The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-04-16

except to ascertain and report the actual
facts; and. so far as 1t relates TO questions
stated heretofore. Congress, cary in the
year 1862, inaugurated the policy 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
OF commodities and the wages of labor were
paid in paper currency, and the injurious ef-
feet upon the interests of the laboring man
Is . clearly rI, shown In the report referred TO-;
preciated paper, were less than per cent.
higher in paper than when paid in gold, but
laborers and other peop.e in the mainte-
nance of their families were nearly Is per
cent higher than they were when paid In
gold: in 1863 the wages of labor paid in de-
preciated paper worth about 50 cents on the
dollar, were 10is per cent. higher than when
paid in gold, but the prices of the articles
ths % had to buy with his
of labor paid in deprecated paper dollars
worth 40 cents each, had advanced 251z per
ces but f se had prices of toe
cent; in 1866 wages paid in paper currency
worth 6S cents on the dollar mad advanced
43 per cent. above the rates previously paid
in gold. or its equivalent, but the prices Of
commodities had advanced nearly III per
cent.-that Is to say, had more than doub-
led and In 1866 wages paid In currency
a fraction more than 50 per cent. from the
previous rates in gold, or its equivalent. but
the prices Of commodities had advanced 81
per cent.
WAGES DO NOT CLIMB WITH PRICES.
1.-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
currency was II cents on the dollar, and it
was quite certain that no further depreca-
ton would occur. In 1860 this country was
on gold basis, and had 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 deprecated cutre ney 10
gold basis and comparing them with fGiBe
rates paid In gold In 1860 We shall have an
OF cheap money on the interests of the la
borer. On this basis the laborer received rs
cents and mills in 1853; instead of the gold
80 cents and mills instead of a gold dollar,
and in 1865 he received IS cents and mills
instead OF gold dollar. In other words,
the wages OF labor, measured by gold. as
rency. had fallen about "a per cent. in 1868,
more than IS per cent. In 1864, and nearly n
psr een in is hsn had
illustration Is greatly augmented by the
facts that these reductions in the rates of
a Wnen SeVerdl
0red thousand laborers had been withdrawn
from the field of competition. when the gov
eminent was engaged In the prosecution of
great war and was expanding money law
sSy ~, an ana ANUS b al s4ppes tor fhe art thy
products of labor had largely increased.
Surely. II there ever can be a time when an
wages and improve the condition of laborins
men these results ought to have been ac-
complished under the combination OF favor
,fa 9th toll
great centers OF industry, from 1861 10 1866
and yet, there has been no other period in
our history when the rates of wages fell sc
rapidly or so low.
1.-The recent experience of the republic OF
Chile furnishes another impressive warning
TO the wage-earner against the evils Of a
a long time the so-called double standard OF
value, with coinage of legal-tender gold and
silver at the rate of 1879 to l. but, as this
the coins of that metal went out of circula-
ton and gold constituted the medium of ex.
change and actual standard of value unit
soon as the commercial value Of silver fel
below the ratio of 1879 to I, compared
with gold, all the gold went out of circula
tion and the country had silver monometal
ism. In 1875, before this change took place
the peso. dollar of Chile, was worth abou
SSla cents In our money. but In 1885. ten years
after gold went out and silver came in, the
peso was worth less than So cents in oul
money. Silver continued to depreciate. and
besides, large amounts of paper currency
were issued by the government and thu
banks, and in 1895, twenty years after ths
change from the gold basis to the silver
basis the peso was worth only about 341
cents In our money.
EFFECT OF CHEAP MONEY.
LET us see, now. what effect this chea1
money, or in other words. this system o
silver monometallism which you are aske
to adopt here, had upon the wages of labo
in that country. Our minister at Santiag
has very recently made an official investiga
ton and report upon this subject. which ha
not yet been published, from which Ii ap
pears that in the northern part of Chile
where labor has always been in greater lie
mand than elsewhere. on account of tn
great nitrate fields located in that section o
the country, very little change took plac
even in the nominal rates of wages, not
outstanding the great fall in the value o
the currency; that is, laborers continued {
amount they received before in good money
In 1875, WIN the peso was worth 8812 cents
a mechanic, a boilermaker, blacksmith,
carpenter, fireman and an ordinary lahore
received together for a days work 1Sl
same persons s' received for the same wor
20% pesos, but owing to the depreciation O
the currency this was equal to only $10.99 i
the country had descended to a silver basis
the same 1aborers received for the sam
work 1856 pesos, but the value OF the pes
was less than 80 cents. and consequent
their wages amounted to only 1884 IN on
money. or just about one-half of what the
had received twenty years before. In tn
central part Of the country the result wa
subs antialiy the same, though not quite 3
injurious to the laborer. In 1879 day
wages for five men, mason, a carpenter
a gas-fitter, painter and an ordinary la
borer, amounted altogether to $6.45, in GU
money, but in 1885 the wages OF the sam
men were $S5s and in 1895, s4.ss. In tn
some increase in the nominal amount
wages paid between 1876 and 1882 on accoun
of the fact that line of railway was the
being constructed through that region b
foreign capital, but since the latter date. tn
general average rate OF wages has RENAME
constantly depreciating currency.
"Our minister to Chile. after very care
fS say 81 msV be taken
granted that In Chile. as in all other cour
tries which have had a like financial es
perience, the consequences OF cheap none
| have weighed most heavily upon the classe
| The evils of silver monometallism and
| deprecated currency finally became intolel
| able in that country and although 1t pro
| duces considerable silver and very little gol
| II has recently adopted the gold standar
f! of value.
ALL COUNTRIES ALIKE.
'In nearly every country in the worl
| having the gold standard of value tn
wages of labor have increased material
during the last twenty-five years, and, a
| the same time, the purchasing power of tn
| money in which wages are paid has In
| creased also, while in the countries havin
| the silver standard of value wages hay