The herald., 1896-10-15
HOW IT WILL BENEFIT.

Editor Herald: One Of the pretendeo
arguments Of the opponents to the free.
indenendent and unlimited coinage OF
gold and silver at the ratio of l6 to Is
Stated in the question frequently asked
NV them. to-Wit: "How will free COIN
age benefit the laborer, IT, as you say.
such a. policy will cause rise in prices
of the commodities consumed py Id
bor?' l., o.
+rue-that is. that commodities Will rise
in nrice. but wages will remain station
arv. Wages are nothing more tnan tle
proportion of the products OF lapor re-
ceived by the wage-earner, as tne re-
suit of the joint effort OF capital anu
labor. 1t is true, therefore, as the New
York Journal tersely expresses 1t, that
"a. dollar that buys 200 cents worth OF
goods will also buy 200 cents worth o1
labor" The argument that wages can
remain high and prices of the things
produced by labor constantly fall, Vlo-
lates every principle of economic reas-
oning as well as experience. Advocates
of the "balloon dollar attempt 10 l;ti,,er ptone
that such has been the case by citing
statistics in certain industries apparently
showing that the wage rate has not de-
clined with falling prices or common
ties, but, rather, increased. The fallacy
of this argument is apparent upon
moments reflection. The statistics
make no mention of the vast army of
Iaborers who have no regular wage rate,
and unless it can be shown that the as-
gregate earnings of labor have increased
the argument loses all force. III the
aggregate earnings of labor We're dis
tributed among the employed ana the
unemployed, could it be said that the
wages Of labor had been maintained
in the face of falling prices? In certain
industries, where labor is highly organ
lied, the nominal, day or weekly, wage
rate has been maintained; but no mem
ton is made of annual earnings, which
are considerably lessened because OF
lost time resulting from falling prices.
Owing to efficient organization OF Ia
bor in q great many industries, capital
first feels the effect of falling prices.
Profits are first wiped out. but If this
condition lasts long, labor Is compelled
to share in the loss, and no amount or
organization can prevent this result.
But is it true that prices will rise before
wages will advance? Mr.. A. j. Warner.
following Prof. Cairnes. shows that
rise in wages must precede a rise in the
prices of commodities. He says: "Nor
is it true generally that prices go up
before wages advance. This Is doubt
less true when the price Of a thing
rises from its scarcity, but 1t is not true
when prices rise as the result of an In
case Prof. Cairnes has shown the ten
dency would be to abundance, and not
to scarcity. which would operate to
keep the price from rising. and rise
would not take place till the demand in
creased, which would only come for
the things consumed by labor by more
money being offered for them. This
could not take place until Aborers had
more to spend, which would only be
| when they earned more-that is, get
| better wages"
The question. however, goes deeper
| than merely whether wages have re-
mained stationary pr slightly advanced
under a gold standard. Has the labor
| er received as large return for his labor
as he would have done but for the de-
| monetization of silver. is the main
| question. Is not labor progressive? Is
| not labor entitled to its share of the
| blessings resulting from an inventive
and enlightened age?
Mr.. Carlisle stated in his Memphis
speech that wages were 81 per cent