San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1896-10-02
FALL OF PRICES.
Not Due to Appreciation of Gold, But
to Cheaper Cost of Production.


to Cheaper Cost of Production.
Hon. David h wells, author OF 'Re-
cent 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 September Z. He finds that
there has been a universal fall in prices,
averaging 80 or 40 per cent, since 1873,
but that it is only in this country that
the fall is attributed to the demoneti-
cation of silver. Continuing, he says
in part:
Granting, as every intelligent person
must, that the recent universal decline
in prices cannot be due to 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
demonstration of silver in some coun-
tries, and the closing of the minis in
other countries to its coinage.
The appreciation of gold, helped by
an alleged enforced scarcity of silver,
and decline in price seem, therefore,
TO stand to 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
plausibility is not proof, nor assumption
truth, as is strilingly illustrated by the
claim of Rev. Jasper, pastor of the
First colored church in Richmond, Va,
/ that "the sun do move" and the earth
do stand STILL" and who has more of
seeming facts in support of his faith
than can be adduced by the advocates
of the gold appreciation theory-for
cannot everybody with eyes see the sun
move up every morning in the east and
move down every evening in the west?
And il the earth moves 10 miles every
second, rs the astronomer bugs tell us,
would not every movable thing fly off
| its surface as mud does from a revolv-
ing carriage wheel? And as nothing
does fly off. is it not certain that the
earth stands still?
Investigation in the case of Rev.
Jasper and the advocates of the gold APP
probation theory will, however, lead to
different conclusions. 1t isl to be noted,
in the first place, that the advocates of
the latter theory, in stating what they
assert to be the truth. never express
themselves other than generally, in all
that has been written or spoken in sup
port of the gold theory on either side OF
the Atlantic.
No one has ever been able to name a
single commodity that has notably de-
clined in price within the last 30 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 il
cannot be done.
On the other hand, not a single com
modify that has notably declined in
price within this time can be named in
respect to which clear, abundant auo
specific evidence cannot be adduced In
proof that this decline has been due tc
decreased cost of production or. .dIstri
button or to changes in supply or de-
mand occasioned by wholly fortuitous
circumstances.
Nobody, furthermore, has ever risen
to explain the motive which has i'm.
PEELED the honest sellers of merchan-
disc all over the world during the last rs
years to take lower prices for their
goods In the face of an unexampled
abundance of capital and remarkably
low rates Of interest, except for one or
both of two reasons-excess of supply
or diminished demand. Has anyone
ever attempted to explain how it 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 in two parts of the world
with entirely different monetary condi-
lions, must have had other causes than
q decentralization of silver in the United
States, which took place, if it ever did,
a comparatively short time ago (repeal
OF the Sherman act in 1899, and which
has not prevented nearly $60o,000,0 900
of silver credit money from circulating
in the country at its full nominal valueP
That the price of labor measured in
gold has not declined, but increased in
marked degree everywhere in the-eiv-
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 a
given amountof It would have purchased
moro labor and not less, or what Is
the same thing, wages would have fallen,
which they hayernotdoue.
Measured by the price of labor, gold
has unquestionnbly deprecated, and re-
cent careful examinations indicate that
the ratio of its decline has been from 100
in 1873 to SO in 1893. Measured also by
the decline in the rate of interest on
such established gold-paying securities
as British consols, the ratio has been
from 400 in 1870 to rs in in 1896. Can
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