Indiana State Sentinel, Indianapolis, Marion County, 25 April 1894 — Page 9

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APPRECIATION OF GOLD.

is yoT iikxefici.Uj to thi; i:vn. ER OP DAILY WAGES. UonoiuetMlliftm nnd I Kttvrin on I -bor Explained by Ilrookn Atlanta The Farm Laborers Mnit QnicLlr AITeeed Because They Are the WeaUet. The Boston Clr.b of a recent datj contained the following communication: Amonp the many perversions of fact caused by the exigencies of the defense ot monometallism, none have been more flagrant than those relating to its effect on labor. The gold interest has resolutely maintained that the workingman thrives when vaJuen fall, because, since statistics show that the daily wage has not been materially reduced, they argie that he should do better as the cost of living lessens. Not only is this argument fallacious, but it is actually dangerous, because it disjruises the truth. In point of fact, while the appreciation of gold affects every class of the community, except, perhaps, tha moneylenders, it pinches none more sharply than the earner of daily wages, and this for obvious reasons. A man's income doea not depend on whet he earns In one day, supposing- him to be employed, but on what he gets in a year. Therefore, loss of time is equivalent to reduction of wages, and periods of contraction are always eras of scanty employment. Like every other force of nature th pressure of a depreciating currency acts along the lin- of least resistance, the weakest suffers first Now the weakest is always the agriculturist, and he is the weakest because he i3 the poorest of capitalists, and cannot stop his production t'B steady the market as the manufacturer cam Agricultural labor is also weaker than industrial labor since it cannot combine to resist reductions of pay. So farm products fall firsL, then farm wages, and then a migration 'begin from the country to the towns. These phenomena are bst studied in England, where the situation is further advanced than here, and some very interesting evidence was given on these points before the gold and silver commission in 1SS7. Mr. Fielden is a large manufacturer of Lancashire, who has an intimate knowledge of the population of the textile districts and has frequently been chosen to act as referee in trade disputes. He was called and examined at length. Speaking of the increase of the population of Lancashire, hL? evidence was as follows: Q. Now, does that. increase, 1S71 to 1SS1, entirely arise from population, owing to the birth rate exceeding the death rate, or does it result from migration into Lancashire? A. It results also from the fact that agricultural employment is constantly diminishing and we keep absorbing the surplus from the farming districts. Q. I think your evidence comes to this, that the loss in real wages In the cotton trade amounts to 12 per cent? A. That is so. Q. And concurrently with this loss in wages there la a great and growing number of people out of employment altoKether? A. ConcurrenUy with this loss of wages, employment has not grown In its usual proportions, while population has, and, therefore, there has been an increased pressure among the working classes. Q. Well, now you speak with very great knowledge and an intimate experience of the condition of the working classes, and I understand you to' say that it is an entire delusion to suppose that the working classes have been gainers by the fall in prices since 1S74? A. I think on the balance they are losers. Cheapness is a very important thing, but employment is more important. Mr. Fielden also submitted reports for ten unions and societies showing their condition before and after the demonetization of silver by Germany, when gold began to rise. His sumamry is as follows: Average number cf members Average Average out of cost members work ann'lv. Average from 1S71-5.... W.4'l 2.1.V) 4tX,2 Average from 133,333 162. 4M Per Cent. Average increase of members 42 Percentage unemployed 1S71-5 period. 2.18 Percentage unemployed 1SS2-6 period. 7.22 Total support given by these 10 societies to the unemployed in 1871-5. 224,2X Total support in the years 1SS2-6 812,470 "Based on the experience of he above ten societies the number of unemployed in the country would be over 700,0i0. Q. You say unemployment has increased from 2 per cent, to 7 per cent. odd. That 5 per cent, means that the number of unemployed had trebled? A. That is so. There is no doubt that it is so. Q. It is three timet the number of unemployed? A. Yes. This phenomenon of the depletion of the rural districts is exceedingly striking. It is very marked in England. The census shows that while between eigthyone and ninety-one of those wha lived by agriculture decreased 40.000, those engaged in industries increased nearly 1,000,000. It "is also computed that the agricultural income last year had shrunk from 40,000,000 to 60,000,000 when measured by the scale of prices of '74. This is a clear loss of purchasing power, and therefore while the demand for manufactures has relatively decreased thusupply of labor has relatively increased, with the effect of causing the population of the manufacturing districts to multiply very much faster than the means of employment. Q. I think you said last time that the population was growing four times us fast as employment? A. In. Lancashire, in the cotton districts. Q. The growth of the employment has to some extent diminished, has it nut, in. recent years, by vastly increased economy of production? A. There are always such tendencies. For instance, in a bad time the tendency is to increase the speed of the machinery and to improve machinery. As profits diminish and vanish this tendency becomes greater. But the peculiarity of the appreciating standard is to cause this acceleration to intensify to its limit, since in no other way can any margin of profit le maintained. Most enterprises are debtors, and the weight of the fixed charge increases in proportion to the fall of the price of the product. On the other hand wages are difficult to reduce directly because of the cost of strikes, and the effect of this double pressure is to stimulate labor-saving inventions. The working of these forces comes out with startling clearness in the history of the great coal strike. In telling the story it will be best to begin again with the evidence of Mr. Fielden, given in '87: Q. Well, what is the next branch? A. There is another important trade, that is the coal miners. The condition of the mining population of this country ia simply peplorable. Q. You mean the average rate between 183S and 1S65 was 2Ss a week? A. From 1S5S to 1SR8, and the average now is from 18s to 20s. His conclusion was that there was a loss of 7,000,000 per annum of wages, not to speak of loss of time. Up to 1887 the miners had never succeeded in forming a general association, but within a few months after this evidence was given the federation wa ox

panized. and between Ju.n 'S. and August, 'yo, wages advanced 45 pei cent. or in other words returned to what Mr. Fielden called the normal rate. This was made possible because of the risa of values generally throughout the world in '83 and '93, which probably was due to the rise In silver caused by the passage of the Shermp.n act. Gas coal for example advanced from Ts 4d to 10s 41. A collapse came in the autumn with the bankruptcy of Argentine, and price bean to fall, yet, though prices fell, production did not increase and wages were maintained. The rural population, therefore, poured into tb mininr districts, attracted by the high rate of pay. The economist gave these figures in its issue of Nov. 11, 1S03: Year. Miners employed. Ton ra!se. i tr,2.4i m.:.;2xi 12 603.4;7 ll,t7t.S0 Stationary production and increasing supply of labor necessarily led to intermittent employment, and by the spring of "S3 the average weekly wape haci receded once more to about 20s, or near the point of departure. These figures are taken from an articl in the Contemporary Review for November. '03, by Sydney Olivier. I have nut seen them questioned. In August. '90. the board of trad returns showed coal at 13s ld. In June, '93, it stood at 4-';d. and two point had become clear to the owners. First That owing to the evidently restricted buying powers of the whole world, there was a distinct shrinkage in the demand for coal. Second That if the collieries could only be carried on by i-ecuring such contracts (as the market afforded), it would be absolutely necessary to have the cost of production reduced. The first charge on coal is the royalty, which varies from 3d to l'.d, which It fixed, payable to the landlord, and which becomes more enormous as coal falls. Then comes the cost of machinery, etc., and then labor. Labor is the only portion of the charge which is fuddenly compressible, and the owners proposed, a reduction on the advanced scab. But the miners alleged that, through irregulnr employment, their wage was already reduced to the existence point, and that they could stand no mure. Then came the strike. th most terrible trade convulsion of our times, and there the matter rests. S long as the royalty remains fixed and prices fall mines can only be worked by the invention of machinery which will dispense with labor or by reduction of wages, and sm-h is the hardship and ruinous injustice of the appreciating standard. Turning now to America we find exactly the same scries of phenomena appearing, only because of our partial isolation through the tariff, they have beer more spasmodic. They have also beert less developed because here the struggle of life is less severe; they exist however just the same. It is always alleged that all wages hav risen in the last twenty-five years, and Senator Aldrlch's rfport is cited as authority. But Mr. Aldrich deals only with industrial wages, agricultural wages are the bais. The triennial reports of the bureau of agriculture show that since 1866 farm labor has fallen, and since 1SS0 it has been practically steady, while industrial labor rose 14 per cent. Farm labor could not rise beeaus farm profits were falling. An acre of wheat was worth, in rc.und numbers. $12 in 1SS0 and V in 1S9: an acre of corn $11 in 1SS0 and J? In In other words here as !n Kngland land was beginning to fail to support the population and a migration toward the towns began. I quote from the Sptemher number of the publications cf the American statistical association, page 41C: "No more significant fact has been disclosed by the last census than th great increase which has taken place in the urban population of the country during the last decade. "The increase has been quite regular from 1700 to 1SS0. in which time the city denizens increased from 3.3r per cent, of the total population to 22.".7 per cent.; but from 1SS0 to lSSO there has been a leap from 22.57 per cent, to 29.20 per cent. 'The maximum increase is found in cities of from 75.000 to loo.ooo inhabitants, which have increased 91.23 per cent. The striking decrease in the rate of growth of cities of more than 100,000 inhabitants is worthy of note." This shows that the local centers cf Industry grew portentously by migrations from the surrounding rural districts. Meanwhile industrial prices wer probably sustained by the tariff, and the farmer paid the difference so long as his resources lasted. But finally the value of our crops fell so low that their sale no longer paid our foreign debts. Anil u Drain of Gold set in. This drain caused th price of gold to rise, or in other words forced values down, and is apparently still forcing them down, and must continue to force them down till we get to the general level of the rest of the world. The New York Tribune, a very good authority, estimates that the shrinkage in value of the four chief crops alone, as compared with last year, amounts to upward of J220,W0,Oi0. and this loss cf Income represents a direct curtailment of the demand for manufacturers, for wa have substantially only the home market. The consequence is the general slackness of the demand for labor, which takes the form either of reduced wages or loss of time. I quote again from the Tribune of March 5 to show how fcerious this shrinkage has betn: "In the iron, cotton, woolen and tdio industries, employing abmt J .000,000 persons a year ago. the work Is now equivalent to about C20.000 persons full time, -iiid with wapes averaging about 51. CO, against 12 then, so that a little less than Jl.ooo.000 is now paid for labor where $2,(W.U'.H) was paid a year ago." It is al- very certain that this fall in price is not caused by ovf rproduction, for our crops have leen unusually small, and our stock of manufactured goods was light when the squeeze cf last summer began. The stock of everything is small. Hut It Im Mill Too lnh since the people are too poor to buy, and they are poor because gold is appreciating and prices are all falling. Certainly an era of monometallism has not been un Eldorado to the workingman. And this process apparently must gt on to Its inexorabl results. As the maes of surplus labor accumulates the unions overflow, and to protect themselves must exclude the weaker. These are left utterly helpless. A good example of this was the consequences which followed the success of the London dock strike. Before the trouble numbers of poor people gathered every morning at the gates and competed with each other for a day's work, but after the strike a union was formed which monopolized the labor, and those who were excluded fell back hopelessly into the vast stagnant pool of the east of London.where it is estimated that there are always 100.000 unemployed. There they slowly perish under the sweating system, if Indeed they are so fortunate as to rise to the point of being sweated. Such pools exist in all our cities, and they must swell in bulk and the suffering, with all its terrible consequences, must continue to grow so) long as the struggle for existence shall be sharpened daily by the appreciation of gold. These pools are the lowest depths in industrial communities, but in agricultural countries the same end is reached more directly still. There where, es in Sicily, the peasant cannot leave the land, we already see the system working out Its ultimate result starvation. BBQQKS ADAMS.