New-York tribune., 1900-05-24
THE COURSE OF PRICES.

Several times this month 1t has been men
toned that the decline in prices of commodities
has been unusually large. 1t has gone so far
that a definite statement Of it seems worth
while, the more because in Great Britain and
also on the Continent the movement since April
/ has continued Of a different character. 1.-THE
London Economist reports no change whatever
in its index number from April to May l. and
since May its prices show little advance. 1t
becomes increasingly clearer that demands for
coal and for packed and prepared meats, in
such forms that they serve TO maintain
strength during prolonged advance through a
country upon which armies cannot live, for
steel and products of iron and steel. for ammu-
milton and all equipment of armies and for
means of transportation both by land and sea,
have become so great in consequence of the
South African war as TO affect prices through
out Europe to some extent. But while these
demands helped TO raise prices here when they
were new, and no definite idea of the extent of
them could be formed, they have not prevented
general decline of prices here which began
fully two months ago.
In comparisons Of prices in these columns the
relative Importance of many different quotations
is always taken into account. Quantities of
each article or class of articles as accurately
proportioned possible to the quantities of
IL
supposed to be purchased at the ruling prices of
different dates 1t should be understood once
for all, aIso that when markets are rushing
upward the top prices those which represent
most nearly the bulk of the business Just as
the lowest prices represent more nearly the bulk
Of liquidation in times of severe depression.
The highest point reached this year was on
March 16, when the general average was sos
per cent, against 1885 on January l. Before
March ended there was a slight yielding and in
April the new American tendency was clearly
shown in a fall to 1915 per cent notwithstand-
Ing British prices from 1868 on January /
to 1921 on April 1, and held exactly the same
average on May 1. Since May began American
prices have shown their tendency even more
strongly, the average having declined to 76. .6S
per cent, fall nearly great in half a month
appeared in the month and a half preceding.
Those accustomed TO observe the changes of
prices Will see ample reason for belief that
the downward tendency will probably continue
until after the Presidential election Whether
II continues longer may, of course, depend in
part upon the results of that election as respects
their influence on business and it's prospects
The top prices thus far made in 1900 are there
fore not unlikely to be the highest for a consid-
erabe term of years. In fact the average on
March 10 Is the highest average of prices
touched In this country since February 1893,
though such prices were very short lived at that
time, that we have to go back to the fall of
1890 TO find higher range of prices from which
a continuous decline began. In effect upon gem
eral business the quotations this year mark full
recovery from the decline which started in
1891 with great enlargement of production, but
also great enlargement of demand under the
Mckinley tariff, which was followed by a col
lapse when Cleveland was elected, and which
reached the lowest average ever known in this
country July 2. 1897. just before the country
returned TO Republican tariff. At that point
prices averaged nearly 30 per cent lower than
they are now but the rise until two months ago