The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1898-01-29
EXPOSES SILVER FALLACY.
Secretary Gage to tho Trades
League OF Philadelphia
Wages Are Not Hurt by the APP
probation of Goid-The secre-
tary's Proposed Currency
Reform Plan.

y
man j. Gage was the guest OF honor.
and he spoke upon the subject OF
"Finance" as follows:
while the invitation which brings me
Sefore you carried with Il no suggestion as
10 the subject matter OF my proposed adj
dress. II was no doubt presumed that
would have some words TO say upon the
financial questions which for some years
have been an absorbing theme OF public
thought, and have furnished the main
issues for political contests. | propose 10
present In the simplest form possible within
the limits OF time allowed what may serve
as a picture OF my views and beliefs on the
great theme OF the money standard and the
currency system.
"The following is a favorite. but mislead-
ing argument against our monetary stand
ard: Under the present Industrial system
all products are the result OF three neces-
sary factors-land. labor. captal-and
among these three the value OF things pro-
duced - In some proportion divided. 1t Is
then averred that land Cor renD has the
ability to fix It's share. and that capital
Interest and PROFIT has almost equally alb
solute power. AS the division is made IN
dollars. the result OF price, falling prices
must be at the cost Of labor, since land and
capital Will not engage In productivity ex-
cep, upon the terms they themselves die
tate. Gold, they say. having appreciated
IN value, prices OF commodities have fallen,
and because OF the exactng power OF land
and capital, the evil effect has been felt by
wages IN the form Of diminished share.
Now, II this statement were true II would
OF necessity be evidenced by an actual fall
I'm wage prices.
This brings the question 20 the test or
fact. IL has been asserted upon authority.
and | believe II TO be approximately true.
that within the period iS72-sl prices have
fallen an average OF 2ia per cent am at
liberty. therefore, 10 adopt the same au-
thorlty as 10 the course OF wages IL APP
pears from the exhaustive figures OF the
commissioners Of labor, the authority cited.
that within the period 1921 wages have
Increased an average OF ten per cent. TAX
Ing the greater power OF wages 10 command
things by reason Of their lower price. the
economic advantage gained by labor Is still
further emphasized. In 1872 500 In gold
would buy certain amount Of living: In
1891. prices having fallen, 500 would buy
27i& per cent more than Il ala IN 1872. and
wages having Increased ten per cent. IN the
meantime, the same work which was paid
sl00 In 1872 received $40 IN 1891. From the
double advantage Of decreased prices and
increased wages II followed that IN 1881 the
same labor would purchase 81 per cent.
more Of living than IL did IN 1872. Let us
apply these advantages by example
I'm 1891 the labor that supported IS people
supported only ten IN 1872. In 1891, from the
same labor as IN 1872, man living upon the
same scale would have over one-third OF
his wages to put IN bank or better provide
for his family.
Result Of the Failing Price.
II am further borne out In this demon
stration by the statistics OF savings banks
covering the period under consideration.
Since 1871 the number Of depositors IN such
institutions has Increased from less than
100000 to more than 100000, and the aver
age per capita saving In the United States
has Increased Sc per cent Which Of the
three participants IN production-rent'
profits wages-has suffered from this fall
ing price2 None OF them necessarily but II
any II Is demonstrated that wages have not
been the victim.
I'm the argument from the other side
there 81 not strict uniformity Some admit
that the fan IN price Is partly due to
economlzlng processes but maintain that
gold has advanced, and thus helped the de-
cline m prices The assertion that gold has
appreciated IL difficult OF proof, nor Is X
easy 10 refute the proposition III i be true
that Il has appreciated and the higher value
has been manifested by a fall IN the price
OF things for which II is offered IN exchange,
that fact could not be cited as prejudicial 10
wages paid labor. since the same wages
paid in gold or It's equivalent were thus
rendered the more effective.
at Is not upon wages that the injurious
effect or a gold appreciation falls III ~
upon those who own the land. the forest,
and the mines. II upon any. that the In
furious effect is visited. This Is all so plain
that one cannot comprehend how the wage
Garner can be mlsled by that iridescent
orator who. by multitudes OF words,
couched In ambiguous and sophistical
phrases. seeks 10 obscure judgment.
''The revival OF industry now witnessed
N "a tha en4y condition aa "a fufpreat which
now transfers capital are the best witnesses
TO the dangers from which we have been
delivered Nevertheless, the fervid orator
who Is recognized as the leading exponent
OF free-silver doctrines " not satisfied. In
n recent speech he said: Read the daily
papers and you will find the Items OF news
arranged under two heads-the formation
OF trusts and the reduction OF wages
"As 10 the trusts. he cites no examples.
but hastons to emphasize one Industry In
New England, In which, by reason of
special conditions, well known 10 him. a
reduction In the wage scale was under de-
bate. He knows, or he ought TO know, and
failed TO state. that In contrast to the de-
preston In cotton textiles, wooden manu-
features are booming all over the country.
LET him point. II he can. to one single
Instance OF an advance In wages between
the date OF the Chicago convention OF 1896
and the November election OF that year,
demned by the verdict OF the people. He
knows that within a few weeks after the
November election, 1896. 1900 men. idle for
a long time. were put 10 work In the window
glass Industry. Since then, as the revival
has progressed Instances OF advances In
wage rates and or Increases In numbers
employed have multiplied. | have 1t upon
authority that there Is an Increase In iron
and steel industries OF at least 267 900 men
employed over the preceding year In adj
dition to this advances In wages ranging
from 10 to 20 per cent have been made, and
In some cases much greater.
81 have an accurate list OF more than go
mills. factories ana enterprises that have
during the last six months resumed work
many of them having been idle since 1885,
when depression became more acute as the
result OF agitation fer the free and I'M
limited coinage OF silver at the ratio OF
sixteen to one without the aid or consent
or any other nation. Most Of them have
advanced wages over the old scale All OF
them are running full time. most or them
double time
How Mckinley stands.
'"rhe president heartily supports the prin-
ciples OF his party's platform. and I'm his
efforts he has the support OF all the mem
bers Of his official family. innuendoes and
declarations from various sources TO the
contrary Notwithstanding. Until reform
can be secured In a rational manner we