The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1898-02-04
THE RISE OF PRICES.

have ascribed this rise to the gold
standard and that it was not from
legitimate causes. They have also de-
clared 1t was due to the famine in In
dia and that the short wheat supply
in other producing countries, and is
temporarily caused by the increased
demand for wheat, which causes lit
tie more money to change hands and
so makes slightly greater demand.
1t is also ascribed by the extreme free
traders to the Dingley tariff law,
which they assert merely protects
trusts and permits them to charge in
creased prices for all products on the
market. There has, however, been
no evidence adduced that the advance
is due to any unnatural conditions,
but came from natural causes only.
In this matter of advance Bradstreet's
makes a comparison of the prices of
ninety-eight staple commodities for
each quarter of year since October,
1890, and for each month since Janu.
airy, 1896, which gives an interesting
revelation Of the rise and fall in
values. From this exhibit it appears
that the index number representing
the general average stood Fat 114,l71
at the beginning of October, 1890.
That mark represented the highest
mean touched in the past seven years.
A fall in prices began afterward, and.
with considerable fluctuations, a very
low lever was reached in the latter
part of 1894, the index number on Oc-
tober l of that year standing at 1851.
Then rally began, and the so, 700
mark was touched on January l, 1895.
A drop took place soon afterwards.
and the index number was down to
72,O52 at the opening of April, 1895,
which was the lowest for that year,
and it was 81, 1872 on July l, 1896. This
was the lowest mark stOuched in the
period covered by Bradstreet's tables.
An advance in prices has been made
recently, the index number on Janu-
airy /, 1898, standing at 80,l49. Here
is the highest point reached since the
beginning Of January, 1895, when the
80, 700 mark was touched. AS shown
by the table, an advance in prices be-
gan around the middle of 1897, the in
dex figure on July of that year being
$780, With some Quotations this
has been under way ever since. At
the present tine the generalslevel OF
prices, as before mentioned, is close to
that of the beginning of the year
1895 and is still nearer to that of the
opening of the year 1894. The grain
which is under way is slow, but it is
likely, on that account, to be con-
tinuous. ~
In commenting upon this. advance
and the causes which lead to the pre-
vious decline, the St. Louis Globe
Democrat says: A period of rising
prices Of commodities has usually
been time of general business i'm
provement, and vice versa. The
mean level of prices is still far below
that of the period before the begin
ming of the CONFUSION Of 1893. Prob
ably, owing to the tendency toward
cheapening Of production, which is
constantly under way, the price level
of half dozen years ago will never be
touched again. 1t is easy to trace the
chief causes of the fluctuations in
prices. The Barings' failure in the
latter part of 1890, followed soon
afterward by the crash in the Argen-
tine Republic, dealt a blow to bust
ness confidence throughout the world,
and was the forerunner of the pdnics
in Aus tralia, the United States and
most of the countries in Europe in
1893 and 1894. Then the silver uienace
in the United States appeared, which
still further heightened the financial
alarm. Theperiod between the meet
ing of the Chicago convention, Of 1896
and the election OF. that year, which
covered the Bryanite reign of none
tary terror, ia marked by the, greatest
stagnationlofdthe four years Of bust
ness depression and the lowest drop
in the pricesaf staple commodities.
After the Bryanite menace was re-
moved a gradual improvement in con-
ditions took place. The Improvement
was slow for, The peril which was
averted was serious, and the shock to
business confidence was profound.
Confidence, however, has now been
almost completely restored, as shown
by the most trustworthy indications
of trade. The advance in the general
level of prices of staple articles rein
forces the increase in bank clearlngs
and railway earnings as evidences of
the dispersion of the financial clouds
and the rising of the sun OF industrial
prosperity.