Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1896-09-18
FALL OF PRICES.
NOT DUE TO APPRECIATION OF GOLD
BUT TO CHEAPER COST OF
PRODUCTION.

he HULL IJdNlM n N'lA't tNN-+D- ~
"Recent Economic Changes, and the
greatest American authority on the
cause Of falling prices, has a full page
article on this subject in the New Yorl
Tribune Of Sept T. He finds that there
has been a universal fall in prices, aver
aging 30 or 40 per cent. since 1873, but
that it is only in this country that the
fall is attributed to the demonstration
Of silver. Continuing, he says in part
Granting, as every intelligent person
must, that the recent universal decline
in prices cannot be due to any local
agency, but must be attributed to some
universal influence, it is claimed that
such an influence is to be found in an
appreciation in the value or purchasing
power Of gold, owing TO its limited and
insufficient supply, and also that this
decline in prices followed the so called
decentralization Of silver in some coun-
tries, and the closing Of the minis in
other countries to its coinage.
The appreciation Of gold, helped by
an alleged enforced scarcity Of silver,
and a decline in price seem, therefore,
to stand to each other in the relation OF
cause and effect, and the cause Of the
advocates Of silver has accordingly at
the outset much Of plausibility. But
plausibility is not proof. nor assumption
truth, as is strikingly illustrated by the
claim Of the Rev. Jasper, pastor Of the
First cOlored church in Richmond, Va,
that "the sun do move, " and the earth
do stand still, and who has more Of
seeming facts in support Of his faith
than can be adduced by the advocates
Of the gold appreciation theory-for
cannot everybody with eyes see the sun
move up every morning in the east and
move down every evening in the west:
And if the earth moves 10 miles every
second, as the astronomer bugs tell US,
would not every movable thing fly off
its surface rs mud does from a revolv-
ing carriage wheel? And as nothing
does fly Off. is it not certain that the
earth stands still?
Investigation in the case Of the Rev.
Jasper ard the advocates Of the gold APP
probation theory will, however, lead to
different conclusions. 1t is to be noted,
in the first place, that the advocates Of
the latter theory, in stating what they
assert to be the truth, never express
themselves other than generally, in all
that has been written or spoken in sup
port Of the gold theory on either side Of
the Atlantic.
No one has ever been able to name
single commodity that has notably de-
clined in price within the last 80 years
and satisfactorily proved, or even at
tempted to prove, that such decline was
due to the appreciation Of gold. And
the reason for such default is that it
cannot be done.
On the other hand, not a single COM
modify that has notably declined in
price within this time can be named in
respect to which clear, abundant and
specific evidence cannot be adduced in
proof that this decline has been due to
decreased cost Of production or distribu
tion or to changes in supply and de-
mand occasioned by wholly fortuitous
circumstances.
Nobody, Furthermore, has ever risen
to explain the motive which has i'm
PEELED the honest sellers of merchandise
all over the world during the last %
years to take lower prices for their
goods in the face Of an unexampled
abundance Of capital and remarkably
low rates Of interest, except for one or
both Of two RESPONSIVENESS of supply
or diminished demand. Has any one
ever attempted to explain how ii has
happened that during the recent period
of the fall of prices the worlds stock Of
money, and especially Of silver, has been
constantly increasing?
Is it not plain that a phenomenal de-
cline Of prices in two parts Of the world,
with entirely different monetary condi-
tions, must have had other causes than
q demonstration Of silver in the United
States, which took place, if it ever did,
a comparatively short time ago (repeal
Of the Sherman act in 1899, and which
has not prevented nearly 5000, 600, 900
Of silver credit money from circulating
in the the country at its full nominal
value?
That the price Of labor measured in
gold has not declined. but increased in
q marked degree everywhere in the civ
ilized world during the last quarter Of
a century, has been already commented
on; hence if the purchasing power Of
gold has increased during this period
given amount of it would have purchas-
ed more labor and not less, or. what is
the same thing, wages would have fall
en-, which they have not done.
Measured by the price Of labor, gold
has unquestionably deprecated, and re-
cent careful examinations indicate that
the ratio Of its decline has been from
100 in 1878 to SO in 1898. Measured
also by the decline in the rate of inter-
est Oh such established gold paying Sc
curities as British consols, the ratio has
been fyom 100 in 1870 to 70 in 1895.
Can anybody suggest better measure
for testing this issue?
Has any one ever endeayored to ex-
plain how an appreciation of gold has
reduced the cost Of railroad and water
to the extent Of more
than 70 per cent within the last 20
years, although the wages Of employees
have advanced during the same period:
If, on the other hand, these reduc-
tons were caused by the suppression
Of the free coinage Of silver, will not a
reversion Of policy enable the railroads
10 advance their freight rates and rob the
people, as will be claimed by exacting
so per cent more than at present? And
will not some supplementary provisions
o the free coinage act be necessary to
prevent their so doing?