The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1896-10-10
GREAT FALL IN PRICES
new WOULD FREE COINAGE BEN
EFT THE FARMER.
Decline in Prices Began with the
Striking Down of SiIver-Free
Coinage the Remedy.


intelligent people, and It may be its
answer will reply to many. A further
reason for its answer Is that when the
effect of free coinage is understood the
necessity for further argument on he
subject viii have passed.
1t is universally admitted that there
is a widespread depression in agricul-
ture as well as commerce. a continuing
decline I'm prices which, unless checked,
threatens the humiliation Of the farmer,
and with it the downfall Of the merchlnt
and manufacturer. When this is under
stood self interest viii impel them to
political union as a means of prcscrva-
ton.
An effort is being made, by our poIlt-
ical hacks, to have it appear that the
creeping paralysis which is shrivcling
the limbs of agriculture began in 1892
but the attempt is not warranted by the
facts. The political chameleon residing
at Canton. who had a silver-colOred skin
In 1891, but who now says it is yellow,
In his report filed with the tariff bill
In 1890 regarding agriculture. said that
there is widespread depression in this
Industry cannot be doubted. One of the
shlet complaints now prevalent among
our farmers is that they can get no price
for their crops at all commensurate with
the labor and capital invested i'm their
production. Our people. already suffer-
ing from low prices will not be satisfied
with legislation which will result in low
ar prices. The depression in agriculture
is not confined to the United States. The
distress Is general. Great Britain
France and Germany are SUFFERING in n
larger degree than the farmers OF the
United States" The significance of this
statement is that it was made in 1890
after % years of tariff legislation. and
by the high priest of protection.
Bearing in mind this depression which
existed IN 1880 1t is pertinent 20 inquire
when began the fan of prices which
brought it about It started alon.r from,
1870 to 1873. This will not be denied
Further inquiry reveals the fact that
from 1850 to 1870 there was continued
rise or prices. Nor will this be disputed.
That such are the facts is agreed but
the goidite and the bimetallist differ ms
to the cause. But let us examine into
this fall of prices. The general rance
OF prices for a given term of years can
be got at accurately by what is known
as index numbers, the selection Of =
large number of commodities Of such n
character as to indicate the condition
OF the market and extending over q nnno-
DER or years, the average being stated
at 100. According to these tables prices
IN Germany fell % per cent from 1879 TO
1871 in England 30 per cent from 1879
10 1873, and in the United States about
20 per cent for the latter term of wears
But let me be more specific.
In 1873 corn was worth to the farmer
~ cents n bushel, a return of s1fH TO
the acre; in 1898, % cents pushed a
return of $3.50 an acre. In 1873. wheat
sl.l5 or S4.59 per acre. in 1898 a. cents
or S5OS per acre. Overproduction won't
account for this difference in price be-
cause the per capita quantity of wheat
i'm
were worth Sl3 less in 1893 than in 1879
~ per cent. Notwithstanding there were
less COWS in proportion to the popula |
uon, and no one will claim this was o,v
ing to improved methods of Droduc- |
ton Then, too, land has gone down
correspondingly in price. even in the |
ola and thickly settled communities |
ana with the area of arabic land de-
creaslng IN proportion to the popula-
ton. NP"'"
In the beginning of my explanation of /
the cause of this runOus decline of |
prices which threatens to become the |
ruaelstrom that will eventually swallow /
lne Iarmer-yes, has swallowed its tens !
OF thousands state as a Fundamental |
that q contraction of the or
culating medium means, at all times anc /
III al countries. a lowering of prices; and /
the converse is equally indisputable: that /
an increase in the money volume means a |
rise III prices. l take il this is a fact that !
none who have given attention to eco /
homie subjects will dispute. Prices are |
determined and regulated by the relative |
quantity or property and money and the |
ueihahd Tor each. Money being a meas
ure Of value it is evident that when the
amount Of money is decreased. the
amount OF money remaining still meas
nring the property, that prices must be
lowered IN order that It may do this
Inc recent change from high to a low
leVel or price is due to a change i'm mon
ey' OF the nature of or in the direction
Oh absolute contraction" (Ginen). THE
y production Igoldl can not meet
AZ ~, ueilanu' the result would
doubtless be a tendency to a fan of
prices (Jevons). Limited supply win
tIect the value of those precious metals
ana through them lower prices" (Thorold
Rogers
II may be further stated that there has
never Deeh a contraction of the currenry
NJ any country demand remaining me
same, Of course), without am accompany-
Hs ran IN prices. AT the time of the dfs-
.oVeIy or America the amount of metal I
lc money In Europe had shrunk from 1000
ilillohs TO 40 millions and prices were
He lowest ever known. England COM
nenced the contraction Of her currency
~ going to the gold standard In lisa
" nat Followed is told by Tom Reed OF
ualne' Merchants failed. banks broke
ma universal distrust poured over the
anu Examining history on the subject.
We md that the effect upon prices was
Tot less immediate or appalling. They
lecllned IN general within six months.
o half their former amount;
distress was universal (Aison). and
within seven years the landowners were
educed in number from 100000 to 10000
ersohs. NOW take the United States
'ur money volume reached It's maximum
? 1860, with a per capita circulation of
70. 1t was steadily contracted TIN 1869
a per capita Of less than SIS. Then {
anne the manic of 1879 ,