The Maryville times. (Maryville, Tenn.) 1884-1944, 1896-08-06

now ~ the existing prices what would you
have gained by the Change from the old 10 the
new conditions?
FaiIacy OF 30 Cent Dollars.
Money received for wages. like money re-
ceiyed on every other account, Is valuable only
TO the extent that it can be exchanged for the
other commodities and it is scarcely necessary
TO suggest that dollar worth 80 cents will
not purchase AZ mach III the markets as dol
lar worth 100 cents. To call dime dollar
would add nothing whatever to its intrinsic
value or purchasing power; 1t would still buy
only dimes worth of goods. II these PROPOSE
tons are correct, it Is clear that when wages
are paid in deprecated currency the rates Of
wages must be increased in proportion to the
depreciation of the money and In proportion
to the increase In the prices OF other things or
the laborer will suffer loss. But affirm that
1t is the universal rule that the rates Of wages
do not increase in proportion to the deprecia-
ton in the value Of the money I'm which they
are paid, and that when the currency Is depre-
ciated the rates of wages do not increase in
proportion to the increase in the prices Of the
commodities the laborer Is compelled to pur-
chase. II there has been single exception to
this rule in this or in any other country. my
investigations have not enabled me to find it,
and do not believe one can be found.
Our War Experience With deprecated
Currency
1t is not my purpose to weary you by the
presentation of voluminous statistics, or by
tedious recital of facts, but the particular
proposition now under consideration is Of such
great Importance in the discussion Of this sub
ject that you must permit me to call your es-
pecial attention to the experience OF the labor
ing people III our own country during the years
Immediately following the introductionas, q de-
al
the very low rates Of wages which now prevail
in countries having the silver standard of valr
ne or the SO called double standard of value
| with coinage OF silver at legal ratio not cor
| responding with the commercial value OF the
metal and, in doing this will make no state
ment that cannot be fully sustained by reliable
evidence
On the 3D. Of March. 1898, a subcommittee Of
| the committee on finance in the United States
senate made report on the course OF prices
and wages in this country for period of 81
years. embracing 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 what effect
deprecated currency has on wages and prices
will briefly state some Of the most material
facts and conclusions embodied in that docu-
ment. The subcommittee consisted of five sem
ators representing both political parties and
both sides Of the currency question, and 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, so far as it
rela.es 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 depreciate and before the close of the year
the paper dollar was worth less than 76cents
in gold. From the time the depreciation bega.
the price of commodities and the wages of la.
Dor were paid in paper currency, and the in
furious effect upon the interests of the labor
ing man is clearly shown in. the report re-
| ferred to-
Werkingmen the Sufferers.
In 1862 the wages Of lhbor. paid in depreci-
ated paper, wcre less than per cent higher in
paper than when paid in gold, but the prices
Of the 223 articles used by the laborers and
other people in the maintenance of 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
90 cents on the dollar were lo1a per cent higher
than when paid in gold. but the prices of the
articles the laborer had to buy with his wages
were nearly 40 per cent higher. In 1864 the
wages Of labor paid in Deprecated paper dol
lars worth 40 cents each had advanced 2515 pei
cent, but the prices Of the necessaries Of life
had advanced 90I per cent: in 1865 wages PAID
in paper currency worth GO cents on. the dollar
had advance 40 per cent above the rates pre-
viously paid in gold. or its equivalent but thu
prices Of commodities had advanced nearly III
per cent-that is to- say, had more than dou
| al ox&1 Ia Gtxraf v1n{I In
worth Il cents on the dollar had advanced
fraction more than 81 per cent from the previ
Gus rates in gold OK its equivalent, but tn,
prices of commodities had advanced 20 pei
cent. The rise in the rates Of wages never cor
responded with the rise in the prices OF othe
things until the yesr 1850, four years after tn
close Of the war. when the value Of our cur
rency was Il cents on the dollar, and it wa
quite certain that no further depreciation,
would occur. In 1850 this country was ON
gold basis and and been on that basis for man,
years under the operation of the acts of ls8
and 1887. Wages were then paid In gold or 1t
equivalent and by reducing the wages paid il
deprecated currency to q gold basis an,
! comparing them with the rates paid in gold il
1860 we shall have another demonstration .
the injurious effects of cheap money ON the in
terests Of the laborer.
On this basis the laborcr received 10 cent
and 9 mills in 1863. instead OF the gold dol}a
ho received in 1850; in 1864 he received so cent
and mills instead Of o gold dollar, and in lSe
. he received Sc cents and mills instead Of
!, gold dollar.
In other words, the wages of labor, meas
ured by gold us they were in 1850, when we hi.
q sound currency, had fallen about "a per cen
: in 1868, more than 10 per cent in 1864, an
nearly "A per cent In 1885. when we had
deprecated currency, and, gentlemen. th
, force Of this illustration is greatly augmente
by the facts that these reductions in the rate
Of wages occurred at o time when several hun
bred thousand laborers had been withdraw
from the field of competition. when the COY
: eminent was engaged in the prosecution Of
!. great war and was expanding money lavish
|. for all kinds of supplies for the army an
|. navy, and when the prices Of all the product
of labor had largely increased.
Surely II there ever can be time when a
. abundance Of cheap money will increase Il
wages and improve the condition Of laborin
= !, men these results ought to have been accon
plished under the combination Of favorab
= circumstances existing. especially in the grei
centers of industry, from 1851 to 1865, and y,
: there has been no other period in our histoi
] when the rates of wages fell SO rapidly or
! low.
= Chiie's Sad Experience.
, The recent experience OF the republic
; Chile furnishes another impressive warming
the wage Garner against the evils Of depr
;, ciated currency. That country had for lol
= time the so called double standard Of valu
J. with coinage Of legal tender gold and silver
;, the rate OF 1859 to !, but as this was consi
!, cradle differentiation of silver the coins
: that metal went out Of circulation and go
!. constituted the medium Of exchange and act
: al standard OF value until about the beginnii
% - ha 12-R INIT SOON tina foun ms