The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1920-03-18

eastern exchanges, as they nave Deel
accompanied by fresuent and heav,
fluctuations, have created situation
which is in every sense abnormal.
was expected that the cessation o
hostilities would Immediately bring
forth "A condition of affairs Whicl
would help stabilize exchanges, prices
ana wages throughout the world Ac
tually, however prices and wages
have advanced in a much larger pro.
portion during IA months of peace
than during four years of war. The
Index Number Of Great Britain shows
that commodity prices advanced from
l226 in August, 1914, to 2S2.6 in No
vember, 1918, when the armistice was
signed. At the close of December
1919. the prices advanced 10 3531
Wages have not Increased at the
same rate but they increased during
1919. despite the fact that, through
out the world armies have been de-
mobilizing and there ought, under
normal circumstances, to have been a
surplus Of labor.
1T is needless to 80 into the details
of the course of events during the
past u months. Suffice it to say that
everything has become unstable, in
Guiding the governments of many
countries, trade is almost a gamble
as a result of the fluctuations in ex-
change. Governments are lettering,
not only in the defeated central Eur
opean countries, but also in victori-
Gus France and Italy
Production Declines.
The situation needs remedy. and
the most pressing of all Ills of the
body polite is the one relating to
money There is several times as
much money in the world today as
there was before 1914 Nevertheless,
everything is unstable Rumblings of
discomfort are heard everywhere, and
the whole credit of the world is on
the verge of collapse.
In the first place, prices have in
creased threefold The cause of the
increase in prices was primarily re-
duced production During the period I
of the war, all countries converted /
factories manufacturing peace goods /
into those manufacturing war goods /
Capital was employed to put up and /
work plants. the outputs of which +
were destroyed Immediately The ex-
of war did not permit of cal
as to cost. profit, deprecia-
ton and such other considerations /
which generally enter into the ordin-
airy manufacturing business; il was I
to produce war goods at
any cost in the quickest possible time /
With the conclusion of therwar lit /
was found that it was not so easy to /
return to peace vocations as expected. /
Change of occupations and war CON
iitions not only destroyed capital in .
he form Of machinery and plants. but /
llso the skill of the worSmen Mar /
Sets have been radically changed New
developments, even i'm countries thar /
we're not i'm the war; did not permit /
# drawing ordinary conclusions Cen <
raj Europe and many other countries
ave been compelled by force of cir
to remain idle to such an
lNANlAN Go Aitt even ~ VIC NtfAN w l'ifT
uce the necessary food The net re-
ult is that production OF all com
oddities. including food products has
eclined throughout the world.
Prices Advance.
It is an economic law that scarcity
Increases values and the less there is
f any kind of goods the viii be their
alue. The price of any commodity
3 the correspondence between be-
ween the total quantity available and
he total of money both reserve and
4 circulation. In other words in
rease or decrease in production alone
oes not always decrease or increase d
rices. There have been instances {
here, even though the total Quanti- /
les of commodities available for sale 4
ave remained unchanged. prices 2
ave varied because of the increase &
r decrease of the total money avail ,
BILE At present both factors are OPP D
rative. There has been not only {
in the output of all goods. ,
ut also a large increase i'm money !
the world
Rise in Wages.
A general advance in the price of i
pods must necessarily be followed by
rise in wages. Wages are based on u
he cost of living. When the cost of S
wing increases because of the in O
.eased prices of goods, the result is f
n al-round advance i'm wages; other &
Use. there would be no incentive for "a
ZEN to help in the production of "
pods This factor has been further s.
implicated during the war by the q
vel of wages granted TO working y
en- and women i'm factories which il
war goods The different IL
,untries engaged in the war were q
lXious for a speedy output of war b
aterials: they did not calculate the o.
'st in any sense whatsoever. Con- D.
very high wages were p
lid. This, in its turn. again tended q
raise wages in other departments ~
production. The result has been q
at when the war was over it was o
und impossible to bring either the p.