New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-01-26
NATIONAL POLICY AND PRICES.

The course Of prices In Great Britain ana IN
the United States during the last year has been
curlously instructive as an illustration Of the
effect Of different economic policies Since this
country largely supplies England with bread
and meat, cotton and OIL and in many other
imrortant products trade between the two coun-
tries is constant and large. there Is natural
tendency toward equalization OF prices. so
close was this equalization under the tariff OF
1890 that in October, 1892, the month before
change Of policy by the United States was de-
coed at the election. American prices or all
commodities averaged PAS per cent lower than
on January l. 1860. while British prices. shown
By the tables OF 1.-THE London Economist, aver
aged 23.74 per cent lower than on January l,
1850 But since that time remarkable changes
have taken place. and none more instructive
tlan those of the last year. THE Economist
Of January ! says: speaking broadly. busl-
mess In 1897 was good and improving, not
"only here. but in other countries as well, such
"as Germany, France and the United States
"Yet instead Of advancing. the prices OF COM
"nodities, with some noteworthy exceptions,
kept dragging downward throughout nearly
1.-THE entire year. and now stand on the whole
considerably below the level Of twelve months
"ago The fall in iron and steel in the
so remarkable that we deal with 1t specially
"ir another column"
This decline in prices THE Economist" rightly
considers evidence that they are not controlled,
as silver advocates claim by the price or dsuse
Of silver or by scarcity Of gold. But to the
lesson which is taught by comparison with
American prices THE Economist" is naturally
blind. The fact that prices in this country were
m
in Great Britain, on both sides the prices
of 1880 being taken basis, bears
testimony to the workings of an economic
policy which tended powerfully TO depress
American industries And the fact that dur
Ing the later months. while prices In Great
Britain have been dragging downward" prices
In this country have recovered so that they now
are not per cent below those Of Great Britain
teaches a truth which British writers refuse to
see.
The extended tables needed for comparison
may be reduced to few simple ratios. From
the election OF 1892, when the American Ma
tcnal policy was reversed, to the election Of
1896. when the policy was restored. American
prices dropped III per cent, while British
prices during the same time only declined As
Ter cent, according 10 1.-THE Economists" tables
Also more than the whole decline in Great Brit
ain. 40 per cent occurred between October l.
1892, and about the date the Democratic tariff
was enacted here. But from October l. 1894
to October /, 1896. British prices slightly ad-
venced, 0.3 per cent, according TO THE Econo-
mlsts" tables. while the average OF American
prices declined 1912 per cent under the Wilson
tariff. Since the election of 1896 the course Of
prices has been just the opposite. In Great
Britain the average has declined "a per cent
while in this country It has advanced So per
cent Nor did the advance here begin until the
present tariff was matured and just before It's
passage, while the British decline has continued
and. as 1.-THE Economist says prices have
been dragging downward throughout nearly
the entire year
1t is not necessary to dwell upon this contrast
except 10 repeat the fact set forth in detail some
weeks ago, that the advance in prices In this
country has not been mainly In manufact-
ured products. but as to such products has been
almost entirely confined TO wool and woollen
goods II IS especially noteworthy that the ad-
vance. compared with year ago has been
marked In garden and dairy products. which