The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1910-03-01
THE0ELUCE0F COLD
And 5 Effect in Advanc-
ng Prices

- NAV * NO. 90
Manufacturers Record q May -
7qo. in which. discussing Inc COM
ing DaIuge OF Gold it was ala
would seem tina the whole
.,l.3 : At the threshold OF q Pc
rod Of a~dTancement IN
affairs and necessarily o. iA7
~ range Of prices ana o. an
1ca IN wages. such as
has never known
referring again 70 the same hla1'01
March :. 1907. i was SAID:
over and over the Manu1ac-
rnrars Record in discussing me
subject pointed u tnat duiihS
this changing perlou II -
rar1d,s affairs there would De
-aat unrest among the laborins
naoole. who. forced by the III
f~aasfng cost Of living. would de
rand. and gradually secure d
Larv much higher range OF wages.
- vas urged that all employers
az abor should themselves rec
ornize the justice of this SITUATION.
This readjustment has nov
vet been completed. NO one heeu
imagine that we have seen IN
limit Of the higher cost OF MAJ
rials al all kinds. of age and OF
living = The fundamental
reason for this change Is found,
AZ stated above in the marvellous
increase in the worlds gold out
put. SO great is this increase tna'
it upSets all calculations Daseu on
~prqyious business conditions, ana
the experience Of the past IS not
altogether a safe hight by WhlcH
to guide our footsteps IN the u
t4ra 1t is true hat very many
conditions Na Np come INTO
play affecting the relation OF the
poId supply to trade. but these
conditions all make for eXpar-
sion of industry.
And after giving a statistical re
sumo Of the worlds gold productloh
from 1492 to 1907, it was AID
In studying these figures every
thoughtful man must be impress
ed with their significance and
with the tremendous influence OF
this gold output upon the eXpan-
sion of the worlds trade n
commerce; of a steadily rising
cost of living, which necessarily
means high wages; of a great in
crease in the value of land prop
critics. agricultural, as we'll as coal
and ore. cement n timber, ana
all other forms of property
. whose values. unlike those OF
bonds and mortgages. are not
limited to a fixed rate OF income.
Temporary reactions Will not
count very much in hating this
upward and forward movement.
We quote these statements from
the Manufacturers record of 100:
and 190V as illustrating many similal
statements published by us beginning
with the time when gold production
attained such figures as to begin t,
command the serious attention of stu
dents OF economic conditions.
Between 1851 and 1855, following
the discovery of gold in California
the worlds output jumped from al
average annual production between
1871 and 1850 of 5000 900 to $132,
BIS, 900. In the succeeding five-yea.
period this increased by nearly 81,
600, 900 a year, and continued witt
slight Fluctuations UP to about 1870
The production between 1866 ant
1870 averaged s129,619,0 900, but af
ter that there was a gradual decline
dropping in 1876 to $1,000 900; il
1880, to sos, 000,0 900; in 1888, t.
1913. 900, 600, and not until 1892 di,
the worlds production again averag
as much as it had done in the five
year-period between 1851 and 1855
Thus in a period OF forty years tn,
worlds gold production PRACTICAL.
stood still. or Wen backwards. Fo
most of that time it showed a larg,
decrease as compared with the year
Of heavy output in California.
Beginning with 1892. when Their
was an output of S146,651,0O 0 Their
was a steady advance, out it was no
until 1895 that the total was as higl
as $500, 5000 In that year tn
worlds gold production figured u
S202, 900. Since then the gain ha
been Very rapid. and last year tn
total was " $457, zoos coo.
In a little over 400 years. or from
1493 to 1895. during which time tn
record Of the worlds gold output ha,
been kept, the total was $S,799.4S2,
OS0. In fourteen years, from 1896 t
1909, both inclusive. the worlds gOl
output was s4.641,4S3,646. or MOI
than one-half as much as the Outpu
OF the preceding 400 years. This i
itself IS q startling fact. It is of ire
significance. II has a bear
ing on every phase of the world
activities and on every phase Of Hfe
1t was not until 19O6 that he ota
Tor any n year reached as mncb .
s40o,OOo.0O0. the output for that Won
BENG S4Oo.551,0 22. In the next vea
thiI rose 10 ny-a- q ="