The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-08-04
GOLD PRODUCTION AND RAILROAD
Z ~ RATES.

GOLD PRODUCTION AND RAILROAD
RATES.
The present railroad rate situation
presents an interesting subject Tor
study to the student Of economic
& forces.
The railroads have for some time
been suffering from greatly decreased
earnings. To prevent this continued
loss they wish to advance rates for
transportation. and this contemplated
advance is resisted by both shippers
and government authorities. In pre-
senting their side of the controversy
the railroad managers have in the main
confined their efforts to showing that
the roads would derive much benefit
from tho advance; that the benefit, on
account of Increased employment and
operation, would be diffused through
the country; that tho additional cost
u consumers and distributors would
DC trifling in comparison to the re-
su'iing increas, ns prosperity. The
managers would make their case much
stronger IL they directed attention TO
demand
The increase in the production NJ
gold and the gold supply is the factor
which has been neglected by those
most Immediately and thoroughly con-
cerned. What this increase is can be
seen from the. following: In the decade
from 1878 to 1883 the average an
nual production OF gold was about
9105,000,0 900; In the ten years from 1883
TO 1897 the average production was
9161,oO0,o0o; from 1898 to 1907 the
average production was s325, 900,
and In the years 1905 and 1907 the pro-
T duction was s4o5,ooo.ooo and s41e.-
100000 respectively. Authorities on
mining and economics hold that for
years to come there will be no falling
off in this ouput. but rather an in.
crease
The effects of this increase are far
reaching and irresistible. There is no
country nor industry nor business
which is not affected by it. The fun
damental result has been an advance
in the price OF commodities during the
last ten years, the average commodity
than in 1897.
The relation Of these facts to the
railroads is thus described by Mr.. w.
G. Nicholas, an accepted authority:
The railroads stand out as practi-
cafly the only exception to the upward
swing of prices due primarily and
chiefly to gold inflation-the only
commodity the railroads have to SELL
namely. transportation That single
line of merchandise the sale product
dustries, remains practically where
it was ten years ago. The rail-
roads have not participated ap-
treciably in the almost universal price
uplift. Transportation as mer-
charitable commodity is sold at
about former quotations. 4. It is
entirely out of harmony with the rest
of the situation. The raw materials
the railroads use in the manufacture
of the single commodity they deal in
are away up In price $50 to rs per cent?
labor, iron %steeI ties and all forms
of equipmetit and supplies. The cost
of operation is Is to 80 per cent. more
than it was even SO recently as five
years ago, and a better standard OF
SoooS is ueHldnOeu and eSacle0--
greater efficiency. safety and con-
venfence."
Nor as a relief can the railroads in
fairness or without adding to the per-
plexities of the situation reduce the
wages of their employees, who, on ac-
count of the advancing price Of COM
modltles. must pay more for the neces.
saries OF life.
If the railroad situation is to be
+ improved Its adjustment to controllins
forces Is essential.
Under the obscurity of the emotional
and political elements, which have
been so Influential in this controversy
Is TINS underlying fact Of gold and We
more gold Is it possible that the
railroads can be excepted from its
q operation when every other form OF
industrial and commercial activity 1,
affected by 1t?
The history OF gold is full of buma,
interest Its Influence on society h,
been tremendous. In economics and in.
dustry this influence has been all now.
8 erfui; and so long as gold confines
fk 20 pc the great medium OF cxch.,.,e
Il and the basis of credit it must re,nai,
all powerful. 1855
81 s-----=---=---
Il = =. AND THE DINNER TABLE.
OF VIRGINIA.
On Sunday Candidate william How
ard Taft attended divine worshIn a,