Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1899-02-09
LOWERING OF PRICES.
HOW 1T EFFECTS THE pISTRI-
BUTTON OF WEALTH.
Continue 10 Increase tho Value OF Money
and In a Short Time all Wealth VIII
BIO Transformed From tho Many to
the Fow.

Under conditions Of barter, changes
In the rate at which one thing eX-
changes for another, may affect In
some degree the distribution OF wealth,
but IL is not until money comes onto
one side OF the scale that extended or
serious consequences follow changes
In the ratio Of exchange, But when
things come TO be exchanged for mon
ey, even under conditions where no
debts or other obligations exist calling
for specific sums Of money, variations
In price levels necessarily change the
relation OF those who own money and
want goods and those who own goods
and want money, and materially af-
feet the distribution Of wealth. Indeed
such changes not only affect the dis
tributlon OF wealth but they affect the
production Of wealth; Tor 1t has been
Hbundantly shown historically and
otherwise that rising prices stimulate
and increase production while falling
prices discourage and returd produc-
ton. But limiting our inquiry to the
distribution OF wealth, Is has been his
torically proven that times Of plenti-
tulness OF money and rising prices
have always been periods when wealth
has been most widely distributed, and
naturally so, since producers of wealth
under such condition, retain moro Of
what they produce, or obtain more
money for what they part with.
II is, however, under conditions
where continuing debts and taxes call
for n specific number Of units Of mon
ey regardless of what IL takes TO pro-
cure them, that distribution OF wealth
is most affected. 1t is plain that it is
only necessary to make such obliga-
tions to pay money large enough, and
prices low enough, to take everything
from the producer but bare living;
less, of course, cannot be left him, II
he is to continue to be producer.
Individual cases OF this kind are con-
stantly occurring, ind what Is true Of
individuals In this respect may become
true OF nations. Indeed, examples ex-
list of nations now In this condition.
The foreign debt of Egypt, together
with the cost OF her home government,
takes annually all the valley Of the
Nile can produce, saving but bare
living for her producing population.
India and other countries with large
foreign debts, II they have not already
fallen into the condition Of Egypt, are
dangerously near the line, and that,
IN fact, has been the condition Of In
din for centuries But even where
debts are not owed TO other countries,
the very existence Of debts and taxen
as fixed charges upon annual products,
exercises tremendous influence, even
under the most stable condition Of
prices, upon the distribution Of wealth.
The extent of this influence, however,
Is intensified to an incalculable degree
by changes in price levels. 1t is only
necessary, under such conditions, to
sufficiently lower the price level to
force the transfer Of everything to the
hands OF those who own the debts and
are the recipients of taxes On the
other hand, rise Of prices leaves more
and more in the hands Of those who
produce the wealth, and less and less
to those having fixed incomes, incomes
expressed In money. Hence, it is only
necessary, under modern Conditions in
most countries, to continually increase