From 1865 on we had, generally speaking, continuous, though irregular appreciation of our currency standard, first by the approach toward resumption of specie payments which took place in 1879; and then by the increase since then in the purchasing power of gold, which has been our standard since 1879. What was the result to the wage-earner? Using the same normal, that of 1860, the figures for 1870 were 167.1 per cent., 130.4 per cent. and 128.1 per cent.; that is, though his nominal wages had not risen since 1865 be could buy with them five-eighths more than then and even one-quarter more than in 1860. In 1880 the figures were 143 per cent., 103.4 per cent., 144.3 per cent.; that is, though wages had fallen in nominal amount one-ninth below those paid in 1875, their purchasing power was greater than ever and 44 per cent. greater than in 1860. And in 1890 the figures were nominal wages, 168.2 per cent. of those paid in 1860; prices 93.7 per cent. of those current in 1860; the purchasing power of the wages actually received in 1890 being thus three-quarters more than those actually received in 1860. The table on page 392 shows the figures for each year; and it only remains to call the attention of the wage earners to what they already know better than any one else the fact that if they take the daily wages they are now receiving, they can buy more at the low prices now prevailing than at any previous time. In this country, since 1865, the wage-earner has received his pay in money which has, on the whole, steadily appreciated in value, so that the purchasing power of his wages has nearly doubled, while interest on capital averages scarcely half what it was. With such a history and such an experience before him, he must be a foolish man indeed who desires to lower the quality of our money. It is not meant to suggest that the wage-earner should be satisfied, or that he should not strive for even a greater share of what, in co-operation with capital, he produces. He has as good a right to plan and combine toward that end as has the capitalist to increase his profits. It is under an appreciating currency that so much has been accomplished. Does he want to change this experiment for the one which immediately preceded it-during which, after the four years 1862-5, under a depreciating currency, he found himself, though with nominally high wages, working for only three-fourths the power to purchase that he had previously had? The history of finance in the United States for the last thirty-five years gives one side of possible changes in quality-the detriment to wage-earners of depreciating money and the advantage that has come to wage-earners from appreciation of our currency standard. It is now proposed by an organized party and an irresponsible following to bring about free coinage of silver, and thus allow the country to experience a depreciated standard-that of silver. It is proper, therefore, that attention be directed to those countries which have tried that experiment and are at present using silver as a basis for their currency. What is the condition of their wage-earners? Are they better off than those of gold-standard countries? Have they been helped by the depreciation their currency has suffered? What has been the actual experience of Japan, China, India and Mexico? JAPAN. During the last ten or fifteen years, Japan has undergone an almost complete revolution. A study of this transition period is sufficient to invalidate the claim that she has prospered because of a silver currency. On the contrary, there are at once seen causes sufficient to have enabled her to prosper, despite it. The government of the country has changed from a feudal state to a constitutional monarchy. Old limitations and restrictions have been done away with, and Japan has entered the lists as a modern nation; so that it would be a matter of surprise if there were not some evidences of a quickened development in the commerce and business of the country. This is the view of Consul General M. W. McIvor in a recent report, in which he says: "Within verv recent years Japan, realizing that she has a population fitted for the acquirement of skill in the technical manufacturing arts, and that such labor can be obtained here at a lower price than in any other country, has evidenced her determination to manufacture, not only for internal consumption, but for a broader market, and is beginning to demand foreign raw material. She is aided in this undertaking by the fact there is no protection of foreign patents, and, her artisans being quick to imitate, she can successfully copy the best mechanical appliances of the countries of the globe, and can in this way produce a machine which, for given work, often excels any to be found in the world. This development of the various manufacturing arts is, we may say, still in the initiatory period; but the cotton fabric industry has undoubtedly passed beyond that stage, and Japan is to-day not only supplying her home consumption, but is shipping cotton fabrics abroad." This report, coming as it does from such a reliable authority, and at a time when statements erroneous and otherwise are being made concerning the prosperity of the country, is particularly "apropos." Japan's advantage over India, China and Great Britain in the competition for the trade of the East is doubtless largely due to the low price of labor and the free use of the very best and latest patents without the payment of royalties. The manufacturing cost in India is 14 cents, while in Japan the cost is only 34 cents per yard for cotton cloth. With such a difference as this, it is no wonder that Japan has succeeded in securing a place in the world's markets. The increase in cotton mills in thirty years has been very large. In 1863 there was one cotton mill in Japan; in 1893 there were 46. The number of spindles during that time increased from 5,456 to 600,000, while the output in 1892 amounted to 82,476,966 yards. This is all very well from the standpoint of the manufacturer. He profits by low wages and the high purchasing power of foreign money in silver-using Japan. But how about the wage earner? The standard of living in Japan is very low. Six-ten hs of the population do not earn $10 per month. Mr. E. J. Smithers, Consul at Hiogo, says in the June, 1894, Consular Report, that the only obstacle to the introduction of American flour is that the Japanese are to poor to buy it. This sentence gives an idea of the wage earner's condition. The money in which his wages are paid, being measured by a silver standard, has steadily shrunk in value during the last few years. Wages on the whole have not advanced as rapidly nor as much as prices. In 1891 the carpenter received 15 cents (28 sen and 1 p.) per day, while in 1894 he received 172 cents (31 sen and 6 p.) per day-a gain of 12.3 per cent in the four years. If data could be secured for 1889 the advance would be still greater. The wages of the pottery maker, teamaker, foreign dressmaker and the cotton spinner have advanced the most. The percentage of gain in the wages of the carpenter, painter, sower, farmer and coolie have been 111, 11, 12, 21, 10 per cent. respectively for the four years. Policemen get from $4.50 to $8.25 per month; teachers in government primary positions from $6.50 to $19 per month; clerks in post-offices, custom-house officers and similar positions receive from $4.50 to $33 per month; teachers in boy's high schools, from $8 to $40 per month. These salaries are reduced to the basis of our own money. It will be seen from the comparison of prices and wages that in nearly every case food products have risen faster than wages. This is especially true of rice, beans and wheat, the principal food staples of Japan. The increase in wages has been something like 14 per cent throughout the country, while the advance in the principal staples has been 28 per cent. Since 1889 the wages of the farmer have advanced about 3 pcr cent. Rice, the principal article of food has gone up 62 per cent., while wheat and beans have each increased 36 and 39 per cent. in their price. Under such conditions the farmer is in a bad situation. Other occupations have received a somewhat larger increase, but none of them equal the advances in prices. At present Japan is a good place for the manufacturer. Gold will buy more now than at any other time; wages are low, and, taken all in all, textile products can be manufactured and sold to advantage in competition with those of Great Britain or India. But the rest of the people have nothing to be thankful for. Japan is now repeating cur experience of 1832-65. Her currency has steadily depreciated for the last few years, not, to be sure, from lack of credit, but from the fact that she uses silver as a standard. Changed political conditions and the late war have given an extraordinary stimulus to her manufacturers. Her manufacturing employers are prospering as never before, paying low wages, selling in an eager market-stimulated by the steady stream of extraordinary government expediture of borrowed money which future generations will have to pay. Meanwhile the Japanese laborer gets for his wages even less of food and clothing than in former times. CHINA. 66 China, directly across the sea from Japan, has had a somewhat different story. There has been no such awakening as in Japan. The mode of living, the manner of dressing, the methods of agriculture, are the same as they were fifty years ago. China is a hermit nation, and, living apart as she does, the effect of depreciation of her money, when compared with the world's standard, is not felt to any great degree. The commercial money of China is silver, although there is a great deal of gold in the country, and the great mass of petty trading is carried on with copper cash." But China as a whole buys more than she sells, and uses her gold to pay for the goods. Imports have been greater than exports for several years. From 1882 to 1892 the imports amounted to $411,198,780 (56,328,600 O. H. taels) in merchandise and $733,650 (1,005,000 H. taels) in treasure. The exports amounted to $387,698,620 (531,094,000 H. taels) in merchandise and $21,547,000 (29,517,000 H. taels) in treasure As long as China continues to buy heavily in the markets of the world it is not likely that her money will depreciate at home. China's ability to absorb silver depends upon the preponderance of exports over imports. Under present conditions it is not likely that she will continue to import silver, and her imports are now largely paid for in gold. Since there has been no great influx of silver into China-and China has never had much silver-there has been little chance of any great change in the purchasing power of her silver money. Although wages, rent and taxes remain unaltered, still gold will buy more than it would before. In 1893, four shillings in gold would buy what it formerly took 6s. 6d. to purchase. In other words, $60 in gold will do what formerly required $100. Gold, however, is used in payment for imports, while silver and copper remain the money of the people. Wages are very low; skilled workmen only getting from 10 to 30 cents per day, while unskilled laborers sell their strength for 5 to 10 cents per day (as computed in silver). In the case of China, the depreciation of silver has had therefore but little effect upon her masses. But it has not raised the nominal wages of the working classes. INDIA. India's development has tended to raise local prices. The competiton for her exports, the importation of gold and silver to the amount of $150,000,000 in 30 years, and the opening of railroads to the interior have all tended to raise prices. But notwithstanding India's development, she has suffered grievously by the depreciation of silver. Our silver advocates, however, cannot deny that wages have fallen and prices risen in such a way as to make the burden of her laboring classes greater than ever before. The Indian Commission in its report for 1892 says on page 462: “The fact that wages and "all prices do not rise to the same extent enable the producer of tea, for instance, to "make a temporary gain at the expense of employees and of those to whom he has to "make fixed money payments. This profit is usually only temporary, since with the "depreciation of the standard, all wages and prices tend to rise, and when the rise is completed the profit disappears. If the profits should happen to be considerable, and "should last a long time, it supplies an unnatural and temporary stimulus to trade which "leads to overproduction and consequent reaction." 66 It is measurably true in India, as everywhere else, that wages and prices tend in the long run to adjust themselves to each other. But what is the immediate consequence? Given, as in India, the case of a depreciating standard, and who suffers during the years or decades of adjustment? The result proves to be the same here as elsewhere. It is labor that pays for the changes. In fifteen of the twenty-three provinces given in the tables of the Finance department of the British India Government wages have fallen during the last seven years. In five provinces wages have remained the same, and in four instances wages have advanced. In eight provinces agricultural labor has advanced, and in eleven the price of skilled labor has gone up. In Patna, Cawnpore, Delhi and Karachi the wages of both skilled and unskilled labor have fallen. In Patna and Cawnpore the price of all grains has risen, but in Delhi the price of wheat, barley and grain has risen, while in Karchi barja alone has not advanced. In these provinces, the condition of the working class in 1893 was decidedly worse than in 1873. The greatest advance in wages took place in Rangpur, Rawalpindi, Raipur and Madras. In Rangpur during the last seven years the skilled laborer has received an increase of 65.8 per cent. At the same time, however, the unskilled laborer lost 6.67 per cent. in his wages, while rice and wheat advanced 46.6 per cent. and 39.4 per cent. In Rawalpindi the same thing took place, the skilled laborer getting 58 per cent. increase in his wages and the unskilled laborer getting .9 per cent. less. Prices in this province advanced from 2 per cent. to 20 per cent., wheat and barja being quoted at 17.6 per cent. and 20 per cent. In Raipur the case was reversed; there the laborer got an advance of 29.7 per cent. and the skilled laborer lost 17.1 per cent. The price of wheat went up 38 per cent. and rice 13 per cent., so that the working class in this province was injured by the change. One more example, that of Madras, will suffice. In this province the wages of the laborer increased 11.4 per cent., and of the skilled laborer, 48.1 per cent. Prices, however, kept pace, rice, barja and raga going up 28, 33.9 and 49.3 per cent. In the forty-six different quotations of wages in the twenty three provinces of India the purchasing power in thirty-five cases has decreased. This diminution has been as great as 43 per cent. in Salem, and as small as 1.6 per cent. in Jubbulpore. In every province except two the average price of grains has increased, the increase varying from 1.8 per cent. to 52 per cent. The figures given in the table are from the statistics of the India government. Although there may be some question as to their absolute correctness, still there can be no doubt as to their relative value. They show the conditions in India as they exist. Table of Prices and Wages in India, 1886-93. |