The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-07-22

ject that you must permit me TO call your es
pecial attention 10 the experience of the labor
ing people In our own country during the years
Immediately following the introduction Of a do
preciated paper currency In 1852 and also to
the very low rates of wages which now prevail
In countries having the silver standard of val
ne or the SO called double standard of value
with coinage OF silver at a 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. 1893. q subcommittee Of
the COMMITTEES on finance in the United States
senate made-a report on the course OF prices
and wages In this country for a 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
dctal and impartial investigation what effect a
deprecated currency has on wages and prices
will briefly state some Of the most material
fhcts and conclusions embodied In that docu-
ment The subcommittee consisted Of I've 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 impartialy made
with no purpose In view except TO ascertain
and report the actual facts, and, so far as it
relates TO questions of fact the report was
unanimous. AZ stated heretofore congress-
early in the year OF 1852, 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 70 cents
In gold. From the time the depreciation began
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.
Workingmen the Sufferers.
In 1862 the wages of labor. paid in depreci-
ated paper, were 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 IL per cent higher than they
were when paid In gold: in 1868 the wages of
labor paid in deprecated paper worth about
60 cents on the dollar were l012 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 10 cents each had advanced 2512 per
cent, but the prices of the necessaries Of life
had advanced 9Ola per cent; in 1886 wages paid
In paper currency worth SO cents on the dollar
had advance ~ per cent above the rates pre-
viously paid In gold, or its equivalent, but the
prices Of commodities had advanced nearly III
per cent-that Is to say. had more than dou.
bled. and in 1865 wages paid in currency
worth II cents on the dollar had advanced a
fraction more than 81 per cent from the previ-
Gus rates in gold or Its equivalent. but the
prices Of commodities had advanced " per
cent. The rise In the rates OF wages never cor
responded with the rise in the prices of other
things until the year 1869. four years after the
close of the war. when the value of our cur
rency was II cents on the dollar. and 1t was
quite certain that no further depreciation
would occur. In 1850 this country was on a
gold basis and and been on that basis for many
years under the operation of the acts Of 1884
and 1887. Wages were then paid in gold or its
equivalent and by reducing the wages paid in
o deprecated currency to a gold basis and
comparing them with the rates paid in gold in
1850 we shall have another demonstration of
the injurious effects OF cheap money ON the in
terests of the laborer.
On this basis the laborer received 20 cents
and mills in 1868. instead of the gold dollar
he received in 1850; In 1864 he received 80 cents
and mills instead of gold dollar, and in 1886
he received " cents and mills instead Of u
gold dollar.
In other words, the wages Of labor. meas.
ured by gold as they were in 1860, when we had
q sound currency, had fallen about "a per cent
In 1868. more than 10 per cent in 1854, and
nearly a per cent in 1856. when We had a
deprecated currency, and, gentlemen, the
force Of this illustration Is greatly augmented
by the facts that these reductions In the rates
of wages occurred at time when several hun
bred thousand laborers had been withdrawn
from the field of competition. when the gov
eminent was engaged In the prosecution Of a
great war and was spending money lavishly
for all kinds of supplies for the army and
navy. and when the prices of all the products
Of labor had largely increased.
Surely If there ever can be time when
abundance OF cheap money will increase the
wages and improve the condition of laboring
men these results ought to have been accom-
plished under the combination of favorable
circumstances existing. especially in the great
centers of industry, from 1861 to 1861 and yet
there has been no other period III our history
when the rates of wages fell so rapidly or so
low.
ChiIe's Sad Experience.
The recent experience Of the republic OF
Chile furnishes another impressive warning to
the wage Garner against the evils of a depre
ciated currency. That country had for long
time the so called double standard of value,
with coinage Of legal tender gold and silver at
the rate of 1859 to !, but as this was consid-
cradle differentiation of silver the coins of
that metal went out of circulation and gold
constituted the medium Of exchange and actu-
al standard of value until about the beginning
of the year 1885, but as soon as the commercial
value of silver fell below the rStio of 1859 to
as compared with gold all the gold went out
of circulation and the country had silver mon
ometallism. In 1875. before this change took
place, the peso, or dollar of Chile, was worth
about ssh cents in our money, but In 1885, ten
years after, gold went out and silver came In.
the peso was worth less than 50 cents in
money. Silver continued to depreciate and,
besides, large amounts OF paper currency were
issued by the government and the banks and
In 1885, ~ years after the change from the gold
basis to the silver basis, the peso was worth
only about 841s cents in our money.
Let us see now what effect this cheap money,
a. - ...I.
metallism which you are asked To adopt here.
had upon the wages Of labor In that country.
Our minister at Santiago has very recently
made an official investigation and report upon
this subject, which has not yet been published,
from which IL appears that in the northern
part Of Chile. whore labor has always been In
greater demand than elsewhere on account OF
the great nitrate fields located in that section
Of the country, very little change took place
even In the nominal rates of wages notwith.
standing the great fall In the value Of the cur
rency-that Is iaborers continued to receive
In deprecated money about the same amount
they received before in good money. In 1875,
when the peso was worth ss1a cents n me-
chanc, q boiler maker, q blacksmith, car
penter, a fireman and an ordinary laborer re-
ceived together for days work 1917 pesos, or
$685. in our money; In 1895 the same persons
received for the same work 2OS4 pesos, but ow-
ing to the depreciation Of the currency this
was equal to only $l0.93 In our money, and In
1895, 20 years after the country had descended
to q silver basis. the same laborers received for
the same work 90 pesos, but the value Of the
peso was less than IS cents, and consequently
their wages amounted to only ss3l In our mon
ey, or Just about one-half Of what they had re-
ceived 20 years before. In the central part of
the country the result was substantially the
same, though not quite so injurious to tho la
borer. In 1878 a days wages for five men-a
mason, a carpenter. gasitter, painter and