The times. (Owosso, Mich.) 1882-1897, 1896-09-25
FALL OF PRICES.
'ioT DUE TO APPRECIATION OF GOLD,
BUT TO CHEAPER COST OF
PRODUCTION.

Appreciated Theory-Measureu Dy irico
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 full page
article on this subject in the New York
Tribune Of Sept. z. He finds that there
has been a universal fall in prices, aver.
aging 80 or 40 per cent. since 1878, but
that it is only in this country that the
fall is attributed to the characterization
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 strikingly illustrated by the
claim Of the 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 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 it not certain that the
earth stands still?
Investigation in the case Of the Rev.
Jasper and the advocates Of the gold APP
probation theory will, however, lead to
different conclusions 1t is 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
single commodity that has notably de-
clined in 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 it
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 and
specific evidence cannot be adduced in
proof that this decline has been due to
decreased cost of production or distribu-
tion or to changes in supply and 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 merchandise
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 "REMINISCENCES of supply
or diminished demand. Has any one
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 phenomenal de-
cline of prices in two parts of the world,
with entirely different monetary condi-
tions, must have had other causes than
demonstration of silver in the United
States, which took place. if it ever did,
a comparatively short time ago (repeal
of the Sherman act in 1889, and which
has not prevented nearly 5000, 600, 600
of silver credit money from circulating
in the the country at its full nominal
value?
That the price OF labor measured in
gold has not declined, but increased in
marked degree everywhere in 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
100 in 1878 to S3 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 70 in 1896.
Can anybody suggest better measure
for testing this issue?
Has any one ever endeavored to ex-
plain how an appreciation Of gold has
reduced the cost of railroad and water
transportation to the extent of more