The times. (Owosso, Mich.) 1882-1897, 1896-07-17
A Little One Sided.

! Mr.. f. A. Baker, of this city, known per-
sonally to many of our readers asa lawyer
of ability who Is largely interested in stock
raising and farming. has compiled state
ment for the purpose of showing that the
decentralization of silver is the sole cause of
the present low prices of agricultural pro-
ducts. Mr.. Baker starts out by showing
that in 1874 silver and gold were at parity,
each being quoted at premium of 1917 per
cent over greenbacks, which were then the
ordinary currency of the country. At that
time pound of gold was the exact equiva-
lent in value of 10 pounds of silver. Taking
a list of % different agricultural products,
including wheat, -four, corn, oats, pork,
beef, WOOL butter, poultry. etc, he figures
out the number of pounds of each at the
Chicago market prices of July 1, 1874, which
one pound of gold. or one pound of silver
would then have purchased. From these
figures he finds that one pound of gold would
then have brought an average of 7,S47 lbs. of
agricultural products, and that at the quota
lions of May Is, 1896, pound of gold would
purchase 1873 pounds Of these same arti-
Giles. From these figures he deduces the
statement that the purchasing power of
gold to- day is over SO per cent greater than
1t was in 1874, taking agricultural products
and silver as the standard of comparison.
In looking over the figures given by MIR.
Baker, and they are undoubtedly as nearly
correct as possible, and thinking over the
course OF market values in the past % years,
the period referred to by him, the thought
at once struck us that IL the higher price of
gold, or the lower price of silver, was the
trouble, why did these products fluctuate in
value from year to year, and why were some
of them within the past five years as high as
in 1874 when gold and silver were at a
parity? Take any one product and follow its
course for % years. and see what tremendous
| fluctuations haye occurred. Thus hogs,
within ten years have once been up to 81 per
hundred lbs. live weight, and twice to So;
now they are down to So. 80 per hundred at
Chicago. They have declined to those fig
ures from $4.75 year ago. The same
statement applies to the value of cattle dur
| ing the same period, while silver has really
| advanced slightly within the year. Corn,
| within five years has sold up to 75c per bu-
shell, and down to -27c. Silver was as low
when it sold at 75c as now when it sells at
| 81. Potatoes two years ago were worth roc
| per bushel, year later SOC, and now 10 to
Sn hos
period, and, of course, gold could not have
advanced. Butter has sold as high as Csc
within three years in this market, and is now
down to Ice. Silver is worth little more
now than when it was selling highest. The
same fluctuations are apparent in oats, rye
and barley, and of course in their products.
We think, when the cause of low prices
| is being studied, other factors besides the
| demonstration of silver will have to be con-
sidered. Increased competition in outside
| markets by foreign countries will be found
to have had a strong influence. Thus the
building of the Suez Canal, the extension Of
| railroads in Russia and India by which the
products of those countries are enabled to
compete with those of the United States;
the great extension of meat raising and
woOl-growing in Australia, the Argentine
Republic and South Africa. Then come
the fluctuations which arise from an under
Or over supply, which are greater than
arise from any other one cause. Next we
may cite the result of tariff changes, which
in the case of wool, hay, ETC., is very con-
siderable. Take the case of wool: In May,
1891, five years ago, 104 quotations for the
different grades are reported by the Coates
Brothers, certainly good authority, to have
averaged 24.79 cents. The latest circular of
this firm gives the average of these same 104
quotations as 1922 cents. There is drop
of IL 81 cents. AT the same dates, or near.
|! ly so June y, the London Economist gives
the average of IL quotations of English
woods as 1917 pence in 1891, and 10 06
pence May %, 1896, a fall of only SO per
cent, while American was falling AZ. SO per
cent.
The same authority gives the average of sc
quotations of colonial and foreign woods
| kLuOolly huotulidhs uiio 1Outh AiiiOohI &C
10. 90 pence in 1891, and 11.5S pence in 1896,
decline of 15.41 per cent So it will be
seeN that American wool has declined Aus
per cent since free wool become assured.
while foreign only declined 15.41. differ.
ence of 2.47 per cent as the direct result OF
tariff changes.
But aside from direct results from the eff.
fects of the new tariff came paralysis of
business which has cut down the earning
power of the masses, through lack OF EN-.
ployment, lower wages, etc., fully rs pei
cent, and cut off their consuming ability tc
at least that extent.
In enumerating the causes of lower prices
therefore, it is quite certain that no one can
be held entirely responsible; and while we
believe the demonentization of silver un.
doubleday was factor, it has been only one
and not the greatest either. We need no,
expect, therefore, that free silver coinage