New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-01-03
THE FUTURE OF PRICES.

II Is still n common belief that the year
1898 will bring q material advance in prices
of manufactured products Many hearty sup
porters Of the protective tariff hold this opin-
ion, as well as nearly all its opponents. though
for widely different reasons Its opponents de-
clared when the tariff was pending that 1t
would plumber the people by causing general
advance in prices Of products of protected IN
dustries They have made the same assertion
every time q genuine American tariff has been
proposed since 1860, and after every such tariff
the general range of prices has declined, so that
In 1897 il is 80 per cent lower than ii was thirty
six years ago, when protection became the Ma
tional policy. II Is often assumed that the de-
cline in prices Of farm products has worked IN
Justice 10 the farmer, but the facts prove That
prices Of manufactured products which he con-
sumes have declined still more. If the expecta-
ton of higher prices under the present tariH
had no better foundation than these oft-refuted
theories. 1t would scarcely merit notice. The
Dingley tariff is In essentials a revival Of the
Mckinley tariff, excepting that its duties are
ON the average considerably lower Under the
Mckinley tariff prices Of commodities declined
on the average more than per cent from Octo-
Der. 1890, to October, 1892 before its repeal was
expected and over per cent more after the
election of 1892 gave ground to expect its re-
real. ard prior to the enactment of the Demo
cratic tariff.
But many advocates Of protection maintain
that prices have been greatly depressed.
through undue competition with foreign indus
tries under that Democratic tariff that ma
teTlal advance is TO be expected and is essential
&c the welfare Of the country They reason
that prices might be considerably higher than
they are now and yet much lower than when
the Mckinley tariff was in full and most pros
porous operation. Such an advance would
make possible Improvement in the wages of
labor. and better returns to the farmers, miners
and other producers Of material. gain in
prices thus limited and having such results, il is
urged would be of great benefit to all and
would iniure none. There is much truth in
these views. and II is not intended here to at
tempt TO predict that prices Of many manu-
featured products will not advance. hut to point
out some reasons for doubling whether the ex-
pectations Of a rise will be fully realized.
One obvious fact is that after an entire ma
ton of consumers has become accustomed TO
low range of prices any general advance is at
tended with much difficulty. The millions be-
come accustomed 10 a certain range of expendi-
lures for the necessares and comforts Of life,
and whenever higher prices call for n greater
expenditure the consumers are sure TO curtail
their purchases and thus leave unsold IN the
hands Of producers part Of their output. which
tends to drive prices down again. Another
wcllknown fact Is that the improvement In
methods Of manufacture. farming mining and
transportation since 1894, end stl more since
1890, has been very great, that the cost OF
production Is no longer az high as 1t was in
those years. With unsold stocks on hand, pro-
ducers are always under great pressure to re-
duce prices near to the cost Of production. De-
tails OF this improvement could be given In
great number. but to men in every department
of Industry many are known by personal ex-
perience
There is one other fact which has weight.
The country has begun to place much-in-
creased quantity of its products In foreign mar
kets. and In consequence has come to depend In