People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1896-05-21
CHEApENINGOF PRODUCTION
II is Not Accountable for the Fall in
! Prices of Products.


We commend to the consideration
of our readers the following articl'
AIKEN from a recent issue OF Th'
American, a newspaper published
in Philadelphia in the inteFesto OF the
manufacturers of the United State
by Mr.. Wharton Barker, VINO Is
Republican Of great ability am
shrewdness.
He is a recognized authority Oh
economic science. His argume nj
shows conclusively, we think that
the general and universal fall in the
price of commodities in this country
is not due to the cheapened methods
of production. but logically traces the
fall in all commodities to the attempt
to maintain a gold standard Of money
in this country, and at the same time
come in direct competition with the
productions of the various silver
using countries Of the world. whether
agricultural Or manufacturing.
In showing that such competition
cannot be successfully met by the
manufacturing and agricultural in
dustries while under a gold standard
money system of this country, Mr..
Barker says:
Improved methods Of production
the introduction of economies, and
the substitution Of improved and
labor-Saving machinery, resulting ID
aleduCtiOn Of the labor cost OF pro-
ductiOn. do not Of necessity lead 20 a
fall in prices Prices naturally adjust
themselves to the money cost Of pro-
duction, for men will not permanently
work at a loss, and if the price that
can be obtained for commodity Is
not sufficient to reCOmpenSe those
engaged in its production for their
outlay of money, time, and energy
production will be Curtailed until, as
a result of the reduced supply, the
price rises to a point that will repay
those engaged in il for their expendi-
ture of money and labOr in production
and if, on the other hand, the price
of commodities rises much above the
cost of reproduction, those engaged
in less profitable empl0ymentS will be
tempted to embark in the produc-
tiOn of that commodity by the pros
poets of larger profits, and production
will be thereby increased until, as a
result of the increased supply, the
price falls back to point that will
not tempt further increase Of produC-
tiOn.
But the money cost of production
does not always fall with the intro
duCtiOn of labOr-saying machinery,
resulting in cheapening of the labor
cost of production, and if the money
cost of production does not fall, prices
will not fall. Unless there is a
change in the value of money, the
cheapening in the cost of production
of any commodity must lead to fall
in price, and the general introduction
of improved methods of production
and transportation to a general fall
in prices propOrtiOnate to the saving
of labor, time, and energy in prOduc-
tiOn and distribution. But such a
tendency of prices to fall consequent
upon cheapening Of the actual cost
Of production may be entirely Offset
by an increase of the quantity ofmOn-
ey in circulation and fall ia the
price of money as measured by COM
mOditieS.
The value Of money is dependent
upon supply and demand. When
based on gold, as at present, the sup
ply of money is limited to the amount
of gold that is coined and availa BILE
for coinage, for although paper mon
ey and bank credits are used extern
sively in exchanging commodities
such paper and credits are based on
gold aud redeemable in gold, and il
the volume Of gold is contracted the
paper money and credits resting on
gold must likewise be contracted. II
the quantity OF gold in use as money is
increased, the quantity of paper mon,
ey and bank credits based upon il
may be increased; if the quantity Of
gold is contracted, the money and
credits resting on such gold must be
likewise contracted. just as bank is
obliged to contract credits when the
cash in Its vaults is depleted.
Those having money have but Ont
use for ito exchange it for thOst
commodities they desire, and tn,
greater the quantity Of money in cir
culation the more money there will ht
to be exchanged, hence the greater tn,
demand for commodities. And a.
the quantity of money in circulation
makes the demand for commodities
the quantity of goods in the hands o
those DESTROYS of selling them-tha
:, &c oxobopc;pn than, En- ,,,n,,o,.