New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-09-07
Colgate s. Co.'S


per cent more than at present! ana VIII iio'
some supplementary provisions 10 the Tree co.,i-
age act be necessary to prevent their so ooii )
THE TRUE CAUSE Of THE DECLINE IN
PRICES.
But II the opinions popularity entertained re-
specting the universal decline in prices are not
warranted the question next naturally arises,
What has been the true cause? All VINO nave
thoroughly and without prejudice studied the
subject are agreed that il is to be found IN inc
following facts: That man within the last
thirty or forty years has attained such greater
control over the forces Of nature. and has SO
compassed their use, that he has been able 10 40
far more work in given time and produce iai
more product, measured by quantity III ratio
to a given amount Of labor. than ever before
How great has been the average increase or
saving in the worlds work Of production or dis
tribution cannot perhaps ! e accurately stated.
But few investigators place it at less than forty
per cent and in some great branches or INDUS
try 1t has certainly amounted to ~ or 81 per
cent Taking majority of other than hahd-
made commodities into consideration, the SAVING
of labor within the last thirty years has proc
ably been equal to at least 40 per cent in pro-
fore. a natural sufficient and ron disputablc
cause of the remarkable decline in prices under
consideration, and also tor the continuance of
s,,ch decline: for prices are still falling. and the
only assignabe and probable reason why the
decline experienced has not been greater Is,
that decreased cost has CccasiOned increased de-
nand and consumption. which to considerable
extent has antagonized the natural tendency
to decline.
This decline in prices admits Of many examples
of complete demonstration and Illustration IN
respect to cause: namely. increased production
by reason of improved methods, or new condl-
lions which have resulted in decreased cost;
supply in excess of current market demand ana
continuous decline in market prices. IN otner
words the price Of any CONNIE dity is fixed simply
and solely by the proportions OF SUCH articles
as are produced and consumed, ana prices can
not be- and are not fixed in any other way.
Take first, the market decline in the price
of wheat which typifies more than any otheI
one product the grievance OF the American
farmer The cause of this decline Is the mus
putable fact that more wheat mas peen' ana -
still nroduced not perhaps more than the world
wants but more than 1t is Wiling 10 puy, me
average annual wheat crop or me mte eco StatsH
in the four years 1S69-I2 was ~, 10 wv push.
els Since 1890 the average crop has been cpou'
1OOOOO0 bushels. In 1915 there was GOO
ticaIly no wheat exported from lndla N, IN TO-
India exported J6, ,y6G.OOU bushels In lSoo the
Argentine States of South America were not
named as q factor TO the smallest extent III wv
worlds wheat supply. To-day they are ainons
tic
,,Ius nroduct exported in 1894 6OOOOoOO bushels
4 few Years ago there were but few reapers ana
harvesiers for wheat in Russia. ana haruis
ara,r elevator in connection with storage ana de-
S,,arv buildings To-day Russia is rapidly IN
reducing improved agricultural machinery WIN
the result that its annual wheat prouuuC1' ma 3,n
roased from 16S 80 900 bushels in 1871 10 NV
600 o00 in 1894 There has also been a yer!
marked increase in recent years III tic y, ~
cron. Of Austro- Hungary ana OF Spah' ~ -
;rnnossible therefore, to resist the conclusion
Of
baen Increasing much faster than the neccssi'ies
81 the worlds wheat eaters; ana INA. ,,v
creased production has peeh III ,e sns cost In
where wheat is produced at the east cos.. IN t
sa;,ion IN these conditions we nave nov vi,
announcement that the surplus Oh asil.e i IN
PRODUCTS in Australia avahapie ~, ao1lo ~ the
excess Of the demands OF tnc Peop'e
I-nited Kingdom for consumption; ,,o, oot
n,so ,ncrease in the average OF the amman COT
ton crop in the United states ID me 1oS nar cent
is3112 to 1SS9-90 was more than loU per cem''
lila tho increase in the population OF thc cour-
trv during the same PERIOD VAS aoou ,t .' ~
cent During the same period II - ocl ."i'' -,
.ba worlds consumption Of cotton dld not heeP w
,,h ;ts production. The legitimate sequei "a
Vie has beer that midland cotton that soiu III
$40 for II ; cents per pound sells now 'Ausus''
1886 for rs cents
UNIVERSAL DECLINE.
c,n,i,ar illustrations of what has happened to
tho worlds products might be multiplied 10 al
,,,os, onv.extent but space will admit Of but few
aad,,,ona1 citations In 1858 the metal alu-
ninium sold for 500 per pound. Its present mar
bot vah,e is less than 30 cents. Copper Kettles
which sold in 1860 for 81 30 can now be bought
for - cents and this homely example illustrates
tho great decline which has taken place IN the
nrce of copper since 1880. i. e, from - cents to
10 and II cents in 1896. which has been mainly
due to the extraordinary productiveness or Amer
lean mines and methods Of mining and
smelling. Pig iron sold for $50 per ton in 1913.
The same grade now be bought for Sll Be
tween 1873 and 1892 the increase In the produc-
ton Of pig iron in the United States was ~ per
cent Recognized authorities state that since
1890 the worlds wool clip has increased 100 per
cent Careful analysis has shown that the de-
crease in price in recent years Of the four great
raw materials OF the worlds industries -iron,
wheat cotton and wool-in consequence OF over
supply Of each of them in excess of current de-
mand has materially affected the market price
OF products On tie way OF decline) whose aver
age annual value is not less than 2.O0O.W0,O0O
OF gold dollars
Again. the price Of money. represcr ting cap
ital. has continually declined since 1871 in all
god-standard countries. in almost as great a
degree agricultural or manufactured prod
ucts, and to the treat detriment of a large
numte r of good people who own a small capital
invested in securities besides carrying on some
business profession and on the combined
incomes from which they depend for living.
In 1877 an investment Of $4,000 could be re-
lied upon for an annual income OF S6rI. To-
day the same amount of money, invested with
equal security, cannot be made to yield more
than $500 per annum. And for this result
which may be fairly regarded In the light Of a
depreciation Of all property, the conceded in
crease in the amount Of the worlds capital
seeking investment is clearly accountable. In
contravention Of this conclusion. IL is asserted
that money cannot command as big interest
as formerly as borrowers are too poor In col
lat q bid for It." But the fact is. that the
rates Of interest are lowest in those countries
like England and France-where good collat-
erals are most abundant
Land unquestionaby in recent years has also
declined in value. due in certain and correct
sense to reproduction. The fixed acreage Of
the United States has not increased but the
tillable acreage has been enormously enlarged.
Every railroad that has been built at the West
IL Qrlt