The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-29

No one denies that worldwide changes
In the volume and value of money are in
progress How far advances in prices
have been attributable to this contempor-
aneous increase in the rate of gold pro-
duction or in the degree to the Wlder de-
mand for luXuries and the consequent
diversion of productive effort from the
creation of articles of prime necessity Is
an interesting question
But however, it must be answered, 1t
is not deniable that there has been
great increase in general prices and that
this increase has been most marked in
the United States. The possibility or
changes in the value of standard money
has been recognized by economists from
an early date, and was particularly ex-
planned and commented on by Adam
Smith in 1.-The Wealth of Nations In
the later day of Chevalier three was an
actual example of worldwide depreciation
of the medium of exchange which is geP
orally admitted to have been caused by
the discoveries of gold in California
Then, further again, in Australia, and the
French economist proposed the demohe-
tization Of gold as a remedy-a proposal
which in 1896 the followers of William
Jennings Bryan sought to turn to timely
use under the argument that conditions
have been reversed. Gold had appreciated
and therefore silver should be made an
additional money metal.
Every community which has had exper-
lence with paper money made available
as legal tender and not actually ex-
changeable into gold, has had abundant
acquaintance with fluctuations in the
value of currency Thus in the days Of
the American civil war gold became
commodity and was sold as high as 80
while all prices advanced at least in pro-
portion.
1t must he obvious to any one that these
great and fundamental changes cannot
take place without friction. and that
though the readjustments must tend to
ward a final state of equilibrium in which
each industrial unit obtains its proper
conversation In the exact degree in which
II has been affected, 1t must be long be-
fore this ultimate and desirable balance
is obtained. The elder economist USED 10
discuss the process by which this PROB
lem of equilibrium would be brought
about and they were pretty nearly agreed
that those who were least able to pro-
mote themselves under such changes
after those having fixed incomes derived
from investments-were the wage-earners.
Apparently, however. conditions have
changed, for it is quite plain that wage
earners as class have not suffered by
means of an extra sluggish adjustment
of their rates of wages to the recent
which they are paid. On the contrary,
excepting from a statement a limited
price of salared employees, the earnings
of wages have in the last 10 years of
rising prices moved promptly toward an
accurate equivalent of their original pur-
chasing power If in some cases they
have not actually gone beyond IL
Modern society has found general use
for the services of certain great indus
tries that are somewhat indefinitely
grouped under the designation of pub
tic utilities" and these have apparently
come to occupy the position of the CHER
sufferers under the depreciation In stand
ard money. Custom fixes the nickel as
the maximum street railway fare-a rate
that may be-perhaps must be-reduced
but cannot be advanced; indeed there
may not be without possible uproar a
proportonate addition to cover an addi-
tional distance traversed by the passen-