The Yale expositor., 1896-10-09
THE FALL OF PRICES.
NOT DUE TO APPRECIATION OF
GOLD.
David A. Wells Discusses Cause OF FAN
I'm Prices-Compares Jaspers sun DO
Move" Theory with silverite's Gold
Has Appreciated Theory.

Tribune Of Sept. 7. He finds that there
has been a universal fall in prices,
averaging 80 or 40 per cent since 1878,
but that it is only in this country that
the fall is attributed to the demonetiza-
tion 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 it's limited and |
insufficient supply, and also that this
decline in prices followed the so-called
demonetization of silver in some coun-
tries, and the closing of the mints 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 assump-
tion truth, as is strikingly illustrated
by the claim Of the Rev. Jasper, pastor
of the First colored church in Rich
mond, 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 ad-
vocates 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 II the earth moves
nineteen miles every second, as the
astronomer bugs tell us, would not
every movable thing fly off it's surface
as mud does from a revolving carriage
wheel? And as nothing does fly of, is
it not certain that the earth stands
still?
Investigation in the case OF the Rev
Jasper and the advocates of the gold
| appreciation theory will, however. lead
to different conclusions. 1t is to be
noted, in the first place, that the advo-
Gates of the latter theory, in stating
express themselves other than gener-
ally, in all that has been written or
spoken in support of the gold theory
on either side of the Atlantic.
No one has ever been able to name a
single commodity that has notably de-
clined in price within the last thirty
years and satisfactorily proved or even
attempted 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 dis.
tribution or to changes in supply and
demand occasioned by wholly fortui.
tous circumstances.
Nobobdy, furthermore, has ever riseI
to explain the motive which has i'm.
PEELED the honest sellers Of merchandise
all over the world during the las
twenty-five years TO take lower price:
for their goods in the face of an unex
ampled abundance of capital and re
markably low rates of interest, excep
for one or both Of two reasons-exces
Of supply or diminished demand. Ha
any one ever attempted to explain how
it has happened that during the recen
period of the fall of prices the world
stock of money, and especially of sill
: yer. has been constantly increasing?
Is 1t not plain that phenomenal de
, cline of prices in two parts of tn,
world, with entirely different monetar,
conditions, must have had other cause
than a decentralization of silver in tn
United States, which took place, if |
} ever did, a comparatively short tim
ago (repeal of the Sherman act in 1893
and which has not prevented nearl,
$500, 900 900 of silver credit money from
: circulating in the country at it's ful
, nominal value?
That the price of labor measured Il
9 gold has not declined, but increased Il
: a marked degree everywhere in the civ
A ilized world during the last quarter @
a century, has been already comment
: ed on; hence If the purchasing powe
{ OF gold has increased during this perio
4; a given amount Of 1t would have pun
5 chased more labor and not less, ol
what is the same thing, wages woul
4 have fallen. which they have not dom
t Measured by the price of labor, gol
has unquestionably deprecated an
e recent careful examinations indicat
k that the ratio of its decline has bee
|. from 100 in 1873 to S3 in 1898. Measure
: also by the decline in the rate of inte
!; est on such established gold payin
: securities as British consuls, the rat
}, has been from 100 in 1870 to rs in 1S9
Can anybody suggest better measui
for testing this issue?
$ Has any one ever endeavored to e,
i plain how an appreciation of gold hi
), reduced the cost of railroad and wat
= transportation to the extent Of mo
n than rs per cent within the last TWEEN
Q years, although the wages of employ
c have notably advanced during the san
J Deriod?