Alma record. (Alma, Mich.) 1878-1928, 1896-09-25
FALL OF PRICES.
NOT DUE TO APPRECIATION OF GOLD,
BUT TO CHEAPER COST OF
PRODUCTION.

Move" Theory with siIverites Gold Has
Appreciated Theory Measured by Price
of Labor. Gold Is Depreciating.
The Hon. David a. Wells, author Of
"Recent Economic Changes, and the
greatest American authority on the
cause Of falling prices, has a full page
article on this subject in the New York
Tribune of Sept. I. He finds that there
has been universal fall i'll prices, aver
aging 30 or 40 per cent. since 1873, but
that it is only III this country that the
fall is attributed TO the decentralization
of silver. Continuing, he says III part:
Granting, rs every intelligent person
must, that the recent universal decline
i'll prices cannot be due 70 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 its limited and
insufficient supply, and also that this
decline in prices followed the so called
decentralization of silver in some coun-
tries, and the closing of the mints In
other countries To its coinage.
The appreciation of gold, helped by
an alleged enforced scarcity of silver,
and decline III price seem, therefore,
to stand 10 each other in the relation of
cause and effect, and the cause Of the
advocates of silver has accordingly at
the outset much Of plausibility. But
plausi bility Is not proof. nor assumption
truth, as is strikingly illustrated by the
claim of the Rev. Jasper, pastor Of the
First colored church in Richmond, Va,
that 1.-THE sun do move" and the earth
do stand still, - and who has more Of
seeming facts III support of his faith
than can be adduced by the advocates
of the gold appreciation theory-fur
cannot everybody with eyes see the sun
move up every morning IN the east and
move down every evening III the vest:
And if the earth moves 10 miles every
second, as the astronomer bugs tell Us,
would not every movable thing fly off
its surface as mud does from revolv.
Ing carriage wheel? And as nothing
does fly off, is il not certain that the
earth stands still?
Investigation III the case Of the Rev.
Jasper and the advocates Of the gold APP
probation theory Will, however, lead to
different conclusions. 1t Is 10 be noted,
in tie first place, that tho aDrCcates Of
the latter t.Cory, III stating what they
assert 20 bc the truth, never express
themselves other than generally, in all
that has been written or spoken IL sup
port Cf the gold theory on either side Of
the Atlantic.
No one has ever been able TO name a
single commodity that has notably de-
cliucd III price within the last 80 years
and satisfactorily proved, or even at.
tempted 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 single COM
modify that has notably declined III
price within this time can be named III
respect 20 which clear. abundant and
specific evidence cannot be adduced in
proof that this decline has been due 70
decreased cost Of production or distribu-
tion or 70 changes III supply and de-
mand occasionod by wholly fortuitous
circumstances.
Melody, furthermore, has ever risen
70 explain the motive which has i'm
PEELED the honest sellers of merchandise
all over the world during the last %
years to take lower prices for their
goods in the face Of an unexamplod
abundance Of capital and remarkably
low rates of interest, except for one on
both of two reasOns-eXcess of supply
or diminished demand. Has any one
ever attempted to explain how il has
happened that during the recent period
Of the fall of prices the worlds stock of
money, and especially of silver, has been
constantly increasing?
Is it not plain that "a phenomenal de-
cline of prices III two parts of the world,
with entirely different monetary condi-
tions, must have had other causes than
a decentralization of silver in the United
States, which took place, if it ever did,
a comparatively short time ago (rcpeal
of the Sherman act III 1889, and which
has not prevented nearly $500, 600, 600
of silver credit money from circulating
III tIt AHC NOihllg az It's iulA IlpILilildl
value!
That the price Of labor measured in
gold has not declined, but increased in
a marked degree everywhere III the civ
ilized world during the last quarter of
"a century, has been already commented
on hence if the purchasing power of
gold has increased during this period
given amount of it would have purchas-
ed more labor and not less, or, what is
the same thing, wages would have fall
en-, which they have not done.
Measured by the price of labor, gold
has unquestionably deprecated, and re-
cent careful examinations indicate that
the ratio of its decline has been from
700 III 1878 TO SO in 1898. = Measured
also by. the decline in the rate of inter
est on such established gold paying Sc
curities as British consols, the ratio has
been from 100 in 1870 to 75 in 1896
Can anybody suggest better measure
for testing this issue?