THE DAILY OTAGO TIMES

Otago Daily Times, Issue 8077, 12 January 1888, Page 2

THE DAILY OTAGO TIMES

munsDAi', jAXUAiir 12, ms. I

The well-known American economist, the Hon. David Wells, contributes to the October and November numbers of tho " Contemporary Review '•' two admirably lucid and careful articles to show that the relative scarcity of gold has had no appreciable influence upon the recent fall in prices—amounting all over the world on an average to at least 30 per cent.—which is causing so much depression and disaster. The first article consists of a detailed review of the recent production and price experiences of a considerable number of important commodities. Thus Dr Wells deals one by one with sugar, wheat, meat, wool, cheese, fish, codec and tea, hops, iron, copper, lead, nickel, tin, tinplates, quicksilver, silver, coal, cotton, silk, jute, nitrate of soda, paper, quinine and chemicals. With regard to all these articles, which form the bulk of the commerce of the world, he gives very strong grounds for believing that tho change in prices is fully accounted for by causes apart from any scarcity of gold. Taking wheat, for instance, as the commodity most interesting to iS'ew Zealand, Dr Wells begins by quoting official statistics to the eil'ccfc that " the average price of wheat in " the English markets for the decade " from IS7O to 1880 was 4.'! per cent. " higher than the average of 1886, and " the average price from 1559 to 1572 •' was GS per cent, higher than the " average of ISSG." For these results ho linds an all-suilicient explanation of the excess of the recent increase in the world's supply of food as compared with the concurrent increase of population ; the large iucrease in the area ot land devoted to the cultivation of cereals during the last decade; the increase (due to better methods of tillage) in tho average product per acre ; and principally in the enormous increase in the facilities for transportation, coupled with greatly reduced cost, which has made the product more accessible and accordingly more available for distribution. Here is some of the evidence as to the increase of wheat production. The average wheat production of the United States for the five years from 1881 to 1885 inclusive Mas -llJli million bushels, against 306 for the 10 years preceding. The export of wheat from Russia increased from 3(3 million bushels in 1880 to (17 millions in 1881. All over Europe a considerable increase of production is shown. Then British India, which in 18S0 exported only 13 million bushels, exported 31) millions in 1885. Australia and New Zealand increased their export during the same period from 11 to 19^ millions. ISTor will our farmers derive much comfort from the evidence Di Wells quotes of the probability of a great further expansion of wheat grow ing in India, Manitoba, North Africa, the Argentine Republic, and the United States. Turning to wool, we note that the increase in the production from 18G0 to ISBS was about 100 p.?r cent., and between 1873 and ISBG 30 per cent. The wool clip of the United States alone increased from 2GI million pounds in 1880 tc 3211 millions in 1885. Space will not allow of our going further into these details, but wo may say generally that it is impossible to rise from the perusal of this record of the production and price experiences of the commodities mentioned above, which form the great bulk of the trade and consumption of the world, without feeling that Dr Wells has made out a very strong case for his contention that the decline in prices is adequately accounted for without any reference to the scarcity of gold. The second part of his argument is devoted to showing that no single commodity can be named in respect to which there is conclusive evidence that its price lias been at all affected by influences directly or mainly attributable to any scarcity of gold for the purpose of effecting exchanges. Thus he

lirst points out by a number of specific examples that all that large class of products or services which arc exclusively or largely the result of handicrafts which are not capable of rapid multiplication or of increased economy in production, and which cannot be made the subject of international competition, have exhibited no tendency to decline in price, but rather the reverse. Domestic service and manual and professional labour, amusements, lace, cigars, liax, cut glass, gloves, pictures, precious stones aro as dear as ever. Hides arid leather, horses, cocoa, malt liquors, eggs, currants, and potatoes have gone up in price; and the commodities of countries of low or stagnant civilisation have experienced little or no change. The cases of wool and silk havo been quoted by the scarcity-of-gokl party as favourable to their case. Thus ifelmuth ydnvarlze and X'o. estimate that the production of wool has increased only 155 per cent, during the last 11 or 15 years, as against an increase in the demand of 30 per cent, in the last 25 years. The gold-appreciation party claim that the difference is not sufficient to account for the considerable fall that has taken place in the price of wool, to which Dr Wells replies that "When tho supply of any " commodity exceeds by oven a " very small percentage what is re- " quired to meet every demand of " current consumption, it is the price " which this surplus will command

" that governs and fixes the price of tlie " whole." Silk has also been quoted as notably declining in price without any corresponding increase of supply. But a careful examination discloses the fact that materials other than silk —notably the ramie fibre—have recently entered largely into the composition of silk fabrications ;in the case of the cheaper silks of extensive consumption to the extent of GO per cent. Dr Wells then enters upon the record of extreme changes ',in price by reason of exceptional circumstances, such as that of cotton, gum-arabic, French wines and brandies, cochineal, and madder. Turning to the influence of new processes and machinery, he shows that the cost of freight has been a very weighty factor in the fall in prices on land through the reduction of the cost of iron and steel, through new methods of propulsion, economy in fuel and undue multiplication of vessels. Thus in America the charge of railway freight per mile has fallen from 3 '45 cents per ton in 18G5 to OGS of a cent in 1885. Preight between Calcutta and England has declined 50 per cent, between 187G and 18S5. In the case of Indian wheat transported to England by the Suez Canal the decline lias been from i 71s per ton in October 1881 to 27s in , October 1885. Freights from Uew L York to Liverpool have declined from a maximum of d\d per bushel yon grain in 1880 to a minimum .of Id per bushel, in 188G; on Hour from 25s to 7s Gd per ton, and Iso on. "[t would seem," says Di Wells, "that if the scarcity influence ;, "of gold on prices had operated j "as the advocates of tin's theory ( " claim, such, influence would hav< " been as all-pervasive, synchron " ous, irresistible and constant as th< " iniluenco of gravitation, and thai - "something of correspondence, ai :, " respects time and degree, in tho re o " suiting price movements of com s "modities, would have been re o "cognised." But no such correspon o dence can be established. On tin d contrary, the movement lias beej n irregular, and tho influence of tlv g demonetisation of silver by German; ■t was not i'elt at the time or for manl 0 years afterwards. Then there is th c divergency in the price movements > which do not harmonise as re c gards any two articles. Thi >f was shown notably in tho case o Is wool, which maintained its price lon t, after metals, breadstuff's, chemicals, ani \ cottons had succumbed, and did no i, decline seriously till 1881. Again, cart 1, ful comparisons of price movements shoi \ that the fall lias been greater i h the United States than inGreat Britair ii and in Great Britain than in Franc i, and Germany—results which, whilst n s- variance with the theory of tho predc is urinating influence of a scarcity c rt gold, might be expected from an ig are satisfactorily explained by th 0- conditions of supply and demand—coi a- ditions so varying with time, place, an ig circumstance. it Lastly, Dr Wells goes into the quo: 'li tion of whether gold has in recent yeai le really become scarce as an instrumer t. for effecting exchanges (by measurin td the relation between various commod 2 ties and things exchanged). That tl; ie annual product of gold has largel ts diminished of recent years ho does m of dispute. But he points out thf ie the amount of gold in use Iv ;d largely increased in recent years—i: a- L 107,000,000 sterling between 187 01 and 1885 ; —that tho reserves of gold i oi' the principal banks of Europe and tl: 10 United States have largely increase of (from 95 millions in 1870-80 I er 167 millions in 1885); that whilst i ■!s 1870-7-i tho gold reserves amounted 1 lS ~ 28 per cent, of the total note circul I)' tion, in 1885 they amounted to J ie per cent., thus showing that (.he suppi d- of gold ia so abundant that the chara "• ter and s.ifety of tho note circulatic ;ie has been improved in a signal mannc '-W Dr Wells admits that there has been ;iu greater use for gold of late yeai n| owing to the demonetisation of silv >G in Germany and the resumption t0 specie payments in the United Stat at and Italy, as well as through the co 311 liiiuiiig increase in the populatu 1- of the work], and especially tl ll" increase in its production and trail -n but he holds that the above figur ed show that all such requirements luv M been met through various agoncic id Thus the use of money is large lft economised through the enormous i H crease of banking facilities, the extc V(J sion of credit, tho great reduction }r the time and cost of distribution a commodities, and the ease with whii w- purchases can be made and credit trar :a, mitted by telegraph, as well as the ii lie crease in the facilities for the trai: ye portation of gold from place to plac ie- Some very interesting examples a 30 given on these heads, which space w: not allow of our quoting. Mr Fowk he for instance, mentions that a leadii m English firm doing business with tl to East state that " their business cou ill "now be conducted with one-fifth to " the capital formerly employed ly Altogether Dr Wells collects a ye; lie large body of evidence which it w 3n take some trouble to refute, and whit li- certainly adds considerably to tl lie supply of the world's information on tl p- cau so of the fall in prices. at 'g Several local reports, iucludiug that of t 10 Laud Board, appear ou our fourth page. or The Hon. Mr Fisher and the Hon. Mr Ferg ty were in attendance yesterday at the |Miuiste Oflice, and were interviewed by a number is persons, but none of the deputations were of ] c public character. Both Ministers lenvo 1 (■ 0 the North to-day—tho Hon. Mr Fisher i t Chii.stchurch and the Hon. Mr Fergus i Oamaru. The Colonial Secretary (the Hon. 1 • Hislop) left for Oamaru yesterday morning. ltYesteniay forenoon one of the seamen of t ship Turakina, named John Hudson, wh working aloft, fell from the foreyard to t 1(l deck. Ho was promptly attended by Dr ] 01 Zoucho, who found that in addition to a seve v- shaking the mau had bruised his knee. ,Au inquest was held before Mr Corou ;d Carew at the Prince Alfred Hotel in Xi; iy street yesterday afternoon on the body of Eli je Beatrice Hawkins. It appeared that tho d H- ceased, who had been suffering from consum tion for some time past, went to see the lai c doctor with her married sister, Mrs Peterson, ■ Tuesday afternoon. Sho then seemed very c cited, and went homo in a tramcar. About ha ' past 8 Mrs Peterson arrived at her homo in Xii S) street, and the deceased then appeared to bo *'• her usual state of health. After tea Jeceas It went outsido for Mrs Peterson's child, ai IS shortly afterwards came running into the hou 10 with blood running out of her mouth. S! )c as/ced someone to go for a doctor, aud fell dow j. Dr Copland was at once telephoned for, but d ceased jitil just before his arrival. Tho ju ', returned a verdict to the effect that death r suited from the rupture ot a bloodvessel iv tl V h Xuiisb. The City Council will hold a special meetii C this day week to discuss thu reports Mtbmittc •I by Cr Hardy and Jlr Mirams, city surveyor, i y to the measures necessary to secure the safe! Ie of public buildings. A supplementary rcpo 5 from tho gentlemen mentioned v/as presents y last night. '^ An action ou a bill writ, Ashcroft and Co. ■ r- R. B. Denniston, was heard and determined i O the Supreme Court yesterday. The princip; 2- questions in dispute were: Was the instrumer y in question a bill of exchange or merely a doci meut given for the convenience of the plainti in financing; and the other was, had the doci JI ment been given for valuable consideration These and several minor points were answere 8 by his Honor in favour of tho plaintiff, for whoi d judguiout wait givea for tho amount claimed.

Mr E. H. Oarcw, R.M., presided at the Resi- W dent Magistrate's Court yesterday. Judgment ji^e was given for the plaintiff with costs in the case Tbo of T. Brown v. F. P. O'Reilly (Rivertou), claim 6l™ £4, on a dishonoured cheque. Mr Holmes ap- the pearel for the plaintiff. Judgment was also to": given for the plaintiff, for the amount claimed w i e ] and costs, in the case of T. Osborno v. R. Good, P"claiin £27 Is U, for rnouey leut and interest. U'jj Mr Hoilgkins appeared for the plaintiff and Mr usa Kettle for the defendant. boo,: pen At the City Police Court yesterday morning, ulefl before Messrs N.Y. A. Wales and J.P.Jones, troi J.P's., John Low was charged, on remand, with H having stolen on December 28 a bridle, of the bj,1 value of 15s, the property of John Lindsay. Mr wia Gallaway appeared for the accused, who was convicted and discharged. After the disposal of I tho above case Messrs A. C. Begg, J. Wright. tejj and J. Elmer, J.P's., occupied the bench, when a bra woman, who was charged with drunkenness, Jjjj was convicted and discharged. Auders Farald- Co: sen and G. Neilson were charged with deserting irom the barqucntine India on December 10, bra contrary to the provisions of " The Foreign Seamen's Act I860." Sergeant-major Bevin stated that he had received a telegram from the captain of tke vessel, who st.itnd that he was just about to leave Nelson, and could not take further proceedings in the case. The accused were consequently discharged. [£ Tho weekly meeting of the Benevolent Institution Trustees, held yesterday, was attended by Messrs Solomon (chairman), Rennie, and Gourley. Accounts amounting to £501 0s M were passed for payment, and a number of applications for relief were dealt with. Commuiiications have been received from the J, secretary of the commissioners for the Melbourne Exhibitioa at Wellington by his Worship the Mayor, the chairman of tho Chamber of Commerce, and the chairman of the Manufachirers' Association, asking that steps should he taken to form a local committee in Dunedin- -- It is not yet known if any funds are available i c for local committees, and until this point is settled, it is not expected that much progress will be made in obtaining exhibits. His Excellency the Governor has forwarded to the Gity Council the following communica- g tion received by him from the Secretary of <j ' c State for the Colonies :—" Downing street, Ist November.—Sir,—l duly received and laid before is the Queen tho address which accompanied your t C- despatch of the Ist September from the City I- Council of Dunedin respectfully congratulating c . her Majesty on the occasion of her having a _ completed the 50th year of her reign, and lam commanded to request that you will convey to the City Council her Majesty's thanks for their loyal congratulations and good wishes. The 10 Queen has much admired the design and ' l y execution of the casket which contained the iy address.—l have, fee, 11. T. Holland." : je A visit was paid to Messrs Smellie's iron S, smelting and rolling works at Burnside by the c- Hons. Messrs Fisher, Fergus and Hislop on is Tuesday, when they were shown over the o f works, and the process of manufacturing scrap la iron was practically illustrated. Ministers took *? a good deal of interest in the process. In the course of conversation Messrs Smellie informed the Ministers that, although they had an uphill ' ft' game to play in establishing such a largo and 'W important industry, still they required no 111 coddling; all they wanted was fair facilities for n, getting the manufactured iron into tho Dunce ediu market. A visit was also paid to Mr jjj. M'Douald's cement wortts, where tho various processes in tho manufacture of cement were j. shown to them, samples of the manufactured article ranging from five to 15 days old were * put into tho testing machine. The tensile uO strength of the cement was found to be very II- great, many of the samples reaching a breaking id strain of 15001b, and remaining unbroken. Whoa it is mentioned that this is three times i S . the breaking strength required by the Governrg ment engineers, it will be understood what the . quality of the cement really is. Some samples sent up to the engineer at the Oamaru breakp water stood some tests of a surprising character, •'1" and of these tests 51r M'Donald is justly proud. ''O Ml- Fisher expressed himself as greatly pleased to ily find that his view of tho colonial cements lOt was so well borne out by au inspection of Mr at M'Don.nki's work.*, and the industry is likely as to receive whatever support can be afforded by by him' -'- The monthly meeting of the Dunedin Horti- • cultural Society was held at the Standard In- , surence buildings last evening. Mr J. C. lfj .Thomson occupied the chair, and there was a c" full attendance of the committee. Twoorthrce to small matters were considered, and the judges in nominated for the March show. After the to business had been disposed of, a number of ]a- exhibits of flowers were inspected by those 11 present. The foremost of these'was a beautiful jjy collection of carnations and picotees, which had •; been sent by Mr! E. Triggs' firm, Christchurch, and which were greatly admired. Mr Matthews exhibited about halt'-a-dczeu varieties of tubercr> oils begonias, which had been raised from seed 1 a l lust year at his nursery, Hawthorn Hill. Some l'S, of the ilowers measured -IJiu across, and were ,'IT very good specimens of their class. Mr W. H. of M'Keay, jun , showed a beautiful largo rose, tcs bearing tho name of Motto Sanguine, and a Jn _ gladiolus, Marie Lercoine. Sir 'W. Keid had on view some nice pelargoniums. One of these— \ a cross between a Captain Rallies and a Volone ■ Nationals—was raised from a seedling, and had ' iJ j not baen exhibited before. Mr Reid also had res amongst v's collection of ilowers a very nice ive Jeanne d'Arc pelargonium and a new white es. double Marguerite. Mr Kempliu showed a ely coyubiiiora ruba fuchsia, and Mr Scott, of York j n _ place, an ixera coleii. After the exhibits had cn _ been inspected, Mr Reade read a paper on " The Carnation," which had been previously read by - Mr Triggs before the Christchurch Horticul- . ° tural Society. The reading of Mr W. H. lo'' M'Keay's paper on " Roses " was postponed '1S" until some future date. u~ The polling for seven members for West US- Taieri River Board took place on Tuesday, Ce. when great interest was taken in tho election. ll'O 'l'ue voting was as follows, tho first seven being ■ill elected:—William Snow, SG; Michael Tynan (jj. 81; Peter Grant, 82 ; John Bathgate, 7S ; James ' Shand, 78; James Allan, 76; Alexander ■ ° Chisholm, 73; James Robertson, OS; John ™ Allan, 67; David Grant, 5-1. The only new I' c' member is Mr James Shand. °~ Tho Tnranaki News says that Mr Courtney, c'- tho immigration agent, who has recently reW}T turned from England, states that there are ."ill humlrcds of farmers with capital at Home who !eh would willingly come to New Zealand if any ; he special inducement was held out to them. He lj 0 considers that free grants of land offered to men with capital, and who would not bo en. titled to their Crown grants till they had spent, a certain amount of money in improve'ne mouts, would be the greatest " draw," and would cause a stream of immigrants of the gus better class to How immediately into New Zeaers' land. '°f Mr G. Gabiles, of Timaru, has just returned 'f a from a visit to England,and has given the result f°r of his observations to a Timaru Herald repref°r seutativo. Asked "How is New Zealand spoken f°r of at Home!"'he said: "It is very highly thought r of. People aro very favourable to New Zealand as a field for emigration, and a great deal of inthe terest is expressed iv the progress of the Panama bile Canal, which people think would bo of immense the benefit to New Zealand, bringing her within 21 De days of England. New Zealand frozen mutton ere " very much thought of; it is most highly esteemed, but unfortunately a good deal of inferior stuff from the River Plate and elsewhere is sold as New Zealand mutton. New ...^ Zealand lamb is particularly iv t'avour.^gTlii , proves to mo that the New Zealand companies ought to have their own agencies and retail shops, °^~ and secure to the people at Home a certain o^ supply of real New Zealand mutton." ex- An international cycling tournament,at which alf- Fred Wood, the champion bicyclist of the world, ing and Mr William Brown, of tho Brixton Ramb3 iu lers Bicycle Club, England, a crack amateur sed rider, will compete, will take place ou the Carisin d brook ground on Saturday, February i. Tho use programme of the tournament appears in our sh e advertising columns. All the local bicyclists will rt-n. compete, and some of the best Christchurch cle- riders will also take part in the sports. Wood Jry will ride in tho three and five-mile scratch races re _ against all comers, and iv addition will make au ;k 0 attempt to break the world's h;ilf-mile record for a grass track. , 'The "Herd Lmldii)" played eight games at "f\ Portobullo on Monday last, ami Mr James ChiHtie and Blr Jamns Dicksou managed by , t skilful play to secure a draw each. Mr Wyllie says the play is of a very high order, and ho is . C( j charmed with the scenery of th« district. Tho l'ortobello Hotel, where the play takes place, presents quite a lively appearance, as draughts v- players for miles around flock iv numbers to a* witness the champion showing his skill over the Dal board. Tho final performance of tho Carrie Swain Al' Company in Dunediu was given last evening in 1 the Princess Theatre. The members of the Leitch Dramatic Company were among those ' who were present. Tho play " Uncle Tom's c" Cabin " appeared to be thoroughly eujoyed by >m the audience, and nearly, all Miss Swain's songs wero encored.

We are requested to dra*v special attention to the fact that Mr Montagu I'ym'a sale of bulbs, which takes place to-day, commences at 12 o'clock noon. Those who are interested in securing new varieties should note the sale and the hour. I Messrs Sargood, Son, and JJ we n have purchased the whole etock of Messrs H.ircourt and Co., WellingThe partnership between E. E. Dick, G. A. Fenwick, and W. C. Kennedy as kerosene bond proprietors lias been dissolved. Mr Fenwick will wind up the partnership affairs. Messrs Ferguason and Mitchell have forwarded to U3 a sample ot Messrs L. and C. Hardtmuth's account book poncils. The ndvantigo claimed for these pencils is that the mark made, while being quite as clear as any other, can, when required, bo rubbed out without disfiguring the book, and with very little trouble. Now that the festive season is past, peoplo are apt to rid themselves of their superfluous plum pudding by swallowing chemists'abominations. If you are wise you will do no such thing, but re-establish the healthy action of your system by the only natural tonic, A. Dohswkll's primeat meats.—[Advt.] Drink Hudson's Pure Solcblk Cocoa. Guaranteed best and cheapest in New Zealand.—[Advt.] The Prince of Summer Drinks.—The White Cross brand of Ginger Ale now made by Thomson and Co. , Dunedin, carried off the Gilbert Smith international competition medal against 79 co7iipetitors in London. Consumers are requested to compare with other brands and judge for themselves.—THOMSON AND Co., Dunedin. Caution.—Abl; for White Cross brand. Without label none genuine.—rADVTj