Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1906-12-28
DEPRESSION
), ANDPROSPERITY.
An Article by H..B. Kelly on the Re.
latiOns Of Tariff to Prosperity.
WHO DOES IT PROTECT ?



prices determined by local supply
and demand, each country having
its own market, its own prices,
and its own peculiar money. But
with improved transportation.
local markets became blended into
the one general market the
world market-for the staples of
all countries and, following this,
came demand for uniform money
IA standard of value common
alike 10 all parts of the enlarged
market.
With the exception Of. EngIar i,
which bad been on a gold basis
for number Of years, all other
governments of Europe and
America were maintaining silver
or silver and gold, as their none
tary basis, until 1871, when the
: German Empire and the banks of
that country discontinued use Of
silver reserves, and for their sill
yer substituted reserves Of all
gold. Then, in 1879, after fifteen
years Of paper money, the United.
States substituted GOLD for its
monetary basis, while commence
inc with 1881 and extending to
about 1896 practically all the
other governments of Europe, and
of South America, Egypt, Japan,
IndO-China and some lesser gov,
g ernments, following in steady
succession, joined in the process
of harmOnizing a money standard
upon a gold basis for the unified
market Of the commercial world.
the change having been completed
by about 1896 since which, ma
tiOnal treasures and banks of the
several governments have main
tanned all gold in place of reserves
formerly of gold and silver.
The effect of this transition
from a gold and silver to a gold
basis, resulted in contraction pos
sibIy of 40 per cent in volume of
redemption money of the greater
commercial domain. and logically,
approaching value of that money,
as during the years of transition,
and more especially during the
years from about 1885 to 1896.
governments and banks engaged
in accumulation and storage of
= vast sums of gold, this abnormal
demand having occurred during a
period when annual production
from the worlds mines was below
the average for the ten or fifteen
years prior to 1880 Hence con.
ditions for a number of years,
with growing intensity from
about 1883 to 1896. were increas.
ing demand for and diminishing
supply of money in the enlarged
market, with concurrent un.
checked and luminous decline in
price of staples of agriculture. a
a decline felt throughout the world.
but with more severity in this
than in other countries. Prices
of wheat in Liverpool in 1889 and
1890 fell to less than 70 cents per
buShel Che lowest quotation re.
corded in that market in q
hundred years, while price of
meat supplies and raw cotton
were subjected to like decline.
And during the closing years OF
the period Of changing standard,
proceeds from sale of crops scarce.
ly paying fixed charges of harvest.
ing, taxes and interets on money
for improvement of tie lard, left
the producer practically nothing
with which to buy goods of fac
e tory and shop.
This perod sof change in the
} worlds monetary system was 4
preiod of mortgage foreclosures
on farms and city property by
thousands, with the property
J usually bid in by the MORTGAGE
for less than the debt.
Vacant residences and store.
lined streets Of cities and towns,
chnnc uoro oloool IL