New-York tribune., 1901-11-07
PROSPERITY AND PRICES.

It Is a we'll known fact that prosperous busi-
ness conditions invariably bring high prices.
According to Dun's index number. the cost Of
living per capita per annum fell to ST. 40 on
July l. 1897. the lowest point ever touched. TWAS
the eliminating point OF the country's gloomy
experience under low tariffs and the addition OF
1862 OOOO Of0 to the national debt In start
ling contrast is the index number OF November
l. 1901 which shows that the cost OF living had
reached $97 "A, the highest point of the decade.
This is all the impressive. since it is
companied by many declines in finished prod
ucts Of manufacture, due to new devices and i'm
provements in method which have cheapened
the OF production. That the nation is now
at the highest point in its history is clearly
shown by many facts of which the course of
prices is most convincing. Quotations do not
rise when there is any lack OF buying power In
the community. but when full employment at
unprecedentedly high wages makes 1t possible
to crafty all desires for creature comforts the
accelerated demand forces prices steadily up
ward
In explanation Of rising quotations 1t has been
stated that short crops and reduced production
are responsible. AS a matter OF record the corn
crop alone Of all the great staples will fall far
below 1891 The wheat yield is the maximum
point, and about double that of 1897. Though
the cotton crop is below the high total of 1899.
1t is two million bales greater than In 1897 The
wool clip is also greater. but the record break
ing imports of 1897 under the last year of the
Wilson tariff were more than double any year
since. OF pig iron and finished steel all former
records are being surpassed: the quantity of
coal mined will reach a high water mark
while the output OF footwear and all other lead
ing products Of manufacture is attaining an
paralleled proportions. Yet it is urged that the
present overtaxed situation at shipping points
is due to the large combinations which restrict
output in order TO sustain prices. The abb
surdty Of this statement is made apparent by
every trade report published while the marvel
lous rise of railway earnings and frequent com
plants of shortage show where deliveries
are delayed. That the trusts are striving to
enlarge their facilities In proportion to the ma
tons rapid development is wholly ignored
It is also suggested by opponents of the ad-
ministration that the record breaking holdings
Of gold in the Treasury deprive the people of
needed funds, and scarcity of money initiates
prices. Yet the per capita circulation on No
vember l $2S y. surprising all previous
records. Moreover. these critics would re-
fuse accept gold coin If offered them in Or
binary business transactions. If forced to ac-
cept the yellow metal would Immediately ex-
change 1t for bank credits paper money Gold
coin quickly depreciates through abrasion and
while its value a standard is not disputed
the people prefer to have the Treasury hold the
metal and issue paper money for current use
since it does not become light weight by hand
ling With this perfect foundation for the ma
tons currency, and industries fully employed
that labor is often sought in vain, the United
States prospers to an unparalleled degree while
the average annual expenditure is $25 more
than it was four years ago. Still, savings bank
deposits increase, and unequalled life insurance
resources indicate that want and misery threat
en- the homes Of the people less than at anv
other time in the nations history.