The Greeneville daily sun. (Greeneville, Tenn.) 1918-1920, 1919-12-30
COLD AND THE aEpIpEMIc.n


in the general level Of prices before March, due to what
he believes will be the effect of official Influences but
if the two much greater influences cited by Prof r. A.
Thornton in his address the Junior Advertising Club
continue preset here does not to be hope
for any material reduction, except, perhaps in few
specific things The first Of these two influences is what
he calls the present epidemic Of extravaganza" Clearly
long that epidemic continues it will help to main
tain the present high level of prices 1t is rule Of
Monies that things worth what people willing
pay for them, and So if continue to be willing to pay
for anything fancy avors any price the possessor of
it asks for it, we shall not see material reduction in pr
Naturally everybody who has anything to sell,
whether be produce merchandise labor intends to
get while the getting is good" Not until the getting
to be good may hope for moderation in the
getting
The other influence Prof Thornton cites producing
high eve lof prices sustained it is the great increase
in the quantity Of gold during the past two decades The
annual production Of that metal been than doub-
led in that time When in 1896 William Jennings Bryan
gained the democratic presidential nomination by his dra
matte declaration that ''You shall cruelty mankind
upon Of gold" the product of the gold mines Of
y risen until in 1917 it $423 000 thus hav-
ing than doubled. In 1915, before the upset
things much they overturned later the product
reached the high-water mark of $47O00OOOO. In the
meantime the output of silver has remained practically
stationary In 1895 it 100000 900 in coinage value
- fov n
it $212OO0OOO, only little larger than twentyone
years before In 1911 it had big year, reaching 1885,
oOO but then had not in any such
proportion gold 1t must be remembered that this sill
yer value is coinage value It's actual market value in
1896 onehaf its coinage value owing to the large
quantity of silver in existence in proportion to gold What
the silver advocates wanted do at that time to make
he market value equal the coinage value by compelling
he government coin all the silver offered at the coin
ge rate of sixteen to During the two decades which
followed that futile effort to interfere with economic
aw the almost stationary production of silver and the
practically doubled production of gold have brought about
gradual change in the relative value Of the two metals
the market, until silver is worth little more thar
It's coinage value in the market instead of only half thai
value
This, as economists say, is really reduction in the
aue of gold due to its largely increased production anc
increase in the value of silver as special article
since there has been general elevation of all values about
equal to that of silver. In other words gold dollar to-
day buys only about one-half as much as it did in 1896
whether it be silver, wheat clothing boo.s toys. II
his theory of the reduced purchasing power of gold be
ause of greatly increased production of it is correct
and economists agree that point follows that so long
the present rate of production continues there will be
general lowering of prices except such may be
ID by recession of our epidemic of extravaganza
Here, then, seems to be the first place where must
make assault upon the high prices if would bring
hem down to the point where the natural law of gold
iaues would automatically fix them How much reduc
ion that would produce do not know and cannot find
'ut in any other way than by stopping the epidemic
In the meantime the gold miners are complaining that
hey losing money at present gold values and have
asked the government to pay 25 per cent for gold
at the mint which really the putting of that much
more gold into dollar, remedy which many economists
ire also recommending antidote to high prices
Perhaps that also will have to be done if to get
back to anything like the former level of prices unless
possibly the production of gold shall be automat
cay checked by its low value in which slow
sion of prices through series of years would result An
ayss of the situation shows that the people can do little
to bring down prices unless they make attack upon the
epidemic" in expenditures all along the line and then
unite to increase production of everything except gold
st. Louis Globe Democrat
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