The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1910-06-14
Ex- Governor Douglas Give
Reasons for His Opinion
THE REMEDY PRESENTED

The High Acts Did Their Work
Well, for the Trusts-The Work CT
a Tariff is to Raise Prices, Says the
Former Governor Of Massachusetts,.
By w. l.. DOUGLAS.
I have been asked to state. public
ly, my views concerning present bust
mes conditions, with special reference
to the causes and effects Of the high
cost Of living and a remedy therefor
If a remedy is practicable.
I wish to say, at the outset. that in
my opinion. the present widespread
discomfort and unreasonable radical
ism. not only in this but in other
countries. are due mainly to the high
and rapidly rising cost Of living. The
Importance of this question, both in
dustrially ond politically. con hardly
be exaggerated. There is danger ahead
unless we can soon find the cause Of
the trouble and a remedy for it. Every
man should study his problem and
every one who thinks he has found a
solution should give it to the public.
Believing that my ideas on this i'm
portant question may a " some value
to the public. l will proceed to state
them briefly.
The first thing to observe is that
prices have risen all over the world
in the last 13 or IA years. The mini
mum appears to be less than
80 per cent and the maximum bou
so per cent. In England prices AVE
risen a little less than 80 per cent,
since 1896, according to Sauerbeck
and the London Economist. while in
Germany they have risen fully 80
per cent, according to Calwer, all Of
whom quote comparative price tables
called index numbers. In the United
States the cost Of living is now %
SO per cent higher than it was in
1896, according to Bradstreet's tables.
general worldwide cause and also
special or local causes. I am firmly
convinced that the general cause is
found in gold depreciation. In fact
it is difficult to conceive of any other
important worldwide cause in times
of peace.
Gold. like lead or coal is a com
modify, and its exchange value with
other commodities is determined by
its relative cost Of production. The
fact that the annual output of gold
is now over $3.50, 0O0, 600, whereas it
was only about 500, 900. 900 twenty
years ago., indicates pretty clearly
that the cost of producing gold is
cheapening more rapidly than is the
cost OF producing most other com
m0dlties. That is why the same guam
tity of gold will purchase less of other
things. That is why prices are rising
in terms of gold. In reality gold is
depreciating in value. We would
have more yards Of goods if our yard
stick would shrink to two feet in
length. We would have more bushels
Of grain if our bushels should contain
ouly three pecks. Likewise our goods
nave greater values because our
of value is shrinking.
AS to how best to reven the evils
OF gold depreciation ! shall not under
take to say. 1t is an International
problem, and should, in my opinion.
De dealt with by an International COM
mission to be composed of the worlds
greatest hnanciers and economists. No
time should be lost in arranging for
such a commission. II, as believe,
there is a remedy for these evils the
business world should know it soon.
we are not, however, helpless to
remedy the principal cause Of the ex-
cesslvely high cost Of living in the
United States, as compared with most
other countries. The remedy is sim
pie and easy to apply. 1t is so plain
that it cannot be entirely overlooked
even by the numerous federal and
State Commissions on the High Cost
OF Living. whose principal business Is.
apparently. to befog the ssue and di-
vert attention from the real remedy.
do not hesitate to say that our In
ordlnately high tariff is. directly and
indirectly the princinal cane.
or rearly half of the a.i-
vance In prices that has taken
Place in this country since 1896
Or 1897, Neither do I hesitate te say
that q substantial reduction Of all