF 81
years. uabracing the prices OF almost every
article Of consumption in common use among
the people and the rates of wages in almost
every industry carried ON during that time
and, in order that you may learn from this of
fetal and impartial investigation whit effect "a
deprecated currency has on wages and prices,
! will briefly state some OF the most material
facts and conclusions embodied in that docu-
mCnt. The subcommittee consisted of five sen.
ators representing both political parties and
both sides of the currency question, md the
investigation. which lasted nearly two years,
was most thoroughly and impartially made,
with no purpose in view except TO ascertain
and report the actual facts, and, 80 far as it
relates to questions of fact, the report was
unanimous. As stated heretofore. congress.
early in the year of 1862, inaugurated the pol
icy Of issuing legal tender paper, gold was
driven out of circulation. specie payments
were suspended, the currency began at once
to Gcprcciate and before the close of the year
the piper dollar was worth less than 20 cents
in gold. From the time the depreciation began
the price Of commodities and the wages Of Ia.
Dor were paid in paper currency, md the in.
furious effect upon the interests OF tho labor.
ing man is clearly shown in the report re.
fcrrcd to.
Workingmen the Sufferers.
In 1862 the wages Of labor, paid in deprcci,
ntcd paper, werc less than 8 per cent higher in
paper than when Laid in gold. but the prices
of the 2e3 articles used by the laborers and
other people in the mainl..c-"" %: their fam
lilies were nearly Is per cent higher than they
were when paid in gold; in 1868 the wages of
labor paid in deprecated paper worth about
GO cents on tho collar were lU1. per cent higher
than when paid in gold, but the prices OF the
articles the lahorer had to buy with his wages
were nearly 40 per cent higher; in 1864 tho
wages of labor paid in deprecated paper dol
lars worth 40 cents each had advanced 25la per
cent, but the prices of the nccessaries Of life
had advanced S12 per cent in 1865 wages paid
in paper currency worth G3 cents on the dollar
had advance I3 per cent above the rates pre-
viously paid in gold, or its equivalent, but the
prices of commodities had advanced nearly III
per cCnt-that is to say, had more than dou-
blcd. and Din 1865 wages paid in Il currency
worth II cents on the dollar had advanced u
fraction more than 81 per cent from the prcvi.
Gus rates in gold or its equivalent. but the
prices of commodities had advanced 20 per
cent. The rise in the rates of wages never cor.
responded with the rise in the prices of other
things until the year 1869, four years after the
close of the war, when the value of our cur
rency was II cents on the dollar, and il was
quite certain that no further depreciation
would occur. In 1850 this country was on "a
gold basis and and been on that basis for many
years under the operation of the acts OF 1854
and 1857. Wages were then paid in gold or its
equivalent and by reducing the wages paid in
a deprecated currency to II gold basis and
comparing them with the rates paid in gold in
Ihtl tV. shall NV. 18th -. r
the injurious effects OF cheap money on the in.
tercsts of the laborer.
On this basis the laborcr received 16 cents
and = mills in 1868. instead of the gold dollar
he received in 1850: i'll 1854 he received 80 cents
and s mills instead of a gold dollar. and in lsG5
he received Ui cents and 2 mills instead OF u
gold dollar.
III other words. the wages of labor, meas
urcd by gold aS they We're in 1850. when we had
n sound currency, had fallen about "A per cent
in 1863, more than 10 per cent in lsGI. and
nearly a pc, cent i'll ices, when VT had II
deprecated currency. and. gentlemen. the
force of this illustration is greatly augmented
by the facts that these reductions in the rates
of wages occurred at n time when several hun
dred thousand laborers had been withdrawn
from the field of competition. when the gov
crnment was engaged in the prosecution Of a
great war and was cxpcnding money lavishly
for all kinds of supplies for the army and
navy, and when the prices Of I'LL the products
of labor had largely increased.
Surely il there ever can be a time when an
abundance of cheap money Will increase the
wages and improve the condition OF laboring
men these results ought to have been accom-
plishcd under the combination Of favorabl,
circumstances existing, especially in the great
crlltcrs of industry, from 1861 10 1875, and yet
:here has been no other period in our history
when the rates of wages fell so rapidly or so
low.
Chile's Sad Experience.
Tho recent experience of the republic OF
Chile furnishes another impressive warning to
the wage Garner against the evils of u depre,
ciatri currency. That country had for IA long
time the so called double standard of value,
with coinage of legal tonGer gold and silver at
the rate of 1913 TO J., but rs this was II consid-
cradle differentiation Of silver the coins OF
that metal went out of circulation and gold
constituted the medium of exchange and actu
al standard of value until about the beginning
Of the year lsif, but as soon as the commercial
value of silver fell below the ratio Of III. 50 to |
rs compared with gold all the gold went out
IF circulation and the country had silver mon
olnrtallism. In 1875. before this change tocK
place, the peso, or dollar of Chile, was WORT.
about So. cents in our money, but in 1885, ten
years after. gold went out and silver came in,
the peso WAS worth less than 50 cents i'll our
money. Silver continued to dcpreciate and.
besides, large amounts of paper currency were
issued by the government aud the banks, and
III 1870 ~ "a ~ ~ tLAlbc iloIu II kOlu
basis to the silver basis. the peso was worth
only about I12 cents in our money.
Let US see now what effect this cheap money,
or, in other words, this system Of silver mono.
metallism which you are asked to adopt here,
had upon the wages of labor in that country.
Our minister at Santiago has very recently
made An official investigation and report upon
this subject. which has not yet been published.
from which 1t appears that in the northern
part of Chile. where labor has always been in
greater demand than Elsewhere ON account Of
the great nitrate fields located in that section
of the country, very little change took place
even in the nominal rates of wages notwith.
standing the great fall in the value Of tie cur
rency-that is. laborers continued TO receive
in deprectated money about the same amount
they received before in good money. In 1875,
when the peso was worth 8S11 cents, a me-
chanic, a boiler maker, o blacksmith, a car
penter, a fireman and IN ordinary laborer re-
ceived together for q days work 1871 pesos, or
&l8.B in our money; in 1885 the same persons
received for the same work aA PESOS, but ow.
ing to the depreciation of the currency this
was equal to only $40. % In our money, and in
1906, % years after the country had descended
to q silver basis. the same laborers received for
the same work 25.85 pesos, but the value of the
peso was less than 85 cents, and consequently
their wages amounted to only IS. "a in our mon
ey, or just about one-half Of what they had re
ceived 20 years before. In the central part Of
the country the result was substantially the
same, though not quite 30 injurious to tho Ia
borer. In 1875 q days wages for five men-a
mason, a carpenter. y Easfttcr. n painter and
an ordinary laborer-amountcd altogether to
%. u In our money, but In 1855 the waSes OF
the same men were &a-E3, and In 1886 81. %. In
the southern part Ct the republic there was
some increase in the nominal amount Of wages
paid between 1870 and 1850 on account of tho
fact that u line of railway was then Being CON
structed through that region by foreign capt
tai, but since the latter dnte the general aver.