g»tate (College of Agticulturc At (Kocnell Inittetaitg Stliata, ^. Q. SItfararg The original of tliis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924013930908 HISTORY OF-PRICES. llAULANTYNE, HANSON AND CO. EDINBURGH AND LONDON PRICE-LEVELS OF THE WORLD AND OF GREAT BRITAIN. A. The World (Brmon) ; B. Great Britain {Blue). I 50 i85 IS3 IB54-56 IB57-S9. I86Q-67. 1883-65. IBEfl-ee, IB69-7I iB-72-74- 1875-77 if. HISTORY OF PRICES SINCE THE YEAR 1850 MICHAEL G. MCLHALL, FELLOW OF THE STATISTICAL SOCIETY AND OF THE SOCIETY OF ARTS ; HONORARY MEMBER OF THE SCOTTISH GEOGRAPHICAL SOCIETY ; AUTHOR OF "the dictionary of STATISTICS," "THE PROGRESS OF THE WOULD," "the balance-sheet OF THE WORLD," ETC. ETC. OTitJ ffitgi&t Calouwli ffliagrams LONDON LONGMANS, GEEEN, AND JLO. 1885 /'^'x^--- [AU Rights reserved] ■o\ [ ^Pft W 1924 (i£' ^J o-^ PREFACE. Thirty years have elapsed since the last issue of Tooke and Newmarch's " History of Prices," and the interval has been one of the greatest commercial activity. It may appear surprising that so long a period has been allowed to pass without a review of the trade of nations in connection with the rise and fall of prices, but the magnitude of the under- taking has possibly deterred many competent persons. The utility of such a work, for the sake of reference, is beyond all question, and it only remains for the public to decide whether the task has fallen into proper hands. , MICHAEL G. MXTLHALL. 19 Albion Stbeet, Htdb Pabk, September 24, 1885, NOTE. Great Britain stands for United Kingdom, Austria for Austro- Hvingary, and Scandinavia for Denmark, Sweden, and Norway. The price of silver has fallen while the sheets were going through press, being now 47J pence, instead of 49, as on page 12. DIAGRAMS. Price-level of Great Britain and the World . . Frontispiece. Stock of Gold and Silver to face page 11 Taxation and Debt „ „ 30 Ocean Carrying-trade .....„„ 35 Labour and Energy .... . „ „ 55 Price-levels of Agriculture and Manufactures (the World) .... ....„„ 122 Price-level of the World for one hundred years . . „ ,, 130 Price-level of Great Britain, 1840-84 . „ „ 154 CONTENTS. CHAPTER PAGE I. — Variations of prioe-level in Great Britain — Retro- spect since 1850 — ^Altered value of money . 1-5 II. — Price-levels in Europe and America — Use and abuse of index numbers — Volume of trade method 6-10 III. — The precious metals — Stocks of gold and silver — Coinage of all nations — Price of silver . 11-18 IV. — The money-market — Kates of discount — Banking in Great Britain and the Continent — Bank- ruptcy returns 19-25 V. — Finances of nations — Military expenditure — Public debts — Assets and liabilities of nations . . 26-32 VI. — Commerce of the world since 1850 — Value and weight of sea-borne merchandise — Balance of trade — Import-dues — Trade of Great Britain . 33-iO VII. — Shipping of all fiajs — Increase of steamers — De- cline of American and French shipping — Effect of bounties ... ... 41-46 VIII. — Railways of the world — Capital invested therein — Freight and passenger tariffs — British railways —Telegraphs ... ... 47-51 IX. — Steam-power of the world — Work done by hand, horse, and steam — Cost of industry — Increase of energy in thirty-five years .... 52-57 X. — Textile manufactures — Consumption of cotton, wool, flax, jute — Value of goods manufactured . 68-63 XI. — Iron and steel — Timber and forests of the world — Leather industry — Books and newspapers . 64-70 XII. — Mining industry — California and Australia — Coal yield of the world — Various minerals . . 71-77 viii CONTENTS. CHAPTER PAGE XIII. — Agriculture, area under crops, summary of grain- growiog — Cattle-farming — Agricultural capital and product 78-85 XIV. — Food-supply of nations — Sum expended ; amount of energy in food ; meat-supply of Europe- Annual consumption of food per inhabitant in all countries 86-95 XV. — Population : increase in one generation — Decline of rural — Death-rate and days of sickness . 96-100 XVI. — -Emigration from Europe — Settlers in United States — Rise of the British Colonies — Colonial trade and finances 101-106 XVII. — ^Wealth and earnings of nations — Distribution of wealth in the United Kingdom — Cost of living in various countries 107-114 XVIII. — Summary of industries ; numbers employed . . 115-116 XIX. — General survey of prices — Table of values from 1840 to 1884 — Agriculture and manufactures 117-123 XX. — Wages in aU countries ; compared with cost of food, and with value produced . . . 124-129 XXI. — One hundred years of wages and prices . 130-133 XXII. — Causes that affect prices — Popular delusions in connection with prices 134-138 XXIII. — Review of British trade — Years of highest and of lowest prices — Effects of trade on wealth . . 139-143 XXIV. — Chronicle of events since 1850 . . 144-152 Index APPENDIX. Price-levels — Gold and silver — Banking and finances — Commerce and shipping — Railways — Manufactures — Agriculture and food-supply — Co-operative societies — Prices and index numbers — Writers on prices . . . 153-190 191 EEBATA. Page 81, line 15, for 16 read 16a Page 81, line 16, /or 15 read 156. Pajre 81, «me 17, /or 14 read 148. Page 173. In Cattle Table (1880-1884) read as follows :— OOO's omitted. Cows. Horses. Sheep. Pigs. United King iom . . 10,423 2,905 29,377 3,906 France . . 11,450 2,850 22,520 ,570 Germany . 15,790 3,520 19,190 9,210 Rnssia . . 27,320 17,590 51,820 10,840 Austria . 13,180 3,280 13,100 7,160 Italy . 4,780 658 8,600 1,160 Holland 1,430 270 750 400 Belgium 1,380 270 370 640 Denmark 1,470 350 1,550 530 HISTORY OF PRICES SINCE THE YEAR 1850. VARIATIONS OF PRICE-LEVEL IN GREAT BRITAIN. In reviewing the relations between gold and merchandise for a given term of years, the first thing is to ascertain the variations in value, not of one or two commodities, but of gold, and for this purpose it has been customary to adopt index numbers, an uncertain and deceptive method. New- march was sensible of this when he said, " Index numbers are open to the grave objection that raw silk is allowed the same importance as wheat." "We have, however, an unerring guide at our command by comparing the actual total of trade with the sums which the same volume of merchandise would have amounted to at previous periods according to the prices then ruling. Let us compare, for instance, the price-levels for Great Britain and the world since 1841-50 as follows : — At prices of 1841-50 . 1851-60 . 1861-70 . 1871-80 . 1881-84 . Value ir I millions £ Price-level. British trade of 1881-84. Products of world, 1881-84 ' Great Britain. World. . 704 5,186 100-0 100-0 . 733 5,429 104-1 104-7 . 877 5,762 124-6 111-1 . 743 5,479 105-5 105-7 . 644 4,910 91-5 94-7 2 HISTORY OF PRICES. We see that the variations in Great Britain have been greater than in the world at large. The price-level of the world for the years 1881-84 is about 15 per cent, lower than it was in the decade ending 1870— that is, 17 shillings will now buy as much as 20 shiUings would then have done. Far from deploring this lower scale of prices, we must regard it as a great blessing, the result of improved machinery, cheaper cost of production, and economy in freight. Nor has it occasioned any loss to Great Britain, for the detailed tables in Appendix show that the price-level of our imports in 1881-84 is 30 per cent, less than in 1861-70, whereas that of our exports has fallen only 25 per cent. ; and as we import much more than we export, the difference of price- level is a gain to this country. No wonder, therefore, that although prices have declined, the volume of our trade ex- pands and the public wealth increases. The price-level in Great Britain, imports and exports to- gether, showed a steady rise from 1850 to 1864, reaching a maximum of 152 in the latter year, and then declining almost continuously till the present, the level for 1884 being 13 per cent, below 1841-50. In a word, £87 will now buy as much in England as £152 in 1864, or £100 in 1841-50. If we take for standard the level of 1841-50, and compare the amounts of trade, according to custom-house returns, with what they would have been had prices not changed, we find as follows : — Annual average, millions £ Ratio. Scale of B. of Trade ~" Scale of Boai-d of Years. 1841-50. returns. 1641-50. Trade. 1851-60 . . 244 254 100 104-1 1861-70 . . 350 436 100 124-6 1871-80 . . 562 592 100 105-5 1881-84 . . 704 644 100 915 The first decade, showing a rise of 4 per cent., was a period of excitement and stirring events, such as the gold VARIATIONS OP PRICE-LEVEL IN BRITAIN. 3 discovery in Australia, the Napoleon restoration in France, the Crimean war, the Indian mutiny, the crisis of 1857, the Franco-Lombard campaign, the Cobden treaty with France, &c., which affected in one or other way many branches of industry. Such was the tide of emigration that during the decade no fewer than 2,100,000 British subjects left our shores for America and Australia, say 8 per cent, of our population, which had a sensible effect on the labour market. The Crimean war caused a rise in flax, tallow, lead, and iron. Even wheat rose in spite of the repeal of the Com Laws, the .average price for the decade being 82 pence per bushel, or 2^ per cent, over that of 1841-50. Meat, butter, and eggs likewise rose, the consumption having begun to outstrip the productive power of the country. In 1857 the price-level rose to 111, the nominal value of trade reaching 310 millions, though it should not have exceeded 279 millions, at prices of 1841-50. The same year is memorable for the great crisis in the United States, where 7,200 houses failed for an aggregate of 110 millions sterling, which had its repercussion in this country, bank-rate going up to 10 per cent., and the buUion reserve of the Bank of England falling to 6 J milUons. The second decade opened with the war in the United States, which was for an interval disastrous to the interests of mankind, causing the greatest convulsion to trade that had been felt since the time of Buonaparte. Just before the close of the war, as already mentioned, prices in England reached an unprecedented level, and this was the immediate cause of the rage for Joint-Stock Limited Companies, of which three hundred sprung up in a year. Then came the Overend Gurney crisis in 1866, when no less than 100 mUlions were wiped off as bad debts in one short week, the Bank Act being again suspended (as in 1857), and the rate of discount again rising to 10 per cent. The same year saw the battle of Sadowa, the cattle-plague, stoppage of specie 4 HISTORY OF PRICES. payments in Italy, and the Alabama claims, events all of a disturbing nature, and calculated to keep up the level of prices. Better days seemed dawning upon Europe with the completion of the Suez Canal in 1869, but were soon over- clouded by the Franco-German war. Notwithstanding the cotton-famine, when this staple rose to five times its ordinary value, and the cattle plague carrying off 30,000 animals monthly, the decade was one of signal prosperity for Great Britain ; the number of savings-banks depositors increasing by 800,000, and the wealth accumulations averaging 140 millions yearly. Much of this was due to Free Trade, the Cobden treaty of 1860 having given an impulse to inter- national commerce all over Europe, to such a degree that the merchant navy of Great Britain (see Appendix) rose 77 per cent. The third decade began under favourable auspices, with the conclusion of the Franco-German war, the opening of Mont Cenis tunnel, and the settlement of the Alabama claims ; but trade was before long disturbed by a continuance of " strikes " in England and on the Continent, followed by an outbreak of war between Russia and Turkey, which reactionary causes for a time checked the beneficent fall in prices that mechanical improvements and cheapened trans- port were destined to bring about. During this decade the Suez Canal, after deducting fees, caused a saving of 20 millions sterling to the commerce of the world, a sum in excess of the total cost of its construction. Prices in Great Britain, especially for food, continued to rise, notwithstanding a fall in wheat, the average for which (1871-80) was 71 pence per bushel, the lowest rate known for so long a period since the time of George II. The decade was, moreover, remark- able for an abundance of capital, no less than 2,000 millions sterling (a large portion of it from England) having been devoted since 1871 to the construction of railways, besides 800 millions in new loans to various nations. VARIATIONS OF PRICE-LEVEL IN BRITAIN. 5 The fourth period, comprising the years 1881-84, is by many people regarded as disastrous to British industry. It is true that the price average is 1 3 per cent, lower than in the decade ending 1880 ; but trade wiU quickly find its level, as it has so often done before : it vs^ould be monstrous if prices remained the same in spite of cheapened transport, improved machinery, and all the efforts of scientific progress. Until reasonable men become convinced that low prices are best, the teachings of economy will be in vain ; but it ought to require little demonstration that if wool, raw cotton, coal and iron are cheaper, the manufacturer can afford to sell his wares for less than formerly. Let us recapitulate the points of this chapter. First. That 20 shillings wilj now buy as much of the world's products as 21 in the decade ending 1850. Secondly. That the American war of 1862-65 drove up prices in Great Britain to an extravagant level. Thirdly. That in the present depression of prices, as regards Great Britain, we find a greater decline since 1870 in the price-level of imports than of exports, and hence that Great Britain must be a gainer, seeing that our imports largely exceed our exports. ( 6 II. PRICE-LEVELS IN EUROPE AND AMERICA. We have no detailed returns for each particular item of trade in foreign countries previously to 1860-62, but if we take those years as a hasis for comparison, and adopt the method already alluded to (see Appendix) the price-levels of the principal countries vfUl be found as follows : — Years. Gt. Britain. France. Italy. Belgium. U.S. Medium. 1860-62 100 lOO 100 100 100 100 1863-70 118 94 103 90 114 104 1871-80 96 82 104 97 99 96 1881-83 85 75 82 85 94 84 The price-level of Europe reached its highest (115) in the year 1864, but the maximum for the world was in 1866, when the ratio stood at 123 : the American war had recently terminated and the price-level of the United States gone up to 210 in greenbacks, or 170 in gold, the latter being the figure used in the above computations. The price-level for the world was again very high in 1872, after the Franco- German war. Hence it would seem that immediately after a war there is a demand for all kinds of merchandise in excess of supply, which causes prices to run up. It may be said that £4 now will buy as much as £6 in 1866, the fall of prices being about 30 per cent., but as re- gards the United States in particular, we find a fall of 46 per cent., namely from 170 to 91, which is greater than has occurred in any other country ; the extremes show a differ- ence of 34 per cent, in Franco, 37 per cent, in Italy, and 43 per cent, in Great Britain. PRICE-LEVELS IN EUROPE AND AMERICA. 7 Various economists and statists have endeavoured, from time to time, to lay down price-levels ; constructed after different methods, they diverge considerably, but it is inter- esting to place them side by side : — Years. Soetbeer. Jevona. Laspeyre. " Economist.' Mulhall. Medium 1845-50 . 100 100 100 100 100 100 1851-55 . 114 107 111 104 109 1856-60 . 125 120 122 127 105 120 1861-65 . 127 123 123 110 121 1866-70 . 125 121 140 111 124 1871-75 . 136 127 112 125 1876-80 . 127 • •> 115 99 114 1881-8i . 124 ... 105 92 107 All except mine have been based on index numbers, the fallacy of -which it is important to demonstrate ; if they were a correct guide we should conclude that the price-level of 1881-84 was higher than that of 1845-50, whereas the reverse was the case. That they have a certain attraction is undeniable, for Newmarch himself used them, while admit- ting their dubious character, but whenever used, the fewer the better, for if saltpetre and indigo be admitted on a foot- ing with wheat, coal, and iron, the result must be erroneous. Jevonsused 50, and the "Economist" 22, but the number should never exceed 10, and even then the result should be accepted with reserve. Take, for example, ten principal items of trade in the United States (prices reduced to gold) which give us the following index numbers : — 1841-50. 1861-60. 1861-70. 1871-80. 1881-83. Butter . 100 145 171 168 145 Cheese . 100 135 168 180 180 Coal . . 100 100 104 76 72 Coffee . 100 133 197 214 133 Cotton . 100 126 436 169 133 Iron 100 91 91 98 57 Pork . 100 109 100 100 156 Sugar . 100 100 134 114 63 Tobacco 100 159 215 148 144 Wheat . 100 136 129 112 102 Total . 1,000 1,234 1,735 1,379 1,185 8 HISTORY OF PRICES. "When we compare the above result with what is obtained by my method, which may be termed " the volume of trade," we see how remarkable is the difference and how deceptive index numbers may be : — ■ Ratio. Tears. Index Numbers. Index. Trade. 1861-70 1,735 100 100 1871-80 1,379 80 89 1881-83 1,185 68 84 If the index numbers spoke correctly there must have been a fall of 32 per cent, in price-level, whereas anyone who takes the trouble to examine will find that the quantities of merchandise which passed through the American custom- houses in 1881-84 would have cost only 16 per cent, less than the same quantities in 1861-70. The foUowiag table shows (in gold) the actual amount of trade, and what it would have been if the average of prices in 1861-70 had remained unchanged : — Annual average, millions £. Ratio. Years. 1861-70 iScale of 1861-70. . 92 Trade Returns. 92 Scale of 1861-70. 100 Trade' Returns. 100 1871-80 1881-83 . 245 . 378 218 317 100 100 89 84 That is to say, so far from £68 sufficing in 1881-83 to buy the same quantity of merchandise as £100 in 1861-70, it would have required £84 : this is a difference of such extreme importance that it calls for no further com- ment. If we try the index numbers for ten principal articles of French trade we find as follows, according to the Customs valuation : — PRICE-LEVELS IN EUROPE AND AMERICA. 1861-70. 1871-«0. lS81-i Cheese and butter . 100 89 102 Coflfee 100 105 84 Flax . 100 67 45 Fruit 100 115 102 Grain 100 111 93 Meat 100 107 120 Silk 100 86 70 Sugar 100 106 95 Wine 100 81 105 Wool 100 88 79 Total . 1,000 955 895 Here there is a decline of only 10| per cent, from the level of 1861-70, whereas we find from the volume of trade method a fall of 21 per cent, in prices, viz. : — Annual average, millions £. Years. 1861-70 Scale of 1861-70. . 207 ■ Trade Returns. 207 Scale of 1861-70. 100 Trade Returns 100 1871-80 ... 344 296 100 86 1881-83 . 432 342 100 79 It is worth notice that whereas index numhers in the case of the United States made the fall of price appear double what it was in reality, the contrary has happened in the case of France, since we find from the trade volume method that the 20-franc gold piece will now buy as much as 25 francs in 1861-70, although the index numbers show a difference of value not exceeding 2^ francs in the same interval. Index numbers do not even err in a given direction, so that it is practically impossible to correct their uncertain- ties. Finally, let us take the index numbers of ten principal articles of British trade, and see what they will give us : — HISTORY OF PRICES. 1841-60. 1851-60. 1861-70. ; 1871-80. 1881-84 Beef . 100 110 119 143 167 Butter . 100 101 129 136 126 Coal . 100 112 125 150 112 Cotton . 100 140 333 150 132 Flax . 100 131 157 140 114 Iron 100 97 86 109 77 Sugar . 100 94 100 79 58 Timber . 100 79 79 70 64 Wheat . 100 102 98 89 73 Wool . 100 91 78 61 52 Total 1,000 1,057 1,304 1,127 975 If these index numbers were the real measure of value, ■we should find that prices in 1881-84 were only 2| per cent, below the standard of 1841-50. We find, however, by the volume of trade method, that £91|- in 1881-84 would buy the same quantity of merchandise as £100 in the decade alluded to, and therefore the fall of price is 8^ per cent. The two systems, placed side by side, show as follows : — Teara. Index Numbers. Trade Volume 1841-50 . . 100-0 100-0 1851-60 . . 105-7 104-1 1861-70 . . 130-4 124-6 1871-80 . . 112-7 105-5 1881-84 . . 97-5 91-5 It is needless to proceed further in showing how unreliable is the system of index numbers, which will certainly be discarded before long by all economists and statists. On the other hand, nothing can be more certain than the volume of trade method, which has only the one drawback, that it involves a great amount of labour, but it is labour well requited, for we know that we have the exact measure of the rise or fall in the purchasing power of gold, instead of vague and illusory approximations, mere ignes fatui, that lead to the most deplorable pitfalls. Millions^ eoQ ,300 STOCKS OF GOLD AND SILVER. A. Gold: Millions^ 300 700. 600 soo. 400 300. 200 100-. .1.67-0 . B. Silver. Millions. '_60a /,soo. l,4O0.. 1,300 f,200.- /, tOO- 1,00 a. 9O0 BOO. 7 00-. SOO . soo 400_ 300 2IJ0 iOO .1^00 i,*00 -i,30O J,3O0 , /,'00 800 700 BOO 500 . 'WO -300 200 .. 100 MilliQns:t ^,600 I, soo (,400 f_O0U 9sa 80C 700. . 600 ■ SOO 400 300 200 -. J 00 Coined, thus — [_ Uncoined, thus — [_ ( II ) III. THE PRECIOUS METALS. So long as gold and silver are used in the purchase of com- modities we must study their movement, although the hest authorities (except Jevons) maintain that the supply of the precious metals has no perceptible effect on prices, a fact which the experience of the last thirty years fully confirms. In 1850, the world possessed a much smaller amount of gold and silver, coined and uncoined, than at present ; the aggre- gate, measured in millions sterling, has risen 50 per cent., and prices, as we have seen, have fallen 5 per cent. The stock of the two metals is shown thus in millions £ : — Gold. Silver. Tear. Coined. Uncoined. Total. Coined. Uncoined. Total. Grand Total. 1850 , 205 425 630 310 1,040 1,350 1,980 1860 . 433 478 911 370 1,060 1,430 2,341 1870 . 575 600 1,175 440 1,100 1,540 2,715 1885 . 736 768 1,504 620 1,030 1,650 3,054 The stock of gold is nearly two-and-a-half times what it was in 1850, while the quantity of silver has risen only 35 per cent., and the amount measured in value of this metal only 15 per cent. The decline of silver, which has fallen 20 per cent, since 1861, is not so much the result of over-pro- duction as of diminished use in manufacture, electro-plate having in great measure superseded it. The official returns of silver stamped in Great Britain for plate or ornament show an annual average of 1,091, OOOoz. in the years 1821-50, and only 790,000oz. in the decade ending 1880. HISTORY OF PRICES. If we compare the actual tons weight of both metals at various dates we shall find that gold is relatively much more abundant than silver, judged by the ratio of previous years : — Tons, Coined and Uncoined. Ratio, Tear. Gold. Silver. Total. Gold. Silver. Tofcil 1850 . . 4,550 148,000 152,550 3 97 100 1860 . . 6,510 157,000 163,510 4 96 100 1870 . . 8,390 169,000 177,390 5 95 100 1885 . . 10,760 201,000 211,760 5 95 100 Thus the quantity of silver is now only nineteen times that of gold, whereas in 1850 it was thirty-two times, and yet, strange to say, silver has fallen. If the price of the precious metals depended on the relative existing stocks, coined and uncoined, silver should at present be worth 102 pence per oz., or 70 per cent, more than in 1850. In other words, the actual quotation of silver (49 pence) would imply a stock of 410,000 tons, or more than double the reality. The truth is, as M'Cullooh says, that no relation exists, and that " we should no more wonder to see silver falling when gold rises than if copper were to fall when lead rises." The value of silver compared with gold has been, since 1840, as follows : — Year. Pence per Oz 1840-50 60-5 1851-55 . 61-5 1856-60 61-5 1861-65 61-2 1866-70 60-5 Oz. to 1 Oz. Gold. Tear. Pence per Oz. Oz to! Oz Gold. 15-6 1871-75 59-2 160 15-3 1876 46-5 20-3 16-3 1877-80 54-0 17-5 15-4 1881-84 51-0 18-5 15 6 1885 . 49-0 19-3 The minimum was touched in 1876, when Prince Bismarck sold 3,200 tons of old German silver coin. The production of gold since 1850 has been 6,260 tons, the loss from wear-and-tear, shipwreck, &c., close on 50 tons, leaving a net increase equal to 180 tons per annum. THE PRECIOUS METALS. 13 It will be, meantime, more intelligible to state the production according to value, as follows : — Millions £. I8SI-6O. 1861-70. 1871-80. 1881-84. Tota; United States . . 102 98 70 26 296 Australia . . 104 82 72 17 275 Russia . 38 40 48 24 150 Other Countries 38 44 50 10 142 Total 282 264 240 77 863 Consumption during the whole period averaged 15 mil- lions for coinage, and 10 millions for manufacture, but the coinage was greatest in the decade ending 1860. Expressed in value the consumption was as follows : — MiUions £. Period. Coinage. Manufactures, &c. Total. 1851-60 . 228 54 282 1861-70 . 142 122 264 1871-84 . 161 156 317 Total . 531 332 863 Although the amount absorbed from the mines for coinage was 531 millions sterling, this by no means represents the value of gold coins minted in the said thirty-four years, which exceeded 1,080 millions ; the gold money of nations having been twice minted since 1850. More than 50 million napoleons, for example, were melted down for the new German gold currency. As for silver, the production, in weight, has been as follows : — Tons. 1851-60. 1861-70. 1871-84. Total. Spanish America . 5,500 7,100 13,800 26,400 United States . 1,100 1,800 14,200 17,100 Germany, &c. . 2,100 2,900 6,600 11,600 Total 8,700 11,800 34,600 55,100 14 HISTORY OF PRICES. Loss from wear-and-tear, shipwreck, &c., amounted to 4,000 tons, leaving a net increase of 51,000, that is 1,500, tons per annum. At present the loss of this metal is about 200 tons yearly, or one hundred times that of gold. Jevons shows that gold coin loses 2 per cent., silver 10 per cent., of their weight in 100 years. Consumption of silver since 1850 has been as follows, in value : — MiUion £. Period. '' Coinage. Manufactures, &c. ToUL 1851-60 . 6U 21 81 1861-70 . 70 40 110 1871-84 . 80 190 270 Total . . 210 251 461 Most of the coinage has been done in India, where the mint turned out in thirty-one years no less than 196 millions sterling. The United States began coining silver dollars in 1876, and the amount was increased by the Bland Law of 1878, since which time the average has been 6 million sterling per annum. Li August 1885 the Washington Trea- sury had 32 million sterling of these dollars, and it is feared that Government may shortly have to pay the coupons of public debt in silver, entailing a loss of 18 or 20 per cent, on holders. It appears inevitable to repeal the Bland Act, and then silver will perhaps again go down to 46 pence, causing a further fall of 10 per cent, in Indian currency. Notwithstanding the enormous increase of commerce, the quantity of precious metals sent over sea in exchange for commodities is less every year, at present barely exceedin" 5 per cent, of the value of merchandise, against 1 2 per cent, in 1861-65. This may be ascribed partly to telegraphs, partly to the more extended use of cheques and bills of exchange. The amount of sea-borne treasure since 1861 has been : — ■ THE PRECIOUS METALS. 15 Million £. Years. Gold. Silver. Total. Per annum. 1861-70 ... 512 Hi 956 96 1871-83 ... 647 493 1,140 88 Twenty-three years . 1,159 937 2,096 91 Since 1880 the average has declined to 80 millions, or about 6 per cent, of the value of sea-borne merchandise, and it is still falling. The movement between the various countries, of coin and bullion, has been as foUovps, in millions sterling : — Gold. Silver. Total. Great Britain Imports. . 383 Exports. 318 Imports. 251 Exports. 235 ■ Imports. 634 Exports 653 France . . 365 233 227 145 592 378 United States . 104 196 36 106 140 302 Australia . 21 203 21 203 India, &o. . 286 209 423 937 451 937 709 660 Total . . 1,159 1,159 2,096 2,096 India and China absorbed 380 millions of silver, or 16|^ millions per annum, say 42,000 tons in twenty-three years. In the same interval the world produced 44,000 tons, from which, deducting 3,000 for wear-and-tear, the net product was 41,000 tons. Thus it appears that India and China have taken since 1860 more than the total product of the mines, and if silver has become a drug, it is simply because its employment in manufacture is growing less, owing to the diminished use of silver plate. The quantities of coin used in the different countries in 1850 and in 1884 were as follows, in millions sterling : — i6 HISTORY OF PRICES. 1850. Gold. Silver. Total. Gold. Silver. Total Great Britain . 61 12 73 124 19 143 France 16 111 127 198 110 308 Germany . 10 40 50 75 45 120 Russia 6 10 16 30 12 42 Austria 3 10 13 10 10 20 Italy . . . . 17 11 28 30 10 40 Spain and Portugal . 15 15 30 38 17 55 Belgium and Holland 6 16 22 26 25 51 Scandinavia 2 2 4 5 2 7 Other countries . 2 4 6 7 5 12 Europe 138 231 369 543 255 798 United States 34 6 40 130 50 180 India, &c. . i 176 55 292 59 468 63 736 215 520 278 Total . 1,256 Gold money has increased 560 millions, silver 228, the aggi'egate being only half the amount of coin turned out by the various mints of the world in the said interval of thirty- four years, as we see from the official returns, viz. : — ■ Millions £ coined from 1850 to 1884. Gold. Silver. Total. Great Britain . . 155 14 169 France . . 299 45 344 Germany 91 56 147 Russia . . 110 22 132 Other countries . 96 . 751 118 255 214 Europe . 1,006 United States . . 254 64 318 Australia . 65 65 India 2 196 615 198 Total . 1,072 1,587 Comparing the amount coined since 1850 with the actual increase of metallic money, we find that 48 per cent, of the gold and 55 per cent, of the silver have been simply re- minted, a fact overlooked by public speakers and writers THE PRECIOUS METALS. 17 ■when comparing the yield of the mines with the demand for coinage. The quantity of coin necessary in any country depends on neither population nor trade. In Great Britain £4 per inhabitant is found enough, but in France they have £8. Two of the poorest countries in Europe, namely, Spain and Portugal, have the largest amount of metallic money com- pared to commerce, viz. : — Millions £, Commerce. Coin. Coin Ratio, Great Britain . 700 143 20 France . 360 308 85 Germany . Italy .... Spain and Portugal . United States . . 350 . 102 . 55 . 310 120 40 55 180 34 40 100 58 The principal facts to be remembered touching the pre- cious metals are : — Firstly. That the world has now three and three-quarter times as much gold coin as in 1850. Secondly. That only 48 per cent, of the gold above ground is used for coin. Thirdly. That silver now forms only 41 per cent, of coined money, whereas it was 60 per cent, in 1850. Fourthly. That the world now uses 70 per cent, more silver money than in 1850. Fifthly. That the actual stock of silver is only nineteen times the weight of the stock of gold, whereas it was thirty- two times in 1850. Sixthly. That if the metals were regulated in value by the existing stocks, the price of silver should now be 102 pence per oz., instead of 49 pence. Seventhly. That since 1860 India and China have absorbed a little more than the total product of the silver-mines of the world. B 1 8 HISTORY OF PRICES. Eighthly. That the fall in silver is because plate has gone out of fashion. Ninthly. That sea-borne gold and silver are now less than 6 per cent, of the value of merchandise exchanged, against 12 per cent, in 1861-65. Tenthly. That prices ' are not regulated or even affected by the amount of metallic money per inhabitant, and that we make 20 shillings of coin in Great Britain do as much trade as 85 shillings in France, 40 in Italy, 58 in United States, or 100 in Spain. ' In no case in the present work do I take note of prices in incon- vertible paper-money, which are really no prices until translated into gold equivalents. ( 19 ) IV. THE MONEY MARKET. Although prices do not move in sympathy with the rate of discount, it is evident that, directly or indirectly, the cost of production must be influenced by the value of money. Hence, if other conditions be equal, Great Britain has a considerable advantage over the rest of the world, because money is cheaper with us than elsewhere. The rate of interest, being the net profit on capital, has a downward tendency in countries where capital accumulates, and this tendency is manifested not only in England but generally all over Europe in the average rates of the last three decades, viz. : — Average Rates of Discount. 1851-60. 1861-rO. 1871-85. Pall since 1860 Great Britain . 4-17 4-23 3-28 089 Prance . . 4-30 3-55 3-94 1-36 Germany . 4-05 4-56 4-30 Austria . . 5-26 4-77 4-79 o'iV Italy . 5-35 5-69 4 -as 0-50 HoUand . . 3-60 3-98 3-40 0-20 Belgium . . 3-62 3-59 3-60 0-02 Continent . 4-36 4-36 4-15 0-21 General average . 4-27 4-30 3-71 0-56 The faU in Great Britain has been almqst one-fourth, that is to say, the manufacturer or merchant can now borrow .£4000 for the same amount payable in interest that £3000 would have taken before 1860 ; and as a merchant's or manufacturer's profits are usually at least double the market 20 HISTORY OF PRICES. rate of interest, this fall is equivalent to a reduction of 2 per cent, in the cost of production. Meantime the fall of interest on the European Continent has been less than -J per cent., equal to a saving of 5 per cent, in the price paid for the use of money ; this lesser reduction may be either because the Great Powers have been so often at war as to alarm capital, or because the accumula- tions of wealth have been much less than in Great Britain. One thing is certain, that the rate of discount in England for 1871-80 was one-fourth less than for the Continent at large, and lower than the average of any country in Europe. The normal value of money in the United States is 8 per cent. Cheap money having such influence on manufacturing in- dustry, the fall of interest is a strong element in our favour. The returns of the Bank of England, which play so prominent a part in the money-market, may be summed up in averages since 1850 as follows : — Millions £.. Bank-rate per Gent. Highest Tear of Issue. Bullion. Deposits. 'issue. Deposits. Hate. 1851-55 . 20-9 16-2 17-9 3-70 1853 1853 1854 1856-60 . 21-7 14-4 19-0 4-54 1856 1859 1857 1861-65 . 21-3 14 '0 20-1 4-90 1865 1862 1864 1866-70 . 24-0 19-4 23-4 3-60 1868 1870 1866 1871-75 . 26-3 23-0 27-5 3-76 1875 1872 1873 1876-80 . 28-3 27-7 31-5 2-90 1879 1879 1878 1881-84 . 26-2 23-0 30-5 3-53 1881 1881 1882 The highest issue was in March 1879, namely, 31 millions, and the lowest in 1851, when it was but 19| millions. The highest bullion reserve was in September 1879, amounting to 35J millions, the lowest during the crisis of 1857, when it fell below 6| millions. Deposits reached a maximum in June 1879, rising to 37J millions, the lowest year having been 1854, not reaching 15^ millions. The highest year of bank-rate was 1864, averaging 7J per cent., the rate that year never exceeding 9 per cent. ; it has twice reached 10 THE MONEY MARKET. 21 per cent., during the crises of 1857 and 1866. The lowest year was 1852 (average 2'22), the rate oscillating between 2 and 2|^ per cent. If we compare the issue and huUion-reserve of the great banks of Europe for ten years we find as follows : — Issue. Bullion. . , Bullion Ratio. 1875-77. 1878-82. 1883-84. 1875-77. 1878-82. 1883-84 1875-77. 1883-84. England 28 28 26 26 26 22 93 85 France 105 102 119 69 77 80 66 67 Germany 39 38 41 26 25 27 67 66 Austria 30 32 37 14 16 20 47 54 Belgium 13 13 14 5 4 4 40 30 Total 215 213 237 140 148 153 66 65 The returns of the London Clearing-House have recently shown a falling-ofif, but no allowance has been made for the altered purchasing power of gold. On the whole, we find a rapid growth of business, in spite of temporary retrogression. The actual returns of weekly transactions, and their equiva- lent ia view of the higher value of gold, have been as follows : — Millions £ Weekly. Tears. Actual. Equivalent to 1867-70 . . .68 68 1871-80 . . .100 112 1081-84 .... 119 154 The average for the last four years was nominally 19 per cent, over the previous decade, but would have bought 37 per cent, more merchandise, which is the real measure of the increase of trade. It is necessary, therefore, to caution the public how they receive Sir John Lubbock's tables, which are numerically correct, but likely to lead many persons astray, as they are unaccompanied by comment or ex- planation. Since 1850 the amount of new capital mobilised for loans 22 HISTORY OF PRICES. and railways has been from 250 to 300 millions per annum, viz. : — Millions £ Sterling. Period. 1851-70 1871-82 32 years Loans. 2,386 1,523 3,909 Railways. 1,636 2,654 4,290 Total. Ann. Average. 4,022 201 4,177 348 8,199 256 The countries which caUed up this large amount of capital have not always provided it, at least one-third, and possibly one-half, of the above total having been raised in England. The following table embraces from 1850 to the end of 1882 :— Millions £ Sterling. Railways. Loans. Total. Per Annum Great Britain 545 140 685 21 France .... 444 730 1,174 37 Germany. . . . . 387 190 577 18 Kussia .... 290 460 750 23 Austria .... 242 294 536 17 Italy .... 102 486 588 18 Spain and Portugal 88 854 442 14 Other Countries 170 181 351 11 Europe .... 2,268 2,835 6,103 159 United States 1,292 540 1,832 57 British Colonies and India 284 260 544 17 Other Countries . 446 274 720 23 Total . 4,290 3,909 8,199 256 In some cases, such as Eussiaj there is a repetition, the State having expended some of the new loans on railways, but this will not seriously alter the amount of new capital mobilised. Moreover, in all the above countries numerous public companies have been created for mining, manu- factures, telegraphs, gas, drainage, &c., which would swell the above amount to 10,000 millions, or something over 300 millions per annum. The increase of banking is one of the most striking THE MONEY MARKET. 23 features in the last thirty-five years, during which period this branch of business has absorbed 1800 millions, as we see by comparing the total amount of capital and deposits in banks with the amount in 1850, thus : — Millions £ in Banking. Great Britain Continent United States Colonies 1850. 260 330 212 20 1886. 840 1,052 530 175 Increase. 580 722 318 155 Total . . 822 2,597 1,775 The average of money used in banking to population is £24 per head in the United Kingdom, £6 in France . or Germany, Mi on the Continent generally, £10 in United States, £11 in Canada, and £32 in Australia. So much has the taste for banking spread through all grades of society, that we find the working-classes have deposited 400 millions sterling in savings-banks since 1850, as we see from official returns of the various countries : — Millions £. 1850. 1860. 1870. 1884-85. United Kingdom 30 41 53 90 France 3 14 27 74 Germany . 5 16 35 110 Austria 19 28 40 88 Other Countries 11 28 50 91 Europe .... 68 127 205 453 The number of depositors and average amount of deposit for the whole of Europe at difi'erent dates were as fol- lows : — Tear. Millions £. Depositors. Average £ 1860 . . 68 3,911,000 17-4 1860 . . 127 6,695,000 19-0 1870 . . 206 10,833,000 18'9 1885 . . 463 20,780,000 21-7 24 HISTORY OF PRICES. So rapid an increase both in the amount of savings and in the number of depositors shows what an improvement has taken place in the condition of the working-classes. Among causes that operate on the money-market we must not omit bankruptcy, which inflicts an annual loss on com- merce, in some countries averaging 3 per cent., in others as much as 6 per cent., compared to the total value of import and export trade. The following table shows the average in recent years for three principal countries : — Bankruptcy, Millions £.. _■ -j j t t. j. Dividend Loss Percentage Liabilities. Assets. Loss, per Cent. to Commerce. Great Britain . 31 10 21 32 S'O France . . 10 2 8 20 22 United States . 36 18 18 50 5-8 Total . 77 30 47 39 3-5 Notwithstanding the oft-repeated complaints of depression, loss, bad trade, &c., we find that the number of failures is declining in Great Britain ; whereas it has risen 60 per cent, in the United States in less than ten years, the annual averages having been as follows : — 1875-80. 1881-84. Great Britain . . 13,960 9,605 United States . . 6,290 8,880 Canada . 805 954 Total . . . 21,055 19,339 During the last seven years the average amount of liabili- ties to each failure was £2600 in Great Britain, £2700 in Canada, and £4200 in the United States. British consols being closely connected with the money- market, it may be well to record the prices, thus : — Tears. Average. Highest. Lowest. 1851-60 . . 95 102 in 1852 85 in 1854 1861-70 . . 92 96 „ 1867 84 „ 1866 1871-80 . . 95 101 „ 1880 91 „ 1874 1881-83 . . 101 103 „ 1883 98 „ 1881 THE MONEY MARKET. 25 The facts in this chapter that particularly hear on prices are — First. That Great Britain may he said, to have Tinlimited command of capital at a rate of interest one-fourth less than the Continent. Secondly. That the average rate of interest in Europe is one-eighth less than twenty-five years ago, having fallen from 4 J to 3| per cent. ; that is to say, the use of £8,000 now costs no more than £7,000 in 1851-60. Thirdly. That, as regards Great Britain, a merchant can now horrow £4,000 for the same interest as £3,000 would have cost before 1860. Fourthly. That twenty years have elapsed since the hank rate was at 10 per cent., and hence that periodical crises have lost their regularity. Fifthly. That bullion continues to accumulate in the great banks of Europe at the rate of 1 per cent, per annum. Sixthly. That new capital is called up yearly averaging 300 millions, or about a million sterling each day. Seventhly. That between fresh capital and deposits the business of banking absorbs 100 mUlions yearly, including 20 millions deposited in savings banks by the working- Eighthly. That loss by bankruptcy all over the world averages about 3^ per cent, on the amount of commerce, and that United States bankrupts give the highest ratio of assets. Ninthly. That the heavy fall of price-level since 1880 has not been disastrous in Great Britain, the average number of failures in 1881-84 being 32 per cent, less than in 1875-80. ( 26 ) V. FINANCES. Public expenditure has an indirect effect upon prices, for as tlie taxes are lighter, the inhabitants will have more money for the purchase of commodities, and this 'will cause the demand to he greater. Taxation is growing very rapidly in Europe, the revenues of 1884: being 86 per cent, over the average of twenty years preceding the Franco-German war, viz. : — MiUiona £. Percentage Increase 1850-69 1870-82. 1884. since 1869. Great Britain . 69 80 88 27 France . . 78 105 142 82 Germany . 37 73 103 179 Russia . . 39 60 92 136 Austria . 38 61 71 87 Italy . . 31 54 62 100 Spain and Portugal . 27 36 42 55 Belgium and Holland . 15 18 23 53 Scandinavia . . 6 9 9 50 Europe . . 340 496 632 86 TJnited States . 28 64 70 150 Australia . 5 15 23 360 Canada . 3 5 7 133 India . . 45 55 74 64 Total 421 635 806 92 Taxation has increased all round four times faster than population, partly because of expensive military armaments, partly by reason of the growth of public debts. At the same time labour has become more productive, the condition FINANCES. 27 of the masses is improved, and the incidence of taxation (although now 40 shillings per head for the European average, against 28 shillings in 1860) is practically lighter than it was twenty-five years ago. The following table shows the expenditure compared to population : — Sliillings per Inhabitant. Batio. 1850. I860. 1884. 3860. 1860. 1884. United Kingdom . 40 60 50 100 125 125 France . 35 46 74 100 132 211 Germany . . 17 18 44 100 106 268 Russia . 13 15 20 100 115 154 Austria . . 26 28 39 100 108 160 Italy . 31 38 • 41 100 123 131 Spain . 20 27 41 100 135 205 United States . 7 8 26 100 114 371 Canada . . 16 18 30 100 113 188 Australia . . 30 125 148 100 417 493 The total expenditure of sixteen principal nations from 1850 to 1884 has been :— Amount. Per Annum. Eatio. 14,170 405 49-6 8,960 256 31 '3 5,460 156 19-1 Millions £. Amoi Public administration Military expenses . Interest on debt Total . 28,590 817 100-0 The amount of revenues received was 25,060 millions, the balance obtained by loans being 3,530 millions, or 101 millions per annum. But for the enormous increase of military expenditure the above deficit would not have exceeded 30 millions a year : the total maintenance of armies and navies cost 84 millions sterling in 1850 and 155 millions in 1884, an increase of 85 per cent., whUe the num- ber of fighting men (on peace footing) increased only 35 per cent., viz. : — 28 HISTORY OF PRICES. Millions £. Fij 'hting men. thousE I860. 1884. 1850. 1884. Great Britain . . .15-4 28-9 187 249 France 18-7 32-1 394 580 Germany Kussia 11-7 15'8 23-2 30-5 352 657 466 870 Austria 10-1 12-3 287 301 Italy . Spain. Portugal Belgium Holland 4-5 3-0 1-0 1-0 1-6 12-2 6-8 1-5 1-8 2-6 146 101 30 40- 55 290 150 36 46 74 Denmark 05 0-9 27 37 Sweden anc INor way . 1-2 2-0 63 69 Europe 84-5 154-8 2,339 3,158 The average annual cost per combatant was £36 in 1850, and £49 in 1884 ; the ratio of combatants to population was 99 per 10,000 in the first-mentioned year, and has now risen to 101. Military expenditure in Europe was 7 shil- lings per inhabitant in 1850, whereas at present it exceeds 10 shillings, an increase of 42 per cent. The burthen en- tailed by the actual military establishments may be summed up thus : firstly, they take 4 per cent, of the able-bodied men of Europe from productive pursuits ; secondly, they involve an expenditure of 155 millions sterling, equal to 3 per cent, of the gross earnings of all nations ; thirdly, they withdraw from industry 400,000 horses, equal to a tax of 1 per cent, yearly on agriculture and trade. These three imposts make up 8 per cent, as the military burthen in Europe, against 1;|^ per cent, in the United States. In the following table some countries are shown to sufier a much heavier burthen than the rest, and it is needless to say that they are " handicapped " in the race of industry. FINANCES. Percentage of Military Burthens. Blood. Earnings. Horses. Total Great Britain . . 3-2 2-5 0-6 6'3 Prance . . 5-8 3 '3 2-4 11-5 Germany . . 4-2 2'8 2-0 9-0 Kussia . 4-2 4-0 0-5 8-7 Austria . . 3-2 2-0 1-4 6-6 Italy . 4-0 3-5 5-3 12-8 Spain and Portugal . 3-3 3-0 2-6 8-9 Holland . . 7-4 3-0 1-5 11-9 Belgium . . 3-3 1-7 1-8 6 '8 Denmark . . 7-4 2-1 0-6 10-1 Sweden and Norway . 4-3 2'0 1-2 7-5 Europe . . 4-0 3-0 1-1 8-1 tTnited States . . 0-3 0-9 0-1 1-3 29 Among European countries tlie burthen is lightest in Great Britain, being only half what it is in France or Italy. As the average for the Continent is 9 per cent., we may say that the cost of production of aU commodities is enhanced 9 per cent, from St. Petersburg to the Mediter- ranean, and only 6 J per cent, in Great Britain, another advantage in our manufacturing competition with foreign nations. Public debt is only to be deplored when wasted by fraudu- lent or incompetent Ministers, or sunk in chimerical under- takings, or squandered in gunpowder, and even, what is spent in wars is sometimes unavoidable. But the expenditure in India and our Colonies for railways, canals, harbours, drain- age, and other productive works has been most beneficial, the colonists borrowing at 4 or 5 per cent., and increasing the public wealth in a far greater degree. Some European loans have likewise been for purposes of public utility. The following table shows the inversion of money raised by loans from 1850 to 1882 inclusive :— 30 HISTORY OF PRICES. War. Crimean . United States . Franco-German Eusso-Turkish . Ironclads, &c. . Millions £. . 305 . 474 . 382 . 211 . 315 Peace. Milliona £ Eailways and telegraphs 767 Eussian serfs . ... 85 Eoads and bridges . 440 City improvements . 210 Sundries . . .314 1,687 1,816 Thus it appears that rather more than half of the public debts so feelingly deplored by sentimental writers were caused by expenditure of the most beneficial kind. Nothing can be more absurd than the method so common in newspapers and handbooks of measuring taxation and debt by the number of shillings per inhabitant ; they should be compared with the earnings and capital of each country as follows : — Millions £. Tax Millions £. Debt ratio. Earnings. Taxes. ratio. Wealth. Debt." Great Britain 1,247 88 7-1 8,720 756 8-7 France 965 142 14-7 8,060 911 11-3 Germany . 850 103 12-1 6,323 229 3-6 Eussia 848 92 10-8 4,343 553 12-7 Austria 602 71 11-8 3,613 419 11-7 Italy . 345 62 18-0 2,351 522 22-2 Spain 218 35 160 1,593 390 24-3 Belgium . 120 13 10-8 806 62 7-7 Holland . 104 10 9-6 987 80 8-1 Scandinavia 151 9 625 6 11-5 1,343 30 3,9.52 2-2 Europe 5,450 38,139 10-4 United States 1,420 70 4-9 9,495 305 3-2 Australia . 133 23 17-3 590 120 20-3 Canada 118 7 6-0 650 40 6-1 Total 7,121 725 10-2 48,874 4,417 9-0 Interest on debt takes 180 mUlions yearly, or one-fourth of the total revenues : this does not include the service of local debts, as I have not included local taxes. The whole matter of local finances is outside the present field of inquiry • but I may mention that local taxes in 1882 summed up 224 (^ i I d]! m u Q Q z < z o I- < X < a .3 CI]i ^1 1 =§ FINANCES. 31 millions sterling, of which 84 millions in the United States, 38 millions in the United Kingdom, and the rest on the Continent. The local debt of Great Britain is already 160 millions, and continues rapidly in the ascendant. The principal facts regarding finances that bear on prices are these : — First. That as taxes have increased 92 per cent, in the last twenty years, or four times faster than population, this has tended to check the power of consumption among the masses throughout the world. Secondly. That, at the same time, public wealth having grown in an unprecedented manner, the condition of the working-classes has 'so much improved that they now con- sume in all countries twice as much as in 1850, as shown by imports. Thirdly. That military expenditure adds 9 per cent, on the Continent to cost of production, and in Great Britain only 6 J per cent. Fourthly. That the United Kingdom is, with one excep- tion, the lightest taxed of European States. Fifthly. That the average taxation of the world is 10^ per cent, of earnings, and that Italy, Spain, and France so much exceed this ratio as to be considerably over-taxed. Sixthly. That the public debt of the United Kingdom is 8f per cent, of capital, the general average for the Continent being 11 per cent. Seventhly. That the Australian debt is exceptional, one- half of it being represented by State railways. Moreover, the unsold crown lands at 2 shillings per acre would suffice to redeem the whole debt. Eighthly. That interest on public debts absorbs one-fourth of the public revenues of all nations. Ninthly. That local taxes in the United States vastly ex- ceed the general revenues of the republic. 32 HISTORY OF PRICES. Tenthlj'. That 62 per cent, of the debts of nations con- tracted since 1850 have been devoted to works of public utility, which effect a saving of 360 millions sterling yearly in cost of production and freight, equal to 7 per cent, on the sum of the world's products. ( 33 ) VI. COMMERCE. Peicbs are so intimately connected with, commerce, that we can hardly think of one without the other. It is the natural effect of commerce to bring prices as nearly as possible to a uniform level all over the world, and to this end railways and steam navigation have mainly co-operated. No longer do we see the inequalities of thirty years ago, when the value of the same commodity was often 50 per cent, higher in one place than in another only a hundred miles distant. The tendency of commerce on the whole is to a lower level of prices, since it stimulates production, and, as Professor Sidg- wick observes — " It is a well-known law of industry that with every increase of the quantity produced the relative cost of production is diminished." The amount of imports and exports of all nations, measured by value, has increased since 1850 no less than 283 per cent., or ten times faster than population, as appears from the following table : — 34 HISTORY OF PRICES. Millions Sterling. Great Britain . France Germany Russia Austria Italy . Spain and Portugal Holland Belgium . Scandinavia Europe United States . South America . India and Colonies The World 1850. 1860. 193 75 105 32 29 26 20 44 35 17 676 64 38 93 376 167 160 46 51 46 30 56 48 30 1870. 547 227 212 100 83 74 41 71 64 42 1880. 1884. 698 339 315 121 128 96 64 121 116 55 686 315 331 114 137 99 74 144 116 1,010 1,461 2,053 2,082 137 172 309 276 62 85 101 104 192 241 362 451 771 1,401 1,959 2,825 2,913 Per inhab. in 1884. £ 19-0 8-4 7-0 1-3 3-5 3-4 3-5 34-2 20-3 7-4 7-0 4-9 3-9 2-3 5-0 The volume of trade has increased much more than would appear from the foregoing table, for if prices had remained unchanged since 1850, the amounts would have been very different. The following table shows the growth of trade in thirty-four years, both as measured by value and by volume, Milliona Sterling. Development. Tear. Actual Amount Price o£ 1850. In Value. In Volume. Price-Level. 1850 771 771 100 100 100 1860 . 1,401 1,247 182 162 112 1870 . 1,959 1,783 254 232 110 1880 . 2,825 2,853 367 370 99 1884 . 2,953 3,278 383 426 90 If, therefore, no change of prices had occurred, the trade of last year would have represented four and a quarter times the amount in 1850, that is, an increase of 326 per cent., or twelve times greater than the progress of population. But if we come to consider the actual weight of merchandise carried between nations, we find that it has risen to six times the volume of 1850, owing to the fact that reduced freights have til Q < I- o - a >- s I a -I < O z < m o O "8 y^ r 71 •3 R» a /^ ^Vl a, -7^ COMMERCE. 35 permitted an extraordinary development in articles of bulk and minor value. The following table shows the weight and value of merchandise exchanged at various dates : — Year. Weight Carried. Value. Value. Development. MUlion Tons. Million £,. £ per Ton. Tonnage. Value 100 100 1850 . 25-1 347 13-9 1860 . 40-2 636 15-9 160 182 1870 . 690 882 12-8 275 254 1880 . 1230 1,270 10-3 490 367 1884 . 152-0 1,330 8-8 602 383 If the character of the merchandise were the same, we should have evidence here that the price-level of the world had fallen 37 per cent, since 1850, whereas the actual fall has been only 10 per cent., as shown above. Coming later down, and comparing present returns with those for 1860, we find that in twentj'-four years the carrying trade has quadrupled, while the value of merchandise carried has only doubled, the average value of a ton of goods having fallen 45 per cent. This is partly explained by the great increase in articles of bulk, viz. ; — Sea-borne Merchandise. Tons, 000'£ omitted. Eatio. " 1860. 1861-70. 1871-80. 1883. ^ 1860. 1883 Coal. . 7,850 14,300 22,400 42,600 100 542 Iron. 1,070 1,880 3,610 9,400 100 874 Grain 3,933 4,410 10,100 16,200 100 920 Sugar 960 1,190 1,960 2,910 100 415 Cotton 570 490 992 1,580 100 277 Meat 100 120 380 920 100 445 Wool 101 120 252 450 100 303 Sundries 25,629 32,490 56,306 78,440 100 310 Total . 40,204 55,000 96,000 152,500 100 380 The quantity of coal carried over sea in 1883 was greater than the total weight of merchandise in 1860, and that of grain would have fed for twelve months a population of 102 million souls. It is very short-sighted for some people to 36 HISTORY OF PRICES. assert that shipping should not increase faster than the value of commerce, for we see that the number of tons to be carried has quadrupled since 1860, and if shipping had only doubled its carrying power (that is, increased on a par with the value of trade), one-half of the world's merchandise would have been left without means of transport. Articles of bulk would not pay the cost of freight if shipping did not multiply twice as fast as the nominal amount of trade. The balance of trade in Europe for twenty years ending 1880 showed an annual average of 1.57 millions sterling of imports over exports, that is, 22 per cent. ; the sum-total for all nations averaged 128 millions excess of imports, or 12^ per cent., which represented the cost of freight, insurance, and merchant's charges. The annual average for twenty years, 1861-80, was as follows: — Millions £. Mime 'Imports. ns £.. Imports. Exports. Exporte' Great Britain 321 245 Europe . 869 712 France 132 125 United States 74 74 Germany . 134 98 Canada 17 14 Russia 38 38 Australia 35 27 Austria . 44 43 India 33 56 Italy 42 35 China and Japan 27 25 Spain and Portugal 24 20 South America 56 59 Belgium 43 34 Egypt . 6 16 Holland . 47 34 Java 7 13 Scandinavia 26 21 Various . 27 27 Greece, &c. 18 19 The World . 1,151 1,023 The average weight of merchandise over the whole period of twenty years was 75^ million tons per annum ; and if we compare with it the difference between imports and exports, it appears that each ton of merchandise paid 34 shilling's between freight, insurance, and merchant's charges. As whatever tends to impede trade is inimical to the in- terests of mankind, we must deplore the revival of protective tariffs, which, as Nassau Senior said of the balance-of-trade COMMERCE. 37 theories, " have caused more misery and misfortune than all the errors that ignorance has entailed on nations." The Governments of the European Continent collect in import dues 30 millions sterling more than they did twenty years ago, as appears from official returns, viz. : — Import Dues, Annual Average. Average ' Ad Valorem, Millions Sterling per cent. '1866-67. 1881-83.~" 1866-67. 1881-83^ France 4-0 13-2 4 7 Germany . 4-1 10-2 4 7 Kussia 4'2 9 12 11 Austria . 2-0 3-4 8 5 Italy 2-4 5-6 7 11 Spain and Portugal 3-6 6-1 22 16 Holland, &o. . 27 5-2 3 4 Continent 23-0 52-7 6 7 United States . 35-5 43-0 40 31 Canada 1-2 4-4 7 18 Australia . 3-4 6-3 11 H India . , 2-4 4-2 8 8 Brazil 3-3 7-1 22 40 Argentine 1-5 3-6 24 28 Chili 0-7 71-0 2-4 14 8 22 Foreign countries 123-7 8 In the same period the import dues of Great Britain have been reduced 2^ millions sterling, the average for 1881-83 being 19|- millions sterling, which is less than 5 per cent. (4'7) of the value of imports, against 7 per cent, in 1866-67. The ratio of import dues in Europe (Continent) is now 45 pence per inhabitant, against 22 pence in 1866-67 ; that is, they have more than doubled. In the common interests of humanity it is desirable that all nations should hold a con- vention, like the Geneva Postal Treaty, to stipulate that no country shall impose duties which in the aggregate will exceed 10 per cent, of the value of imported merchandise. Higher duties are barbarous. The effects of high and low tariffs are visible in the con- 38 HISTORY OF PRICES. trast between Great Britain and the United States since 1841, Import Dues Compared to Total Commerce. Im port3. Annual Average pe T innabitanc. Gt. Britain, U. States, 'ijt. Britain. U. States." Period. per cent. per cent. £ £. 1841-50 . 27 23 5-8 2-2 1861-60 . 16 20 9-8 3-7 1861-70 8 36 161 2-4 1871-84 5 32 19'0 4-9 The British tariff has been reduced four-fifths, while that of the United States is now relatively 40 per cent, more than in 1841-50. As a natural result the trade ^er inhabitant of the United Kingdom has risen 228 per cent, against 123 per cent, in the United States. There would have been a still greater development of British trade if our colonies had not imposed duties on British manufactures, which so far para- lysed or rather diminished their commerce with the mother country, that they now transact 58 per cent, of their trade with foreigners, and only 42 per cent, with the United King- dom. Nevertheless, our commerce with the Colonies and India is growing faster than with other nations, viz. : — Britisli Trade, Imports and Exports Together. Millions Stei ding 1883. 189 136 407 Percentage. With Colonies United States . Other countries . 1856. 62 44 154 1870. 120 81 347 1865. 23-8 16-9 59-3 ISYO. 21-9 14-8 63-3 1883. 25-9 18-6 55-5 Total . . 260 548 732 100-0 100 100 '0 Great Britain is increasing her relations with the people of her own kindred in the United States and the Colonies in preference to dealing with foreigners. Between Great Britain, the United States, and Colonies, the Anglo-Saxon race stands for half the trade of the world, the percentages being as follows : — COMMERCE. Commerce of the World. Great Britain Colonies •"isso. . 25-1 . 12-0 . 1860. 26-8 13-7 1870. 27-9 12-3 1880. 24-3 12-9 1884. 24-6 15-3 British Empire United States France . Germany- Other countries . 37-1 8-3 9-7 . 13-6 . 31-3 40 '5 9-8 120 11-4 26-3 40-2 8-7 11-5 10-8 28-8 37-2 10-9 120 11-1 28-8 39-9 9-3 10-7 11-2 28-9 39 1000 100-0 lOO'O 1000 100-0 It is a striking commentary on the fiscal system of the United States, that although their population has doubled in the last twenty-five years, they hold a smaller share of the trade of the world than in 1860. No country except Great Britain exceeds (or even approaches) the aggregate trade of the British Colonies. The principal points in this chapter are : — First. That the nominal amount of commerce has doubled since 1860, while the weight of merchandise has quadrupled, the average value of a ton of goods having fallen 45 per cent. Secondly. That this is mainly due to the great increase in articles of bulk, such as coal, iron, grain, &c., some of which have grown ninefold. Thirdly. That the balance of trade in twenty years averaged 22 per cent, imports more than exports for Europe, and 33 per cent, for Great Britain. Fourthly. That the returns show an almost even balance of trade in poor countries, like Spain and Eussia, and a large excess of imports in rich ones. Fifthly. That aU merchandise when converted from ex- ports into imports acquires an additional value of 12|- per cent., covering freight, insurance, and charges, and that this averaged 34 shillings a ton in twenty years ending 1880. Sixthly. That all import duties over 10 per cent, are, as a 40 HISTORY OF PRICES. rule, barbarous; and that the aggregate of duties should never exceed 10 per cent, of the value of imports in any civilised country. Seventhly. That when some nations, such as Brazil, United States, Argentine Republic, and Chili, levy duties collectively exceeding 20 per cent., and in some of these countries reaching 40 per cent, of the total value of import trade, an artificial high level of prices is created most inju- rious to such countries. ( 41 ) VII. SHIPPING. Freight enters so largely into the cost of commodities, averaging 10 per cent on the value of sea-home merchandise, that shipping has a direct influence on prices. "We have just seen (page 36) that in twenty years ending 1880 each ton of goods paid 34 shillings between the port of shipment and that of destination, 80 per cent, of this sum being for freight, say 27 shillings; but in 1884 the difference of value between imports and exports was only 23 shillings, the freight therefore not exceeding 18 shillings per ton. Thus it appears that freights all over the world have declined 33 per cent., and that consequently merchandise can be sold at a reduction of 9 shillings per ton, or 5 per cent., as compared with the mean average of 1861-80. The price-level for 1884 being 15 per cent, lower than the mean level of the said twenty years, we find that one-third of the so-called depres- sion of trade is simply an economy of freight. Although the weight of merchandise carried by sea has multiplied sixfold since 1850, the tonnage of merchant shipping has only trebled, as shown in the subjoined table : — Year. 1850 1860 1870 1883 Tons Shipping, Merchandise. Tons Carried. OCO's omitted. Million Tons. Per Ton Shipping. . 6,905 25-1 3-6 . 10,406 40-2 3 '9 . 15,576 69-0 4-4 . 21,640 152-0 7-1 42 HISTORY OF PRICES. Seeing that 100 tons of shipping now carry twice as much merchandise as in 1850, there is an apparent saving of 50 per cent, in wages and all other sea-going expenses. The greater efiSciency of shipping is mainly the result of steam navigation, no less than 72 per cent, of the world's merchan- dise having been carried by steamers in 1884. The follow- ing table shows the rapid increase of steamers : — Omitted OOO's. Steam : Nominal Tonnage, per cent. 5^ 8 34 Elatio in Shipping, Nominal Tonnage. Tons Carried by Carrying Tear. Steamers. 1850 . 392 1860 . 820 1870 . 1,918 1883 . 7,330 Sailing Vessels. 6,513 9,586 13,868 14,310 Steamers. 5,850 12,040 28,020 109,450 Sailing. 19,230 28,120 41,100 42,630 Power, per cent. 23 30 41 72 In 1883 steamers made fifteen, sailing vessels thieei trips during the year, as we find by comparing their tonnage with the port-entries of nations — hence a steamer has five times the carrying power of a sailing vessel of same tonnage. Ship- owners usually consider the difference as three to one, which is true of long voyages ; but in short ones a steamer makes eight, while a sailing vessel would make one ; as, for example, from Dublin to Liverpool, or from Hull to Hamburg. The economy of labour resulting from steam navigation and other changes in shipping is shown in the average of tons of merchandise borne by British seamen, viz. : — Tear. 1850 1860 1870 1883 It has been already shown (p. 39) that the commerce of the British Empire is 40 per cent, of that of the world, but our portion of the carrying trade is much greater, namely, 58 per cent., that is, 51 per cent, by the shipping of the Million Tons Tons per Carried. Seaman. 148,000 15 101 172,000 23 135 196,000 36 184 201,000 78 388 SHIPPING. 43 United Kingdom and 7 per cent, by Colonial vessels. The following table shows the tonnage and carrying trade of the various flags in 1883 : — Omitted OOO's. tns Carried per Eatio of Nominal Tonnage. To Tons. ^— Carry- ing Trade. Flag. Steam. Sailing. Total. Cai-ried. ! 3eamen. Ship. British . 3,728 3,514 7,242 78,100 388 4,110 51-1 Colonial 201 1,953 2,154 10,540 176 1,520 6-9 British Empire 3,929 5,467 9,396 88,640 340 3,430 58-0 United States 1,403 2,832 4,235 6,940 308 2,700 4-5 France . 467 536 1,003 10,250 294 3,330 6-7 Germany 375 895 1,270 9,890 260 3,010 6-5 Italy . 107 866 973 5,010 102 1,640 3-3 Spain . 164 374 538 4,260 196 2,340 2-8 Norway and Sweden 170 1,890 2,060 9,780 128 1,560 6-5 Other flags 715 1,450 7,330 14,310 2,165 17,730 185 252 2,220 2,750 11-7 Total . 21,640 152,500 100-0 Our supremacy on sea has been erroneously ascribed to " the facility with which we can build iron vessels," as if the builders on the Tyne or the Clyde would not as readily construct a steamer for a Frenchman or an American as for an Englishman ! The secret lies partly in the superior efficiency of our shipping, partly in the protective laws of the United States, France, and some other countries, which put penalties on vessels not built at home, thus indirectly help- ing to transfer to us a stiU larger portion than before of the carrying trade of the seas. The superior efficiency of our shipping, as shown in the preceding table, is very remarkable, each seaman aboard British vessels carrying 388 tons, that is, as much as two Spanish or four Italian sailors. Not that the Englishman is more dexterous than the Italian (who is an excellent seaman), but because our pre-eminence in steamers makes a great difference, and also the size of our vessels, large ones being more economical of hands. During the last fifteen years the average tonnage of ships has risen 44 HISTORY OF PRICES. 50 per cent., the Suez Canal returns showing that on that route it has risen from 905 tons in 1870 to 2,150 in 1881-83. In the foregoing table it may seem strange that the United States shipping represents so little carrying trade as 7 miUion tons, but this is because most of their vessels are mainly occupied in the lakes and other internal waters, of which the business is not here included, the table referring only to the high seas. The decline of American shipping in ocean traffic since 1860 is shown by the diminished ratio of United States trade carried in American bottom, viz. : — United States Imports and Exports, Million £. Tear. American Flag. Foreign Flags. American. Foreign. 1860 . 106 53 67 33 1870 67 123 35 65 1880 58 273 17 83 1882 51 269 16 Si The relative decline of French shipping is no less remark- able, in spite of the differential duties levied on British and other foreign vessels. The port-entries in Prance averaged as follows : — )d. Tons, OOO's omitted. Percentage. Peric French Flag. Other Flags. French. Other. 1860- -64 1,910 2,860 40 60 1872- -76 2,605 5,417 33 67 1880- -83 3,908 8,912 30 70 The shipping-bounties decreed by the French Chambers in 1880 consist of a bonus of 48 shillings per ton for building vessels in French workshops, and £6 per 100 tons for every 1000 miles run by French vessels : these bounties average £400,000 per annum, and yet the ratio of French shipping declines. In Italy the ratio of foreign (chiefly British) shipping is likewise increasing: it was 65 per cent, in 1872-76, and 70 per cent, in 1880-83. SHIPPING. 45 In Germany there has been no change, the foreign (mostly British) ratio being still 60 per cent., the same as ten years ago. In Spain, notwithstanding an oppressive customs system, the ratio of foreign (mostly British) shipping rose to 72 per cent, in 1880-82, against 65 per cent, in 1872-76. So great has been the increase of trade in the last ten or fifteen years, that other nations have been unable to build vessels fast enough, and but for British shipping, no country in the world (except Canada, Sweden, and Norway) would have sufficient vessels to carry on its commerce. From time to time we hear a wail of distressed British ship- owners, as if a great portion of our merchant navy were laid up, whereas the shipping of the United Kingdom (without Colonial) carried in 1883 no less than 51 per cent, of the world's commerce, a proof that our vessels and seamen are not idle. Nor is there an increase in ballast entries of the United Kingdom, the ratio having declined since 1875 from 21 to 18 per cent, of total entries. The value of merchandise imported by five countries of Europe compared with the tonnage of entries gives the following averages : — £ per Ton. 1S70. Great Britain . 17-6 16-5 13-3 100 76 France . 25-1 20-6 17-1 100 68 Italy . . 15 3 10-6 9-6 100 64 Holland . 27-0 28-3 21-7 100 80 Belgium . 29-0 23-5 26-1 100 90 Medium . 22-8 19-9 17-6 100 77 The chief points in this chapter are these : — First. That shipping earned 27s. per ton on all sea-borne merchandise in 1861-80, and only 18s. in 1884, thus re- ducing the cost of all commodities by 9s. per ton, or 5 per cent, of the value. 46 HISTORY OF PRICES. Secondly. That the reduction of freight is due to greater efficiency of shipping, one British seaman now carrying as much as two in 1870, three in 1860, or four in 1850. Thirdly. That this greater efficiency is mainly the result of steam navigation, and that steamers now carry 72 per cent, of the world's merchandise, or nearly twice the ratio of 1870. Fourthly. That steamers have five times the carrying power of sailing vessels of equal tonnage. Fifthly. That British vessels carry. 51 per cent, of all sea- borne merchandise, one British seaman carrying as much as two Spanish or four Italian. Sixthly. That the medium value of a ton of imported merchandise in Europe was £23 in 1860, falling to £20 in 1870, and to £17^ in 1883. Seventhly. That the shipping-bounties, which cost France £400,000 per annum, are unable to check the relative de- cline of French shipping. Eighthly. That British shipping is every year increasing in the ratio of port-entries in France, Italy, Spain, United States, and several other countries. Ninthly. That ballast-entries are not increasing in ratio in the United Kingdom, but have declined since 1875. Tenthly. That but for the activity of British shipbuilders in the past ten years, the commerce of all nations would have been paralysed, or at least seriously diminished, for want of vessels. ( 47 ) VIII. RAILWAYS AND TELEGRAPHS. Eailwats hold on land the same position as shipping on sea, and have exercised the most powerful of all influences on prices: they may he said to date from 1850, in which year the total length of existing lines did not reach 25,000 miles, or one-twelfth of the actual mileage. The following table shows their deyelopment down to 1883, the latest year for which we have complete returns : — I860. I860. 1870. 1880. 1883. United kingdom . e,(>2i 10,433 15,537 17,945 18,668 France . . 1,882 6,903 11,106 16,213 18,023 Germany . 3,664 7,056 11,805 21,317 22,549 Russia . 310 994 7,046 14,802 16,617 Austria 940 2,802 5,915 11,543 12,321 Italy . 380 1,373 3,865 6,492 5,803 Spain . 202 1,204 3,256 4,661 5,555 Portugal 89 445 778 1,039 Switzerland 196 660 890 1,652 1,735 Roumania 153 870 922 Turkey "io 180 1,042 1,062 Belgium ." 560 1,080 1,812 2,570 2,634 Holland . 110 205 890 1,122 1,263 Denmark 20 70 470 990 1,105 Sweden and Norw ay . ... 420 1,322 4,373 4,900 Europe . 14,885 32,329 64,692 105,370 114,196 United States . 9,072 30,810 63,224 94,225 121,180 Canada 410 1,890 2,695 6,932 9,066 Spanish America 120 850 2,940 8,390 13,558 Australia 360 1,040 4,890 6,103 India . 850 4,802 9,215 10,832 Java . 90 280 442 Egypt . 290 660 927 942 Algeria 170 880 1,095 South Africa 70 1,020 1,650 Other countries 290 608 996 The World . . 24,487 67,379 130,673 232,737 280,060 48 HISTORY OF PRICES. Thirty years ago the ordinary cost of land-carriage for goods, in Europe, was £3 a ton per 100 miles, or six times what it is at present. Thus we have here a saving of 50s. a ton ; and as the medium value of merchandise in 1850 (see page 35) was £14 per ton, the saving caused by railways has been equal to 9 per cent, on the wholesale price. The amount of labour and capital expended by the present generation, that is, in a period of thirty-five years, in the construction of railways, is prodigious, the cost of existing lines being over 5,000 millions sterling, a sum exactly equal to the nominal amount of the public debt of the world ; so that the present generation may be said to balance its ac- counts with the next by handing over to it a species of newly-created property which covers aU the State debts that are so often and so feelingly alluded to by shallow sentimen* talists as a mortgage on the industry of posterity. The capital expended on railways at various dates has been as follows : — Millions Sterling. 1860. 1860. 1870. 1883. Great Britain . 240 348 530 785 Continent . . 134 356 890 2,017 United States . 60 225 480 1,352 Colonies, &e. 7 50 177 577 The World . 441 979 2,077 4,731 From 1870 until 1880 the annual average of new capital put into railways was almost 200 millions, and since 1881 it has risen to 300 millions, that is, about 1 million sterling daily, equal to 60 miles of new line, with rolling-stock. If we call to mind that the annual savings of Great Britain, the European Continent, and the United States, average 644 millions (see page 288 of "Dictionary of Statistics ") in the aggregate, it will appear that one-half of the savings of mankind is yearly absorbed in new railways. RAILWAYS AND TELEGRAPHS. 49 Goods trafl&c has increased since 1850 much faster by- railway than by shipping, as appears in the following table : — ' MillionB of Tons Carried* Ratio, Tear. By Hail. By Shipping. Total. Bail. Shipping 1850 97 25 122 80 20 1860 . 193 40 233 83 17 1870 . 602 69 671 fiO 10 1883 . 1,080 152 1,232 88 12 The goods traffic of the world sums up 4 million tons daily, or ten times what it was in 1850, and employs about 2 million men, who move on an average 2 tons each for a distance of 100 miles. The ordinary freight-charge by rail- way in various countries is as follows : — Pence per Ton, per 100 Miles. United States . 63 Holland . 118 Belgium . 70 Great Britain . 135 Germany . 84 Prance . 154 Italy . . 108 Sweden . 160 Austria . Ill Average . Ill If other things be equal, the difference of railway freight must cause a difference of prices between countries : Bel- gium, for example, pays only half what is charged in Great Britain, and a difference of 65 pence per ton is equal to about 2 per cent, of the ordinary value of merchandise. Moreover, the passenger fares indirectly affect prices, for it is plain that if they could be simultaneously reduced aU over Europe the cost of distribution would be so far lessened as to cause a fall of prices. They are much higher in this country than on the Continent, viz. : — Pence per 100 Miles. Pence per 100 Miles. Ist CI. 2d CI. 3dCl. 1st CI. 2d CI. 3d CI Belgium . 115 85 56 Austria 180 135 90 Scandinavia 155 105 68 Russia 182 136 77 Germany . 155 115 77 France 192 144 105 HoUand . 160 135 77 Spain . 200 154 95 Italy . 173 125 85 Great Britain 230 160 D 95 5° HISTORY OF PRICES. The excuse offered for such high tariffs in Great Britain is that the cost of construction has been double the European average, and it appears also that the numerous Boards of Directors add considerably to working expenses. The traffic returns of the United Kingdom show the following results : — £ Per Mile. Earnings . Expenses Profits 1860. . 2,670 . 1,270 . 1,400 1870. 2,810 1,402 1,408 1880. 3,659 1,877 1,782 1684. 3,740 1,970 1.770 The net result for capital in 1883 was 4-4 in England, 3 '7 in Scotland, 3 '6 in Ireland, and 4 '3 for the United Kingdom. Telegraphs have exercised a lesser, but unquestionable, effect towards the fall in prices, by enabling merchants to work with less capital, to keep smaller stocks of commodities, and to turn over their money oftener. The following table shows the mileage and number of messages for the principal countries in 1883 : — Million Messages per Miles. Messages. 100 Inhabitants. United Kingdom 27,100 32-8 90 France 47,900 19-5 52 Germany 46,400 18-4 40 Russia 69,400 9-8 11 Austria 30,860 9-8 25 Italy .... 17,260 6-5 22 Spain and Portugal . 13,300 5-1 25 Holland and Belgium 5,830 10-2 90 Scandinavia 16,400 3-2 36 Switzerland 4,300 3-0 108 United States . 154,650 650 120 Canada 11,000 1-4 30 Spanish America 47,700 41 11 Australia . 30,700 5-6 180 Gape Colony 9,600 0-7 60 India .... 22,600 2'1 1 The above does not include 110,000 miles of ocean-cables, which with the land-lines make up a total of exactly 700,000 RAILWAYS AND TELEGRAPHS. 51 miles; tlie number of messages in 1883 was 210 millions, and at present averages 20 millions montUy, The points in this chapter which bear on prices are these : — First. That railways have reduced land-carriage to one- sixth of the. previous charges, and thus saved 50 shillings per ton. Secondly. That this saving is equal to a reduction of 9 per cent, in the value or price of commodities in general. Thirdly. That railway freights in Great Britain are 17 per cent, over the average on the Continent, and more than double those of United States. Fourthly. That the difference of goods freight between the Continent and Great Britain is such, that if the Conti- nental average ruled here we could produce and seU mer- chandise nearly 1 per cent, cheaper than at present. Fifthly. That British industry is handicapped by excessive railway tariffs both for goods and passengers. Sixthly. That the goods traffic of the world sums up 4 million tons daily, carried for an average distance of 100 miles, at a cost of 8 shillings, and employing two million men. The same traffic in 1850 was under 400,000 tons daily. Seventhly. That telegraphs have helped to lower cost of production and prices, but how far cannot be ascertained. ( 52 ) IX. STEAM-POWER. Under a variety of forms steam-power reduces the cost both of production and distribution to such a degree that we can hardly measure its effect on prices, the steam horse-power of the world being now six times what it was in 1850, viz. : — Horse-power of Engines, OOO'a omitted. Tear. Fixed. Railway. Steamboat. Total. 1850 1,785 4,190 340 6,315 1860 2,450 7,900 1,050 11,400 1870 3,650 13,700 2,190 19,540 1880 7,415 17,618 3,891 23,930 1885 10,500 19,400 5,200 35,100 In recent years the increase has averaged one million horse-power per annum, and the distribution among nations is shown as follows : — Horse-power, OOO's omitted. 'l850. 1860. 1870. ISSO. 1885.^ United Kingdom . . 2,320 3,100 4,780 7,786 9,740 Continent . 1,990 4,220 8,980 12,992 14,820 United States . 2,005 4,080 5,780 8,152 10,540 Total 6,315 11,400 19,540 28,930 35,100 This total of 35 million horse -power is used to drive 71,000 locomotives, 9200 steamboats, and 430,000 fixed engines. As steam can work by day and night, requiring STEAM-POWER. 53 no rest for sleep or food, its actual power is three times greater than if the work were done by horses. The distri- bution in 1885 is as follows : — Horse-power, OOO's omitted. Fixed. Railway. Steamboat. Totai> United Kingdom 3,100 3,500 3,140 9,740 Continent . i,100 9,700 1,020 14,820 United States . 3,300 6,200 1,040 10,640 Total 10,500 19,400 5,200 35,100 Summing up the work that is accomplished daily among all nations by hand, by horses, and by steam-power, between agriculture, mining, manufactures, transport, &c. — that is, allowing .300 foot-tons of energy to each able-bodied male, 3000 to each horse, and 4000 to each horse-power of steam- engines — we find the following result as the sum of the industrial power of mankind : — MUlion Foot-tons Daily. Foot-tons Per Cent Hand. Horse. Steam. Total, habitant. Steam. Great Britain , 2,310 8,700 38,960 49,970 1,380 78 France . 2,970 8,500 16,150 27,620 720 58 Germany . 3,330 10,100 19,800 33,230 716 60 Russia . . 6,300 48,600 6,340 61,240 710 10 Austria . 2,850 11,300 5,800 19,950 520 29 Italy . . 2,160 2,040 2,220 6,420 230 34 Spain . . 1,260 1,980 2,210 5,450 340 41 Portugal 360 210 280 850 205 34 Switzerland 210 330 1,300 1,840 670 71 Belgium 420 850 3,410 4,680 880 73 Holland 300 840 920 2,060 502 45 Scandinavia 630 2,900 1,830 5,360 630 706 34 Europe . 23,100 96,350 99,220 218,670 45 United State a . 3,480 32,100 42,160 141,380 77,740 1,440 802 54 Tc tal . 26,580 128,450 296,410 48 Europ. Continent 20,790 87,650 60,260 168,700 610 36 54 HISTORY OF PRICES. Thus we see ttat nearly half the world's work is done by- steam, the countries in which this agent performs the largest share of daily labour being Great Britain, Belgium, and Switzerland, a long way after which come Germany, France, and United States. The last-mentioned country, however, has so large a number of horses that this is precisely what makes its ratio of work done by steam less than in some other countries. The steam-power of the United States is 8 per cent, greater than that of the United Kingdom, and constitutes more than one-fourth of that of the world, and the ratio of energy per inhabitant is double that of the aver- age European, being even 4 per cent, over that of an English- man. The immense difference between the industrial power of nations appears in the fact that the united labour of 6 English and 6 Americans is equal to that of 24 French or Germans, 32 Austrians, 50 Spaniards, 75 Italians, or 84 Portuguese. The French or German may be fully as dexter- ous and possibly better educated than our workman, but the inadequate supply of machinery puts all Continental nations at a considerable disadvantage compared with Great Britain. So long as we do 80 per cent, of aU our daily work by steam, which is the cheapest mode of industry, and that Continental nations accomplish only 36 per cent, by the same agency, the pre-eminence of this country in manufactures is nowise in danger. If we take the number of able-bodied men and allow them the current workman's wages in each country, add to this the cost of feeding the horses, and put down steam at one shilling per horse-power daily, we can arrive at the total sum of daUy expenditure for industry and the cost of 1000 foot- tons of -energy in each country as follows : — >- o Co cc tfH UJ J. 7. ■^ u 1 Q ,=5 ^- o < s a. ,- l*) _) "^ o OQ 1 < ^ Vj •^ 5; s s s STEAM-POWER. 55 Daily Cost of Industry, Cost of Work- 000 8 omitted. 1000 Foot- tons Energy. man's Wage, Pence Hand . Horse. Steam. Total £ £ £ £ Pence. DaUy. Great Britain . 970 360 487 1,817 8-4 30 France 1,105 350 202 1,657 14-2 26 Germany . 920 420 247 1,587 11-6 20 Kussia 1,040 2,100 80 3,220 12-6 12 Austria . 800 470 70 1,340 16-1 20 Italy 360 85 30 475 17-8 12 Spain 205 80 30 315 13-8 12 Portugal . 60 10 5 75 21-2 12 Switzerland 60 10 15 85 11-2 20 Belgium . 120 35 43 198 10-1 20 Holland . 80 35 11 126 14-7 20 Scandinavia 130 120 23 273 10-2 12-1 15 Europe . 5,850 4,075 1,243 11,168 18 United States . 1,950 1,360 527 3,837 9-8 12'0 13-3 40 Total . 7,800 5,435 3,715 1,770 756 15,005 21 European Continent 4,880 9,351 16 We see that 1000 foot-tons of energy in Great Britain cost 8|d., or l|d. less than in United States, and 6d. less than the Continental average, notwithstanding the fact that our workmen earn almost double the Continental wages. Now, energy is only another term for work, which represents ordinarily one-third of the value of any article; and as energy costs 36 per cent, less in Great Britain than on the Continent, it follows that we can, cceteris paribus, turn out our merchandise 12 per cent, cheaper than the Continental average. This margin of itself would enable us to fight the hostile tarifis of many foreign countries, and there can be no doubt that it does so. The working-power of Europe and United States has in- creased as follows : — 56 ) HISTORY OF PRICES. Energy, Million Foot- tons daily. Tear. 1850 1860 1870 1880 Hand. 20,160 22,104 24,192 26,580 Horse. 102,700 112,200 117,300 128,450 Steam. 25,260 45,600 78,160 115,780 Total. 148,120 179,904 219,652 270,810 Foot-tons per Inliab. 527 595 660 750 1885 27,830 134,900 140,400 303,130 802 Since 1850 population has risen 34, workuig-power 105, per cent., and as a consequence five men can now accomplish as much as six in 1870 or eight in 1850. Thus, to go back no further than 1870, there has been an economy of labour equal to 17 per cent., which necessarily involves a reduction of 6 per cent in the value of all commodities. And as steam-power is increasing at the rate of 20,000 horse weekly, which adds 80 million foot-tons daily to the power of in- dustry, we may expect a further saving of 15 per cent, in labour in the next ten years, which will cause a fall of 5 per cent, in market-prices, unless unforeseen calamities come to arrest the tendency to a lower price-leveL Mechanical inventions are closely connected with steam- power, and have introduced still more remarkable economy of labour. In 1880 there were known to be 5 million sewing-machines at work, doing as much labour as 60 million women could do with the needle. There were also 3100 Boston bootmaking machines in various parts of the world, turning out 150 miUion pairs of boots yearly, one man being able with this machine to produce from 240 to 300 pairs daily. These two inventions have greatly reduced the cost of clothing and of boots and shoes. Agricultural machinery has effected a similar saving of labour. In fact, there is no branch of industry that has not in recent years felt the benefits resulting from mechanical invention and cheapness of production. The points worthy of notice in this chapter are : — STEAM-POWER. 57 First. That the world's steam-power is now five and a half times what it was in 1850, and has nearly doubled since 1870. Secondly. That the industrial power of nations between hand, horse, and steam is now 802 foot-tons per inhabitant, against 527 in 1850, and that consequently five men can per- form as much work as eight could about thirty years ago. Thirdly. That this involves a saving of 40 per cent, since 1850 in labour, which necessitates a fall of 13 per cent, in price, unless counteracted by other causes. Fourthly. That steam-power is increasing 20,000 horse weekly, and hence further economy and another fall in price. Fifthly. That energy costs 8|d. per 1000 foot-tons in Great Britain, lOd. in United States, and 13|d. on the Continent. Sixthly. That this advantage enables us, as far as labour is concerned, to undersell Continental nations by 12 per cent., although our workmen's wages are almost double. Seventhly. That, comparing energy with population, ten English or Americans are equal to twenty French or Germans, twenty-six Austrians, forty Spaniards, sixty Italians, or sixty-eight Portuguese, even though the foreigners in ques- tion be as intelligent as our people. Eighthly. That no country does so large a proportion of its work (78 per cent.) by steam as Great Britain. Ninthly. That the United States possess absolutely more steam-power (10|- million horse) than any other country, Great Britain coming second. Tenthly. That steam and machinery powerfully aid each other in economising labour and reducing prices to a lower level. ( 58 ) X. TEXTILE MANUFACTURES. One of the principal reasons for the fall in price-level is the unprecedented development of manufactures, especially tex- tiles. While the population of Europe, United States, and British Colonies has risen 34 per cent, since 1850, the con- sumption of fibre has risen 137 per cent., as shown in the followins table : — Millions of Pounds. Tear. Cotton. Wool. Flax, Jute, &o. Total. 1850 . . 1,302 836 1,640 3,778 1860 . 2,391 1,021 1,690 5,102 1870 . 2,474 1,426 1,870 5,770 1880 . . 4,039 1,652 2,154 7,845 1883 . . 4,778 1,716 2,540 9,034 The downward movement of prices has extended the sphere of consumption, and it seems that if the world were to produce double the present quantity of textile raw material there would still be millions of purchasers for the manufac- tured stuffs, equal to the utmost capacity of production, pro- vided prices were low enough to come within their reach. Thus the largest consumption is of cotton goods, because they are cheaper than linens or woollens. The cotton crop of the world has quadrupled since 1850, TEXTILE MANUFACTURES. Million Pounds. 59 Year. United States. India. Egypt, &o. Total. 1850 . 890 310 102 1,302 1860 . 1,870 420 101 2,391 1870 . 1,640 625 309 2,474 1880 . 3,161 540 338 4,039 1883 . 3,610 830 338 4,778 The value of the crop in 1883 was 90 millions sterling, and that of the manufactured goods 302 millions, including 95 millions for Great Britain. During the American war, in 1864, raw cotton went up to 28d. per pound, or five times its normal value, but calico did not rise in proportion, seldom reaching 6d. a yard, or double its ordinary price. The consumption of raw cotton among the factories of all nations is shown as follows : — Millions of lbs. Ratio. 1850. 1860. 1870. 1883. 1850. 1883. Great Britain . 588 1,140 1,101 1,487 45-2 31-0 United States . 225 434 530 1,080 17-3 22-6 Germany . 170 220 260 372 13-0 7-8 Trance 163 215 250 253 12-5 5-3 Other countries 166 382 333 1,586 12-0 33-3 1,302 2,391 2,474 4,778 lOO'O lOO'O • Notwithstanding the fall of prices, cotton-factories con- stitute one of the elements of our national wealth. The following table shows the sums paid for raw cotton since 1850, the value of goods manufactured, and the net re- sult : — Millions sterling. Baw Manu- Net Eatio of Tears. Cotton. factures. Eesult. Eesult. 1851-60 . 241 579 338 58 per cent 1861-70 . 428 760 332 44 „ 1871-83 . 507 1,225 718 59 „ Since 1870 the net result has averaged 55 millions ster- ling per annum, which is distributed between wages, sundry 6o HISTORY OF PRICES. expenses, and profit on capital. This net result, compared with the total earnings of the nation, is about 4J per cent. Wool has more than doubled since 1850, that is, the in- crease has been three times faster than that of population, the clip of all nations summing up as follows : — Million lbs. 1850. 1860. 1870. 1883. Europe . 6.30 715 807 660 United States 90 112 154 208 River Plate . 25 56 167 305 Australia 43 70 197 421 Cape Colony 48 68 101 122 Total . . 836 1,021 1,426 1,716 The nominal weight of wool is much in excess of the reality, owing to the presence of grease and dirt, which average 30 per cent in Cape wool, 45 in Australia, and 70 per cent, in the Eiver Plate. The annual production may therefore be said not to exceed 1100 million lbs., or some- thing less than one-fourth of the weight of cotton. It is remarkable that the price of woollen manufactures in Great Britain has not declined in the same manner as that of the raw material, which appears from the following table : — Wool Consumed. Manufactures, Millions £. Value of Total. Wool. Manufacture 29-7 100 100 37-5 87 88 54-7 65 94 45-6 52 74 Year. Pence per lb. Million lbs. Export! Home. 1850 23 158 10-1 19.6 1860 20 224 16-0 21-5 1870 15 309 31-4 23-3 1883 12 328 21-6 24-0 Unless there be special reasons to the contrary, this in- dustry must leave sufficient margin for good profits, seeing that the value of manufactured woollens, according to weight, has fallen only 26 per cent, since 1850, while wool has declined 48 per cent. The following table shows the ratio between raw material and woollens at different periods : — TEXTILE MANUFACTURES. 6i Millions £. Ratio. Tear. 'Cost of Wool. Value of Manufacture.' Wool to Manufacturer 1850 15-2 297 100 195 1860 18-6 37-5 100 202 1870 19-4 54-7 100 281 1883 16-4 45-6 100 277 The reason of tlie relative change of value between wool and. manufactured goods is, that wages have not fallen, but the reverse, and hence the raw material comes to form in comparison a smaller item in the cost of production. The Franco-German War in 1870 appears to have enhanced the value of woollen fabrics, most of the French and German mills having been in a manner paralysed for the time being. Linen is an industry that seems threatened with extinc- tion, the area under flax in Europe having diminished 710,000 acres, that is, 20 per cent., since 1866-70. More- over, the consumption in Great Britain is now only four yards per inhabitant, showing a decline of one-half since 1850, viz :— Million Yards. Tear. Made. Exported. Home Use. Yards per Inhab. 1850 344 120 244 8-2 1860 290 144 146 5-1 1870 413 223 190 6-0 1883 306 159 147 4-1 The price of linen since 1881 has been 7 per cent, below the mean average for thirty preceding years, but a fall in price has no effect in widening the market for consumption, this fabric being more than twice as dear as cotton goods, which are, therefore, preferred. Jute is a newly developed industry, India being the great producer and Great Britain the principal seat of manufac- ture, viz. : — 62 HISTORY OF PRICES. Million lbs. Manufacture Tear. Export from Consumed in Value. Pence per India. Great Britain. Millions £. Yard. 1850 43 42 0-9 7-2 1860 84 86 1-9 4 6 1870 264 324 9-5 3-6 1880 670 407 8-6 3-0 1883 804 618 11-7 2-6 Silk, by reason of its costly nature, has not made such progress as the coarser fibres, the consumption of all nations being now 38 million lbs., against 30 million in 1850. The • total value of textile manufactures in the world has been as follows : — Millions Sterling. Ratio. 1860. 1860. 1870. 1883. 1860. 1883 Cottona . 92 166 210 302 100 328 Woollens . . 151 172 220 223 100 149 Silks . 52 60 70 73 100 140 Linens, Jute, &o. 55 61 67 70 100 127 All textiles 350 459 567 668 100 191 Thus it appears that the value of textile manufactures is now 91 per cent, over the year 1850, whUe the weight of raw material consumed shows an advance of 137 per cent. The consumption of aU kinds of fibre in the United King- dom is shown in the following table : — MilU on lbs. Eatio. 1860. 1860. 1870. 1883. 1850. 1883. Cotton 565 1,140 1,101 1,487 100 263 Wool . 153 224 309 328 100 208 Flax . 249 228 291 230 100 92 Hemp . 122 78 160 170 100 140 Jute . 42 86 324 618 100 1,471 Total . 1,136 1,756 2,185 2,833 100 250 The consumption has grown much faster than population, TEXTILE MANUFACTURES. 63 having averaged 41 lbs. in 1850 and 80 lbs. in 1883, a strong proof of tbe flourishing nature of our textile industries. The points deserving special notice in this chapter are : — First. That the world has an unlimited demand for textile fabrics, and that the power of consumption extends not in ratio with the fall of price, but in much wider degree. Secondly. That a decline of 11 per cent, all round in price has caused consumption to increase 137 per cent, since 1850. Thirdly. That while cheaper goods, such as cotton and jute manufactures, are every day finding wider markets, linen is in decadence. Fourthly. That the rise or fall of raw material affects the price of manufactured goods in a diminished ratio. Fifthly. That in spite of (or rather because of) lower price-level, the net proceeds of British cotton manufactures have been much higher since 1870 than at any former period. Sixthly. That the textUe manufactures of the world have advanced 91 per cent, in value since 1850, and the weight of goods 137 per cent., showing an apparent fall of 20 per cent, in price-level. Seventhly. That the real fall in price has been only 11 per cent, as shown by comparing the market values in 1883 with what the same volume of goods would have brought if prices had not fallen, viz. ; — Millions ! Sterling. At Prices Bati. Value in 0. Value in Place of 1883. ot 1850. 1883. 1860. Cotton goods . 302 339 89 100 Woollen ,, . . 223 262 85 100 sak „ . 73 66 110 100 Linen, jute, &c. 70 85 82 100 Total . . 668 762 89 100 ( 64 ) XL HARDWARE AND SUNDRIES. Iron being the raw material of most hardware, we see what enormous development this branch of manufactures has had, the production of this metal having almost quintupled be- tween 1850 and 1882 ; that is to say, it has increased three times faster than fibre, and twelve times than population, the figures being as follows : — Tons OOO's omitted. Pounds per Int abltani 1S50. 1870. 1882. " 1850. 1870. ~^82. Great Britain . 2,250 5,230 8,488 190 420 555 United States . 560 1,580 4,023 54 90 196 Germany . . 402 1,310 3,171 26 82 140 France . 408 1,230 2.033 25 83 117 Belgium . . 170 260 640 85 115 250 Austria . 140 280 550 11 17 30 Russia . 220 360 605 8 11 12 Sweden . . 130 300 410 84 165 190 Total . 4,280 10,550 19,820 42 90 150 Such is the magnitude of this industry that we consume 1| lb. of iron daily per inhabitant in the United Kingdom, including what is made into steel. The inventions of Besse- mer and Siemens have so completely altered the relative value of steel and iron, that whereas twenty years ago a ton of the former was worth eleven tons of the latter, the pro- portion now is barely four to one. We find that the produc- tion of steel has increased seventy-fold since 1850, being now extensively used instead of iron, not only for domestic HARDWARE AND SUNDRIES. 65 purposes, but also for rails and shipbuilding. The consump- tion of iron and steel and the value of manufactures, at the accepted standard of £8 per ton for iron and £50 for steel merchandise, are shown as follows : — Tons Used, OOO'a omitted. Value, Millions Sterling. Iron. Steel. Iron. Steel. Total Great Britain . 4,890 1,780 39 89 128 United States . 3,700 1,460 30 73 103 Germany . 1,500 900 12 45 57 Prance . . 1,600 420 13 21 34 Belgium . 570 135 6 7 13 Austria . . 320 180 3 9 12 Russia . . 260 300 2 15 ]7 Other countries 1,200 200 10 10 20 14,040 5,375 115 266 384 Railways take two-thirds of all the steel that is made, as shown in this table : — Tons steel Bails, OOO's omitted. Great Britain . Continent, &c. United States . New Lines. 60 680 1,200 Renewal. 160 655 900 Total. 220 1,335 2,100 Total . . 1,940 1,715 3,655 Steel rails are found to last twice as long as iron ones ; in December 1882 the existing railways of the world had 14 million tons steel and 20 million tons iron, rails ; but the latter were being removed, to make way for steel. Great Britain owes much of her manufacturing ascen- dancy to the cheap production of iron and steel. The ave- rage prices of iron during ten years ending 1880 were, 68s. per ton in England, 88 on the Continent, and 116 shillings in the United States. The " protective " duties in the United States added 75 per cent, to the price of pig- iron; in ten years (1871-80) the American people paid 203 millions sterling for 35 million tons, which they could have E 66 HISTORY OF PRICES. obtained from England, delivered in New York, for the sum of 1 33 millions : the difference added seriously to the cost of making new railways in that country. According to a report by the French Government to the Chambers, neither Franco nor Germany can compete with England or Belgium for cheapness of production, the cost being as follows : — Belgium .... England .... Germany. France . . . , Shipbuilding is one of the industries most intimately connected with iron and steel, and at present Great Britain builds two-thirds of aU the shipping of the world, the ton- nage having risen thus : — Tons Shipping Built, OOO's omitted. Ratio. Shillings per Ton. Pig Iron. Wrought Iron. Steel. 47 130 131 50 122 160 59 144 192 73 182 224 1850. 1860. 1870. 1882.~ 1860. 1882. Great Britain . 134 212 343 1,194 21-3 66-2 United States . 272 213 277 281 43-2 15-6 Various . . 224 545 720 330 35-5 18-2 Total . 630 970 1,340 1,805 lOO'O lOO'O In 1882 the total value of shipping built was 30 millions sterling, for 1,200,000 tons of steamers and 600,000 tons sailing. The largest merchant vessel recently built is the TJmbria, by John Elder & Co., 8000 tons and 12,000 horse- power; but she is surpassed by the Italian war steamer Lepanto, 14,600 tons and 18,000 horse-power. Ironclads cost from £50 to £60 per ton. The average of steel vessels built on the Clyde since 1881 has exceeded 100,000 tons per annum, ships made of this material being able to carry 20 per cent, more than iron ones. Timber constitutes another great industry, representing an HARDWARE AND SUNDRIES. 67 annnal value of 273 millions sterling : consumption has in- creased 50 per cent since 1850, viz. : — UillioDS, Cubic Feet. Value in 1881. Cubic Feet 1850. 1881. Uillions Sterling. per Inhab. Great Britain . 205 430 20-2 12 France 960 1,280 21-4 33 Germany . 1,100 1,450 24-5 32 Russia 4,200 6,120 56-3 76 Austria 1,400 1,880 30-1 51 Italy, Spain, &c. 1,200 1,605 37-7 23 Europe 9,065 12,765 190-2 41 United States . 1,400 3,100 77-4 58 Canada 100 220 5-4 49 The World 10,565 16,085 273-0 44 Firewood takes 48 per cent of the total, the rest being used for building, carpentry, cabinet-work, and other pur- poses. The supply of timber being practically inexhaustible, there has been a faU of 36 per cent, in the price, notwith- standing the rapid increase of consumption. The forests of the world cover 1200 million acres, viz. : — Million Acres. Russia ........ 485 United States 176 Canada . , 174 BrazU 135 Other countries .•..,. 232 1,202 The area annually felled by woodcutters is only 19 mDlion acres, and may be increased to 40 million before reaching the annual average increase of forest-trees. Russia, for ex- ample, can afford to cut two and a half times the amount of her present consumption without impairing her capital in trees. There is, therefore, no ground for the alarm that our posterity in the next century may have to pay famine prices for timber J on the contrary, we may look for a continued fall 68 HISTORY OF PRICES. in prices, as facilities increase for conveying timber cheaply to the seaports of the world. Leather has not grown so fast as other manufactures, because cows and horses cannot be multiplied with the same facility as agricultural or mineral products. It has just kept a little ahead of the growth of population in Europe and North America, the consumption and value of manufactures being as follows : — Leather, Million Lbs. Manufactures, Millions £,. 1865. 1881. 1S55. 1881. Great Britain . . 130 209 24-3 34-0 Continent . 420 490 79-0 85-0 United States . . 110 215 20-0 37-0 Other countries . 105 160 19-5 28-0 Total . 765 1,074 142-8 184-0 Notwithstanding the limited production, there has been a fall of 11 per cent, since 1850, and a still greater reduction in the cost of boots and shoes, owing to the introduction of improved machinery. The statistics of the British leather trade are summed up as follows : — Leather, Million Lbs. Manufactures, Millions £. Year. British Foreign Hide. Hide. (Total. Home. Export. Total. Lbs. Leather per lahab. 1850. . 50 70 120 19-7 0-6 20-3 4-4 1860. . 55 87 142 22-3 21 24-4 5-0 1870. . 60 132 192 28-6 26 31-2 6 1 1881. . 65 144 209 30 1 3-9 34-0 6'0 Although many substitutes for leather have been intro- duced, thus relieving the demand for hides, there are good reasons to suppose that a higher range of prices may be ex- pected ; the value of land and cattle is rising in America and Australia, and hides must rise also. Books are not always classified among manufactures, and yet constitute an industry of great importance, the annual value (including journals) amounting to 79 millions sterling. HARDWARE AND SUNDRIES. 69 The following table shows the consumption of printing-paper and the annual amount expended in various nations for books and newspapers : — Per Annum. Million Lbs. Lbs. per Value of Books, Pence per Paper. Inhabitant. &u., Millions £. Inhabitant. United Kingdom . 220 6-1 16-2 107 France . . 160 4-2 11-8 75 Germany . 170 3-7 12-7 67 Russia . . 40 0-5 3 1 9 Austria . ■ . 54 1-4 4-1 25 Italy . . 43 1-5 32 26 Spain and Po rtugal 17 0'8 1-4 15 Belgium and HoDand 27 2-7 2-0 48 Scandinavia . 13 1-5 1-0 30 Switzerland 9 32 0-7 58 Europe . . 753 2'4 56-2 40 United States . 262 4-6 19-0 75 Canada . . 10 2-2 0-7 39 Australia 9 3-3 0-7 52 Spanish Amei •ica . 24 0-9 1-7 14 India, &c. . 12 1-0 The World . 1,070 79-3 The above shows an average value of 18d. per lb. of books, or £168 per ton, but the' customs- value for those exported from England in 1881-84 was only £97 per ton, which must have been much below the real value. In some countries the customs tariff is 5 francs per kilogramme, or about 2s. per lb. As regards consumption of printing-paper to popula- tion, the ratio is much higher in Great Britain than elsewhere, and the average expenditure on books and newspapers nearly 9s. a head. The price of books in England has declined 32 per cent, since 1860, according to customs valuation. The principal points of this chapter are these ; — First. That the consumption of iron, with regard to popu- lation, is now four times as much as it was in 1850 in Europe and United States. 70 HISTORY OF PRICES. Secondly, That steel is now produced at one-third the cost of twenty years ago. Thirdly. That Great Britain and Belgium produce iron and steel cheaper than other countries. Fourthly. That the felling of timber is far less than the growth, and that the fall in prices since 1850 is likely to continue. Fifthly. That the fall in leather will probably be checked before long by the rise in land and cattle in the Colonies. Sixthly. That books have fallen one-third in price since 1860, and that Great Britain consumes one-fifth of the printing-paper of the world. ( 71 ) XII. MINING. This great industry, which, employs nearly 2J million men, represents an annual product of 244 millions sterling, the precious metals forming only 14 per cent, of the total The annual value of all minerals produced is three times greater than in 1850; the actual weight extracted has quadrupled, being now 402 million tons, against 101 million. The fol- lowing tahle shows the value at pit's mouth at various dates : — Value, Millions Sterling. Batio. 1850. I860. 1870. 1883. 1850. 1883. Gold . 12-7 22-8 23-9 18-2 100 144 Silver . . 8-1 9-6 14-5 15-9 100 196 Coal . 35-5 67-2 98-6 136-4 100 384 Sundries . . 31-0 38-3 51-5 73-3 100 237 Total . 87-3 137-9 188-5 243-8 100 279 The production and uses of gold and silver have been already alluded to in Chap. III., on the Precious Metals, but there are some points in connection - with mining which deserve further notice. In California 3,300,000 gold-diggers extracted 148 million tons ore, from which they obtained 2106 tons of fine gold, that is, a little over 70,000 tons ore for 1 ton of gold. In Australia 3,270,000 diggers extracted 183 million tons ore, from which they got 1940 tons gold, that is, 94,000 tons ore for 1 ton of gold. The Californian took out 45 tons, the Australian 56 tons, of ore yearly, but 72 HISTORY OF PRICES. the former averaged 10 per cent, more gold tlian the latter, the Californian ore being 30 per cent, richer. Nevertheless, the largest nugget was found in Australia, the BaUarat Welcome ( nth June 1858) yielding 2020 oz. gold, worth £8380 sterling. About 5 per cent, of the gold-diggers, say 330,000, died of exposure or violence, and the value of gold divided among the rest averaged 6s. a day, which was sometimes less than the price of a dozen eggs. American economists say that every £ sterling of precious metals dug out of the earth since 1850 has cost 24s. The ore extracted by the miners would suffice to raise ninety pyramids like that of Cheops, and yet all the gold produced by California and Australia together would fit in a drawing-room ten yards long, seven wide, and five in height. The quantity of fine silver extracted since 1850 has been 53,000 tons, or thirteen times that of gold ; but as the latter was then fifteen and a half times as valuable as the former, it is plain that the production of silver has not kept pace with that of gold, a fact ignored by bi-metalHsts. Coal stands for 55 per cent, of the total value. of minerals. The production has quadrupled, viz. : — Million Ton3. British Ratio. Tear. British. Foreign. Total. 1850 i8 40 88 55 per cent. 1860 80 61 141 57 1870 110 98 208 53 „ 1883 160 220 380 52 This mineral plays so important a part in the majority of industries that its increased production has tended to a lower level of prices in most commodities, especially manufactured goods. The consumption averages 4 tons per inhabitant yearly in Great Britain, against l^ ton in United States or Germany, 14 cwt. in Prance, and 2 cwt. in Russia or Italy. The statistics of production in 1880 were as follows : — MINING. 7 Miners, Value, Millions OOO's Tons per Millions Per Ton, of Tons. omitted. Miner. Sterling. Shillings. Great Britain 147 485 303 47-0 6-5 France 19 102 190 10-2 10-7 Germany . 69 220 270 13-7 4-5 Austria 16 83 192 4-2 5-2 Belgium . 17 101 168 6-1 7-2 United States 70 240 295 28-0 8-0 Russia, &c. 16 100 160 4-0 5-0 Total 344 1,331 258 113-2 Great Britain exports 24 million tons, or 15 per cent, of the quantity raised in the United Kingdom. The above values are at the pit's mouth, the retail price for consumers being twice or three times as much. Coal is dearer on the Continent, the above official values being under the reality. Ironstone comes next after coal in bulk, the annual yield being now 52 million tons, against 27 million in 1870, and 11 million in 1850. The percentage of iron varies, the richest ore being that of Canada, viz. : — Percentage of Iron in Ironstone. France . 31 Germany . 36 England . 41 United States Russia Sweden 43 44 52 Australia Algeria Canada 55 58 60 Before the invention of Neilson's hot-blast it took 5 tons of coal to produce a ton of pig-iron, and even thirty years ago the average was 3 J tons; but Cowper's Regenerator (1500 Fahr.), invented in 1857, made a further economy of fuel, reducing the consumption to less that 2|- tons. Thus the various ironworks in the world consume about 50 million tons coal to make 20 million tons pig-iron ; in other words, a ton of iron represents 2J tons ironstone and 2|- tons coal. "When charcoal is used, 1 ton suffices to make a ton of iron. Lead and copper are minerals of secondary importance, the production of which seems to surpass requirements ; both 74 HISTORY OF PRICES. have fallen 40 to 50 per cent, since 1850, and the tendency still looks downward. The production has been as follows of fine metal : — Thousands of Tons Value ii Lead. 1860. 1880. s. Copper. 1 MillionB £, 1850. 1884. Lead. Copper. Great Britain 55 51 12 3 0-8 0-2 France 7 32 2 5 0-5 0-3 Germany . 16 59 2 15 1-0 0-8 Italy 12 33 2 0-5 0-1 Spain 27 92 "i 41 1-5 21 Austria, &c. 17 23 9 14 0-4 0-7 Europe 134 290 26 80 47 4-2 United States 36 89 3 64 1-5 3-2 Chili 14 41 2-1 Australia 2 14 0-7 Japan and Cap 2 11 0-6 Total 170 379 47 210 6-2 10'8 Owing to the great increase of lead production in Spain and United States, some of the Austro-Hungarian mines have been closed. The Missouri lead-mines near Chicago give an ore containing 70 per cent, of metal, and those of Cordoba, Spain, are said to be even richer. Copper ores in 1850-55 used to give 6 per cent, of fine copper, but now they average 7 per cent., owing to the superior richness of the United States, Australian, and Chilian ores. Seeing that 6 tons of ore now give as much copper as 7 tons formerly, we may presume a saving of 14 per cent, in the cost of pro- duction, which would partly account for the fall in price. American copper averages a yield of 18, Australian of 12, per cent., against 7 per cent. British. Tin is an inferior mineral, the value of which hardly exceeds 2| millions sterling, the total production being 53,000 tons, viz. :— , Tons. /i Australia Great Britain . Java Tin Ore. . 24,100 . 13,700 . 15,000 Tin Metal. 17,500 9,200 9,000 Percentage of Metal. 74 66 60 Total . 52,800 85,700 69 Great Britain consumes 60 per cent, of all tliat is produced, the average of our tin manufactures being now 22 ounces per inhabitant, against 10 ounces in 1850; prices have fallen 10 per cent, in twenty years. Zinc is another mineral of little note, the value not reaching three millions sterling. Prussia produces 102,000 tons of this metal, or 60 per cent, of the total. About 6 tons of ore give a ton of metallic zinc. The manufacture of this metal in Great Britain reaches 52,000 tons, having trebled in the last fifteen years. Mercury is produced to the amount of 3340 tons, worth £700,000, California giving 60 per cent., Spain 30 per cent., of the total ; the consumption in Great Britain averages 1600 tons. Diamond-mining occupies a small number of negroes near Bahia, Brazil, who produce about £100,000 worth yearly. The diamond-fields of Cape Colony were discovered in 1867, and have produced stones to the value of 30 millions sterling, the annual product since 1878 having been £3,450,000; there were in 1884 about 10,000 Basutos and 8000 whites at the diggings ; the Stewart diamond, found in November 1872, weighed 288 carats, and was sold for £11,000 sterling. The average earnings at the diamond- fields have for some years been £180 per miner, or double that of the gold-diggers in Australia. Petroleum or mineral oil is a most valuable product, and was first discovered in Pennsylvania in 1859, since which 76 HISTORY OF PRICES. time the oil-wells have yielded 11,570 million gallons, representing a value of 303 millions sterling, at a medium of 6d. per gallon, viz. : — MiUions of Gallons per Annum. Value of Product. Millions £. Pence per- Gallon Years. Produced. Home Use Exported. 1859-63 60 64 6- 5-7 22 1864-68 130 82 48 9-3 17 1869-73 . 320 187 133 11-6 9 1874-80 . 680 340 340 13-7 5 1881-84 . 1,065 577 488 17-7 4 The consumption in the United States has risen from 3 gallons in 1860 to 11 gallons in 1884 per inhabitant. The enormous increase of production has brought a great reduction of price, the number of wells actually working being over 6000, at depths ranging from 400 to 1200 feet. If we sum up all the mining industries of the world, we find as follows (1883) :— Miners, OOO's Minerals. Product. omitted. Millions £. £ per Miner. Great Britain 538 79 146 France 206 14 70 Germany 231 19 82 Russia 207 10 48 Austria 92 8 86 Italy . 32 2 52 Spain . 70 6 86 Belgium 110 7 62 Sweden 29 1 35 United States 560 77 140 Spanish America . 150 10 66 Australia . 95 8 84 Other countries . 66 3 47 The World . 2,390 244 102 The principal points of this chapter are these : — First. That the production of coal is four times as valu- able as that of gold and silver in the aggregate. Secondly. That gold and silver mining are among the least profitable industries. MINING. 77 Thirdly. That a saving of 33 per cent, in coal since 1857 for reducing ironstone to pig-iron is equivalent to a fall of 11 per cent, in the price of iron. Fourthly. That the richer quality of copper ores now worked involves a saving of 14 per cent, in the production of that metal. Fifthly. That petroleum, which stands for 7 per cent, of the total value of mining products in the world, has fallen 80 per cent, in price in twenty years. Sixthly. That the general decline of prices for minerals, either by reason of reduced cost of production or because the supply is excessive, has caused a downward tendency in most other products. Seventhly. That mining industry represents a value of 244 millions, or nearly 5 per cent, of the annual products of human labour. ( 78 ) xiir. AGRICULTURE. Notwithstanding the great development of agriculture (under which, are also included all pastoral pursuits), there has been a rise of prices, which, as we shall see later on, amounts to 11 per cent, over the level of 1841-50; whereas in the same period the price-level of manufactures has de- clined exactly 25 per cent. This is the more surprising as ■we have to record a fall of 7 per cent, in grain, which con- stitutes two-fifths of the total, besides a decline of 43 per cent, in sugar and 48 per cent, in wool ; but all other items have risen, as appears from the following table of ratios : — 1841-50. 1851-60. 1861-70. 18Y1-80. 1881-84 Grain 100 121 117 109 93 Meat 100 112 118 133 148 Dairy products 100 112 128 141 144 Potatoes . 100 109 134 143 157 Wine 100 122 130 130 151 Raw cotton 100 112 241 133 114 Wool 100 90 78 61 52 Sugar 100 94 100 79 57 Coffee 100 130 165 217 183 Tobacco . 100 151 183 131 127 Tea . 100 125 150 131 100 1,100 1,278 1,544 1,408 1,326 There is a notable rise in seven articles, while three have fallen, since 1850 ; but the index numbers in the aggregate do not show the actual variations of price-level, for we find that the quantities of the above articles, according to con- sumption, which cost £100 in 1841-50, would now cost £111, and not £120, as would appear from the above totals. If we place the index numbers beside the actual variations, as measured by the trade-volume system, we find as follows : — AGRICULTURE. 79 Index Numbers. Trade-Level 1845-50 . 100 100 1851-60 . 116 116 1861-70 . 140 121 1871-80 . 128 117 1881-84 . 120 111 The weak point of the index numbers is seen, for example, in the fact that, in the preceding table, for the decade ending 1870 raw cotton weighs for twice as much as grain, whereas the "trade-level" gives grain 15 times the importance of raw cotton, viz., as 253 to 17 (see chap, xviii.). The progress of agriculture since 1850 is first observable in the fact that the area under crops has risen 55 per ceiit., while population has increased only 34 per cent., viz. : — Million Acres Acres 1860. per Family. ^850. 1870. 1884. ISrO. 1884. Europe . United States British Colonies . 360 . 55 . 12 440 88 18 482 157 25 7-3 12-0 17-0 7-4 7-4 11-4 14-3 15-0 16-0 Total . . 427 546 664 7-8 8-2 8-5 Among the causes in Europe which stimulated rural industry have been the abolition of feudalism in Germany and Austria, the emancipation of Russian serfs, the construc- tion of railways, and the use of agricultural machinery. In each succeeding decade since 1850 there has been in all countries a marked tendency of rural population to migrate to the towns ; and although the rural ratio of inhabitants has seriously diminished, there has been an increase of tillage, in consequence of machinery displacing hand labour. The influx of immigrants into the United States has had a marked effect in that country, the area under crops having doubled. Grain-growing constitutes the chief branch of tillage, covering an area of 505 million acres, and producing crops worth 1326 millions sterling, or one-fourth the value of the aggregate of human industries, viz. : — 8o HISTORY OF PRICES. Millions of Millions of Bushels Value of Crop, Pence Acres. Bushels. per Acre. Millions £.. per Bushel. Wheat . 154 2,146 14 520 59 Oats 86 1,794 21 205 27 Barley . 47 819 17 133 39 Bye 115 1,408 12 232 39 Maize, &c. 103 2,300 22 236 24 505 8,467 17 1,326 The weight of the grain-crop is 212 million tons, of which 194 are consumed by the countries in which produced, and 18 million tons exported to others of deficient supply, the carriage of grain forming nearly one-eighth of maritime com- merce, as regards bulk. Production varies from 9 bushels per inhabitant in United Kingdom to 49 in United States ; the average for Europe is 16|- bushels production and 18 consumption per inhabitant, including herein the grain used for food of cattle. The production and consumption of all kinds of grain are as follows : — P roduetic n, Consump - Per Inhabitant, Millions of Bushels. tion, Millions of Bushels. Other " Produc Con- Wheat. Grain. Total. Bushels. tion. sumption United Kingdom . 73 248 321 618 9-0 17-3 France 272 454 726 895 20-4 25-3 Germany 94 540 634 750 14-1 16-7 Russia . 210 1,500 1,710 1,500 20-8 18-0 Austria . 115 433 548 516 14-8 13-9 Italy . 140 153 293 298 107 10-9 Spain and Portugal . 145 180 325 325 16-2 16-2 Belgium and HoUanc 24 81 105 145 IM 15-5 Scandinavia . 7 163 170 160 20-1 18-9 Roumania, &c. 85 . 1,165 140 225 205 5,412 32-1 16-8 29-3 Europe 3,892 6,057 18-0 United States . 510 2,030 2,540 1,920 46-0 34-5 Canada 45 85 130 120 31-2 28-8 Australia 35 25 60 40 22-2 14-8 India . . 270 270 230 Other countries . . 121 289 410 745 Total 2,146 6,321 8,467 8,467 21-0 21-0 AGRICULTURE. 8i The benefits of improved agricultural implements are appa- rent in the fact that (omitting India) the average product of grain per inhabita/nt is now 21 bushels, against 20 in 1870 and 19 in 1850, while the number of persons actually en- gaged in agriculture seems less. But this improvement is susceptible of far greater development, the waste of labour in such countries as France or Belgium, owing to the smaUness of the farms, or in Eussia by reason of lack of machinery, being especially deplorable ; the same amount of labour would be four or five times as productive under proper cir- cumstances. The average product of grain to each able- bodied male peasant engaged in tillage in the various countries is as follows : — Bushels, per Peasant. United States . 920 Great Britain . 540 Canada . . 850 Germany . . 245 France . . 220 Austria . . 180 Spain . .16 Russia . .15 Italy . . 14 On this subject I take the following passage from Mr. Edward Atkinson's valuable work on the "Distribution of Products : " i— " The equivalent of one man's work on the great farms of Dakota is 5500 bushels of wheat per annum, if the crop reach 20 bushels to the acre. Eetaining enough for seed, this quantity suffices to make 1000 barrels of flour. It can be carried through the flour-mill and put into barrels, in- cluding the labour of making the barrel, at the equivalent of one other man's labour for one year ; and at the ratio of the work done to each man employed upon the New York Central Eailroad, the wheat can be moved from Dakota to a flour-mill in Minnesota, and thence the 1000 barrels of flour can be moved to the city of New York, and all the machinery ' Published in 1885 by Putnam's Sons, New York. 82 HISTORY OF PRICES. of tlie farm, the mill, and the railroad can be kept in repair at the equivalent of the labour of two more men ; so that 1000 barrels of flour, the annual ration of 1000 people, can be placed in the city of New York from a point 2000 miles distant with the exertion of the human labour equivalent to that of only four men, working one year in producing, milling, and moving the wheat. It can there be baked and distri- buted by the work of three more persons ; so that seven persons serve 1000 with bread." There can be no doubt that if the peasant's labour in France, Germany, or Russia were as well ordered and pro- ductive as in the United States, the cost of grain in those countries would be less and the condition of Hhe rural popu- lation improved. As all scientific inventions tend towards a lower price-level, we may conclude that grain has not yet touched what Jevons called " the minimum attainable cost of production." And as grain constitutes one-fourth of the value of all the industrial products of man, any further fall in its price must increase the purchasing power of gold. That is to say, if grain fall 8 per cent, by the year 1890, even though all other products and industries remain un- changed, the value of gold will rise 2 per cent. All other forms of tillage are of minor note compared with grain ; nevertheless wine-growing and potatoes considerably surpass the rest, together making up a value of 311 millions sterling. Detailed statistics of these and other agricultural products will be found in the Appendix. Cattle-farming is closely allied to tillage, since cattle con- sume two-thirds of all the grain that is produced, and there- fore must be included when treating of agriculture. The number of cows, sheep, and horses to population in the prin- cipal countries is as follows : — AGRICULTURE. Per 100 Inhabitants. Cows. Sheep. Horses. 83 Per 100 Inhabitants. United Kingdom 28 80 8 Belgium . 22 11 France . 31 65 7 Denmark . 70 90 Germany . 34 55 7 Sweden . 50 33 Russia . . 27 62 18 Roumania 37 67 Austria . 34 56 10 Europe . 29 63 Italy . . 12 25 2 tr. States . 77 90 Spain . 19 145 4 Canada . 60 75 Portugal . 13 55 1 Australia . 262 2,180 Holland . 37 22 7 River Plate 613 2,640 The population of Europe has increased so fast in the last thirty years that the ratio of cattle to inhabitants has declined, which explains the rise in the price of meat. In 1855 there were 32 cows and 70 sheep for every 100 in- habitants, which numbers, compared with those for 1880, show that there has been a relative decline of 10 per cent., viz. : — Million Head. Per 100 Inhabitants. 1856. 1880. 1856. 1880 Cows . 82-7 91-5 32 29 Sheep . 181-4 194-2 70 63 Pigs . . 39-1 45-1 15 14 Meantime the number in the United States has doubled, but the increase of population has been so great that the ratio per inhabitant is no higher, viz. : — OOO's omitted Per 100 Inhabitants Cows Sheep Horses . Pigs . 1850. . 17,784 . 21,722 . 4,331 . 30,353 1870. 23,833 28,481 7,155 25,133 1883. 42,547 50,627 11,170 44,200 1860. 1880. 77 77 94 90 19 20 132 80 If it were not for the teeming pampas of the Eiver Plate and the weU-stocked farms of Australia, we might have reason to anticipate a great rise in the price of meat in Europe. In the United States there are not a cow and 84 HISTORY OF PRICES. a sheep to each inhabitant, whereas in the Eiver Plate there are 6 cows and 25 sheep. According to recent quota- tions at Buenos Ayres (August 1885), horned cattle were selling at 18 shillings, sheep 4 shillings, a head, which shows what a field of undeveloped meat-farming lies within fifteen days of Europe. The following table shows the total agricultural capital of the various countries and the value of annual pro- ducts : — MlUions Sterling. Capital. Annual Product. Ratio per Inhale. Land. Cattle. &c Total. Crops. Cattle. Total. Capital Product United Kingdom 1,737 473 2,210 126 137 26i 61 7-2 France . , 2,624 436 8,060 325 110 435 80 11-4 Germany 2,060 466 2,526 312 132 444 66 9-9 Busaia . 1,886 709 2,095 337 145 482 25 6-0 Austria . 1,290 421 1,711 205 102 307 46 8 Italy 810 163 963 141 33 174 33 6 Spain . 660 119 779 97 36 133 45 80 Portugal 158 37 195 24 6 30 46 7 Belgium 245 86 331 31 13 44 60 8-0 Holland 212 118 330 26 19 45 82 11-2 Denmark 210 69 269 23 14 37 135 18-5 Sweden 312 72 384 27 14 41 84 9 Norway 110 31 141 7 7 14 71 7-1 Greece 105 11,919 20 3,200 125 7 2 770 9 2,468 69 50 50 Europe . 15,119 1,688 8-2 United States 2,116 845 2,961 346 198 644 64 101 Canada . 180 79 269 31 21 62 57 11-6 Australia 182 136 818 37 39 76 106 24-7 Argentine Eepubl c 105 103 208 11 23 34 69 11-S Uruguay 16 27 43 1 4 5 90 110 Total . 14,618 4,390 18,908 2,114 1,065 3,169 52 8-7 Some countries give a large return for the capital invested in agricultural pursuits, while others yield such poor profit as hardly to leave a margin for bad years or other drawbacks. Compare, for example, the following : — High Retur Australia . Kussia QS. Per Cent. 24 23 Low Returi Belgium Great Britain . 13. Per Cent. 13 12 Canada 20 Sweden 11 United States . Austria Italy 18 18 18 Uruguay . Norway Greece 11 10 7 AGRICULTURE. 85 In view of the above figures and the increase of agricul- ture in the newer parts of the world, we may expect a further decline of this industry in the countries comprised in the above column of " low returns," except Uruguay, where this industry will prove highly profitable as soon as things become more settled. The principal points in this chapter are the following : — First. That although the ratio of rural population has declined both in Europe and America, the area under tOlage has risen 50 per cent., and the weight of crops in proportion. Secondly. That grain-growing eclipses all other industries in point of value, and that any variation in price of grain seriously affects the purchasing power of gold. Thirdly. That Europe has to import about 10 million tons of grain yearly from other parts of the globe. Fourthly. That a farm-labourer in United States raises as much grain as four able-bodied French or Germans, or six Eussians or Spaniards. Fifthly. That consequently three-fourths of the labour of peasants on the Continent of Europe is in a manner wasted. Sixthly. That we have not yet seen the lowest cost of production for grain in Europe. Seventhly. That cattle to population are 10 percent, fewer in Europe than thirty years ago, that the United States will require shortly all their own cows and sheep, and that Europe must look to Australia and the Eiver Plate for a future supply of at least 1,200,000 tons of meat per annum. Eighthly. That agriculture does not give profitable returns for the amount of capital invested in Sweden, Great Britain, or Belgium, and may therefore be expected steadily to de- cline in those countries, and give place to lucrative pursuits. ( 86 ) XIV. FOOD-SUPPLY. The food-supply of nations is the most important of all matters connected with price-level, since the money paid for food represents 45 per cent, of the earnings of mankind. Moreover, the margin that each country has for clothing and other merchandise depends on the relative amount of earnings ahsorbed by the cost of food, which may thus be said to regulate the consumption of all other commodities. In the following table are shown the values of food (1880-82) annually consumed by nations, excluding that which is eaten by cattle : — Earnings Per- MilUons Sterling. Milliona Ster- ling. centage Food to Earnings. Grain. Meat. Liquor. Sundries. Total. U. Kingdom 55 140 102 176 473 1,247 37-8 France . 70 105 84 128 387 965 40-1 Germany . 80 126 86 148 440 850 51-8 Russia .110 119 84 198 611 848 60-1 Austria . 60 88 62 110 820 602 53-1 Italy . . 42 25 39 80 186 345 54-0 Spain . . 28 21 20 50 119 218 54 '6 Belg. & HoU. 19 17 19 45 100 224 44-6 Scandinavia 15 15 13 31 74 151 49-0 U. States . 85 110 74 265 534 1,420 37-6 Total . 564 766 583 1,231 3,144 6,970 45-0 If we take the working year as 300 days, we find that food-supply requires the labour of 114 days in Great Britain or United States, 120 in France, 133 in Belgium and Hol- land, 155 in Germany, 162 in Italy, and 180 in Eussia. FOOD-SUPPLY. 87 And if we compare the surplus of earnings over the cost of food per inhabitant, we find that an Englishman has £21, an American £17, a Frenchman £15, a German £9, an Italian £6, a Eussian £4, their power of consumption vary- ing according to the surplus. All food may he classified under necessaries and sundries, the former comprising grain, meat, butter, cheese, sugar, and salt, which sum up an amount of 1620 millions sterling, or 52 per cent, of the total Sundries include coffee, tea, tobacco, eggs, milk, fruit, vegetables, spices, &c. — in aU, 1524 millions sterling. The total food expenditure for the above nations averages 6 pence a day per inhabitant, that is, 10 pence for a man, 8 pence for a woman, and 4 pence for a chUd. The averages are as follows : — Pence per Inhabitant, Daily. Necessaries. Sundries. Total, Great Britain 5-0 4-0 D'O France . 3-6 3-4 T'O 37 3-2 6-9 2-1 2-0 4-1 3 2-8 5-8 1-8 2-6 4-4 Necessaries. Sundries. Total. Spain. . 2-0 2-8 48 Belg. & HoU. 3-0 37 6.7 Denmark . 3-6 37 7-3 Sweden . 27 2-8 5-5 United Statea 3-4 3-6 7'0 Average . 31 3-0 61 Germany Kussia Austria Italy The sum of expenditure is no guide as to quantity, the American being the best fed, although his daily food costs 22 per cent, less than ours. According to the quantity and quality of food is the amount of work that each nation can do, or the number of foot-tons of energy that we can put forth. A fair day's work, whether of a mechanic, a letter- carrier, or a man writing essays, is 300 foot-tons, and the food requisite for such a worker should possess at least twelve times that force, or 3600 foot-tons of energy. As a matter of fact, the food consumed by different nations averages 5000 foot-tons per male adult, or 3000 per inhabitant, so that if there were no waste nobody should come short of food. The following table shows the foot-tons of energy in the various kinds of food : bread includes also potatoes ; 88 HISTORY OF PRICES. dairy products comprise milk, butter, cheese and eggs ; meat includes fish ; and sundries are sugar, beer, &c. : — Foot-tons of Energy per Average per Inhabitant Daily. Adult. Bread. Dairv. Meat. Sundries. Total. Male. Female U. Kingdom 1,510 460 330 960 3,260 5,440 4,350 France 1,950 340 230 860 3,380 5,630 4,510 Germany . 2,280 350 212 540 3,382 5,633 4,512 Bussia 1,810 380 160 340 2,690 4,490 3,590 Austria 1,850 380 192 500 2,922 4,863 3,892 Italy . 1,200 180 80 570 2,220 3,680 2,960 Spain 1,340 190 160 480 2,170 3,610 2,890 Belg. & HoU. 1,940 350 235 670 3,195 5,320 4,260 Scandinavia 1,330 430 260 820 2,840 4,740 3,790 United States 1,560 630 360 510 3,060 5,100 4,080 Average 1,800 410 210 580 3,000 5,000 4,000 Bread is very properly called the " staff of life," seeing that it supplies 60 per cent, of the sum total of energy in human food. Its consumption has increased prodigiously in recent years, owing to abundance and cheap prices. There has been a fall of 23 per cent, since the decade ending 1860 in the medium price for the world, that is to say, a man can now buy 100 lbs. of bread for what 77 would have cost in the years 1851-60, and as wages have risen 40 per cent, (see Chapter XX.), he can as easily buy 140 lbs. as he could then 77 — a difference as regards the welfare of the masses that has not yet sufficiently attracted the notice of economists and philosophers. The wheat-supply of the United Kingdom in the last forty-four years and consumption have been as follows : — Years. 1841-60 1861-70 1871-80 1881-84 Million Bushels Consumed. Per Inhabitant. 103 102 77 73 Price, Pence 33 73 114 144 136 175 191 217 81 78 72 63 Lbs. British. Imported. Total, per Bushel, Wheat. 273 321 325 340 Cost, Shillings. 32-8 37-2 S4-8 31-8 FOOD-SUPPLY. 89 If our people had to pay now the average price that ruled from 1840 to 1860, the present consumption of wheat would cost 41 shillings per inhabitant, or 30 per cent, over the actual price. Meat represents a greater cost than bread, although it stands for less than 10 per cent, of the total energy of food. In the United Kingdom we spend 2|- times as much for meat as for bread. The following table shows the ratios of expenditure for the chief items of food : — u. Kingdom. France. Germany. Russia. Italy. Europe. U. States. Grain 12 18 18 22 2-2 18 16 Meat 30 27 28 24 14 25 20 Liquor . 21 22 20 17 21 20 14 Sundries 37 83 34 37 43 37 50 100 100 100 100 100 100 100 The consumption of meat has always been considered a gauge of the comparative wealth of nations. In the words of Vauban, Bossuet, and Lagrange, "that country may be considered most prosperous in which the inhabitants are able to have the largest quantity of meat for their food," and in this respect France has made much advancement in our own days, as shown by the annual consumption, as follows : — Tons, OOO's omitted. Per Inhabitant, Lbs. 1840. I860. 18-0. 184'. 1860. 1880. Beef . . . 299 450 640 19 27 40 Mutton . . 82 114 210 5 7 12 Pork . 290 378 305 19 23 19 Total . 671 942 1,155 43 57 71 There -can be no doubt that similar progress has taken place all over the European Continent, and that the con- sumption of meat is one-half more than it was in 1840-50. This, of course, is partly the result of the rapid increase of urban, and relative decline of rural, population. Dwellers in go HISTORY OF PRICES. towns consume twice as much meat as those in the country, either because their work is more severe or their means are more affluent. In France, for example, 90 cities consume an aggregate quantity equal to 114 lbs. per inhabitant (the ratio for Paris being 187 lbs.), while the rest of the inhabi- tants have only 53 lbs. each. In the United Kingdom the supply and consumption of meat have been as follows : — Consumption, OOO'a omitted. Annual Slaughti OOO'a omitted. er. Tons Meat. Native. Imported. 990 44 1,106 131 1,160 288 1,195 447 Lbs. Per Inhab. 81 91 96 105 Years. 1851-60 1861-70 1871-80 1881-83 Cattle. . 1,572 . 1,790 . 1,948 . 1,996 Sheep. 12,430 13,672 12,968 12,440 Pigs. 1,880 2,043 2,062 2,080 In 1850 the consumption did not exceed 76 lbs., repre- senting a value of 37 shillings ; since then our population has risen 33 per cent., and the consumption per head 40 per cent. ; so that, instead of 18,000 tons weekly, we now require nearly 32,000 tons, and as our flocks and herds can only supply 23,000, we have to import the remainder; in 1882 our people spent 80 shillings per head for meat, or more than twice as much as in 1850. The Continent of Europe has apparently reached its maxi- mum of meat production, and will henceforward be com- pelled either to import largely from other parts of the world or send away 3 million persons as emigrants yearly, unless the nations are disposed to reduce their consumption, which is not likely. The production of the Continent in 1882 was 7,190,000 tons, the consumption 7,270,000 tons, and this deficit of 80,000 tons was covered by imported meat from the United States. The United States have a large surplus of meat, as shown by the quantities exported, viz. : — FOOD-SUPPLY. Tons, OOO'e omitted. 1861, 1871. 1881. 1884. Bacon 22 32 336 173 Beef. 6 20 68 87 Cattle . 3 12 66 58 Pork 8 18 50 30 91 89 82 510 348 At present the United States surplus may be estimated at 400,000 tons, but as the population of that country is in- creasing by 1^ million souls yearly, and likely to reach 88 millions by the close of the nineteenth century, there will be little if any available surplus ten years hence. Australia and the Eiver Plate republics must soon become the grazing-farms from which Europe (and especially Great Britain) will have to draw the meat-supply, which is now mainly derived from the United States. The actual deficit between England and the Continent is almost 12,000 tons weekly, which before the close of the century will probably reach 20,000 tons, or one million tons per annum. That is to say, Europe will require one-ninth of her supply, or equal to six weeks' consumption, from the southern hemisphere. The available surplus that may be obtained from there annually is shown thus : — Tons, OOO's omitted. Eiver Plate. Australia. Total. Beef . 650 310 960 Mutton 520 450 970 Pork . 11 24 85 Total . 1,181 784 1,965 It is to be regretted that the people of the Eiver Plate republics, instead of devoting their attention to so lucra- tive a business as supplying Europe with meat (more especially as the supply from the United States is declining), have gone into sugar-planting, domestic manufactures, flax- cultivation, and other industries of little profit to mankind at large, an insane system of " protective " duties at Buenos 92 HISTORY OF PRICES. Ayres and Montevideo enabling numbers of the inhabitants to prosecute useless industries, at a profit to those imme- diately engaged and an onerous result to the general public. Sooner or later we must get 10,000 tons of meat weekly from the Eiver Plate. The meat production of Europe and North America in 1882 was as follows : — Tons, OOO's omitted. Beef. Mutton. Pork. Fowl, &o. Total. United Kingdom . 666 346 145 38 1,195 Continent 3,964 1,425 1,561 260 7,190 United States ],750 340 1,420 60 3,570 Canada 135 36 45 5 221 6,505 2,137 3,171 363 12,176 The average annual consumption of meat is 60 lbs. per inhabitant on the Continent of Europe, 105 in United King- dom, and 120 in United States, that of grain being much higher on the Continent than in this country or with the Americans. There is no better proof of the affluence of the people of the United Kingdom than the fact that they con- sume, per head, twice as much dairy products and four times as much sugar as the average among other nations. The following table shows the annual consumption per inhabitant : — Lbs. per Inhabitant. perfSftant. Grain. Meat. Sugar. Salt. Butter, Ac. Liquor. Equiva- lent in Alcohol. Great Britain . . 340 105 72 40 26 30 1-92 France . . 405 74 21 30 7 26 2-65 Germany . . 415 69 21 25 12 24 1-60 Russia . 440 48 7 19 6 3 1-05 Austria . . 390 64 14 14 8 15 1-45 Italy . 320 23 7 18 3 18 1-76 Spain . 360 49 5 17 2 14 1-48 Belgium and Holland 400 69 16 25 12 23 2-06 Scandinavia . . 370 67 24 25 16 12 2-40 United States . 392 120 23 39 18 11 1-31 Average . . 405 70 20 32 11 16 1-50 FOOD-SUPPLY. 93 Seeing the fall in wheat, it might be supposed that the cost of food to the ■working-classes and the world in general would be less now than thirty years ago, but such is not the case. The price-level has by no means moved in harmony with that of the rest of the world's products, as is apparent in the following table, which shows what the present quan- tities of food among nations would have cost at previous prices. Fond Value, General At Prices of Millions Sterling. Katio. Price-level 1841-50 2,683 100 100 1851-60 3,046 113 105 1861-70 3,193 119 111 1871-80 3,208 120 106 1881-84 3,144 117 95 We find that the cost of food is now 17 per cent, higher than in 1841-50, although the total merchandise of the world shows a decline of 5 per cent. Among the items (after meat) which have most contributed to the rise of the price-level of food are dairy products, and these enter so largely into the economy of human diet that they represent double the energy of meat, or about one- seventh of the total. The supply is unequal to the demand, and hence prices in Europe have risen 44 per cent, since the decade ending 1850. Not only Great Britain but the United States suffer such a deficit of eggs that they have to import large quantities. Since 1881 the average number imported into the United Kingdom is 20 millions weekly, or very close on one-third of the total consumption, and the United States receive 5 millions weekly from Denmark or Canada. Notwithstanding the invention of oleomargarine, Europe is unable to produce enough of butter and cheese, and imports 124,000 tons yearly, with ever-increasing requirements, since population is multiplying faster than cattle. There is, there- fore, every likelihood of dairy products continuing to rise in value. 94 HISTORY OF PRICES. The consumption of wine and, beer is on a vast scale, together making up 5500 milKon gallons, or 15 per inhabi- tant, the proportion being as 3 gallons of beer to 2 of wine. Excluding children, the consumption of wine and beer in Europe and United States is equal to 32 gallons per (adult) inhabitant, male and female. The production of wine has risen only 12 per cent, since 1850, having received such a check by the Phylloxera that l^ million acres of vines have been pulled up in France since 1876. The price of common wines on the Continent has risen 48 per cent, since the decade ending 1850. The sum spent on beer, wine, spirits, cider, &c., in Europe is 10 per cent, more than on grain. In Great Britain it is almost double, although when all kinds of liquor are reduced to alcohol the ratio per inhabi- tant in this country is by no means high. This is the more remarkable seeing that drunkenness is such a fearful curse in the United Kingdom. Sugar is now produced in such enormous quantities that the price is little more than half what it was thirty years ago, and some of the inferior kinds are said to be used as manure. The crop has quadrupled since 1850, that is, increased 10 times faster than population, the returns show- ing as follows : — Tons, OOO's omitted. Tear. cine. Beetroot. Totij: 1851 . 978 162 1,140 1861 . 1,120 490 1,610 1871 . 1,700 1,400 3,100 1885 . 2,100 2,500 4,600 Tea, coffee, and tobacco are small items, together worth 95 millions sterling, or 3 per cent, of the total food expendi- ture. The production has been per annum as foUows : Tons. Ratio. Coffee Tea . Tobacco 1861-55. 1880-84." 1861-55. 1880-84. 320,000 590,000 100 184 48,000 180,000 100 375 550,000 770,000 100 140 FOOD-SUPPLY. 95 The consumption of tobacco for smoking averages 44 oz. per inhabitant, against 40 oz. thirty years ago, in Europe ; but there is also a lai-ge quantity now used for sheep-wash and other chemical purposes. The principal facts in this chapter are these : — First. That the money paid for food represents 45 per cent, of the earnings of aU nations. Secondly. That the surplus of earnings over cost of food is largest in Great Britain, United States, and France, and consequently the power of consumption of commodities. Thirdly. That the average cost of food is 9 pence a day in Great Britain, 7 pence in United States, and 5 pence on the Continent, per inhabitant. Fourthly. That the working-man in Europe can now buy 140 lbs. bread with the same amount of labour as 77 lbs. in the decade ending 1860. Fifthly. That Great Britain drew one-fourth of her wheat- supply from abroad in the years 1841-60, and at present draws two-thirds. Sixthly. That the consumption of meat per inhabitant has risen 40 per cent, in Great Britain and 42 per cent, on the Continent since 1850. Seventhly. That Europe imports 600,000 tons of meat yearly from other parts of the globe, and that the United States will soon have no surplus for exportation, which will compel us to depend on Australia and the Eiver Plate. Eighthly. That dairy products have risen 44 per cent, since 1850 aU over Europe, and that Great Britain derives 30 per cent, of her eggs and 50 per cent, of her butter and cheese from other nations. ( 96 ) XV. POPULATION. Prices are often seriously affected or permanently altered by the increase or decrease of inhabitants. The value of land, the rent of houses, and many market-prices depend more or less on the density of population ; for example, if Great Britain had now no more inhabitants than in 1850, the price of meat, butter, and eggs would be less. There is a normal law as regards population, whereby it increases about 1 per cent, per annum, unless checked by unhealthy agencies. The following table needs no explanation : — Millions. Inhabitants per Square Mile. 1850. 1870. 1885. 1850. 1870. 18S6. England 17-9 22-7 27-5 310 390 465 Scotland 2-8 3-3 3-9 94 110 130 Ireland . 6-6 5-5 4-9 205 170 155 United Kingdom 27-3 31-5 36-3 230 265 307 France . 35-7 38-2 37-7 170 182 180 Germany 33-5 40-8 47-5 160 195 227 Russia . 59-8 73-7 88-8 27 33 40 Austria 30-2 35-8 39-2 125 148 162 Italy . 20'2 26-4 29-3 176 230 255 Spain . 14-0 16-7 16-6 70 84 84 Portugal 3-4 3-8 4-4 100 110 130 Belgium 4-3 5-1 5-7 380 450 505 Holland 3-2 3-6 4-2 250 280 328 Denmark 1-4 1-8 2-1 100 120 133 Sweden 3-5 4-2 4-7 21 25 27 Norway 1-4 1-8 2-0 12 14 15 Switzerland 2-4 2-6 2-9 148 160 176 Greece . 1-1 1'6 1-9 58 75 84 Servia 1-1 1-6 1-9 Koumauia 4-0 4-8 5-4 70 80 Europe . 246-5 293-9 330-6 90 United States 23 '2 38-6 57-0 11 12 16 Canada 2-5 3-8 4-6 1 South America 24-1 25-2 27-0 3 3 3 Australia 0-9 1-8 3-3 1 Total 297-2 363-3 422-5 POPULATION. 97 As a rule the richest nations are those which are most populous, for we find earnings low in such sparsely inhabited countries as Spain or Eussia, and high in Great Britain and Belgium. Thus where hands are most abundant labour is not cheap — quite the reverse. Moreover, wages in England are higher to-day than when, thirty years ago, we had only 310 persons to the square mile, whereas now we have 465 ; that is to say, three persons stand where two stood before. Our population is twelve times as dense as that of Eussia, and yet our working man earns two and a half times the Eussian's wage. If we take thirty-five years for a generation, we find that the mean increase of population in that interval is 42 per cent., as appears from the sum of the foregoing table. In Europe, however, collectively the increase has been only 35 per cent, (which is very much less than the normal rate of 1 per cent, per annum), owing to the tide of emigration. The percentages of increase in the various countries have been as follows : — Per Cent. Per Cent. Per Cent. XT. Kingdom 33 Portugal . 30 Roumania . 35 France . 6 Belgium . 33 Europe . . 35 Germany 42 Holland . 31 United States 145 Kussia . 49 Denmark . 50 Canada. . 84 Austria 30 Sweden . 34 South America 12 Italy . 46 Norway . 44 Australia . 266 Spain . 18 Switzerland . 21 Average . 42 The most extraordinary movement of population in modern times has been the outflow of Europeans to the newer parts of the world, no fewer than 15 millions having emigrated since 1850, of whom 70 per cent, went to the United States. They were, for the most part, in the bloom of life, as may be concluded from the official reports in the United States, showing a natural increase of population (that is, excess of births over deaths) double the ordinary rate of Europe, viz. : — G HISTORY OF PRICES. Ratio of Increase of Population in United States. Period. Natural. Immigrants. Total 1851-60 . 24-2 11-4 35-6 1861-70 . 15-4 7-2 22-6 1871-80 . 22-8 7-3 30-1 One of the distinctive features of the last thirty years has been the relative decline of rural, and preponderance of urban, population. In England the twelve great towns, headed by London, represented 26 per cent, of the popula- tion in 1881, against 21 per cent, in 1841. In France nine cities held less than 5 per cent. (4*8) of the kingdom in 1835, and now hold lOJ per cent. In United States the urban population by the census of 1880 was 18J per cent., against 9 per cent, in 1840. Taking the term "urban population" to apply to all towns of 20,000 souls and upwards, we find the ratio in the different countries as follows : — Per Cent Per Cent. Per Cent England . . 44 Austria 7 Sweden . . 8 Scotland . . 35 Italy 16 Norway . 11 Ireland . 19 Spain 12 Switzerland 8 United Klngd )m 39 Portugal 10 Europe . 15 France . 18 Belgium 27 United States 18 Germany . . 16 Holland 28 Canada . 9 Russia . 6 Denmark 13 Australia 25 Increase of urban population is closely connected with manufactures and attended by a larger consumption of food and aU commodities, and a better system of transport and distribution — circumstances that have direct influence on prices. In considering the industrial power of nations it is essen- tial to ascertain the proportion of bread-winners, in other words, to fix accurately the number of mouths depending for food on each able-bodied male, viz. : — POPULATION. Mouths to be fed by 100 Male Adults. 99 England . . 438 Scotland . . 463 Ireland . . 476 United Kingdom 448 France . 387 Germany 417 Austria . 413 Italy . 424 United States . 440 Spain . . . 388 Holland & Belgium 404 Sweden , . 420 Thus the burthen on each male adult in Ireland is 10 per cent, heavier than in England, 22 per cent, more than in France. The death-rate must also be noted, for it is certain that an unhealthy nation has never yet been a prosperous one. The following table shows the annual death-rate per 1000 inhabitants for various countries, and the loss of work by days of sickness, according to Farr's formula, to each male or female adult yearly : — Days of Days of Death-Kate. Sickness. Death-Rate. Sickness Great Britain . 22 11 Italy . . 30 15 Ireland . . 18 9 Scandinavia . 20 10 France . . 24 12 Europe . . 30 15 Germany - . 26 13 United States . 22 11 Austria . . 34 17 Australia . .16 8 Sickness is a fearful tax in some countries, and is much increased, as in the case of Austria, by the unwise duties on salt, a commodity of foremost importance for health. Salt duties on the Continent vary from 4 pence to 28 pence per inhabitant, producing altogether 12 millions sterling per annum ; if they cause 10 per cent, of the sickness, the loss in workmen's wages wiU be 18 millions sterling yearly. The principal points that call for notice in this chapter are these : — First. That the population of the civilised world was barely 300 millions in. 1850, and is now 422 millions, hav- ing increased 42 per cent, in one generation. Secondly. That the price of land depends mainly on popu- lation J Great Britain has twelve times the population of 100 HISTORY OF PRICES. Eussia to the square mile, and land in this country is fifteen times as valuable as in the valley of the Don. Thirdly. That rural population is declining in Europe, and that 11 millions of people have emigrated to the United States since 1850, mostly from rural districts, v?here hand labour has been displaced by machinery. Fourthly. That in densely populated countries like Great Britain or Belgium wages are higher than in thinly peopled, like Spain or Eussia. Fifthly. That the number of able-bodied men is relatively highest in France and lowest in Ireland, and that the number of mouths to be fed by the labour of each male adult is 10 per cent, greater in Ireland than in England. Sixthly. That the death-rate of Australia is only half that of Europe, and that the loss of labour from sickness is in some parts of Europe a heavy drawback. Seventhly. That salt duties seriously affect public health, and seem to cause a greater loss in wages than the amount produced by the tax. Eighthly. That the better health of our people enables us to work at greater advantage than most other nations. ( loi ) XVI. EMIGRATION AND COLONIES. Emigration from Europe received great impulse from the gold discoveries in California and Australia, 1849-51, and was destined subsequently to have unforeseen effects on the prices of two great staples. Gold-diggers in Australia be- came sheep-farmers, and German settlers in the Western States of America devoted themselves to grain-growing ; in this manner the production of wool and wheat rose with a rapidity of which history affords no parallel. In thirty-four years ending 1884 the emigration was as follows : — Destination, OOO's omitted. Uuited British South AnnUi States. Colonies. America. Total. Averag British 1 . 4,655 2,120 82 6,857 202 Germans . 4,020 170 72 4,262 125 Italians . 222 14 742 a78 29 Scandinavians 556 15 16 587 17 Spaniards 101 5 402 508 15 French . 330 25 81 436 13 Swiss 140 12 64 216 6 Various . 816 185 244 1,245 37 Total . 10,840 2,546 1,703 15,089 444 Here we see a steady outflow of half a million souls per annum, three-fourths being of working age. The ratio among British and Germans was 60 males to 40 females, and among Spaniards and Italian 70 to 30. As regards con- ' Including 368,000 from Canada. 102 HISTORY OF PRICES. dition, only 10 per cent, of those wlio sailed from the Con- tinent were cabin passengers, whereas in the United King- dom there were 24 per cent. ; and as cabin passengers are generally persons of more instruction, capital, and enterprise, we may consider the British (including Irish) emigrants were the best. British emigration is classified thus : — 000*3 omitted. Destination, OOO's omitted. Period. 1851-60 1861-70 1871-84 English. Scotch. Irish. . 640 183 1,231 . 650 158 867 1,567 289 904 Total. 2,054 1,675 2,760 U. states. Canada. 1,257 222 1,185 1,835 136 326 Aus- tralia. 494 272 490 Cape, &c. 81 82 109 34 years . 2,857 630 3,002 6,489 4,277 684 1,256 272 The bulk of the Irish went to the United States, from which country they remitted between 1851 and 1884 a sum exceeding 28 millions sterling to their distressed rela- tives at home. According to the United States census of 1880, there were still surviving more than 60 per cent, of the Europeans who had landed there since 1820, viz. : — ODD s omitted. Eatio of Survivors Arrived. Living in 1880. Germans 3,212 1,967 61 -3 Irish 3,538 1,855 52-5 British . 1,301 917 70-5 Scandinavians 427 376 88-1 French . 345 107 31-0 "Various . 1,458 1,104 75-8 Total . 10,281 6,326 61-3 The influx of settlers into the United States since 1850 has been : — EMIGRATION AND COLONIES. 103 OOO's omitted Percentage of British. Period. British. Others. Total. 1851-60 1,257 1,341 2,598 48 1861-70 1,185 1,308 2,493 48 1871-84 . 1,835 3,914 5,749 32 Thirty-four years 4,277 6,563 10,840 39 Emigration to America or Australia is likely to increase very much, in tlie next ten years, not so much from over pressure of population as by reason of military service, and also because of the growing deficit of meat and dairy pro- ducts. Every new adult settler in the United States, male or female, is valued as an increase of £160 to public wealth, which is exactly borne 6ut in fact : the wealth of the United States between 1870 and 1880 rose 2420 millions sterling, or £53 perTiead, and as a colonist's life may be set down at thirty years, it follows that he adds £160 to the republic. Dr. Farr valued an English farm labourer as equal to an active capital of £246 ; Engel considers an adult male or female represents an amount of energy equal to £200 ; 'and in Australia every settler, big or little, is found to increase the revenue in the same degree as if £260 had been added to the public wealth. "We have seen that the British Colonies absorbed 2|- mil- lion settlers from 1850 to 1884, and of these no less than 84 per cent, were British. Excluding India, we find the growth of trade and population has been as follows : — Population, OOO's omitted. Commerce, Millions £. 1850. I8Y0. 1884. 1860. 1870. 1883. Canada 2,470 3,810 4,560 6-7 34-8 51-4 Australia . 480 1,820 3,220 10-5 57'3 115-3 South Africa 290 870 1,530 1-7 5-9 14-1 West Indies 860 1,230 1,420 8-4 14-5 19-7 Ceylon 1,640 2,260 2,650 3-8 8-4 7-9 Mauritius . 170 330 368 4-2 4-2 6 '6 Straits Settlement 260 290 315 6-5 18-7 37-6 Various 370 680 1,230 3-6 10-4 49'2 Total . 6,540 11,290 15,293 45-4 154-2 301-8 104 HISTORY OF PRICES. The ratio of commerce to population is X20 per head, against £7 in 1850. The British Colonies, therefore, stand in a foremost rank for commercial activity, the ratio in Europe heing only £7, in United States £5, per head. They are, moreover, the hest customers for British manufactures, as shown thus : — Britisli Manufactures Consumed per Inhabitant. Euroiie. America. Britisli Colonies. France . Germany Russia . Austria Italy . Spain 16 U 2 1 6 6 United States Mexico . Brazil . River Plate Peru . Chili . 13 4 14 42 5 14 Australia . 1 Canada West Indies . South Africa Mauritius Singapore . 1 Average . 6 Average . 14 Average . 42 56 67 32 178 It is by no means surprising to find that the revenues and debt of the Colonies have grown with extraordinary rapidity, viz. : — Revenue, OOO's omitted. Debt, OOO's omitted. ' 1S50. 1870. 1884.^ I860. 1870. 1884. £, £ £ £ £ £ Australia 930 9,585 22,610 10,680 36,170 112,720 Canada . 1,080 3,580 7,940 14,230 16,990 38,210 South Africa 515 958 6,065 420 1,375 23,365 West Indies . 730 1,444 2,072 1,490 1,595 2,330 Various 1,320 2,510 3,630 215 2,050 3,405 Total . 4,575 18,077 42,317 27,035 58,180 180,030 It is a striking proof of the elasticity and resources of the Colonies that Australia, for example, has a revenue of £7 per head, or three times as much as in Great Britain. The aggregate debt of 180 millions averages £15 per head, the ratio in Australia being £34 ; but the burthen is not felt as in Europe, partly because much of the revenue arises from public lands, and partly because of the wealth of the inhabi- tants. EMIGRATION AND COLONIES. 105 Compare the public revenue, debt, and commerce of the Colonies with European states : — Per Inhabitant, Sterling. Revenue. Debt. Commerce. Ratio of Debt to Revenue Australia 7 34 35 486 to 100 Canada 2 9 11 450 „ 100 Cape Colony 5 19 12 380 „ 100 France . 3 27 9 900 „ 100 Italy . 2 16 3 800 „ 100 Great Britain 2i 20 19 800 „ 100 Kussia . 1 6 14 600 „ 100 Spain . 2 23 4 1,150 „ 100 Portugal n 21 3 1,400 „ 100 It appears, therefore, that the relative burthen of debt in our Colonies (averaging four and a half times revenue) is little more than half what it is in the principal countries of Europe. The principal facts to be remembered are these : — First. That 15 millions of people, or about 5 per cent, of the population of Europe, have emigrated since 1850 — - two-thirds to the United States — and that three-fourths of them were in the bloom of life, and about 90 per cent, of the peasant class. Secondly. That but for the industry of these emigrants in North America and the southern hemisphere the prices of wheat and wool would be 30 or 40 per cent, higher than at present. Thirdly. That new settlers add to the wealth, revenue, and commerce of a country, representing productive capital equal to £200 per head. Fourthly. That the trade of the British Colonies has grown sevenfold since 1850, or three times faster than population. Fifthly. That foreign countries consume British manu- factures in this ratio ; in Europe 6 shillings, in America 14 io6 HISTORY OF PRICES. shillings, and in the British. Colonies 98 shillings per in- habitant. Sixthly. That the public debt in our Colonies averages 4:^ years of revenue, against 8 years in Great Britain and 9 years in France. Seventhly. That emigration from Europe averages 500,000 persons yearly, and will probably reach a million by the close of the nineteenth century. ( 107 ) XVII. WEALTH AND EARNINGS. Industries and prices depend in some manner on the wealtli and earnings of a country. Eich. nations will always be the largest consumers, and hence we see that Great Britain has the most extensive import trade in the world, while Spain and Eussia occupy a low position in this respect. If we judge nations either by the accumulated wealth to population or by the average earnings per inhabi- tant, we find the order of priority as follows : — Wealth. 1. United Kingdom. 2. Holland. 3. France. i. Denmark. 5. Australia, 6. United States. 7. Sweden. 8. Canada. 9. Belgium. 10. Germany. 11. Switzerland. 12. Austria. 13. Spain. 14. Italy. 15. Russia. 1. Australia. 2. United Kingdom. 3. United States. 4. Canada. 5. Holland. Earnings. 6. France. 7. Denmark. 8. Belgium. 9. Germany. 10. Sweden. 11. Austria. 12. Switzerland. 13. Spain. 14. Italy. 15. Kussia. In 1880 the wealth of twenty principal nations summed up 50,750 millions sterling, under eight items, viz. : — io8 HISTORY OF PRICES. Lands Houses Public works Furniture . Cattle Merchandise Bullion Sundries . Millions £. Percentage 16,939 33-4 12,206 24-1 7,264 14-3 6,098 12-0 2,101 4-1 1,292 2-5 957 1-9 3,893 7-7 Total 50,750 100-0 Land is by far the foremost element of public wealth, and yet nothing is more uncertain in price ; poor land in the settled parts of Canada is worth £S an acre, while the rich pampas of the Argentine EeJ)ublic may be bought at 15 shillings. Farms of superior fertility in Russia are sold at £5 an acre, which would sell at £40 in England, and at £60 in France, Belgium, or Denmark. It is not quality that determines the value of land, but accidental circum- stances, such as facilities for sending products to market, security for life and property, and often the character of the laws and people. Land in New Zealand carrying one sheep to the acre averages £5, but the estancias of Buenos Ayres carrying four sheep per acre may be had, some distance inland, at 10 shillings an acre. The following table shows the price of land in different countries : — £ Sterling per Acre. U. Kingdom. France . Germany Russia . 33 36 25 3 Austria . Italy . Spain . Portugal 15 22 18 25 Belgium Holland Denmark Sweden . 48 42 33 12 Small ownership, as in France, gives an enhanced value, the assessments in that country for 1875 ranging from £48 to £66 per acre for good land ; the number of holders averag- ing ten acres being no fewer than 2^ millions, or three- fourths of the total. WEALTH AND EARNINGS. 109 Houses constitute one-fourth, of the wealth of mankind, and vary from ^11 per inhabitant in Eussia to £65 in Great Britain. The money expended yearly in building ranges from 8 to 40 shillings per inhabitant, as regards coun- tries, but is much higher in cities, the average in recent years being as follows : — Shillings per Inhabitant. New York . 88 London . 77 Toronto . 69 Buenos Ayres 61 Liverpool . 59 Paris . . 55 Glasgow . 52 Monte Video 39 Turin . . 22 In Great Britain the value of house property has grown much faster than population, the average per house having risen 75 per cent, since 1851, viz. : — Houses, Rental, Rental, £ Rental, £ Tear. OOO's omitted. Millions £,. per House. Per Inhabitant 1851 3,648 44 '3 12-1 2-2 1861 4,139 58-2 14-0 25 1871 4,672 74-5 16-0 2-9 1881 5,475 114-2 21-0 3 '8 The house property of the United Kingdom shows the fol- lowing averages to population: — £12 in Ireland, £60 in Scotland, £66 in the provinces of England, and £158 in London, per inhabitant. Public works in 1880 included 4005 millions sterling for railways, the rest being made up of roads, bridges, canals, drainage, harbours, &c. The value of public works, not railways, is less than £4 per inhabitant in Spain, and over £15 in France or Great Britain. The following table shows the wealth of the principal countries : — HISTORY OF PRICES. Millions SterUng. Ratio Agri- Public ^ per 'Dhabi tant cultural. Urban. Works. Sundries . Total. £, United Kingdom 2,210 3,675 1,317 1,518 8,720 249 France . 3,060 3,082 1,084 834 8,060 218 Germany 2,526 2,485 909 403 6,323 140 Kussia . 2,095 1,670 533 145 4,343 53 Austria . 1,711 1,303 443 156 3,613 95 Italy 963 1,030 239 119 2,351 82 Spain 779 550 139 125 1,693 93 Portugal 195 113 27 36 371 88 Belgium . 331 237 102 136 806 145 Holland . 330 158 352 147 987 240 Denmark 269 54 21 22 366 198 Sweden . 384 209 58 44 695 152 Norway . 141 96 19 26 282 147 Greece . 125 63 7 16 211 125 Switzerland . 140 106 63 15 324 118 Europe . 15,259 14,731 5,313 3,742 39,045 123 United States 2,961 3,887 1,717 930 9,495 190 Canada . 259 234 102 55 650 148 Mexico . 173 364 24 77 638 90 Argentine Republic 208 88 22 14 332 130 Australia 318 154 86 32 590 197 The World . 19,178 19,458 7,264 4,850 60,750 133 Three countries, namely, Great Britain, United States, and France, represent one-half the total wealth of nations, and the accumulations of these countries since 1850 will be seen in the following statement : — Wealth, Millions Sterling. £ per Inhabitant. United Kingdom France United States . Total 1850. 5,160 3,170 1,686 1870. 6,880 5,240 7,074 1880. 8,410 8,060 9,495 1S50. 1870. 190 220 89 133 75 185 9,801 19,194 25,965 114 176 1880. 242 218 190 208 In the whole term of thirty years France accumulated 163 millions, the United States 260 millions, and the United Kingdom 110 millions sterling per annum, that is, an aggre- gate of 533 millions yearly, being equal to an average of WEALTH AND EARNINGS. in 3 pence per inhabitant daily in the United Kingdom, 3^ pence in France, and ahnost 3 pence (2'8) in the United States for the medium population in the said period. Although the United Kingdom is the richest nation in the world, with reference to population, there is excessive dis- parity between the British (properly so-called) and their Irish fellow-subjects, as appears from the legacy, income-tax, and other returns. The following table shows the wealth of the three kingdoms in 1801 and in 1882 : — Millions Sterling. Lands Houses Sundries England. Scotland. 1801. 1882. 718 1,403 240 2,007 566 3,768 1801. 1882. 102 207 30 213 78 570 Ireland. Total . 1,524 7,178 210 990 296 552 The percentages of the three kingdoms in 1801 were, England 75, Ireland 15, and Scotland 10 ; but at present Ireland hardly exceeds 6 per cent., as appears from the following statement : — Distribution of Wealth, Percentage. Legacy Tables Income-Tax Dictionary of General of 1877. of 1880. Statistics. Average England . 82-3 84-2 82-3 82-9 Scotland . 12-2 9-6 11-4 11-1 Ireland . . 5-5 6 2 6-3 6-0 Total . 100-0 100-0 100-0 lOQ-O The ratio of wealth in Ireland is only £110 per inhabitant, against £260 in Scotland and £276 in England; as a con- sequence the incidence of taxation in Ireland is twice as heavy as in Great Britain. In wealth to population Ireland is not so poor as Italy or Spain, but is considerably below Sweden, Germany, or Switzerland. HISTORY OF PRICES. Tlie earnings of nations can only be ascertained from the value of food and other merchandise which they consume and the increase of accumulated wealth in a given number of years. Hence the income of a whole people cannot be gauged with the same precision as the amount of capital or wealth which they possess, but the following table may be relied upon for 1880 as being within 5 per cent, of the reality : — Popular Earnings, Millions Sterling. - Agricultural. Various. Total. £ per Inhabitant per Annum. United Kingdom France 263 435 984 530 1,247 965 35-2 25-7 Germany Kussia 482 406 366 850 848 18-7 10-1 Austria 307 295 602 16-3 Italy 174 171 345 11-5 Spain . 133 85 218 13-0 Portugal Belgium 30 44 31 76 61 120 14-0 22-1 Holland 4o 59 104 26 Denmark 37 10 47 23-2 Sweden 41 39 80 18-0 Norway Switzerland 14 18 10 26 24 44 13-0 16-0 Greece 9 14 23 11-8 Europe United States . 2,476 544 3,102 876 5,578 1,420 18-0 27 '2 Canada 52 66 118 26-9 Australia 76 57 133 43-4 Argentine Republic 34 27 61 23 '3 Total 3,182 4,128 7,310 19-5 It appears that 44 per cent, of the earnings of mankind are agricultural ; but in the United Kingdom the ratio does not exceed 21, and even in the United States it is but 38 per cent. On the other hand, in Eussia it is 57, in Spain 60, per cent., both of which countries are very poor. It is only by the use of improved machinery that agriculture can now be carried on with profit, and in this respect Eussia and Spain are still very backward. WEALTH AND EARNINGS. 113 The following table shows the cost of living in the prin- cipal countries and the daily expenditure per inhabitant : — Millions Sterling Pence Daily per Inhabitant. Cloth- Suu- ■^ Cloth- Sun- ■ Food. ing. drieg. Total. Food. ing. dries. Total. United Kingdom 473 138 482 1,093 90 26 9-2 20-8 France 387 112 321 820 70 2-2 6-2 15-4 Germany . 440 110 244 794 7-0 1-8 4 12-8 Russia 511 122 157 790 4-1 1-1 1-4 6-6 Austria . 320 90 152 562 5-8 1-6 2-7 10-1 Italy 186 50 76 312 4.4 1-2 1-8 7-4 Spain & Portugal 152 36 71 259 4-8 1-2 2-4 8-4 Belgium & HoUand 100 30 74 204 6-7 2-1 5-0 13 8 Scandinavia 74 21 709 44 139 6-0 6-0 1-6 1-6 3-5 3-6 11-1 Europe . 2,643 1,621 4,973 11-2 United States . 534 240 436 1,210 7-0 3-1 5-5 15-6 Total 3,177 949 2,0579 6,183 61 1-9 4-1 121 The average cost of living for all nations is one shilling daily per inhabitant, i.e., 20 pence for a man, 16 for a woman, and 8 for a child. The distribution of the year of 300 working-days in various countries is as follows : — Days devoted to Pay for House Food. Clothing. Eeut. Taxes. Sundries. Total. Great Britain 114 34 29 32 91 300 France 120 36 30 45 69 300 Germany 155 40 27 38 40 300 Italy . 162 44 24 60 10 300 Belgium 133 40 20 33 74 300 Russia . 180 49 20 37 14 300 Austria 159 43 22 34 42 300 Spain . 164 41 24 56 15 300 Scandinavia 147 40 23 30 60 300 Europe 140 40 27 40 53 300 TTnited Stab 33 113 49 30 33 75 300 Sundries include savings, which stand for 36 days in Great Britain, 50 in France, and 43 in United States. The principal facts to be remembered are : — 114 HISTORY OF PRICES. First. That the aggregate wealth of twenty principal nations amounts to 51,000 millions sterling, and their annual earn- ings to 7,300 millions. Secondly. That lands, cattle, and farming implements make up 40 per cent, of the total wealth, and that agricul- tural earnings average 16^ per cent, on capital. Thirdly. That the value of land is for the most part accidental, depending less on fertility than on the number of inhabitants and the liberty and security which they enjoy. Fourthly. That houses represent one-fourth of the wealth of mankind, and that house rent takes the labour of 27 days of each year in Europe and 30 in United States. Fifthly. That the average of wealth to population is highest in the United Kingdom, and of earnings highest in Australia. Sixthly. That accumulations or savings average 3 pence daily per inhabitant in the United Kingdom, 3^ pence in France, and 2| pence in the United States. Seventhly. That the total expenditure of nations averages 6 pence daily per inhabitant for food, 2 pence for clothing, and 4 pence for rent, taxes, and sundries ; in all, a shilling (12-1) per day. Eighthly. That after paying for food, clothing, rent, and taxes, an Englishman has 91 days of the year for leisure or luxuries, an American 75, a Frenchman 69, a German 40, a Russian 14, an Italian 10. Ninthly. That the relative wealth, or surplus for leisure, determines not only house rent but the prices of many articles of luxury in the various countries. ( IIS ) XVIII. SUMMARY OF INDUSTRIES. The principal countries of Europe, combined -with the United States, make up a total of 88 millions able-bodied men, of ■whom a little more than half are engaged in agriculture. The following table shows them under seven classes of occu- pation : — Adult Males, OOO's omitted. Agri- Sea- Rail- Manufac Army and ■~^ culture. men. ways. turera. Miners 1. Navy. Various. Total. XJ. Kingdom 1,120 360 262 1,562 538 249 3,625 7,716 France . 5,045 129 234 1,660 206 580 2,038 9,892 Germany 4,746 67 301 2,555 231 466 2,768 11,134 Russia . 17,038 97 160 610 207 870 2,030 21,012 Austria . 5,220 16 125 816 92 301 2,915 9,485 Italy . 5,044 126 61 319 32 690 934 7,206 Spain & Port. 1,823 76 62 385 85 186 2,780 5,397 Belg. & HoU. 1,110 34 56 440 110 120 548 2,418 Scandinavia . 1,264 234 55 130 31 106 264 2,084 Europe . 42,410 1,139 1,316 8,477 1,532 3,568 17,902 76,344 XJ. States 3,033 174 463 2,739 560 36 4,601 11,606 Total . 45,443 1,313 1,779 11,216 2,092 3,604 22,503 87,950 In the above table " seamen " also include iishermen. The numbers engaged in manufactures can only be given approxi- mately, as some countries include bakers and small tradesmen under this heading, while others count merely the operatives in factories or establishments employing over twenty hands. Prices of grain, meat, &c., are invariably lower in coun- tries where the bulk of the people are engaged in agriculture than in those which are given chiefly to manufactures. On n6 HISTORY OF PRICES. the other hand, all manufactured products are cheaper in countries where agriculture is of little importance. The following table shows the ratio of industry : — Occupation. U. Kingdom. France. Germany. Russia. Europe. U. States. Agriculture 14-5 51-0 42-7 80-8 55-5 26-1 Seamen . 47 1-3 0-6 0-5 1-5 1-5 Railways 3-4 2-4 2-7 0-8 1-8 4-0 Manufactures . 20-2 16-8 23-0 2-9 11-1 23-6 Mines 7 2-1 2-1 1-0 2-0 4 '8 Army and Navy 3-2 5-9 4-2 4-1 4-7 0-3 Various . 47-0 20-5 24-7 9-9 23-4 39-7 Total . 100-0 1000 lOQ-O lOO'O lOO'O 1000 ( 117 ) XIX. GENERAL SURVEY OF PRICES. Before considering the rise or fall of price in the several items, it is expedient to sum up the value of the chief products of human industry according to the average of the years 1881-84:— Millions Sterling. Percentage Grain . 1,326 25-3 Meat 830 15-8 Iron and steel wares . 384 7-3 Dairy products . 340 6-5 Cotton goods 302 5-7 Timber 273 5-2 Woollen goods . 223 4-2 Beer . 214 41 Coal . 189 3-6 Leather 184 3-5 Potatoes . 181 3-3 Wine 130 2-5 Spirits 128 2-5 Raw cotton 87 17 Wool 83 1-6 Books and journals . 79 1-5 SUks. 73 1-4 Linens, jute, &c. 70 1-3 Sugar 61 1-2 Coffee 42 0-8 Tobacco 37 0-7 Tea . 16 03 Total . 5,252 100-0 Here we see at a glance the relative importance of the several industries : grain, for example, is equal to the aggre- ii8 HISTORY OF PRICES. gate of tlie last 14 items, and meat is six times as important as wine or spirits. A rise or fall in wool or sugar would have trifling effect compared to one in grain, although an uninformed person would think the three items of nearly equal magnitude. The wheat crop of the world in the years 1881-84 averaged 520 millions sterling, or 40 per cent, of all the grain. We have, moreover, evidence that the other kinds of grain gene- rally rose or fell in sympathy with it, and hence I may be permitted to assume that variations in wheat have been common to all grain. The fluctuations in the price of wheat have been as follows : — Pence per Bushel. Yeara. Great Britain. Continent. United States. Medium. 1841-50 80 53 58 64 1851-60 82 72 79 78 1861-70 78 73 75 75 1871-80 71 74 65 70 1881-84 63 70 48 60 Taking the medium price, we find a fall of 23 per cent, since the decade ending 1860, but only of 6 per cent, as com- pared with 1841-50. Meat, on the other hand, has risen, as appears from the prices in London and New York, viz. : — Beef, £ Sterling per Ton. Years. London. New York. Medium. Batio. 1841-50 56 24 40 100 1851-60 61 28 45 112 1861-70 65 29 47 118 1871-80 79 27 53 133 1881-84 84 34 59 148 Here is a rise of 48 per cent, since 1850 in a commodity which constitutes one-sixth of the value represented by the world's products. In other words, the same quantity of meat GENERAL SURVEY OF PRICES. 119 for whicli nations now pay 830 millions sterling would have cost only 560 millions before the year 1850. Iron and steel wares come next in importance, showing a heavy fall, thanks to the discoveries of science. The prices of pig iron in Great Britain and United States have been as follows : — Shillings per Ton. Tears. ^Great Britain United States. Medium. 1841-50 68 134 101 1851-60 66 122 94 1861-70 59 123 91 1871-80 74 132 103 1881-84 52 98 75 This fall of 26 per cent, in the raw material is much less than has taken place in manufactured goods. Steel has come down 70 per cent, since the inventions of Bessemer and Siemens, that is, from £34 to £11 per ton. The average decline is 33 per cent., that is to say, 40 shillings will now buy as much hardware as 60 shillings would have done in 1841-50; a saving of 192 millions sterling per annum. Cotton goods may be judged by English prices, this country being the chief seat of the industry, and it is very remarkable that while raw cotton has risen 15 per cent, the price of calico has fallen 22 per cent., which is doubtless explained by improved machinery. The prices have been : — Years. 1841-50 1851-60 1861-70 1871-80 1881-84 « ., « ,. Ratio. Cotton. Calico. . — ^^.^^ Pence per Lb. Pence per Yard. Eaw Cotton. Calico. 5-3 3-40 100 100 5-9 2-90 111 85 12-8 4-20 242 124 71 3-00 133 88 6-1 2-65 115 78 The cotton manufactures of all nations sum up a total of 302 millions sterling ; the fall in price is therefore equiva- lent to 90 millions. I20 HISTORY OF PRICES. "Wool and woollen goods have fallen very unequally, the former 43, the latter only 9 per cent, since 1860, viz. : — Manufactures, Pence per Td. Ratio. Wool Pence per Lb -^^ Wool. Tears. Carpets. Flannel. Manufactures 1851-60 21 32 16 100 100 1861-70 18 35 19 86 114 1871-80 14 34 18 67 109 1881-84 12 28 15 57 91 The fall in wool is mainly owing to the great increase of Colonial, which now forms 45 per cent, of the world's clip, against 10 per cent, in 1850. Timher has fallen very heavily, from 80 shillings in the decade ending 1850 to 51 shillings per load in 1881-84. Dairy products have risen, owing to the increased con- sumption per inhabitant all over Europe, the prices being as follows : — Butter, per Cwt. Cheese, per Cwt. Eggs of Ratio, Tears. England. U.S. England. U.S. per Doz. Butter. Cheese. Eggs. 1841-50 . 81 61 48 30 5-2 100 100 100 1851-60 . 82 90 60 39 57 121 114 110 1861-70 . 104 106 56 47 6-3 148 131 121 1871-80 . 110 104 56 52 7-6 151 138 146 1881-84 . 102 98 65 62 81 141 137 155 There is, on the whole, a rise of 44 per cent.; that is, men pay now 340 millions for what would have cost 236 millions in 1841-50. Coal has varied less than most other things, the supply keeping pace pretty evenly with the demand : prices in Europe and America have been as follows : — Shillings per Ton. U.S. Tears. Gt. Britain Continent. Medium 1841-50 . 8 10 21 13 1851-60 . 9 11 22 14 1861-70 . 10 12 20 14 1871-80 . 12 14 15 14 1881-84 . 9 11 12 11 GENERAL SURVEY OF PRICES. 121 In this item we have a saving of 33 millions sterling as compared with the prices of 1841-50. Potatoes represent another industry of considerable magni- tude, and one in which prices have risen heyond all expecta- tion, viz. — Shillings per Ton. Years. Gt. Britain. France. Medium. Eatio 1841-50 . . 80 72 76 100 1851-60 . . 84 80 82 108 1861-70 . . 106 98 102 134 1871-80 . . 110 105 108 142 1881-84 . . 122 116 119 157 This rise of 57 per cent, is the more remarkable, as grain has fallen in the same period. Men pay 181 millions ster- ling for the same quantity of potatoes that would have cost 115 millions before 1850. Wine has risen owing to the ravages of the phylloxera, the prices of the commonest kinds having been as follows : — Pence per Gallon. Years. France. Spain. Italy. Medium 1841-50 . . 18 12 13 14 1851-60 . . 22 15 14 17 1861-70 . . 23 16 15 18 1871-80 . . 21 18 15 18 1881-84 . . 27 19 16 21 Colonial products, namely, sugar, coffee, tea, and tobacco, have had very opposite fortunes, viz. : — Rhillin gs per Cwt. Eatio. ' Tears. Tea. Coffee. Sugar. Tobacco. Tea. Coffee. Sugar. Tobacco 1841-50 112 38 33 56 100 100 100 100 1851-60 . 140 51 31 86 125 134 94 154 1861-70 168 64 33 104 150 168 100 186 1871-80 150 88 26 73 133 230 79 130 1881-84 . 112 72 19 72 100 190 58 128 Taking these four products together there is apparently a medium rise of 19 per cent., but this is untrue, and shows how deceptive index numbers may prove. The same quan- 122 HISTORY OF PRICES. tity of tea, coffee, sugar, and tobacco which cost 156 millions sterling in 1881-84 would have cost 172 millions before 1850. Therefore, instead of a rise, there has been on the whole a fall of 10 per cent. The same quantities of products and merchandise con- sumed annually from 1881 to 1884 would have cost in pre- vious periods, at the prices then ruling, as foUows : — MiUions Sterling. 1841-50. 1861-60. 1861-rO. 1871-80. 1881-84" Grain . 1,419 1,724 1,658 1,547 1,326 Meat. . 560 628 661 747 830 Hardware . 576 525 504 593 384 Dairj products . . 236 266 303 333 340 Cotton goods 386 335 484 346 302 Woollen goods 263 245 280 268 223 Timber . . 428 338 338 301 273 Coal . 224 241 241 241 189 Leather . 218 202 212 188 184 Potatoes . . 115 125 154 164 181 Wine 86 105 111 111 130 Raw cotton 76 85 183 101 87 Wool . 160 145 125 97 83 Books 120 115 105 87 79 Silks . 68 82 104 88 73 Linens, &;c. 77 74 78 74 70 Sugar . 106 100 106 84 61 Coffee 23 30 38 50 42 Tobacco 29 44 53 38 37 Tea . 16 20 24 21 16 Total 5,186 5,429 5,762 5,479 4,910 The above twenty items comprise 90 per cent, of all human industries, as regards products or manufactures, and therefore enable us to arrive at the exact variations of price- level for the whole world, that is, the rise or fall in the pur- chasing power of gold since 1850. The result is as follows : — Tears. 1841-50 1851-60 1861-70 1871-80 1881-84 100-0 104-7 111-1 105-7 94-7 PRICE-LEYELS of AGRICULTURE and MANUFACTURES (THE WORLD). A. Agriculture {Brown) ■ B. Manufactures {Blue). 1841-50 IB5I-60 1861-71 I87l-B(l 1881-8* I2f /22. /2B 1/3 . '21 I20 IfS ne //f. //2 . flO //G /I2 f'o lOS /DS me. . we 104- too 104, I02 9S sa 9e se Sf 3-f S2- ^2 sa 30 ss ■ as e*. e* S2. 82 ao BO 7a la 76 76 74 74 n ■ 72 70 j - 70 SB ■ BB 6S CG 61 tie S2 . 12 eo so GENERAL SURVEY OF PRICES. 123 "We find, therefore, a fall of 5^ per cent, from the price- level of the decade ending 1850, or nearly 15 per cent, from that of 1861-70. This is much less than people in England generally suppose, because it is the fault of Englishmen to limit their scope of ohservation to this island, when, by look- ing around at other nations, we might be better disposed to form a correct judgment. It is remarkable that if we separate agricultural (including pastoral) products from manufactures, we find the former have risen 11 per cent., the latter fallen 25 per cent., since 1850. The present volume of the world's products at pre- vious prices would have represented the following values : — Millions, £. Batio. Years. Agriculture. Manufactures. Agriculture. Manufactures. 1841-50 1851-60 1861-70 1871-80 1881-84 2,826 2,360 100 100 3,272 2,157 116 91 3,416 2,346 121 99 3,293 2,186 117 92 3,133 1,777 111 75 Therefore, 15 shillings will now buy as much manufac- tures as 20 in the years 1841-50, but in matters of food we should require 22. As regards the causes which led to the fall in price-level the reader is referred to Chapter XXII. ( 124 ) XX. WAGES. In Tooke and Newmarch's "History of Prices " (1785-1856) it is clearly proved that wages and prices do not always move together, but that one may rise when the other falls. Never- theless, as wages enter largely into the cost of production, they must ultimately in some degree afifeot prices. The subject, however, is too large to be treated here in the manner it deserves, and would raise so many side issues that we should lose sight of the question before us. As a matter of fact, wages have been rising in aU countries in the last thirty years, and yet, as we have just seen, the price-level of the world has fallen 10 per cent. In like manner English operatives earn higher wages than those of any country in Continental Europe, which does not prevent us from producing cotton goods and other things much cheaper than any other country. Compare for a moment the cotton and woollen goods manufactured in Spain, at enormous prices, with those of England, and the wages earned by operatives in that country with ours : the contrast is astounding. If cheapness of labour meant cheapness of production, Ireland would possess such an advantage over England that this country would be unable to compete with her, and she would become a great manufacturing country. The same may be said of Italy. Wages of all descriptions have risen about 40 per cent, since 1850, which some ascribe to the effect of the gold dis- WAGES. 125 coveries in California and Australia, others to the spread of public iastruction, others to the greater efficiency of industry and demand for labour. But it seems more probably the result of railways and facilities for emigration, which enable the peasantry or artisans of one country to remove to another in quest of the highest reward for their work. In the first place, as regards agricultural labour, we have only to compare the wages now general in various countries with the Parliamentary Eeport of 1835, containing minute returns by the British Secretaries of Legation in every part of Europe upon the wages then paid in the several kingdoms, viz. : — Wages of Day Labourer. Pence. Pence. 1835. 1884. 1836. 1884 United Kingdom . 16 28 Austria . 10 20 France . . 15 2.5 Italy . 5 12 Germany . 8 18 Belgium & Holland 9 20 KuBsia , . 6 12 Scandinavia . . 8 14 "We find that the medium in 1835 was 9 J pence, and in 1884 it was 18| pence, having almost doubled. This is relatively a much greater increase than we find among artisans and other classes of skilled labour. Such has been the attraction that towns have had for the rural population that the peasantry who remained have been able to earn much higher wages than before. The rise in artisans' wages in England and France is shown in the following table : — Pence per Day. 1 England. France. Rise 1840. 1860. 1884. 1860. 1880. 1840-50. Blacksmith . 42 56 64 25 35 45 per cent Mason . 46 60 70 22 35 55 It Carpenter 40 50 60 22 35 55 J) Plumber 44 60 70 22 33 55 }) Cotton-spinner 36 40 48 24 36 42 It 126 HISTORY OF PRICES. As compared, therefore, with 1850 we find a rise of 40 or 50 per cent., which is the more striking because the price of food (except meat, butter, and wine) has fallen in the interval. This fact suffices to explain the great development of savings-banks all over Europe, since a similar rise in wages has occurred in all countries. According to the Census Eeports of the United States, the average earnings of operatives since 1850 appear as follows : — £ per Annum. Yeara. 1850 1860 1870 1880 New Middle Pence England. States. South. West. Average. Daily. 51 56 73 75 51 58 72 76 40 57 43 48 58 68 64 70 51 61 69 73 40 53 57 Here there is an increase of 44 per cent., showing that the wages of operatives have risen in the same degree both in Europe and in America. Meantime labour is more remunera- tive in the United States, because the surplus of earnings over the cost of food is much greater than in Europe ; and the same may be said of Australia, as appears from the following table of wages and food : — Shillings per Week. Percentage. Wages. Food. Surplus. Food. Surplu Great Britain 31 14 17 45 55 Prance 21 12 9 57 43 Germany . 16 10 6 62 38 Belgium . 20 12 8 60 40 Italy 15 9 6 60 40 Spain 16 10 6 62 38 Europe 20 11 9 55 45 United States 48 16 32 33 67 Australia . 40 12 28 30 70 The condition of the working-classes can only be con- sidered satisfactory when a day's wages are more than the cost of two days' food, as happens in Great Britain, United WAGES. 127 States, and Australia. It is significant of improvement that the profits earned by capital are much, less than in past years, while the wages of labour are higher. In fact, so far from capitalists defrauding workmen of their fair wages, it is manifest that in Europe, and especially in England, the share of profit accruing to the employer of labour has almost reached a minimum, and that manufacturing industry will not be worth carrying on if his share be further diminished. The only real drawback that labour suffers is from the ex- travagant house rent that artisans have to pay in large towns, and for which municipal legislation ought and must provide a remedy. In France, Germany, and other countries where money commands higher interest than in England (see page 19) the profits of the capitalist are larger, or else nobody would care to embark in industrial enterprises ; thus if a mill- owner in Lancashire is content to earn 5 per cent., a similar employer in France or Germany must get 6 per cent., al- though his workmen earn less wages than with us. In a word, the competition of capital in the United Kingdom outweighs that of labour, whereas the reverse happens in most other countries. British operatives, as a rule, earn in wages from 30 to 33 per cent, of the value of the manu- factures which they produce, but in the United States the workman gets only 18 per cent., although in other respects he is better off than his English brother. The relative share that labour earns in the United States is declining, as we see from the census returns, but it must be remembered that machinery plays such a transcendental part in America that we must always expect labour to form apparently a small ratio. The following table from Census Eeports shows the amount paid to operatives and the value of manufactures produced in the United States since 1850 : — 128 HISTORY OF PRICES. Tear. 1850 . Millions Sterling. Wages. Product. 49 211 Percentage of Wages. 23-3 1860 . 80 377 21-2 1870 . 161 846 19-0 1880 . 198 1,112 17-8 This small ratio of wages explains how Americans are able to compete with European nations where labour is cheaper, and to undersell even British manufacturers in many things. American labour is much more productive than that of any- other country, for three reasons : firstly, because the ratio of able-bodied men among the operatives is larger ; secondly, because machinery is brought to greater perfection and more universally used than in Europe ; thirdly, because " pro- tective " duties give an artificial value to those products intended for home consumption. The average product of each operative in the various countries is : — ■ Great Britain £ per Annum 185 France 179 Germany Austria 111 112 United States 403 The product per operative in the United States has risen 83 per cent, since 1850, while wages have risen only 43 per cent., as seen in the following table : — Wages and Product per Operative in £, Sterling. 1850. Wages. 1880. Product. 1850. 1880^ Increase Cent. per States. Wages. I *rodu( New England 51 75 190 360 47 89 Middle . 51 76 230 420 49 83 South 40 48 192 310 20 61 West 58 70 275 490 21 78 Average . 51 73 220 403 43 83 Thus the improvement in production has been double the rise in wages, confirming the principle that the best-paid WAGES. 129 operatives are the most productive and consequently the cheapest. The principal points in this chapter are : — First. That wages often rise when prices fall, and vice versd, as shown in many cases by Tooke and Newmarch. Secondly. That since 1850 wages in Europe have risen very notably and prices fallen 5 per cent. Thirdly. That English operatives are the best paid in Europe, and their work, after all, the cheapest. Fourthly. That agricultural wages have risen 90 per cent., while those of artisans and mechanics only 50 per cent., since 1850. Fifthly. That wages in Europe average 30 per cent., in United States 18 per cent., of the value of manufactured goods. Sixthly. That American operatives have to pay only 33 per cent, of their earnings for food, while the average is 45 per cent, ia Great Britain and 55 per cent, on the Continent. Seventhly. That the share of the capitalist or employer is regulated by the ordinary rates of discount, and that he receives less in England, where money is cheap, than on the Continent. Eighthly. That the average product per operative is highest in the United States, but that the nominal product is an artificial value caused by " protective " duties ; nevertheless, after deducting for the inflation, his product is the highest. 130 ) XXI. PRICES AND WAGES SINCE 1782. Although the scope of the present work goes back no further than the year 1850, it may be to the purpose to take a glance at the prices and wages of the last hundred years. In the first place, as regards Great Britain, we find the prices of fourteen principal articles of trade have been as follows : — 1782-lSOO. 1801-20. 1S21-S0. lSSl-?0. 1871-80. 1881-a Beef, cwt. . s. 31 51 42 48 60 70 Butter, cwt. s. 61 94 79 93 110 102 Coal, ton . s. 15 13 10 9 12 9 Coffee, cwt. s. 99 110 66 57 88 72 Copper, cwt. s. 96 143 94 93 76 67 Cotton, cwt. s. 177 130 64 104 66 58 Flax, cwt. . s. 43 70 41 50 49 40 Iron, ton s. 92 138 97 63 74 52 Lead, cwt. . s. 20 30 19 22 21 13 Sugar, cwt. s. 41 45 33 32 26 19 Tallow, cwt. s. 47 «8 41 47 40 39 Timber, load s. 52 110 62 63 56 51 Wheat, bushel d. 89 130 85 SO 71 58 Wool, lb. . d. 44 91 29 20 14 12 There was a remarkable rise of prices during the epoch of the Buonaparte wars, nearly 40 per cent, over the previous twenty years, that is, after allowing for the difference be- tween gold and currency, the above prices being in gold. After Waterloo there was a steady decline until 1850, when prices again rose until 1864, as already stated (page 2), and in the last twenty years the downward tendency has only been checked at brief intervals. PRICES AND WAGES SINCE 1782. 131 The rise in agricultural products in the years 1800-20 was almost twice as great as in manufactures, the former attain- ing their maximum in the Waterloo decade, whereas the latter were highest in the preceding one, as appears from the following statement : — Volume of World's Merchandise for 1881-84 at Previous Prices. -^ Millions £ Sterling. Price-Level. J. Agri- Indus- ^ Agri- Indus- Gene- Years. cultural. trial. Total. cultural. trial. ral. 1782-1790 2,773 3,142 5,915 1000 100-0 1000 1791-1800 3,653 3,637 7,290 131-8 115-8 123-3 1801-1810 4.607 4.344 8,951 166-1 138-2 151-7 1811-1820 4,754 4,282 9,036 171-5 136-3 152-7 1821-1830 3,139 2,974 6,113 113-2 94-6 103-4 1831-1840 3,012 2,744 6,756 108-6 87-3 97-4 1841-1850 2,826 2,360 5,186 102-0 75-1 87-7 1851-1860 3,272 2,157 5,429 118-0 68-6 91-8 1861-1870 3,416 2,346 5,762 123-2 74-6 97-4 1871-1880 3,293 2,186 5,479 118-8 69-6 92-7 1881-1884 3,133 1,777 4,910 113-0 66-6 830 The various items, agricultural and industrial, that make up the ahove table wiU be found in extenso in Appendix. The result may be summed up in these words : — With 1 1 shillings of present money we can buy as much manufac- tured goods as with 20 shillings a hundred years ago ; but as regards agricultural products, the £ sterling of to-day goes no further than 17J shillings of that epoch. On the whole, 20 shillings in 1884 go as far as 24 shillings a century ago. As regards wages, we find the averages in England have been : — Shillings per Week. Ratio. 1780. 1820. 1840. 1880. Blacksmith 17 24 21 32 lUO 124 190 Mason . 17 25 23 35 100 136 206 Carpenter 15 20 20 30 100 133 200 Plumber 18 25 22 35 100 122 195 Spinner . 12 16 18 24 100 150 200 Bailiff . 8 12 15 20 100 188 250 Shepherd 6 8 10 15 100 167 250 132 HISTORY OF PRICES. If we compare tlie atove wages with what they would buy, we find that the earnings of a carpenter, for example, would buy as follows : — 1780. Per Week. Cost, Pence, 1820. 1840. 1880. IVSO. 1820. 1840. 1880. Beef, lbs. 10 10 12 16 30 50 50 130 Butter, „ . 5 5 6 8 30 50 50 96 Sugar, „ 5 5 7 8 22 24 28 22 Wheat, „ 70 70 80 100 80 100 100 100 Coal, cwt. . 2 2 2 2 18 16 12 12 180 240 240 360 The English working man is therefore able to buy 44 per cent, more of the necessaries of life for his week's wages than he could a hundred years ago, and 21 per cent, more than in 1840. On the other hand, house-rent has trebled, for we find that the average for Great Britain in 1800 was barely £8 per house, and in 1881 it had risen to £21. After allowing for rent, it would still seem that the workman can buy 20 per cent, more than in 1780, and 10 per cent, more than in 1840. Agricultural labourers in the eighteenth century received in England wages equivalent to a peck of wheat, that is, 14 lbs., and in France 12 lbs. (-^Vth of a septier) daily. If we measure the earnings of farm labourers in 1880-82 in wheat we find as follows : — Lbs. Wheat Daily. Great Britain 25 France . 22 Germany . 16 Kussia Austria Italy . 11 18 11 Belgium Scandinavia . Europe 18 13 17 It appears, therefore, that, measured by this standard, the rural peasantry earn 80 per cent, more than in the last century. Some of the peasantry of Continental countries seem still poorly paid, but, compared with the product of their in- PRICES AND WAGES SINCE 1872. 133 dustry, their labour is much dearer than in England. Tak- ing the working year at 300 days, and computing the wages of the farm labourer in each country, as well as the number of bushels of wheat he produces, we find the year's pay com- pares to product as follows : — Per Cent. Per Cent. Per Cent. Great Britain 25 Kussia . 38 United States 18 France . 53 Austria . 55 Canada . 30 Germany . 36 Italy . . 40 Europe . 40 We see here that the production of grain in United States costs less than half what it costs in Europe as regards wages. The principal points of this chapter are as follows : — First. That £3 now will buy as much in England as £4: would a hundred years ago. Secondly. That wages in England have doubled since 1780, and that working-men can buy 44 per cent, more of food than they could then, notwithstanding the enormous rise in beef and butter. Thirdly. That house -rent having trebled in the same interval, the advantages to workmen in cities are sensibly reduced. Fourthly. That the peasant's earnings, measured in grain, are 80 per cent, higher than in the eighteenth century. Fifthly. That farm wages, compared with grain product, are 18 per cent, in United States, 25 per cent, in Great Britain, and 44 per cent, on the Continent. ( 134 ) XXII. CAUSES THAT AFFECT PRICES. The wars of Buonaparte drove up prices of agricultural pro- ducts 72 per cent., and those of manufactured goods 38 per cent., as seen in the preceding chapter. Again, there was a rise consequent on the wars of 1851-60 (namely, the Crimean and Solferino campaigns and the Indian Mutiny), when agricultural prices rose 16 per cent., and the general price- level of the world showed an advance of 5 per cent. In the third place, the American War of 1861-64 had such effect that prices rose 78 per cent, in the United States and 52 per cent, in Great Britain over the level of 1841-50 ; and taking the whole decade of 1861-70, we find that its level was for the whole world 21 per cent, higher in agricultural products, and 11 per cent, higher for the general level of all merchan- dise, than the decade ending 1850. It is impossible, there- fore, to doubt Tooke's theory that " war has a tendency to raise prices, by obstructing or diminishing the supply of commodities." The peace that succeeded Waterloo saw prices fall nearly 50 per cent., the world's level for the decade ending 1830 being 33 per cent, less than the average of 1811-20. In like manner there was a steady decline after the war in the United States, the decade of 1871-80 for the world being 5 per cent, under the preceding, and we have had a continu- ous fall of prices since the Franco-German War. In a word. CAUSES THAT AFFECT PRICES. $35 peace restores the level or the natural tendency of prices that was disturbed by war. But it does something more, by furthering arts and sciences, which tend to a lower level, for, as Newmarch says, " the tendency of all scientific discoveries and improvements is to cheapness.'' Commerce directly leads to a lower level, although it gives enhanced value in particular countries which formerly had no market ; thus, for example, fruit in Italy is worth four times what it was in the decade ending 1860, but the price of oranges in Europe has fallen froni 11 to 7 shillings per bushel — a decline of 36 per cent. — and the customs-value of all imported fruit in Great Britain from £20 to £14 per ton in the same interval — a depression of 30 per cent. The trade- currents, which level barriers between nations, have precisely the opposite effects of war, and promote a lower level, to the general advantage of both producers and consumers. Steam-power, as we have seen, exercises a prodigious in- fluence in the same direction ; for, as five men now perform as much work (p. 57) as eight could do in 1850, there is a saving of 40 per cent, of labour, and as labour constitutes one-third of the value of an article, we have herein a saving of 13 per cent, in the market price. Improved facilities for transport also effect a great saving. "We have seen (p. 48) that in 1850 the land-carriage of merchandise in Europe was six times what it is at present ; in fact, the carriage of goods for 100 miles added 21 per cent, to their value, whereas transport by railway now adds only 5 per cent, for the same distance. At the same time freights by sea have fallen one-half, so that we have a saving of 5 to 10 per cent, in the value of merchandise before it reaches the consumer. Another remarkable saving is in the cost of production of raw material, for we find that since 1870 wool has fallen 20, raw cotton 42, per cent. ; and if we consider raw material as 136 HISTORY OF PRICES. one- third of the value of any commodity, we have here suffi- cient reason for a decline of 7 per cent, in the price of woollens and 14 per cent, in cotton goods. Scientific inventions, immediately bearing on particular branches of industry, have no less striking influence. We can now produce 3 tons of pig-iron at the same expenditure of coal that 2 tons took thirty years ago, and we can sell 3 tons of steel for less than 1 would have cost at that time. An economy of 33 per cent, in the whole range of hardware merchandise has powerfully contributed to the present lower price-level among nations, which is erroneously called trade depression. Emigration has helped still further to cheapen the pro- ducts of human industry by turning to immense advantage in newer parts of the world those energies and powers that could not find adequate field for exertion in Europe. If so monstrous a thing could be supposed as that the 15 million emigrants (1851-84) were now soldiers in European armies, instead of thriving settlers in America and Australia, the prices of wool and wheat would be 10 or 20 per cent, higher than they are. There are numerous minor causes, such as electric tele- graphs, reduced rates of discount, increasing competition among nations, improved methods of banking, more general use of cheques, and, in one word, a saving of time and expense between the producer and consumer of any com- modity, all which point in the same direction. The wonder is, not that the world's price-level for 1881-84 is 15 per cent, lower than that of 1861-70, but that it has not declined much more. We have, however, good reason to expect a slow, steady, and continuous fall of prices during the remainder of the nineteenth century if the peace of Europe be not seriously disturbed. Popular delusions regarding prices are deep-rooted in the CAUSES THAT AFFECT PRICES. 137 bulk of mankind, and we cannot be surprised tbat they prevail even in England to sucb a degree that nine English- men of every ten regard low prices as a calamity, and would apparently welcome a rise in the markets, proceeding from no matter what circumstances. They do not see that high prices are a fool's paradise, where everybody seems to earn more, but is really no better off. Could we go back to the times when calico was worth 26 pence a yard, steel pens a shilling a piece, and wool 4 shillings per lb., when the quartern loaf cost 10 pence, should we find ourselves better or worse off? The farmer has no right to expect 100 shillings per quarter for wheat unless he be prepared to pay double his actual rent for the land and forego every advantage that the general fall of prices has conferred on society. No more penny newspapers, no more sixpenny telegrams, no more cheap hardware, implements, or machinery ; everybody would require more income to keep pace with the rise of prices, and nobody would be any richer. In the United States there is a much higher price-level than in Great Britain; a cab-driver charges 8 shillings for the shortest distance in New York City, or eight times the European average. Tet the result is the same in the end, and the cost of living is so high that even the street scavenger who earns a dollar a day is no better off than if his wages were two shillings under a European price-level. A Boston merchant recently stated to a group of passengers on a Cunard steamer that it paid him to come over to London to buy his clothes in England. An official at Washington has declared that he would rather have a salary of 2000 dollars a year in England than 4000 in the United States. Perhaps there can be no more evident example of the ineffectual nature of high price-levels than the island of Santo Domingo ; the ordinary charges are in dollars, but happily of so depreciated a currency that it takes 600 of 138 HISTORY OF PRICES. them to make 4 shillings ; and although you pay a boatman or street-porter 50 dollars for any trifling service, he is no richer than if his pay were sixpence. The case would be no different if everybody were paid in gold, with an artificial price-level, as when the gold-diggers in California were paid £1 of English money daily, and eggs were worth 6 shillings dozen. Another delusion, which has supporters among the most distinguished men in Great Britain, is that prices depend more or less on the stock of gold in the world, or on the question of bi-metallism. Two arguments ought to suffice to show the absurdity of such a theory. In the first place, only 48 per cent, of the actual stock of gold is used for money, the uncoined reserve being 768 millions sterling, against 425 millions in 1850, and hence the fall in prices cannot arise from any scarcity of that metal. In the second place, while the productive power (page 56) and volume of the world's products have risen 104 per cent, since 1850, the stock of gold has increased 140 per cent, (page 12) ; apart from the consideration that the use of cheques and bills of exchange has in a manner doubled the stock of gold, for we have already seen (page 14) that international commerce makes £5 go as far now as £12 of the precious metals m 1861-65. If the superabundant increase of both gold and silver found us at present with a higher level of prices than in 1850, there might be some excuse for the delusion, but the reverse is the case. ( 139 ) XXIII. REVIEW OF BRITISH TRADE. The Appendix contains a complete price-list of one hundred articles of British imports and exports for the last thirty-one years, showing, moreover, the years of highest and lowest price for each distinct article, as well as one hundred index numbers, by which the relative rise or faU of the various commodities is indicated. On the following page is a synopsis of the said list, which places in a glance before the reader the whole current of trade since 1854, some points of which call for remark. In the years 1854-57 there were thirty-four articles attained prices which have never since been reached, that is to say, one-third of the items of trade have steadily declined since 1857, and of these items twenty-one are imports and thirteen exports. In the interval from 1857 to 1864 there was such an even flow of commerce that prices remained almost uniform, but in the latter year another rise occurred, by which twenty- eight articles (in the years 1864-68) reached unprecedented figures, from which they have since fallen back, never again reaching the level of those years ; eleven were imports and seventeen exports. In a word, 67 per cent, of the articles forming British trade ranged at higher prices before 1868 than since. A third rise occurred in 1873-74, by which fourteen articles attained prices not equalled before nor since, ten being exports and only four imports. If we sum up the result since 1854 we shall find that the greatest rise in im- ports was during and immediately following the Crimean War, and in exports about the close of the American and the 140 HISTORY OF PRICES. Franco-German Wars. The year in which the greatest number of articles of trade reached a maximum price was 1857. On the other hand, we find that in 1884 there were thirty- five articles at prices so low that they were unprecedented. This depression of value may be said to have commenced in 1879, when eleven articles touched bathos. In fact, 61 per cent, of the items that constitute British trade have been since 1879 at lower prices than before recorded. The follow- ing table shows the number of articles in each year that touched highest or lowest prices between 1854 and 1884 : — Highest. Lowest. 1854 1856 1856 1857 1868 1859 1860 1861 1862 1863 1864 1865 1866 1867 1868 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 Imports. 5 4 4 8 1 1 o 1 1 3 1 5 2 1 1 :j 1 2 1 1 1 Exports. 4 2 5 1 8 2 4 13 1 1 1 2 9 3 7 4 5 3 2 1 Imports. 6 1 1 1 1 2 1 3 2 1 1 1 1 1 ' 1 7 1 1 3 2 12 Exporti 6 2 1 1 1 1 1 1 1 4 3 2 3 23 Total 50 60 100 60 60 Total. 12 3 1 1 1 3 2 3 3 1 1 2 1 2 1 2 11 1 4 5 5 36 100 REVIEW OF BRITISH TRADE. 141 Any deductions drawn from the above table witli the view of showing that British trade has been in a ruinous condition since 1879 would be puerile absurdities. Some people may- suffer by the change of price-level, but the community has grown in wealth, and commerce continues to increase not only in volume but in nominal amount of value. Dividing the whole period since 1855 into periods of three years, we find the following annual averages according to Board of Trade returns, and also the value according to price-level of 1841-50 :— Millions Sterling per Annum. — Board of Scale of Board of Scale of Years. Trade. 1841-50. Years. Trade. 1841-50. 1855-57 . 280 261 1870-72 . 556 497 1858-60 . 313 298 1873-75 . 611 531 1861-63 . 363 308 1876-78 . 577 576 1864-66 . 452 318 1879-81 607 645 1867-6y . 472 386 1882-84 648 715 There has been a steady uninterrupted increase of trade since 1854 ; for although the high level of prices in 1873-75 in a manner disturbed the stream of British commerce, and caused the years next succeeding to appear as if there was a decline, the scale of 1841-50 shows that at no period has there been any check or diminution. One particular year may be less than its predecessor, but it is safer to measure the growth in periods of three years, as in the above table. The trade of the United Kingdom has risen 140 millions sterling since 1870, an increase unequalled in any other country of the world. In order the better to understand the currents of trade, we may sum up the dealings of the United Kingdom with all foreign nations and our Colonies for twenty-four years as follows : — 142 HISTORY OF PRICES. Imports /roni, Millions £. Exports to, Millions £, -,^ ■^ 1861-70, , 1871-80. 1881-84, . Total. 1861-70. 1871-80. 1881-84, , Total. France . 298 421 155 874 230 283 115 628 Germany 162 217 100 479 261 334 122 717 Russia . 169 200 72 441 69 101 34 204 Holland . 110 175 99 384 145 193 65 403 Belgium . 71 131 57 259 68 128 58 254 Scandinavia . 76 137 65 278 36 76 31 143 Spain & Portugal 77 131 58 266 55 65 30 150 Other countries 116 135 64 315 133 183 75 391 Europe . 1,079 1,547 670 3,296 997 1,363 5.30 2,890 United States 360 773 378 1,511 233 299 145 677 S. America . 180 202 66 448 153 185 88 426 China & Japan 113 132 45 290 54 78 31 163 Egypt . 158 114 37 309 60 40 13 113 India 345 299 144 788 197 241 127 565 Australia 103 201 106 410 128 188 106 422 Canada . 75 108 45 228 60 87 40 187 Other countries 288 338 136 762 247 298 125 670 Total .2,701 3,714 1,627 8,042 2,129 2,779 1,205 6,113 In the whole period of twenty-four years the excess of imports averaged 80 millions sterling per annum, or 32 per cent, over and above the value of exports. Looking back during the last thirty-five years to see how the commerce and industry of Great Britain have affected the well-being of the community, we find as follows : — Millions. Per Inhabitant, £. Iiicome-Tax Legacy House Income-Tax Legacy House Year. Assessments. Returns. Eental. Assessments. Returns. Eental. 1850 . 274 55 44 10 2-0 1-6 ISfiO , 335 63 58 11 2-1 2-0 1870 445 88 75 14 2-8 2-5 1880 , 578 119 114 17 3-5 3-3 1883-4 612 — 122 17 — 3-4 Each inhabitant of the United Kingdom possesses 70 per cent, more income than in 1850, as appears from the assess- ments to income-tax, which are further confirmed by the legacy returns. The valuation of house rental is perhaps more conclusive than the other two, as the wealth of a people is directly in ratio with the character of their dwellings. Each inhabitant pays now more than double the house rent that he paid in 1850 ; and if we go back no further than REVIEW OF BRITISH TRADE. 143 1870 there is an improvement of 36 per cent, in these four- teen years, not from any artificial rise in value, but from the large amount of capital that has gone into building since 1870. There are J;wo other tests, namely, the savings-banks and the consumption of food, as follovirs : — Siiving s- Banks. Shillings Cot Sugar, isutnption per Inhabitant. Millions Meat, Wheat, Tea^ Year. Sterling. per Inhab. lbs. lbs. lbs. oz. 1850 30 21 25 76 290 29 1860 41 29 32 86 320 43 1870 53 34 49 94 330 61 1880 77 44 68 101 335 73 1884 90 50 72 105 340 78 The consumption of food is the best of all measures of a nation's prosperity, and in this respect each year sees an improvement in the United Kingdom. It is doubly signifi- cant to notice that the consumption of meat per head has risen 40 per cent, since 1850, notwithstanding the great advance in price. Prom the foregoing facts we have undoubted proof that the commerce of the United Kingdom has been, and continues to be, prosperous ; that it is closely connected with the public fortune ; and that the condition of the masses is improving. For the benefit of those persons who wish to have the result of index numbers, the following summary shows the totals of fifty British imports and fifty exports, according to the detailed tables in Appendix : — Imports. Exports. Totals. 1854-60 5,000 5,000 10,000 1861-70 5,024 6,077 10,101 1871-80 4,902 4,882 9,784 1881-84 4,627 4,252 8,879 1854 . 4,823 4,936 9,759 1884 . 4,447 4,153 8,600 If price-level were determined by index numbers we should find a decline of 14 per cent, from the level of 1854-60, that is, of 17 per cent, in exports and 11 per cent, in imports. 144 XXIV. CHRONICLE OF EVENTS. The following summary of events in the last thirty-five years which may have affected prices, and some of which did so in a signal manner, will be useful for reference : — 1850. Failure of cotton crop in United States : prices rose 80 per cent. ; wheat dearer than in England. Thousands of emigrants flocking to the new gold-fields in California. First steam -plough in England, on Lord Willoughhy D'Eresby's estate in Lincolnshire. Agricultural depression ; petition to the House of Commons by distressed land-owners and farmers. Improvement of trade and revenue in the United King- dom. Parliament abolishes brick-duty and reduces window-tax. British Colonies receive constitutional government. 1851. Disraeli's bill to tax foreign grain defeated by fourteen votes. Great Exhibition in Hyde Park, 6^ million visitors. Gold discovered at Bathurst, New South Wales, May 20th. Commission in Paris to report on depreciation of gold. CHRONICLE OF EVENTS. 145 Fears that the Bank of England must fail if compelled to pay 77f shillings per ounce for gold. First Hne of steamers to Australia. Petition of Liverpool shipowners to restore the Naviga- tion Laws. American reaping-machine, by Hussey, cut fifteen acres of wheat in twelve hours near Gateshead, saving 5 shillings an acre. Silver rose to 62 pence per ounce, or 3 per cent, premium. 1852. Alarm of French invasion ; navy and artillery increased. Fisheries dispute with United States. Disraeli's budget thrown out ; triumph of Free Trade. French 5 per cents converted into 4:^ stock. Famine in parts of Germany. Land rising in value in England. French Empire re-established 1853. Gladstone's budget, extending income-tax to Ireland. Steam-plough with 2 horses and 10 men does work of 120 men. Michel Chevalier's alarm about depreciation of gold. New York papers deny any visible depreciation. Calcutta Exchange, silver rupee 25 pence. Eussia invades the Danubian Principalities. 1854. Holland demonetizes gold (law soon after repealed). War in the Crimea. United States treaty of commerce with Japan. Lord Elgin's treaty for free trade between United States and Canada. K 146 HISTORY OF PRICES. Increase of income-tax. Frencli loan for war expenses. 1855. Britisli war loan for 16 millions sterling. Capture of Sevastopol. Turkish loan for 5 millions sterling. Rise of trade and revenue in United States. Limited Liability Act passed by Parliament. 1856. Prosperous times in Great Britain. End of Crimean War. Lord Canning annexed Oude. War with China. 1857. Great mutiny in India. Redemption of Sound dues. Crisis in United States and Great Britain ; suspension of Bank Act ; rate of discount raised to 10 per cent. Several banks in England stopped payment ; bullion re- serve in Bank of England fell to £6,484,000. 1858. Great Britain assumed the government of India. Depression after crisis of last year; capital abundant, prices low. Machine-reaper costs 50 per cent, of hand-labour, or 5 shillings per acre ; steam-plough 40 per cent, of horse-labour, or 8 shillings per acre. Loan of 7 millions sterling for India. ' Anti-slavery agitation in United States. CHRONICLE OF EVENTS. 147 1859. Anotlier alarm of French invasion. Income-tax raised to 13 pence per £. French war loan of 20 millions sterling, covered five times. Franco-Italian war against Austria. France annexes Savoy and Nice. 1860. Palmerston's fortifications, outlay of 11 millions sterling. Cobden's treaty of commerce with France. Brisk recovery of trade in England. Paper-duties abolished by Parliament. Pekin taken by Anglo-French forces. 1861. War in United States on slavery question. Emancipation of serfs in Russia. Eeformation of French finances by Fould. Post-Office savings banks introduced in United Kingdom. 1862. Cotton famine ; distress in Lancashire. Ironclads (Merrimac and Monitor) first used in United States. Anglo-French expedition to Mexico. President Lincoln caUs out 600,000 men. 1863. Prussia secedes from the German Diet at Frankfort. Insurrection in Poland. Ionian Islands ceded to Greece. Maximilian proclaimed Emperor of Mexico. 148 HISTORY OF PRICES. 1864. Sleswig-Holstein annexed to Germany. Abolition of Scheldt dues. Florence made capital of Italy. Enormous increase of trade in Great Britain. "War between Spain and Peru. 1865. Inflation of trade continues ; 300 new joint-stock com- panies. Project to federalise Canada. Assassination of President Lincoln. United States debt amounts to 570 millions sterling. Bessemer's steel saves Great Britain 6 millions sterling yearly. 1866. Conclusion of American war ; Alabama Claims. Cattle-plague in England ; 30,000 animals dying monthly. Overend Gurney crisis ; Bank Act suspended. Bank rate at 10 per cent, from May until August. Great rise in price of meat. Austro-Prussian war, battle of Sadowa. Italy suspends specie payments, emits paper money. 1867. Deficient harvest ; meat very dear. Death of Emperor Maximilian. Great Exhibition at Paris ; 9 million visitors. Dominion of Canada constituted. Diamond-fields discovered in South Africa. 1868. Great Britain still suffering from crisis of 1866. Fenian alarm ; special constables sworn in London. CHRONICLE OF EVENTS. 149 War ia Abyssinia, death of Theodoras. Kepublic established in Spain. 1869. British telegraph lines bought by Government. Trade very dull ; increase of pauperism. Eeaction against Free Trade by " Eeciprocity " agitators. ' Opening of Suez Canal, after thirteen years of labour. 1870. First loan for New Zealand. Strike of 10,000 workmen at Creuzot, France. Franco-German war ; fall of Napoleon III. Victor Emmanuel seized Eome. Prince Amadeo made King of Spain. 1871. German army took Paris. German Empire proclaimed at Versailles. City of Chicago burnt down. Opening of Mont Cenis tunnel. 1872. Geneva award on Alabama Claims, £3,100,000. New French loans for 240 millions sterling. Thiers defeated on wool-duties. Maximum yield of African diamond-fields ; 4 millions sterling. Trade of Great Britain prosperous. Kailways introduced into Japan. 1873. Alarm about British coal-fields ; coal rose 20 per cent. Banking crisis at Berlin and Vienna. I50 HISTORY OF PRICES. New German gold coinage (1872-73); minted 51 millions sterling. MacMahon succeeds Thiers as president. Eepublic restored in Spain ; Amadeo expelled. Great Exhibition at Vienna ; 7-J million visitors. 1874. Strikes of iron and coal workers. War in Ashantee. Alfonso XII. proclaimed King of Spain. Famine in Bengal. Joseph. Arch's agricultural strike. 1875. PlimsoU Shipping Act passed. Abolition of light-dues by Holland. Report on Foreign Loan frauds. British Government bought Suez Canal shares. 1876. Bismarck sold 3000 tons old silver coin for 28 millions sterling. Silver fell to 46 pence per ounce. Goschen's mission for Egyptian bondholders. End of the Carlist War. Murder of the Sultan. Bulgarian atrocities. Philadelphia Exhibition, 10| million visitors. 1877. Siege and capture of Plevna. Gordon suppresses the Soudan slave-trade. Jablochkoff's electric light used at Lyons. Invention of the telephone. Ravages by the Colorado beetle, United States. CHRONICLE OF EVENTS. 151 1878. Berlin Conference. Great Britain annexes Cyprus. City of Glasgow Bank failed. Paris Exhibition, 16 million visitors. Bland Act passed for coining 24 million silver dollars yearly. 1879. United States resume specie payments ; revival of trade. Distress in Great Britain, increase of pauperism. Ismail Pasha removed from Egypt. Eevival of iron trade in England. United States debts converted into i per cents. Baron Lesseps undertakes the Panama Canal. 1880. Deficit in Indian budget. Overthrow of Conservatives, Gladstone premier. Eelief of Candahar by General Eoberts. Australia sends wheat and frozen meat to England. Persecution of Jews in Germany. 1881. Rumours of impending gold famine. Agricultural depression in England. Annexation of Tunis by the French. Australian 6 per cents converted into 4 per cents. Assassination of the Czar Alexander, 1882. Financial difficulties in France. Bombardment of Alexandria. Irish Land Act passed by Parliament. Enormous food-exports from United States. 152 HISTORY OF PRICES. 1883. French annexations in Madagascar and Tonquin. General Hicks's army destroyed by the Mahdi. Arabi Pasha banished to Ceylon. Persecution of Jews in Eussia. Parliament prohibits the proposed Channel Tunnel. King Alphonso mobbed in Paris. 1884. Cholera at Toulon and Naples. General Gordon holds Khartoum. Annexation of Merv by Eussia. War between France and China. 1885. Death of General Gordon ; fall of Khartoum. New Guinea annexed by Germany. Democrat Cleveland elected President of the United States. Advance of Eussia towards Herat. Fall of Gladstone Cabinet. Cholera in Spain. Carolinas question between Spain and Germany. ( IS3 ) APPENDIX. Price-Levels of British Trade. The following table* shows the actual Board of Trade returns and the amounts that would have resulted for imports and exports if prices of 1841-50 had remained unchanged, in millions sterling. Board of Trade. Prices of 1841-50. Tear. imports. Exports. Total. Imports. Exports. Total. 1854 . . 152 97 249 140 102 242 1855 . . 144 96 240 126 105 231 1856 . . 173 116 289 149 125 274 1857 . . 188 122 310 152 127 279 1858 . . 165 117 282 150 125 275 1859 . . 179 130 309 160 136 296 1860 . . 211 136 347 180 143 323 1861 . . 217 125 342 189 130 319 1862 . . 226 124 350 193 114 307 1863 . . 249 147 396 182 116 298 1864 . . 275 160 435 173 114 287 1865 . . 271 166 437 191 127 318 1866 . . 295 189 484 208 140 348 1867 . . 275 181 456 215 148 363 1868 . . 295 180 475 235 157 392 1869 . . 295 190 485 238 165 403 1870 . . 303 200 503 280 179 459 1871 . . 331 223 554 302 203 505 1872 . . 355 256 611 323 205 528 1873 . . 371 255 626 317 199 516 1874 . . 370 240 610 328 201 529 1875 . . 374 224 598 349 199 548 1876 . . 375 201 576 371 196 567 1877 . . 394 199 593 375 203 578 1878 . . 369 193 562 380 202 582 1879 . . 363 192 555 390 212 602 1880 . . 411 223 634 423 239 662 1881 . . 397 234 631 410 260 670 1882 . . 413 242 655 435 260 695 1883 . . 427 240 667 465 266 731 1884 . . 390 233 623 459 259 718 * This table does not contain foreign and colonial merchandise ex- ported from United Kingdom. 154 APPENDIX. The ratio of values for the thirty-one years are summed up as follows, in comparison with the price-level of 1841-50, which is taken as 100. Board of Trade . Year. Board of Trade . Tear. Imports. Exports. Total. Impoi-ts. Exports. Total. 1854. . 109 95 103 1871. . 110 110 110 1855. . 115 91 104 1872. . 110 125 116 1856. 116 93 105 1873. . 117 128 121 1857. . 124 96 111 1874. . 113 120 115 1858. . 110 94 103 1875. . 107 112 109 1859. . 112 95 104 Average . Ill 119 114 1860. . 117 95 107 1876. . 101 103 102 Average . 115 94 105 1877. . 105 98 103 1861. . 115 96 107 1878. . 97 95 96 1862. . 117 109 114 1879. . 93 91 92 1863. . 136 126 133 1880. . 97 93 96 1864. . 160 141 152 Average . 98 96 97 1865. . 142 131 138 1881. . 97 90 94 Average . 134 121 129 1882. . 95 93 94 1866. . 142 135 139 1883. . 92 90 91 1867. . 128 122 126 1884. . 85 90 87 1868. . 126 115 121 Average . 92 91 914 1869. . 124 115 121 1861-70 . 130 121 126 1870. . 108 111 110 1871-80 . 105 108 106 Average . 126 120 123 1854-84 . 1134 107 110 Summary. Imports of 1881-84 show a price-level 8 per cent, below that of 1841-50, exports 9 per cent. The same imports are 20 per cent, below the level of 1854-60, and the exports only 3 per cent. less. The same imports have fallen 30 per cent, from the price- level of 1861-70, the exports 25 per cent. PRICE-LEVEL OF GREAT BRITAIN, 1840-84. A. Imports (Brown) ; B. Exports [Blue), /¥y i 1 9S . N. i ^ . 96 94 ^n/ \ . 94 SZ - Vs^. . 92 99 \ 90 A'oie.— The general price-l«vel for Great Britain will be found ou frontispiece. ( 155 ) B. PRICE-LEVELS FROM 1 860-1 883. The following table shows the actual trade of the principal countries, in comparison with what the amounts would have been at the average of prices in 1860-62. Trade Returns, Millions Sterling. ^ United United s Tear. Kingdom.* France. Italy. Belgliim. States. Aggregate. 1860-62 . 346 180 54 41 101 722 1863 396 203 61 46 59 765 1864 435 218 62 51 46 812 1865 437 229 61 54 47 828 1866 484 239 59 56 82 920 1867 456 234 65 55 99 909 1868 475 244 67 61 92 939 1869 485 249 69 64 106 973 1870 503 227 66 64 144 1,004 Average . 428 216 61 52 89 847 1871 554 258 81 87 175 1,155 1872 611 293 94 93 193 1,284 1873 626 294 96 103 207 1,326 1874 610 288 91 96 210 1,295 1875 598 296 89 96 184 1,263 1876 576 303 101 101 182 1,263 1877 593 284 83 100 206 1,266 1878 562 294 82 103 225 1,266 1879 555 313 93 109 236 1,306 1880 634 340 91 116 308 1,489 Average . 592 296 90 100 213 1,291 1881 631 337 96 117 314 1,495 1882 655 336 95 117 300 1,503 1883 667 330 99 116 312 1,524 * See note on p. 153. 156 APPENDIX. At Prices of 1860-62, MiUiona Sterling. Tear. U.K. Prance. Italy. Belgium. U.S. Aggregate. 1863 328 197 60 49 65 699 1864 315 204 62 53 43 677 1865 347 225 57 58 45 732 1866 381 244 60 58 48 791 1867 396 273 61 61 100 891 1868 432 280 64 70 86 932 1869 445 286 65 79 85 960 1870 503 283 63 75 133 1,057 Average . 393 249 61 63 76 842 1871 654 310 77 90 156 1,187 1872 599 338 80 88 154 1,259 1873 570 330 78 100 207 1,285 1874 586 348 85 97 206 1,322 1875 604 380 93 99 192 1,368 1876 618 379 93 109 214 1,413 1877 631 368 83 103 204 1,389 1878 648 387 89 112 271 1,507 1879 657 391 96 122 262 1,528 1880 737 420 101 121 321 1,700 Average . 620 366 87 104 219 1,396 1881 742 431 110 123 334 1,740 1882 770 442 116 141 306 1,775 1883 794 463 129 149 343 1,883 Average . 769 445 118 138 328 1,798 Ratio of Values. Tear. - U.K. France. Italy. Belgium. U.S. General 1860-62 . 100 100 100 100 100 100 1863 121 103 101 94 90 109 1864 138 107 100 96 106 120 1865 126 102 107 92 104 113 1866 127 98 98 97 170 116 1867 115 86 107 90 99 102 1868 110 87 105 87 107 101 1869 109 87 106 81 125 101 1870 100 80 105 85 108 95 Average . 118 94 104 90 114 107 1871 100 83 106 97 112 97 1872 106 87 118 105 125 102 1873 110 89 122 103 100 103 1874 104 83 107 99 102 97 1875 99 78 96 97 96 92 1876 93 80 109 93 85 89 1877 94 77 100 97 101 91 1878 87 76 92 92 83 84 1879 84 80 97 89 90 85 1880 86 81 90 96 96 88 Average . 96 81 104 97 99 92 1881 85 78 87 95 94 86 1882 85 76 82 83 98 85 1883 84 71 77 78 91 81 Average . 85 75 82 85 94 84 ( 157 ) C. PRECIOUS METALS. Gold Coinage of all Nations {in Millions Sterling) from 1850 to 1883 inclusive. Existing Total Net Coin in Amount Coined. Re-minted. Increase. 1884-85. in 1860. Great Britain British Colonies . 155) . 65; 138 82 147 65 France . . 299 117 182 198 16 Germany . 91 26 65 75 10 Bassia . . 110 86 24 30 6 Austria . . 14 7 7 10 3 Italy . . 17 4 13 30 17 Spain and Portuga 1 . 31 8 23 38 15 Belgium and HoUa nd . 29 9 20 26 6 Scandinavia . 5 2 3 5 2 United States . 254 158 96 130 34 Total 1,070 555 515 174 Other nations, including Switzerland, Greece, Servia, Rou- mania, Turkey, Egypt, Persia, Japan, Spanish America, &c., have 47 millions, briaging up the grand total of existing gold coin to 736 millions sterling. Current of ffold (in Millions Sterling. ) Imported. Exported. By 1861-70. 18n-83. 23 Tears . 1861-70. 1871-83. 23 Year Great Britain . 171 212 383 112 206 318 France . 189 176 365 119 114 233 United States . 31 73 104 113 83 196 Australia 9 12 21 108 95 203 Other countries . 112 164 276 60 139 199 Total . 512 637 1,149 512 637 1,149 158 APPENDIX. Quantity of Silver Plate Stamped in Great Britain, Annual Average. Oz., OOO's Oz., OOO's Tears. omitted. Tears. omitted 1801-10 . . 1,087 1841-50 . 1,007 1811-20 . 1,058 1851-60 . 930 1821-30 . 1,157 1861-70 . 875 1831-40 . 1,104 1871-80 . 790 The consumption of silver plate in France lias risen slightly ; it averaged 2,100,000 oz. in 1851-60, and 2,300,000 in 1861-70, the decade ending 1880 showing 2,400,000 ounces per annum. Wear and Tear of Metals. The loss in weight of gold coin being 2 per cent, in a hundred years (Jevons), and the actual stock 736 millions sterling, the annual wear and tear is just 1 ton, or ,£147,000 sterling. Add £101,000 for loss by shipwreck, £32,000 for fires, and the total annual loss comes to 2 tons, the actual stock of gold coined and uncoined being 11,000 tons. The loss of silver is 200 tons yearly, or 1 per 1000, that is, five times greater than that of gold. Stocks of Gold and Silver. Tons. A.D. Gold. Silver. Silver to Gold. 1600 750 22,800 30tal 1700 . 1,660 60,000 36 „1 1800 3,570 117,000 33 „1 1850 . 4,750 148,000 32 „1 1885 . 10,760 201,000 19 „ 1 The above comprises all the precious metals existing in the world, coined or uncoined. APPENDIX. 15 Production of Gold. Millions Sterling. Various. Year. V. States. Australia. Eussia. Total 1849 . 1-8 3-6 4-0 9-4 1850 . 5-5 3-4 4-1 13-0 1851 . 8-8 r'o 4-0 3-8 17-6 1852 . 10-2 10-2 4-0 3-5 27-9 1853 . . 110 11-2 3-4 3-6 29-2 1854 . 12'2 9-4 3-4 3-9 28-9 1853 . 11-0 12-0 3-5 4-1 30-6 1856 . 11-6 13-2 3 '5 4-0 32-3 1857 . 10-4 11-6 4-2 3'8 30-0 1858 . 9-8 121 4-2 3-7 29-8 1859 . 9-2 12-2 4 3'8 29-2 1860 . 8-0 11-2 4-0 3-9 27-1 1861 . 10-7 9'6 4 4 28-3 1862 . 10-4 9-7 4-0 4-0 28-1 1863 . 11-4 90 3-8 4-2 28-4 1864 . 90 7-6 3'9 4-2 24-7 1865 . 9-4 7-4 3-9 4-4 25-1 1866 . 9-5 7-8 4-0 4-4 25-7 1867 . 8-8 7.6 4-0 4-6 25-0 1868 . 9-4 8-0 4-1 4-6 26-1 1869 . 10-2 8-0 4-2 4-8 27-2 1870 . 9-0 7-6 4-2 4-8 25-6 1871 . 8-0 8-0 4-2 4-8 25-0 1872 . 5-2 8-4 4-5 4-8 22'9 1873 . 6-8 10-0 4-6 5-0 26-4 1874 . 7-0 8-8 4-6 5-0 25 '4 1875 . 7-4 7-6 4-7 5-2 24-9 1876 . 7-8 6-5 4-7 5-2 24-2 1877 . . 8 8-3 5-0 5-0 26-3 1878 . 7-2 5-9 50 4-8 22-9 1879 . 61 4-0 5-2 4-6 19-9 1880 . 6-3 4-4 5-4 4-4 20-5 1881 . 6-9 4-3 5-6 30 19-8 1882 . 6-6 40 5-8 2-8 19-2 1883 . 6-1 4-4 6'0 27 19-2 1884 . . 62 4-2 6-2 2'4 19-0 Total 302-9 275-2 156-8 149 9 884-8 ( i6o ) D. MONEY-MARKET. Capital Employed in Banking. Sum per Amount in Millions Inhabitant, Savings Banks Sterling. £ Sterling. Millions £. United Kingdom . 840 24 90 France . 218 6 74 Germany . 290 6 110 Eussia 165 2 5 Austria . 166 5 88 Italy 93 3 35 Switzerland 20 7 12 Spain and Port ugal . 22 1 3 Belgium and H oUand 53 6 8 Scandinavia 35 4 27 Europe , . 1,892 6 452 United States 530 10 202 Australia 103 32 Canada . 48 11 2,573 654 Banks. English . Scotch . Irish Colonial Banliing in United Kingdom (1882). Millions £. 15 10 55 154 Capital. Issue. Deposits. Discounts. Assets. 74 28 279 225 398 6 79 7 23 10 132 62 20 251 51 513 558 105 20 250 785 APPENDIX. i6i Clearing-House Returns. The daily average in millions sterling is as follows : — United States 42 I London . . 21 I Berlin . . 3 New York . 25 | Paris . . 7 | Vienna . . 2 Melbourne arerages £500,000 and Manchester £400,000 daily. Tbe returns for London have been daily as follows : — Millions Millions Tear, Sterling. Year. Sterling. 1839 ..31 1871-80 . . 19 1867-70 . . 11 I 1881-84 . . 26 The use of cheques in ratio of payments is as follows : — Per Cent. Per Cent. Per Cent. London. . 99 I Provinces (Eng.) 68 I Western States 82 England . 97 | New York . 99 | IJnited States. 92 The above returns are for the year 1881, the latest ascer- tained. Number of Depositors in Savings Banks. Tear. Great Britain. Continent. Europe. 1850 1,060,000 2,851,000 3,911,000 1860 1,580,000 5,115,000 6,695,000 1870 2,620,000 8,213,000 10,833,000 1881 3,715,000 15,360,000 19,075,000 ( i62 ) E. FINANCES. The annual expenditure of nations in 1883-84 was as follows : — Millions Sterling. ' ^ Interest on ~^ Government. Debt. Military. Total United Kingdom 30-4 29-7 28-9 89-0 France 58-5 51-1 320 141-6 Gennany . 65-4 110 27-0 103-4 Enssia 38-1 24-4 29-5 92-0 Austria 34-6 23-7 12-6 70-9 Italy . 251 24-5 12-4 620 Spain . 17-2 11-0 6-8 35-0 Portugal 3-7 2-9 1-2 7-8 Belgium 6-7 4-1 2-0 12-8 HoUand . 51 2-3 2-6 10-0 Denmark 10 0-5 0-9 2-4 Sweden and Norway 4-3 1-0 1-8 7-1 Europe . 290-1 186-2 157-7 634 United States 27-6 11-4 11-8 50-8 Canada 4-0 1-8 0-2 6-0 Australia . 17-8 5-0 0-2 23-0 Brazil 4-7 3-7 3 11-4 Argentine Republic 2-4 3-2 2-2 7-8 Egypt 4-4 3-5 0-5 8-4 India . 46-9 4-5 18-0 69-4 Japan 4-8 4-3 2-3 11-4 Total . 402-7 223-6 195-9 822-2 APPENDIX. it Debts of Nations, in Millions Sterling 1713. 1763. 1793. 1816. 1848. 1870. 1884. Great Britain . 54 147 370 841 773 801 756 France 48 110 32 140 182 468 995 Germany . 63 40 148 334 Bussia 30 50 90 280 555 Austria 10 is 20 99 125 340 608 Italy . 25 36 374 438 Spain "i i'i 20 62 113 285 330 Portugal . 1 8 17 59 107 Holland . 70 110 114 76 84 Belgium 18 28 78 Denmark . ... ■'4 12 13 12 Sweden and Norway ... 1 6 20 Greece ... *.. 10 18 18 Turkey 92 148 Boumania . 27 Serria 4 Europe 119 283 543 1,382 1,531 2,988 4,414 United States . 17 26 48 496 305 Spanish America 17 135 195 Canada 17 38 Australia . 37 116 India . Japan "9 29 51 2 108 10 160 67 Egypt 37 113 South Africa 2 23 The World 119 283 569 1,437 1,649 3 ,830 5,431 The reduction of French debt after 1763 was by its re- pudiation after the revolution of 1789. ( i64 ) F. COMMERCE AND SHIPPING. Amount of Imports to £100 of Exports. 1861-70. 1871-80. 1861-70. 1871- £ £ £ £ Great Britain 127 133 Europe . 117 125 France . 99 121 United States 136 88 Germany 140 137 Canada 123 129 Russia 96 102 Australia 151 118 Austria . 86 113 India . 56 62 Italy . 138 107 China, &c. . 104 107 Spain and Portugal 136 104 South America . 104 90 Belgium 125 127 Egypt . . 40 39 Holland 123 146 Java . 56 55 Scandinavia . 113 133 The "World . . Ill 113 Comparative Table of British Trade and that of United States. Millions Sterling, Annual Average. British Trade. American Trade. Imports. Exports. Total. Imports Exports. Total. 1831-40 54 57 Ill 21 18 39 1841-50 83 75 158 22 22 44 1851-60 153 121 274 54 47 101 1861-70 . 270 213 483 47 36 83 1871-80 371 278 649 96 108 204 1881-84 . 407 302 709 134 157 291 Customs Dues, Percentage to Trade per Inhabitant. Millions British. Sterling. American. Imp British. orts. £. American. G. Britain. U . States 1831-40 20 4 37 19 4-4 2-6 1841-50 23 5 27 23 5-8 2-2 1851-60 24 11 16 20 9-8 3-7 1861-70 22 17 8 36 16'1 2-4 1871-80 20 31 H 32 18-7 4-6 1881-84 19 41 a 31 20-2 5-6 APPENDIX. 165 In the above table British exports include Colonial goods in transit. Internal Waters of United States. Number of Steamers. 947 681 473 . 1,116 . 1,922 Traffic, OOO's omitted. Waters. Lakes Mississippi Ohio . Gulf . Coast Passengers 1,420 2,710 4,030 9,160 151,190 Goods, Tons 4,380 4,820 2,410 4,110 9,820 5,139 168,510 25,540 The above returns are for the year 1880. Suez Canal Traffic. Year.-; Vessels. Tons. Average Tonnage. 1870 . 486 436,000 900 1875 . 1,494 2,940,000 1,960 1882 . . 3,198 7,122,000 2,225 Canal dues average 7 shillings per ton gross measurement. British Shipping, Tons (OOO's omitted). Built. Broken up or Lost. Increased Tonnage. Steam. Sailing. Total. Steam. Sailing. Total. 1879 . . 449 62 511 131 190 321 190 1880 . . 486 60 546 118 220 338 208 1881 . . 661 88 749 142 213 355 394 1882 . . 790 138 928 163 210 373 555 1883 . 885 142 1,027 199 194 393 634 1884 . . 668 161 729 192 174 366 363 SMjpping Built by all Nations. Tonnage (OOO's omitted) per Annum. Percentage. Years. Steam. Sailing. Total. Steam. Sailing 1851-60 63 635 698 9 91 1861-70 . 151 910 1,061 14 86 1871-83 . 637 735 1,372 46 54 1 66 APPENDIX. Tonnage of Entries (1883). Millions of Tons. United Kingdom 32'1 Germany . . 7'1 Belgium . 4-3 British Colonies 3fi-5 Italy . . .5-7 Holland 4-0 United States 13'4 Austria . . 5'2 Portugal 31 France 13-7 Russia . . 47 China . . 2-0 Spain 7-6 Sweden & Norway C'6 S. America, &o. . 6-4 The above make up a total of 152 miUion tons. Entries in United Kingdom. Year. 1840 1850 1860 1870 1880 1884 Millions of Tons. Tons, per inhab igh-BeaB. Coasting. Total. 4-7 12-6 17-3 0-7 7-3 215 28-8 10 12 '3 24-4 36-7 1^2 18-3 28-9 47 '2 1-5 29-1 36 1 65 '2 1-9 31-7 36-8 68-5 20 Entries in United States Ports. Millions of Tons. Year. 1860 1870 1884 American. British. Other. Total. 3-3 1-3 0-4 5'0 2-5 2 '8 1-0 63 2-8 8-5 3-4 14-7 ( i67 ) G. RAILWAYS. Mileage Traffic, in Thousands (17-9 = 17,900 Pasaengers). 1860. Passengers. Goods, Tons. 1870. 1882. I860. 1870. 1882. Great Britain 17-9 22-4 411 7-9 10-8 14-2 France. 9-3 10-2 10-6 3-7 4-8 5-5 Germany 7-0 11-4 9-9 3-5 8-3 71 Russia. 4-7 21 2-6 2-8 1-2 2-4 Austria 4-0 3-6 3-7 2-4 4-2 4-8 Italy .... 5-8 6'2 61 0-9 1-5 1-9 Spain and Portugal . 51 2-6 5-3 1-7 11 1-4 Belgium and Holland . 14-9 18-0 17-9 6-6 11-2 10'2 Switzerland 8-8 16-4 13-8 1-5 4-4 3-9 Scandinavia 1-3 4-4 3 01 2-8 1-6 Europe 10-6 11-5 12-7 4-8 6-2 5-6 United States 21 2-9 2-9 3-9 Cost of Co nstruction and Net Profit. Cost per Profit on Cost per Profit on MUe. Capital. Mile. Capital. England . . 49-2 4-2 Portuga . . 15-4 2-5 Scotland . . 33-3 3-7 Belgium , . 22-5 3-7 Ireland. . . 14-2 3-6 Holland , . 18'6 3-5 United Kingdom . 42-1 4-3 Denmark . . 10-3 21 France . . . 27'4 41 Sweden & Norway 6 '8 2-4 Germany . . 21'1 4-2 United States . HI 4-4 Eussia . . .20-5 2-2 Canada . . 9-6 1-8 Austria. . .207 3'8 Australia . . 10-4 3-6 Italy . . . 19-4 2-5 India. . 14 6 4-6 Spain . . .16-4 3-8 General average 16-9 4-0 In 1882 tlie railways of the world carried 6 million pas- sengers and 3 million tons merchandise daily, for which they received £1,200,000, no less than 2,400,000 persons being employed in their service. ( i68 ) H. MANUFACTURES. Cotton-Mills of all Nations. Great Britain United States Germany France . Bussia . Austria Spain , India . Belgium, &c. Spindles, Operatives. Millions. Thousands. 40-2 482 11-2 260 5-4 150 4-8 170 3-4 180 2-2 100 1-6 80 1-2 80 4-3 141 Total 74-3 1,643 suit Industry. Consumption, Manufactures, Raw Silk, Tear. Million lbs. Millions Sterling. Shillings per lb. 1850 . 30 52 14 1860 33 60 21 1870 . . 36 70 26 1880 . . 38 73 17 Great Britain France Germany Russia Austria Italy Spain, &c. United States Cliina Annual Consumption, MiUion lbs. Raw Silk. 1861-65. 5-5 12-3 2-1 0-6 10 1-3 0-7 0-5 9 2-9 15 '2 3-4 1-0 2-1 1-6 1-2 1-8 9-0 Value of Fabrics, Millions Sterling (1884). 1876-80. Manufactures. Consumption. 15-6 16-2 6-0 2-4 6-0 30 2-7 12-1 11-2 330 38-2 73-2 75-2 APPENDIX. 169 The production in 1880 was as follows : — Million lbs. China 21-0 Japan 4'4 Italy ... .... 6-6 India, &c 2-0 France, &c 40 Total .... 38-0 Only one-tenth, of the Italian crop is from native eggs, the rest being obtained from 70 tons of eggs yearly imported. Linen Manufactures. Flax, Spindles, Linen Fabrics, Million lbs. OOO's omitted. Millions Sterling United Kingdom . 230 1,485 11-5 France . 145 762 8-2 Germany 77 327 4-0 Ku&sia 88 145 4-1 Austria . 132 415 7-6 Belgium and Holland 66 296 3-8 Italy, &o. 22 64 1-2 United States 40 13 2-6 Total 800 3,507 43-0 Total Hemp. Productio Tons. Austria . 110,000 Italy . 90,000 Russia 60,000 France 50,000 Holland, &c. 115,000 425,000 Consumption in Great Britain. Value, £ per Ton. 28 30 38 28 33 Tear. Tons. 1850 54,200 1860 35,200 1870 71,300 1880 73,400 1883 77,700 During the American War it went over £40 a ton, and afterwards feU steadily until 1880, since which year it has risen by degrees, apparently unaffected by the enormous increase of jute. I70 APPENDIX. Woollen Manufactures (1880). Millions, Manufactures, lbs. Wool. Millions Sterling United Kingdom . 338 461 France . 336 43-3 Germany 190 26-3 Kussia . 170 23 Austria . 80 10-7 Belgium 93 7-8 Spain and Portugal 70 8 '5 Italy, &c. . . 53 6-9 United States 320 43-0 Total . . . 1,650 213-5 Co-operative Societies. These societies have affected retail prices in the large towns, but cannot be said to have influenced wholesale prices. The first was established at Eochdale, Lancashire, in 1844 by twenty-eight -workmen, with a capital of .£28. Some of the London societies' shares are now worth a hun- dred times the original amount of subscription. There are in Great Britain 1,120 co-operative societies, with 1,100,000 members, -whose joint-stock capital reaches seven millions sterling. The five principal London societies show sales amounting to £4,500,000 per annum ; working expenses (including wages, rent, &c.), £250,000, equal to 5| per cent. on sales. There are in Germany 3,120 co-operative societies, initiated by Mr. Schultz-Delitsch, counting 1,200,000 members, with an aggregate capital of 19 millions sterling ; annual turn- over, 140 millions sterling. These societies have grown so rapidly that in 1860 there were only 133, numbering 32,000 members. ( 171 ) I. AGRIC U LTURB. Acreage under Flax. 1866-70. 1882-83. United Kingdom . 220,000 102,000 France . . . . 196,000 137,000 Austria . 290,000 245,000 Eussia . . . . 2,260,000 1,950,000 Germany. 370,000 292,000 Belgium and Holland 210,000 126,000 Italy, &c. . . . 260,000 244,000 United States . 120,000 160,000 3,926,000 3,256,000 Cultivation of Potatoes. OOO's omitted. Cwts. Bushels Acres. Crop, Tons. per Acre. per Inhabitant United Kingdom France Germany . Bussia Austria Belgium, &c. 1,379 3,200 8,800 3,100 3,500 1,760 4,840 9,500 23,300 9,200 8,100 5,670 70 59 62 60 46 64 5-3 9-2 19 1 4-0 91 3-3 Europe United States Canada, &c. . 21,739 1,900 1,100 60,610 3,500 3,300 60 37 60 6-7 2-5 Total 24,739 67,410 57 Agriculture in the United States. Farms, Value, Grain, Bushels MilHons Millions Million per Tear. of Acres. Sterling. Bushels. Inhabitant 1850 293 683 868 37 1860 . 407 1,382 1,240 39 1870 410 1,923 1,388 36 1880 534 2,116 2,699 54 172 APPENDIX. Agriculture in the United Kingdom. Acres, OOO's omitted. 1868-69 1884. Great United Ire- United Britain. Ireland. Kingdom. England. Scotland. land. Kingdom. Wheat 3,690 283 3,973 2,608 69 69 2,746 Oats. 2,750 1,720 4,470 1,870 1,046 1,347 4,263 Barley 2,203 170 2,373 1,938 231 167 2,336 Potatoes 528 1,037 1,565 401 164 799 1,364 Turnips 2,185 321 2,506 1,543 485 304 2,332 Sundries 1,794 2,017 3,811 1,562 56 135 1,753 Total . 13,150 5,548 18,698 9,922 2,051 2,821 14,794 The area under crops has fallen 20 per cent, and the actual ratio of tillage is only 41 acres per 100 inhabitants, against 62 acres in 1868. Vineyards a7id Wine Production in France. Years. 1850-52 1860-62 1870-72 1880-82 Acres of Vines, OOO's omitted. 5,450 5,510 6,560 5,150 Millions of Gallons Wine. 920 703 1,010 720 Gallons per Acre. 168 126 153 140 Export, Millions of Gallons. 38 48 70 55 Vineyards of all Nations. France Italy . Spain. Portugal Austria Germany Russia Acres, OOO's omitted. 5,150 4,650 2,720 420 1,580 305 110 Millions of Gallons. 720 580 320 80 310 70 19 Gallons per Acre. 140 125 118 190 196 230 170 Pence per Gallon. 15 13 14 30 12 14 24 Europe 14,935 2,099 133 14 United States . 130 21 160 23 Algeria 51 9 176 20 Argentine Republic 60 6 105 28 South Africa 18 4 220 Australia 15 2 130 Chili . 88 14 160 30 Other countries . 100 15 150 Total 15,397 2,170 141 14 APPENDIX. 173 England . Germany . France United States . Hops. Acres. 67,100 61,800 9,200 10,000 Tons. 26,200 18,800 4,600 5,000 Value, £ Sterling. 3,120,000 2,340,000 550,000 600,000 Total . . 148,100 54,600 6,610,000 In England the consumption averages 33,000 tons, in Germany 15,000. Cattle of all Nations (1880-83). OOO's omitted. Cows. Horses. Sheep. Pigs. United Kingdom 9,905 2,905 27,876 3,190 France . . 11,480 2,833 23,370 5.810 Germany . 1.5,790 3,360 25,200 7,130 Russia . 22,770 16,160 48,820 10,514 Austria . 13,133 3,760 21,418 7,080 Italy . 3,490 658 6,980 1,570 Spain and Portugal 3,620 659 25,217 5,323 Holland 1,462 279 898 337 Belgium 1,242 283 586 632 Denmark 1,348 352 1,720 504 Sweden and Norway 3,254 618 3,189 518 Greece . 258 96 2,292 30 Roumania . 3,600 600 6,180 2,310 Europe . 91,352 32,563 193,766 44,948 United States . 42,547 11,170 50,627 44,200 Canada 2,702 866 3,330 1,425 Australia 7,863 1,065 65,915 815 River Plate . 18,390 6,150 88,440 362 Cape Colony 1,330 241 11,280 164 Algeria 1,204 350 8,788 300 The "World . . 165,388 Production 52,405 of Coffee. 422,146 92,214 Total Crop. Tons. In 1881. Tons. 1832 . 95,000 Brazil . , 333,000 1844 . . 255,000 Java . 90.000 1855 . . 321,000 Ceylon 53,000 1865 . . 422,000 West Indies 42,000 1875 . . 505,000 Africa, &c. . 71,000 1881 . . 589,000 Total 589,000 Tobacco Crop. Exports from United States. Product (1881). Million lbs. Tons. 1840 .... 141 United States . 210,000 1850 .... 168 India 170,000 1860 .... 193 Bnssia . 75,000 1870 .... 188 Austria . 65,000 1880 .... 217 West Indies . 22,000 1883 .... 236 Brazil, &c. 226,000 Total 768,000 Sugar in 1882. OOO's omitted. Tons. Germany 606 Cuba 520 Austria . 460 France 390 British Colonies . 340 Bussia .... .... 240 Java 190 Manilla. . ... . . 180 Brazil 150 French Colonies . 105 Egypt, &o. . . 490 Total . . . 3,671 ( 175 ) K. FOOD-SUPPLY. Consumption of Luxuries. Ounce per Inhabitant. Gallons per Inhabitant. Tea. Coffee. Tobacco. Beer. Wine. Spirit United Kingdom . 72 15 23 28-6 0-4 1-1 France . 1 52 29 5-1 20-1 0-9 Germany 1 83 72 19-4 2-7 1-3 Russia . 7 3 26 0-8 0-4 2-2 Austria . 1 35 80 6-5 7-5 0-8 Italy . 1 18 22 0-7 17-6 0-3 Spain . 1 4 32 0-1 13-5 0-2 Belgium and Holland 8 175 84 22-2 0-8 2-6 Denmark 8 76 61 12-6 0-3 4-3 Sweden and Norway 2 88 29 5-4 0-2 4-2 United States 21 115 59 7-2 0-6 1-5 Average . 11 44 41 8-6 5-5 1-1 CoTisumption of Liquor in United Kingdom. Millions of Gallons. Gallons per Inhat itant. Equivalent Equivalent Beer. Spirits. Wine. in Alcohol. Beer. Wine. Spirits. in Alcohol. 1853 . 720 6 26 46 26 0-22 0-96 1-67 1860 770 8 27 60 26 0-26 0-93 1-72 1871 . 980 16 34 64 31 0-51 1-06 2-02 1883 . 977 14 37 65 28 0-40 106 1-86 Millions of GaUons. GaUons per Inhabitant. Equivalent Equivalent Beer. Wine. Spirits . in Alcohol. Beer. Wine. Spirits. in AlcohoL England . 864 10 21 51 32 0-40 077 1-90 Scotland 38 2 9 7 10 0-40 2-37 173 Ireland . 75 2 7 7 15 0-40 1-40 1-46 U. Kingdom 977 14 37 65 28 0-40 1-06 1-86 176 APPENDIX. The expenditure for liquor in 1883 was 57 shillings per inhabitant in England, 58 in Scotland, and only ii shillings in Ireland. Butter and Cheese. Consump- tion of Production, Tons, Consumption, Tons, Butter anc OOO's omitted. OOO's omitted. Cheese, lbs. per Inhabitant Butter. Cheese. Total. Butter. Cheese. Total. U. Kingdom . 90 126 216 205 216 421 26 France . 96 15 105 65 50 115 7 Germany . . 160 80 240 160 80 240 12 Austria . . 88 45 133 88 45 133 8 Italy . 12 14 26 12 21 33 3 Switzerland . 10 40 50 10 22 32 27 Holland . . 46 40 86 10 10 20 12 Scandinavia . 55 20 75 40 20 60 16 United States . 376 117 487 350 50 400 18 Canada . . 34 33 67 24 16 40 21 Total . 962 530 1,485 964 530 1,494 13 The product of milch cows in Holland averages in value £15 each per annum,, against £11 in England and £7 in Canada. The Camembert cows in France produce cheese to the value of £36 per head. It takes in England a gallon of milk to make a pound of cheese, a good cow giving 280 lbs. cheese per annum. Consumption of Imports per Inhabitant JJJnit6d Kingdom). Ratio. 1851-60. 1861-70. 1871-80. 1881-84. 1851-60. 1881-84 Sugar, lbs. 31 38 68 70 100 226 Rice, ,, 6 6 11 14 100 233 Bacon, ,, 1 3 10 11 100 1,100 Butter, ,, 2 4 5 7 100 350 Cheese, „ 1 3 5 5 100 500 Kaisins, ,, 2 4 4 4 100 200 Eggs, No. 5 12 20 24 100 480 Tea, ounces 38 52 70 75 100 197 Coffee, „ . 21 17 15 14 100 67 Tobacco, „ 18 21 23 23 100 128 ( 177 ) PRICE-LEVEL OF THE WORLD SINCE 1782. The value of all merchandise, assuming the same quanti- ties as in 1881-84, would have been at previous prices as follows : — Agricultural, Millions Sterling. Year. Grain. Meat. Dairy. Wool. Cotton. Sugar. Sundries. Total. 1782-90 . 1,348 342 153 272 298 96 264 2,773 1791-1800 1,803 480 202 330 327 164 347 3,653 1801-10 . 2,214 640 257 704 222 132 438 4,607 1811-20 . 2,360 706 295 560 222 159 452 4,754 1821-30 . 1,589 532 234 240 137 109 298 3,139 1831-40 . 1,490 588 220 200 122 106 286 3,012 1841-50 . 1,419 560 236 160 76 106 269 2,826 1851-60 . 1.724 628 266 145 85 100 324 3,272 1861-70 . 1,658 661 303 125 183 106 380 3,416 1871-80 . 1,547 747 333 97 101 84 384 3,293 1881-84 . 1,326 830 340 83 87 61 406 3,133 Manufactures, Millions Sterling. Year. Hardware. Timber. Coal. Cottons. WooUenB. Leather. Suiidrieg, Total, 1782-90 . 702 235 392 926 356 196 335 3,142 1791-1800 865 325 426 1,005 395 251 370 3,637 1801-10 . 1,116 621 336 770 710 340 451 4,344 1811-20 . 1,265 560 358 770 577 330 422 4,282 1821-30 . 1,006 257 358 540 330 175 308 2,974 1831-40 . 865 299 280 502 303 196 299 2,744 1841-50 . 576 428 224 386 263 218 265 2,360 1851-60 . 525 338 241 335 245 202 271 2,157 1861-70 . 504 338 241 484 280 212 287 2,346 1871-80 . 593 301 241 346 268 188 249 2,186 1881-84 . 384 273 189 302 223 184 222 1,777 The prices adopted before 1840 are those of Great Britain, as those of other nations from 1782 to 1840 are not available. M 178 APPENDIX. Price-level of Principal Items. Agricultural. Tear. Grain. Meat. Dairy. Wool. Cotton. Sugar. Total. 1782-90 . 100 100 100 100 100 100 100 1791-1800 133 141 131 121 110 170 132 1801-10 . 165 188 167 259 75 138 166 1811-20 . 175 208 190 206 75 165 172 1821-30 . 118 157 153 90 46 113 113 1831-40 . 110 173 144 75 > 41 110 109 1841-50 . 105 165 155 60 26 110 102 1851-60 . 128 184 175 54 28 104 118 1861-70 . 123 194 198 46 61 110 123 1871-80 . 115 220 218 36 34 88 119 1881-84 . 98 244 222 30 Industrial, 29 64 113 Year. Hardware. Timber. CoaL Cottons, Woollens. Leather. Total. 1782-90 . 100 100 100 100 100 100 100 1791-1800 124 138 109 107 112 128 116 1801-10 . 159 263 85 82 199 173 138 1811-20 . 181 238 91 82 161 168 136 1821-30 . 144 108 91 58 92 90 95 1831-40 . 124 127 71 54 84 100 87 1841-50 . 82 182 57 42 73 111 75 1851-60 . 75 144 61 36 68 103 69 1861-70 . 72 144 61 52 78 108 75 1871-80 . 8.5 128 61 37 75 96 70 1881-84 , , 55 116 48 32 62 94 57 It appears from the above that agricultural products have risen 13 per cent,, manufactures fallen 43 per cent., in price- level since 1782-90. ( 179 ) M. PRICE-LISTS. Average Value of Fifty Briiish Imports. Extreme Annual Prices. 95 S «> S Highest. Bacon, cwt. . . s. 51 49 45 50 66 in 1869 Barley, bushel . d. 37 43 50 44 61 ,, , 1868 Beef, cwt. . . s. 40 38 44 51 53 ,: , 1883 Brandy, gallon . d. 112 80 95 108 156 ,; , 1857 Butter, cwt. . s. 84 104 110 103 117 ,, , 1876 Cheese, cwt. . . a. 51 56 56 54 64, , 1866 Cigars, lb. . . s. 11 11 13 12 14 „ , 1882 Cochineal, cwt. . £ 21 16 13 9 23 , , 1857 Cocoa, cwt. . . s. 47 55 72 74 93 „ , 1879 Coffee, cwt. . . s. 49 64 88 72 101 „ 1874 Copper ore, ton . £ 21 15 13 10 29 „ 1856 Cotton, cwt. . s. 61 148 66 58 271 „ 1864 Currants, cwt. . s. 36 21 27 27 61 ;; 1855 Eggs, gross . . d. 82 88 114 102 124 „ 1874 Flax, cwt. . . s. 47 55 49 40 60 „ 1866 Flour, cwt. . . s. 18 15 17 15 24 „ 1855 Gloves, pair . . d. 20 26 25 24 28 1868 Guano, ton . . £ 12 12 11 10 13 /, 1857 Hemp, cwt. . . s. 35 35 33 32 54 „ 1854 Hides, cwt. . . s. 66 59 82 64 89 „ 1874 Hops, cwt. . . s. 107 93 94 144 170 „ 1854 Indigo, cwt. . £ 31 34 27 26 38 „ 1868 Jute, cwt. . . s. 18 19 17 14 25", 1863 Lard, cwt. . . s. 58 56 47 51 73 „ 1869 Maize, bushel . d. 53 44 42 38 66," 1855 Molasses, cwt. . s. 13 12 9 8 18 „ 1857 Nitre, cwt. . . s. 16 14 15 12 20 „ 1857 Oats, bushel . d. 35 40 46 43 57 1868 Oil, olive, tun . £ 53 58 46 40 67 „ 1868 Oilseed, ton . . s. 170 188 182 155 202 „ 1855 Oranges, bushel . 8. 12 11 9 8 13 „ 1862 Oxen, each . £ 16 18 21 22 23 „ 1878 Pepper, cwt. . s. 46 37 48 56 70 „ 1873 Lowest. 35 in 1862 28 „ 1865 29 „ 1863 60 „ 1866 68 „ 1854 43 „ 1879 6 „ 1869 6 „ 1884 28 „ 1854 43 „ 1858 8 „ 1881 55 „ 1879 17 „ 1865 65 „ 1854 36 „ 1857 13 „ 1884 16 „ 1855 9 „ 1882 28 „ 1879 47 „ 1854 45 „ 1859 24 „ 1884 12 „ 1883 34 „ 1879 33 „ 1879 7 „ 1884 11 „ 1867 27 „ 1864 39 „ 1883 150 „ 1884 7 „ 1870 12 „ 1854 33 „ 1864 I So APPENDIX. Extreme Annual Prices. s OO 00 g Highest. Lowest. Poik, cwfc. . . s. 44 46 40 38 62 in 1870 31 in 1879 Potatoes, cwt. . U. 42 54 66 75 81 „ 1884 36 , 1854 Raisins, cwt. . s. 37 30 35 36 48 „ 1856 25 , 1862 Rice, cwt. . . s. 12 12 10 8 15 „ 1867 8 , 1882 Bum, gallon . d. 40 28 24 22 44 „ 1857 20 , 1884 Saltpetre, cwt . s. 35 27 22 21 40 „ 1860 18 , 1884 Seed-clover, cwt. . s. 65 57 48 '44 77 „ 1856 43 , 1882 Sheep, each s. 41 39 45 46 49 „ 1878 31 , 1868 Silk, lb. . s. 18 23 19 16 27 „ 1866 15 , 1884 Sugar, cwt. . . s. 32 33 26 26 46 „ 1857 21 , 1884 Tallow, cwt. s. 55 45 40 38 63 „ 1854 35 , 1880 Tea, lb. d. 17 18 16 12 20 „ 1865 12 , 1884 Tobacco, cwt. . s. 84 105 73 70 142 „ 1863 62 , 1878 "Wheat, bushel . d. 81 78 71 60 100 „ 1854 50 , 1884 Wine, gallon . d. 133 67 88 84 177 , 1856 46 , 1864 "Wood, load . . s. 64 63 56 51 76, 1854 42 , 1879 "Wool, lb. . . d. 21 18 14 12 22 „ 1857 12 , 1884 Index Numbers of Fifty British Imports. 1854-60. 1861-70. 1871-80. 1881-84 1854. 1884. Bacon . 100 96 88 98 78 96 Barley . 100 117 135 119 108 105 Beef . 100 95 110 127 95 127 Brandy 100 71 84 96 89 96 Butter 100 124 131 123 81 119 Cheese 100 110 110 106 90 102 Cigars . 100 100 118 109 100 100 Cochineal 100 76 62 43 105 28 Cocoa . 100 117 154 160 60 165 Coffee . 100 130 180 147 94 135 Copper 100 71 62 48 114 52 Cotton 100 242 108 95 88 93 Currants 100 58 75 75 61 75 Eggs . 100 107 140 124 80 123 Plax . 100 117 104 85 109 88 Flour . 100 83 95 83 122 72 Gloves 100 130 125 120 80 110 Guano . 100 100 92 83 92 75 Hemp . 100 100 94 91 168 88 Hides . 100 90 124 97 71 97 Hops . 100 87 88 134 158 117 Indigo . 100 110 88 84 77 77 Jute . 100 105 95 78 127 78 Lard . 100 96 81 88 90 76 Maize . 100 83 80 72 113 66 Molasses 100 92 70 62 85 54 Nitre . 100 87 93 75 106 62 Carry forward, 2,700 2,794 2,786 2,622 2,641 2,476 APPENDIX. ISI Brght. forwd. Oats . Oil . Oilseed Oranges Oxen , Pepper ' Pork . Potatoes Eaisins Eice . Bum . Saltpetre Seeds . Sheep . Silk . Sugar . Tallow Tea . Tobacco Wheat "Wine . Wood . Wool . 1S54-6C 2,700 100 100 lOO 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 1861-70. 2,794 114 109 110 92 112 80 104 128 80 100 70 77 88 95 127 103 81 105 125 96 50 98 Total . 5,000 5,024 1871-80. 2,786 130 86 107 75 130 104 91 157 95 83 60 63 74 110 105 82 72 95 (57 4,902 1881-84. 2,622 122 75 91 67 138 122 86 180 97 67 55 60 68 112 89 82 68 70 83 74 63 80 66 4,627 1854. 2,641 103 100 107 75 75 102 102 85 86 117 110 77 80 72 83 90 114 88 89 124 111 118 74 4,823 1884. 2,476 111 80 89 60 138 145 84 192 91 67 50 52 70 110 83 66 68 70 88 62 64 75 56 4,447 Prices of Fifty British Ezpoi'ts. ^ o O -* Extreme 3 2 CO Annual Prices CO i 2 S Highest. Lowest. Alkali, owt. . d. 116 104 lOfi 75 148 in 1873 73 in 1883 Bags, doz. . s. 11 10 7 5 15, , 1864 5, ,1884 Beer, barrel . s. 69 73 S3 80 88, ,1874 66, ,1854 Books, cwt. . £ 14 13 11 10 15, ,1855 9! ,1884 Boots, doz. . s. 60 68 62 59 72; ,1864 57, ,1881 Bottles, owt. d. 130 120 126 117 138, ,1854 111, ,1883 Brass, cwt. . s. 120 110 100 86 131, ,1857 78, ,1879 Butter, cwt. s. 100 97 124 136 140, ,1884 92, ,1854 Candles, doz. lbs. d. 150 112 92 79 224 ,1857 78, ,1882 Carpets, yard d. 31 35 34 28 40, ,1867 26 „ 1884 Cement, ton s. 57 53 52 46 76, ,1856 45, ,1884 Cheese, cwt. s. 81 83 83 83 88, ,1870 76, ,1854 Cloth, yard . d. 27 36 37 37 41. ,1884 24, ,1854 Coal, ton d. 110 114 151 110 2.51, ,1873 108, ,1862 Copper, cwt. s. 110 88 80 66 120, ,1857 59, ,1884 Cordage, cwt. s. 55 53 54 50 63, ,1854 46, ,1884 Cottons, plain, 10 yds. d. 30 42 31 26 58 ,1864 25 „ 1884 ,, printed, 10 yds d. 41 52 45 36 63 ,1864 36, ,1884 Firearms, each s. 25 34 28 26 41, ,1875 18 „ 1854 lS2 APPENDIX O O ■*' Extreme 3 1 3 Annual Prices, Id CO 1 CO So :qighest. Lowest. Fish, barrel . s. 25 2'7 29 30 35 in 1881 21 in 1854 Flannels, yard d. 16 18 18 15 20, ,1864 14, ,1884 Glass, flint, cwt. . s. 64 56 54 46 73, ,1855 44, ,1881 Gunpowder, 10 lbs. d. 74 64 61 59 77, ,1859 57, ,1868 Hats, doz. . s. 38 35 27 22 39, ,1865 21, ,1884 Horses, each £ 68 51 64 60 81, ,1876 35, ,1870 Iron, pig, ton s. 67 57 74 52 125, ,1873 46, ,1884 ,, rails, ton s. 1C6 160 184 128 265, ,1873 114, ,1884 „ hoops, ton . «. 262 212 206 152 292, ,1873 144, ,1879 Jute, 10 yards d. 63 42 34 26 60, ,1854 24, ,1884 Lead, ton £ 24 21 20 14 25, ,1856 13, ,1884 Leather, cwt. s. 176 187 164 178 225, ,1866 137; , 1879 Linen, plain, 10 yards d. 70 77 73 68 84, ,1864 66, ,1884 „ printed, 10 yard d. 76 90 77 74 99, ,1866 65, ,1884 Oilseed, gallon d. 33 35 29 24 38, ,1866 22, ,1884 Paper, cwt. . s. 88 63 56 42 90, ,1854 41, ,1884 Sailcloth, yard d. 12 13 13 12 14, ,1874 11, ,1884 Salt, ton s. 11 10 13 12 19, ,1873 9, ,1863 Soap, cwt. . s. 26 26 25 23 28, ,1869 22, ,1882 Silks, yard . d. 38 45 40 40 49, ,1867 37, ,1875 Spirits, gallon d. 45 30 49 70 74, ,1884 29, ,1865 Steel, ton £ 35 32 32 15 38, ,1874 11, ,1881 Sugar, cwt. . s. 53 37 26 21 60, ,1857 17, ,1884 Tin, cwt. «. 120 107 100 95 150, ,1872 66, ,1878 Wire, ton . £ 20 20 17 14 24, ,1873 13, ,1884 "Wool, lb. . d. 16 20 :9 13 24, ,1865 11 ,1884 Worsted stuffs, yard d. 10 14 11 9 15, ,1867 9, ,1879 Yam, cotton, lb. . d. 12 20 15 12 29, ,1864 11, , 1855 ,, linen, lb. . d. 13 16 16 14 18, ,1864 12, ,1855 „ woollen, lb. d. 30 37 35 25 42, ,1866 23, ,1883 Zinc, cwt. . s. 28 22 21 14 32, ,1857 14, ,1884 Index Numbers of Fifty British Exports. 1864-60. 1861-70 18Y1-80. 1881-84 1864. 1884 AlkaU . 100 90 92 65 86 65 Bags . 100 91 64 45 118 45 Beer . 100 106 120 117 95 110 Books . 100 93 80 72 100 64 Boots . 100 113 103 98 100 100 Bottles 100 92 97 90 106 86 Brass . 100 92 83 72 103 71 Butter. 100 97 124 136 92 140 Candles 100 74 61 52 85 54 Carpets 100 113 110 90 94 84 Cement 100 93 91 80 98 79 Cheese 100 103 103 103 94 104 Carry forward, 1,200 1,157 1,128 1,020 1,171 1,002 APPENDIX. l8 1864-60. 1861-70. 1871-80. 18^1-84. 1864. 1884. Brought forward, 1,200 1,157 1,128 1,020 1,171 1,002 Cloth . 100 133 137 137 89 152 Coal . 100 104 137 100 109 101 Copper 100 80 73 60 105 54 Cordage 100 96 98 91 114 83 Cottons, plain 100 140 103 87 93 83 ,, printed 100 127 110 88 100 88 Firearms 100 136 112 104 72 104 Fish . 100 108 116 120 84 100 Flannel 100 113 113 94 88 88 Glass . 100 88 85 72 106 73 Gvmpowder . 100 85 81 80 90 77 Hats . 100 92 71 58 95 55 Horses 100 88 110 104 88 100 Iron, pig 100 85 111 78 128 69 ,, rails . 100 96 HI 77 108 69 „ hoops . 100 80 78 58 85 56 Jute 100 79 64 49 113 45 Lead . 100 88 83 58 96 54 Leather 100 106 93 101 95 107 Linen, plain 100 110 104 97 114 94 „ printed 100 118 101 97 100 87 Oilseed 100 106 88 73 100 67 Paper . 100 71 63 48 109 46 Sailcloth . 100 108 108 100 100 92 Salt . 100 91 118 109 109 118 Soap . 100 100 96 88 104 88 Silks . 100 118 105 105 100 103 Spirits . 100 67 109 155 133 165 Steel 100 91 91 43 94 57 Sugar 100 70 48 40 66 32 Tin . 100 89 83 79 96 71 Wire . 100 100 85 70 105 65 Wool . 100 125 119 81 88 70 Worsted . 100 140 110 90 110 100 Yarn, cotton 100 167 125 100 92 100 „ linen . 100 123 123 108 100 108 „ woollen 100 123 117 83 80 80 Zinc . 100 79 75 50 107 50 Total 5,000 5,077 4,882 4,252 4,936 4,153 Prices in United States (Gold). 1825-30. 1881^0. 1841-60. 1851-60. 1861-70. 1871-80. 1881-1 Beef, cwt. s. 22 25 22 24 22 22 29 Butter, cwt, . s. 70 80 62 90 106 104 140 Cheese, cwt. 8. 33 37 28 38 46 51 65 Coal, ton 8. 33 34 25 25 26 19 18 Coffee, cwt. . S. 65 54 36 48 71 77 58 Cotton, cwt. . S. 56 58 40 50 170 65 56 i84.- APPENDIX. 1826-30. 183M0 1841-50. 1851-60. 1861-70 1871-80. 1881-8 Flour, cwt. . s. 13 16 13 14 12 12 U Fish, cwt. s. 13 20 26 38 35 29 36 Hams, cwt. , s. 47 49 36 46 45 42 65 Iron, ton s. 218 187 133 121 122 131 92 Leather, cwt. s. 98 89 73 102 105 118 94 Maize, bushel d. 30 40 32 40 38 28 35 Pork, cwt. . s. 30 40 25 40 40 33 35 Rice, cwt. s. 15 17 21 19 33 32 24 Sugar, cwt. . s. 35 32 29 29 40 33 31 Tobacco, cwt. s. 19 34 27 43 57 39 37 Wheat, bushel d. 55 68 58 79 75 65 60 Wool, lb. d. 14 16 14 18 19 19 20 Prices of Eggs. - Pence per Twelve Dozen. Year. G. Britain. France. Italy. Canada. Medium, 1851-60 . 80 74 53 69 1861-70 . 88 85 56 76 1871-80 . . 114 95 74 79 91 1881-83 . . 106 101 91 91 97 Prices of Bntish Gram. Pence per Bushel. Ratio. Year. Wheat. Barley. Oats. Wlieat. Barley. Oats. Average 1841-50 80 50 33 100 100 100 100 1851 57 38 27 71 76 82 76 1852 62 42 29 77 84 88 83 1853 80 50 31 100 100 94 98 1854 108 54 42 135 108 127 123 1855 112 48 41 140 96 124 120 1856 104 62 38 130 124 115 123 1857 84 63 38 105 126 115 115 1858 66 53 38 82 106 115 101 1859 66 51 35 82 102 106 97 1860 80 56 36 100 112 109 107 1861 83 54 36 104 108 109 107 1862 83 53 35 104 106 106 105 1863 68 51 32 85 102 97 95 1864 60 45 30 75 90 91 85 1865 63 45 33 79 90 100 90 1866 75 66 36 94 112 109 105 1867 96 60 39 120 120 118 119 1868 96 64 42 120 128 127 125 1869 72 59 39 90 118 118 109 1870 70 53 35 88 106 106 100 1871 86 54 38 107 108 115 HO 1872 86 56 35 107 112 106 108 1873 89 60 38 111 120 115 115 APPENDIX. .185 Pence per Bushel. Eatio. Year. Wheat. Barley. Oats. Wheat. Barley, Oats. Average 1874 84 67 44 105 134 133 124 1875 68 57 44 85 114 133 111 1876 69 53 39 86 106 118 103 1877 85 60 39 106 120 118 115 1878 69 60 36 86 120 109 105 1879 66 51 33 82 102 100 95 1880 66 50 35 82 100 106 96 188X 69 48 33 86 96 100 94 1882 69 47 33 86 94 100 93 1883 63 48 33 79 96 100 92 1884 54 47 30 67 94 91 84 Prices of 1854 and 1884 Convpared. Imports. Exports. 1864. 1884. 1864. 1884 Bacon, cwt. . s. 40 49 Alkali, cwt. . d. 100 76 Baxley, bushel .d. 40 39 Bags, doz. . . s. 13 5 Beef, cwt. . . s. 38 51 Beer, barrel . s. 66 76 Brandy, gallon .d. 100 108 Books, cwt. .£ 14 9 Butter, cwt. . s. 68 100 Boots, doz. . . s. 60 60 Cheese, cwt. . s. 46 52 Bottles, cwt. . d. 138 112 Cigars, lb. . . s. 11 11 Brass, cwt. . . s. 124 85 Cochineal, cwt. .£ 22 6 Butter, cwt. . s. 92 140 Cocoa, cwt. . . s. 28 77 Candles, doz. lbs. .d. 127 80 Coffee, cwt. . . s. 46 66 Carpets, yard . d. 29 26 Copper ore, ton .£ 24 11 Cement, ton . s. 56 45 Cotton, cwt. s. 54 57 Cheese, cwt. . s. 76 84 Currants, cwt. s. 22 27 Cloth, yard d. 24 41 Eggs, gross . .d. 65 101 Coal, ton . d. 120 111 Flax, cwt. . . s. 51 41 Copper, cwt. . s. 115 59 Flour, cwt. . . s. 22 13 Cordage, cwt. s. 63 46 Gloves, pair . .d. 16 22 Cottons, plain, 10 yds d. 28 25 Guano, ton . .£ 11 9 „ ■ printed, „ d. 41 36 Hemp, cwt. . . s. 59 31 Firearms, each s. 18 26 Hides, cwt. . . s. 47 64 Fish, barrel s. 21 25 Hops, cwt. . . s. 170 126 Flannel, yard d. 14 14 Indigo, cwt. . £ 24 24 Glass, cwt. . s. 68 47 Jute, cwt. . . s. 23 14 Gunpowder, 10 lbs. d. 67 58 Lard, cwt. . . «. 52 44 Hats, doz. . s. 36 21 Maize, bushel .d. 60 35 Horses, each £ 51 58 Molasses, cwt. . s. 11 7 Iron, pig, ton s. 85 46 Nitre, cwt. . . s. 17 10 ,, rails, ton . s. 180 114 Oats, bushel .d. 36 39 „ hoops, ton . s. 226 146 Oil, tun .£ 53 42 Jute, 10 yards . d. 60 24 Oilseed, ton . . s. 183 151 Lead, ton . £ 23 13 Oranges, bushel . s. 9 7 Leather, cwt. a. 167 189 Oxen, each . .£ 12 22 Linen, plain, 10 yards d. 80 66 Pepper, cwt. . s. 47 66 „ printed ,, d. 76 65 1 86 APPENDIX. Imports. 18n4. 1884. Pork, cwt. . . s. 45 37 Oilseed, gallon . Potatoes, cwt. .d. 36 81 Paper, cwt. Raisins, cwt. . s. 32 34 Sailcloth, yard . Kice, cwt. . . s. 14 8 Salt, ton . Rum, gallon . d. 44 20 Silks, yard . Saltpetre, cwt. . s. •27 18 Soap, cwt. . Seeds, cwt. . . s. 52 45 Spirits, gallon . Sheep, each . . s. 30 45 Steel, ton Silk, lb. . . s. 15 15 Sugar, cwt. Sugar, cwt. . . s. 29 21 Tin, cwt. Tallow, cwt. . s. 63 38 Wire, ton . Tea, lb. . d. 15 12 Wool, lb. . Tobacco, cwt. . s. 74 73 Worsted, yard . Wheat, bushel . d. 100 50 Yarn, cotton, lb. "Wine, gallon .d. 148 85 ,, linen, lb. . Wood, load . . s. 76 48 ,, woollen, lb ■Wool, lb. .d. 16 12 Zinc, cwt. . Exports. 1864. 1884 e^. 33 22 s. 96 41 d. 12 11 s. 12 13 d. 38 39 s. 27 23 d. 60 74 £ 33 20 s. 35 17 s. 116 85 £ 21 13 d. 14 11 d. 11 10 d. 11 12 d. 13 14 d. 24 24 s. 30 14 Prices in England for 700 Tears (According to Weight of Silver). 1201-1300 1301-1400 1401-1500 1601-1600 1601-1700 1701-1800 1801-80 Ox s. 43 45 42 40 106 170 340 Horse . s. 80 84 80 106 275 600 Sheep . s. 3 4 4 4 8 19 30 Pig . . s. 6 9 6 6 9 23 30 Wheat, bush. d. 24 23 32 70 SO 85 Wine, gal. . s. "3 3 2 4 6 17 20 Beer, gal. d. 3 5 4 4 4 8 16 Goose . d. 9 12 12 11 12 25 50 Hen . d. 3 6 6 5 9 12 18 Beef, cwt. . a. 7 14 12 9 28 43 70 Butter, cwt. . s. 37 28 28 37 47 112 Eggs, doz. . d. '3 6 6 4 4 8 12 Prices in France since a.d. 1400. 1401-1600. 1501-1600. 16U1-1700. 1701-90. 1820-30. 1860-60. 1870-80. Wine, gal. d. 4 8 12 15 18 25 22 Meat, lb. d. ... 2 3 3 4 6 8 Eggs, doz. d. 2 2 3 3 4 6 9 Sugar, lb. d. ... 6 8 11 8 5 Butter, lb. d. ... "3 4 7 10 14 Wheat, bsb. d. 18 19 33 44 66 78 80j APPENDIX, 187 Prices of Wheat in England and France (Pence per Bushel, according to Weight of Silver). Tear. England. France. 1301-1400 . 25 17 1401-1500 . 19 18 1501-50 . 30 15 1551-1600 . 33 23 1601-50 . 63 41 In England the extreme prices have been per bushel as follows : — , Highest. Lowest. Tear. England. France. 1651-1700 70 24 1701-50 59 38 1751-1800 100 54 1801-50 91 69 1851-80 76 77 Tear. • Pence. Tear. Pence. 1316. 72 1392 . 14 1434. 96 1454 . 6 1597. 96 1509 . 9 1648. 120 1687 . 36 1796. 124 1744 . 34 1812. Pr 170 ice-Levels 1884 . in England. 50 1301-1400 1401-15( 1601-1600 1 601-1700 1701-1800 1801-50 1880-84 Cattle. 100 95 80 160 246 350 500 Beer . 100 80 80 80 160 280 350 Butter 100 75 75 100 125 250 350 Grain . 100 95 133 270 330 350 240 Horses 100 105 100 132 346 700 800 "Wine . 100 70 130 200 500 600 700 Eggs . 100 100 70 70 135 160 270 Meat . 100 85 65 200 300 400 550 Total 800 705 733 1,212 2,142 3,090 3,760 INDEX NUMBERS. ^Professor Jevons's Table of Forty Articles. Col. General Tears. Metals. Fibre. Grain. Products. Average 1782 100 100 100 100 100 1783-90 95 102 109 88 91 1791-1800 116 119 135 86 112 1801-10 150 157 170 71 133 1811-20 124 134 166 72 115 1821-30 102 97 135 56 88 1831-40 91 96 134 53 83 1841-50 88 76 127 42 73 1851-60 97 84 132 39 79 1861-69 93 105 128 40 77 i88 APPENDIX. Another Table of Professor Jevons. Year. Number. Year. Number. Year. Number. 1789 100 1819 . 131 1849 . 75 1799 151 1829 . 93 1859 90 180S) 184 1839 . 108 1869 89 Table of Fifty Articles (Jeuons). Year. Number. Year. Number. Year. Number. 1846 100 1854 . 115 1862 108 1847 106 1855 112 1863 107 1848 89 1856 117 1864 106 1849 85 1857 123 1865 105 1850 87 1858 108 1866 111 1851 87 1859 110 1867 102 1852 89 1860 112 1868 104 1853 106 1861 110 1869 103 Soetbeer's Pnce-Letrt Year. Number. Year. Number. Year. Number. 1847-50 . 100 1871 128 1877 131 1851-55 . 114 1872 137 1878 125 1856-60 . 125 1873 141 1879 120 1861-65 . 127 1874 140 1880 126 18(;ii-70 . 125 1875 133 1881 124 1871-80 . 131 1876 133 1882 124 Table from the " Economi Si!" {Twen tij-two Articles). Year. Number. Year. Number. Year. Number 1845-50 100 1872 129 1878 115 1857 136 1873 134 1879 100 1866 . KB 1874 131 1880 115 1867 137 1875 126 1881 108 1870 122 1876 123 1882 111 1871 . 118 1877 124 1883 107 ( isg ) N. VARIOUS WRITERS ON PRICES. The continued influx from tlie American mines in the sixteenth century was quite inadequate to produce any progressive effects on the general price of commodities in Europe. — Adam Smith. It is a lamentable sign of ignorance that the fall in prices (1826) is supposed to be connected with metallic currency. — N. Senior. Steadiness in value depends upon the permanence of the in- trinsic causes of value. — Ibid. It has been customary to ascribe the fall in prices since 1815 to the diminished supply of bullion from the mines (1830), but I doubt if this circumstance has had any influence in that way. — M'CuUoch. It is not wages that affect prices, but an increase or diminu- tion of the labour necessary to produce the commodity. A rise of wages has no effect on the price of commodities. — Ibid. Causes afi'ecting the cost of production and the supply and demand for each commodity account for the variation of prices. —Tooke. The quantity of precious metals may remain constant and the trade in a country be doubled, but the prices of commodities will not vary in the least degree. — Ibid. It is a fallacy to suppose that the range of prices depends on the quantity of money. The range of general prices has not been materially influenced by the gold-fields of California and Aus- tralia. — Ibid. An advance in the price of provisions is not accompanied by a corresponding rise in the wages of labour. — Ibid. 190 APPENDIX. The price of grain suffers extreme depression more than other things, because the average quantity is sufficient for all, and any- thing beyond that causes inconvenient accumulation. An excess of crop, however, does not depress price in the same degree that a deficient crop drives it up. — Tooke. Wages and prices do not rise together. In the sixteenth century prices in England fell, while the wages of labour rose. — Ihid. The wages of a day labourer are the best criterion of value. — Ibid. Europe was on the verge of bankruptcy in 1792, prices having been unduly inflated by speculators, such was the abundance of unemployed capital looking for investment. — Ibid. Prices of agricultural products rose so high in 1795 that the farmers realised enormous gains and landlords raised their rents ; but the distress among the working-class was so severe that the members of both Houses of Parliament signed a covenant to reduce the consumption of bread in their households by one- third. — Ibid. In the early years of the gold discoveries I arrived at an opinion, then considered heretical, that the effect of the dis- coveries would not be to augment general prices, and this is now recognised as an orthodox conclusion. — Newmarch. Whatever causes augment the real wealth and resources of the world serve not only to stimulate trade, but also to keep down prices. The object of all scientific methods applied to commerce and the arts is cheapness, and the tendency of prices is towards decline, by reason of the enlarging facilities and power of pro- duction. — Ibid. INDEX. Accumulation of wealth, 110, 113. Affghan-Kusso question, 152. Africa, South. See Cape Colony. Agricultural industry, 78, 84, 171. machinery, 144, 146. products, 123, 131, 171. values, 177. wages, 125, 132. Agriculture, capital in, 84. men engaged in, 115. Alabama claims, 149. Alcohol. See Liquor. Alexandria bombarded, 151. Alfonso, king of Spain, 150. Algeria, cattle, 173. — — ironstone, 73, railways, 47. wine-growing, 172. Alkali, price of, 181. Araadeo, king of Spain, 149. America, North. 5eeUnited States. America, Spanish, commerce, 35, 164. debts, 163. emigration to, 101. mining industry, 76. population, 96. railways, 47. - — silver product, 13. telegraphs, 50. Arabi Pasha, 152. Argentine Republic, agriculture, 84. earnings, 112. finances, 162. Argentine Republic, import dues, 37. wealth, 110. wine-growing, 172. See Kiver Plate. Armies and navies, 29, 115. Artisans' wages, 125. Assets in bankruptcy, 24. Australia, agriculture, 80, 84, 172. banking capital, 160. books and journals, 69. cattle, 173. coinage, 16, 157. commerce, 36, 103, 142, 164. current of gold, 15, 157. death-rate and sickness, 99. debt, 30, 104, 151. earnings and wealth, 30, 110, 112. emigration to, 102. iinances, 26, 104. gold product, 13, 71, 159. import duties, 37. meat frozen from, 151. mining industry, 76, population, 96, 103. railways, 47, 167. steamers, first, 145. telegraphs, 50. wages in, 126. wealth and earnings, 30, 110, 112; wine-growing, 172. wool-clip, 60. 193 INDEX. Austria, agriculture, 80, 84, 171. banking, 19, 21, 160. books and paper, 69. ■ capital, new, 22. cattle. 173. coinage, 16, 157. commerce, 35, 164. ■ cost of industry, 55. death-rate and sickness, 99. debt and finances, 26, 30. earnings and "wealtb, 30, 110, 112. food-supply, 86, 92. import duties, 37. iron and steel, 64. living, cost of, 113. manufactures, textile, 168. ■ military expenditure, 28. mining industry, 73, 76. ■ population, 96. railways, 47, 167. • savings banks, 23. steam power, 53. sugar production, 174. summary of industries, 115. telegraphs, 50. timber industry, 67. tobacco cultivation, 174. ■ ■ wages, 125, 132. Bacon, consumption of, in Great Britain, 176. export from United States, 91. price of, 179, 185. Bags, empty, price of, 181. Bailiff's wages, 131. Balance of trade, 36, 164. Ballast entries in Great Britain, 45. Bank Act suspended, 3, 146. Bank of England, 21. Banks of Europe, 21. Banking capital, 23, 160. Bankruptcy returns, 24. Barley crop of world, 80. cultivation in Gt. Britain, 172. price of, 179, 184. Beef. See Meat. price of, 179, 183, 185, 186. Beer, consumption, 175. price, 181, 186. value, 117. Beetle, Colorado, 150. Beetroot. See Sugar. Belgium, agriculture, 80, 84, 171- banking, 19, 21, 160. ■ books and paper, 69. cattle, 173. coinage, 16, 157. commerce, 35, 142, 164. cost of industry, 55. cost of living, 113. ■ debt and taxes, 30, 163. finances, 26, 162. food-supply, 86, 92, 175, iron and steel, 64. manufactures, textile, 168. mining, 73, 76. population, 96. price-level, 6, 155. railways, 47. 167. shipping entries, 166. steam-power, 53. wages, 125, 132. wealth and earnings, 30, 110. Berlin clearing-house, 160. crisis, 149. Bessemer steel, 64, 119, 148. Blacksmiths' wages, 125, 131. Bland silver law, 14, 151. Books and paper, 68, 122. price of, 181. Boots and shoes, 56, 181. Bottles, price of, 181. Bounties, French, 44. Brandy, price of, 179, 185. Brass, price of, 181. Brazil, coffee crop, 173. finances, 162. forests, 67. import dues, 37. sugar crop, 174. tobacco crop, 174. INDEX. 193 Brazil, trade with Great Britain, 104. Bread, its nutritive value, 88. Breadwinners to population, 99. Bridges and roads, 30. Buenos Ayres, building at, 109. Building in cities, 109. Bullion in banks, 20, 21. sent over sea, 15, 157. See Gold and Silver. Butter, product and consumption, 176. • price of, 120, 130, 179, 183, 186. Cab fare in New York, 137. Cabin passengers, ratio of, 102. Cables, telegraph, 50. Camembert cheese, 176. Canada, agriculture, 80, 171. banking, 160. bankruptcy returns, 24. books and paper, 69. cattle, 173. commerce, 36, 142, 164. debt and revenue, 30. Dominion formed, 148. emigration to, 102. finances, 26, 162. import dues, 37. population, 96. railways, 47, 167. . telegraphs, 50. timber, 67. treaty with United States, 145. wages, 133. wealth and earnings, 30, 110. Canal, Panama, 151. Suez, 44, 165. Candles, price of, 181. Cape Colony, cattle, 173. commerce, 103. finances, 104, 163. - population, 103. - railways, 47. - telegraphs, 50. Cape Colony, wine-growing, 172. wool, 60. Capital, abundance of, 4, 22. agricultural, 84. banking, 23, 160. competition of, 127. Carlist war, 150. Carpenters' wages, 125, 131. Carpets, price of, 120, 181. Carrying-trade, 35, 41, 49. Cattle of all nations, 83, 173. Cattle-plague in England, 148.' Causes affecting prices, 134. Cement, price of, 181. Ceylon, trade, &o., 103, 173. Channel tunnel, 152. Charcoal for iron, 73. Cheese, price of, 9, 120, 179, 181, 183. production of, 176. Chicago fire, 149. Chili, copper, 74. import dues, 37. trade with, 104. wine-growing, 172. China, commerce, 36, 142. silk, 168. war in, 146. Chronicle of events, 144. Cigars, price of, 179, 185. City improvements, 30. Clearing-House returns, 21, 160. Clothing, expenditure for, 113. Cloth, price of, 181. Coal, exports, 35, 73. price, 120, 130, 181, 183. production, 72. — — used for iron, 73, 136. value, 122, 177. Ooal-fields, alarm about, 149. Cobden treaty, 4, 147. Cochineal, price of, 179, 185. Cocoa, price of, 179, 185. Coffee, consumption, 175, 176. price, 121, 130, 179, 183. production, 94, 173. N 194 INDEX. Coffee, value, 122. Coinage, gold and silver, 13, 157. new German, 150. Colonies, agriculture, 79. commerce, 38, 103. emigration to, 101. finances, 104. population, 103. shipping, 43, 166. sugar-crop, 174. Commerce, British, 33, 142. of all nations, 33. Consols, British, 24. Co-operative societies, 170. Copper industry, 74. price, 130, 179, 181. 185. Cordage, price of, 181, 185. Cotton, consumption, 58, 62. crop, 59. goods, price of, 181, 185. manufactures, 59, 168. raw, price of, 119, 130, 179, 183. transport, 35. Cotton-spinner's wages, 125. Cowper's regenerator, 73. Cows. See Cattle. Crimean war, 145. loans, 146. Crises, commercial, 3, 146, 148. Crops, value, 84. Cuba, sugar, 174. Currants, price of, 179, 185. Cyprus annexed, 151. Czar assassinated, 151. Daikt-pkoduots, 93, 120, 177. Dalcota grain-farms, 81. Death-rate of nations, 99. Debts, public, 30, 105, 163. ■ converted, 151. Decrease of rural population, 98. Delusions regarding prices, 137. Denmark, agriculture, 84. cattle, 173. finances, 162. Denmark, food-supply, 87, 175. military, 28. population, 96. railways, 47, 167. wealth and earnings, 110. See Scandinavia. Deposits in banks, 20, 160. savings-banks, 4, 23, 160. Diamond-fields, product, 75, 149. Discount, rates of, 19. Dues, import, of nations, 37. Earnings of nations, 30, 107, 112. Economist price-level, 7, 188. Eggs, consumption, 93, 176. price, 120, 138, 179, 184, 186. Egypt, commerce, 36, 164. finances, 162. Goschen's mission, 150. railways, 47. — — sugar-crop, 174. Electric light, 150. Electro-plate, its effect, 11. Elgin treaty, 145. Emigrant, his value, 103. Emigrants, remittances by, 102. in United States, 102. Emigration, tide of, 3, 101. effects of, 136. Employes number of, 115. Employer's share of profits, 127. Energy contained in food, 87. ■ cost of, 55. foot-tons of, 53, 88. ■ increase of, 56. Engines. See Steam-power. England, agriculture, 172. bank of, 20. emigration from, 102. population, 96. prices for 700 years, 186. wealtli. 111. See Great Britain. Entries, tonnage of, 166. Europe, agriculture, 79, 84, 171. banking, 23, 160. INtiEX. 195 Europe, books and paper, 69. capital invested, 22. cattle, 173. coinage, 16, 157. commerce, 35, 164. cost of industry, 55. ■ death-rate, 99. debt and taxes, 30, 163. discount rates, 19. earnings and wealth, 30, 110. emigration from, 101. energy, amount of, 53. entries, shipping, 43. finances, 26, 162. import dues, 37. leather trade, 68. living, cost of, 113. manufactures, 64. merchandise, ton of, 45. military statistics, 28. population, 96. raUways, 47, 167. . railway tariffs, 49. savings-banks, 23, 160. sickness, days of, 99. steam-power, 52. summary, industrial, 115. taxes, 30, 37. telegraphs, 50. timber, 67. vineyards, 172. wages, 125, 132. wealth, 30, 110. wool-clip, 60. Events, chronicle of, 144. Exhibitions, international, 144, 148, 150. Expenditure. See Finances. Exports. See Commerce. Faildbbs. See Bankruptcy. Famine in Bengal, 150. Farms. See Agriculture. Fibre, consumption of, 58, 62. Finances of nations, 26, 162, Firearms, price of, 181. Fish, price of, 182, 184. Fisheries question, H5. Flannel, price of, 120, 182. Flax, consumption, 62, 169. cultivation, 61, 171. price, 130, 179, 185. Flour, price of, 179, 184. Food, consumption, 86, 92, 175. cost of, 93. of Great Britain, 143. Forests of world, 67. Fortifications, Palmerston's, 147. France, agriculture, 80, 84, 171. banking, 21, 160. bankruptcy, 24. capitalinvested, 22. cattle, 173. coinage, 16, 157. commerce, 35, 164. cost of industry, 55. death-rate, 99. debt, 30, 163. discounts, 19. earnings, 30, 112. emigration from, 101. . — — energy, 53. finances, 26, 162. food-supply, 86, 92, 175. gold and silver, 15, 157, import dues, 37. index numbers, 9. living, cost of, 113. manufactures, 59, 65, 168. military, 28. mining, 73, 76. ■ population, 96. price-level, 6, 155. prices for 500 years, 186. railways, 47, 167. savings-banks, 23. shipping, 43, 166. steam-power, 5.3. sugar, 174. summary, industrial, 115 telegraphs, 50. timber, 67. INDEX. France, trade ■with G. Britain, 142. vineyards, 172. wages, 125, 132. wealth, 30, 110. wine, 121. Franco-German war, cost of, 30. Free-trade, effects of, 4. Freight, sea and land, 41, 45, 48. Frozen meat, Australian, 151. Fruit, price of, 135. Geese, price of, 186. German gold-money, 13, 150. Germany, agriculture, 80, 84, 171. banking, 21, 160. books, 69. capital invested, 22. cattle, 173. coinage, 16, 157. commerce, 35, 164. cost of industry, 55. death-rate, 99. debt, 30, 163. discounts, 19. earnings, 30, 112. emigration from, 101. energy, 53. ■ finances, 26, 162. • . food-supply, 86, 92, 175. import dues, 37. living, cost of, 113. manufactures, 59, 64, 168. military, 28. mining, 73, 76. population, 96. railways, 47, 167. savings-banks, 23. shipping, 43, 166. steam-power, 53. sugar, 174. summary, industrial, 113. telegraphs, 50. timber, 67. trade with Great Britain, 142. ■ vineyards, 172. wages, 125, 132. Germany, wealth, 30, 110. Glasgow, building in, 109. Glass, price of, 182. Gloves, price of, 179, 185. Gold, amount of, 11, 158. coin in use, 16, 157. consumption of, 13, 158. diggers, 72. exports and imports, 15. production, 13, 71, 159. Goods traffic, 49, 51. Goschen in Egypt, 150. Grain consumption, 92. crops of world, 79. exports, 35. in United States, 171. in Great Britain, prices, 184. sum spent for, 86. value of, 122, 177. See "Wheat, Barley, &c. Grease in wool, 60. Great Britain, agriculture, 80, 84, 172. bankjng, 20, 23, 160. bankruptcy returns, 24. books and paper, 69. capital invested, 22. cattle, 83, 173. coinage, 16, 157. commerce, 34, 38, 142, 164. cost of industry, 55. cotton industry, 59, 168. death-rate, 99. debt, 30, 163. discounts, 19. earnings, 30, 112. emigi-ation, 102. energy, 53. finances, 26, 162. food-supply, 86, 92, 175. gold and silver, 15, 157. ■ import dues, 37, 164. index numbers, 180, 182, 187. ■ iron and steel, 64. - jute industry, 62. INDEX. 197 Great Britain, leather, 68. liquor, 175. living, cost of, 113. manufactures, 59, 64, 104, 168. military, 28. mining, 73, 76. population, 96. price-levels, 131, 154. price-lists, 179, 184, 187. railways, 47, 50, 167. savings-banks, 23, 161. shipping, 43, 166. shipbuilding, 66. siclsness, 99. silver, 15, 157. silver plate, 12. ■ steam-power, 52. summary, industrial, 115. taxation, 30, 162. telegraphs, 50. timber, 67. wages, 125, 132. wealth, 30, 110. See England, Scotland, Ire- land. Greece, agriculture, 84. — ^ cattle, 173. commerce, 36. debt, 163. earnings, 112. population, 96. wealth, 110. Guano, price of, 179, 185. Gunpowder, price of, 182. Ham-S, price of, 184. Hand, work done by, 53. Hardware manufactures, 64, 119, 122. value of, 177. Hats, price of, 182. Hemp industry, 62, 169. price of, 179, 185. Hens, price of, 186. Hicks's army, 152. Hides, price of, 179, 185. Holland, agriculture, 80, 84, 171. books and paper, 69. commerce, 35, 164. coat of industry, 55. - — - death-rate, 99. debt, 30, 163. discounts, 19. earnings, 30, 112. energy, 53. finances, 162. food-supply, 86, 92, 175. liquor, 175. living, cost of, 113. ■ military, 28. population, 96. • railways, 47, 167. shipping, 166. steam-power, 53. telegraphs, 50. wages, 125. wealth, 30, 110. Hops, cultivation of, 173. price of, 179, 185. Horses, number of, 83. price of, 182, 186. taken for armies, 28. work done by, 53. Horse - power. See Steam-power and Energy. Houses, value of, 109. House rent, rise of, 132, 142. Hungary. See Austria. Hussey's reaper, 145. Import dues, 37. Imports of Great Britain, 142, 153. and exports compared, 36, 164. See Commerce. Income-tax, British, 142, 147. Index-numbers, 78, 143, 180, 182. Indigo, price of, 179, 185. India, capital invested, 22. coinage, 16. commerce, 33, 164. INDEX, India, cotton, 59. — ~ debt, 163. finances, 26, 162. import dues, 37. jute, 62. iiiRDuf actures, 168. mutiny in, 146. railways, 47, 167. silver, 14. telegraphs, 50. tobacco, 174. trade with Great Britain, 142. wheat-growing, 80. Indies. See West Indies. Industries, summary of, 115, 117. Inventions, effect of, 64, 136, 148. Ireland, agriculture, 172. emigration, 102. incidence of taxes, 111. population, 96. wealth, 111. See Great Britain. Iron, coal used for, 73. exports of, 35. price of, 119, 130, 182, 184. production, 64. Ironclads, cost of, 66. first used, 147. largest afloat, 66. Ironstone, yield of, 73. Ismail Pacha, 151. Issue of banks, 20. Italy, agriculture, 80, 84, 171. banking, 19, 160. books and paper, 69. capital invested, 22. cattle, 173. coinage, 16, 157. commerce, 35, 164. cost of industry, 55. death-rate, 99. ■ ' debt, 30, 163. earnings, 30, 112. emigration, 101. energy, 53. finances, 26, 162. Italy, food-supply, 86, 92, 175. import dues, 37. liquor, 175. living, cost of, 113. manufactures, 168. military, 28. mining, 74, 76. population, 96. price-level, 6, 155. railways, 47, 167. shipping, 43, 166. silk, 169. steam-power, 53. summary, industrial, 115. telegraphs, 50. timber, 67. vineyards, 172. wages, 125, 132. wealth, 30, 110. wine, price of, 121. Jablochkoff's light, 150. Japan, copper, 74. finances, 162. railway, 149. silk, 169. Java, coffee, 173. commerce, 36, 164. railways, 47. sugar, 174. ■ tin, 75. Jevons OQ coin, 14. price-levels, 7, 187. Jews, persecution of, 151. Joint-stock companies, 3, 148. Jute industry, 61. price of, 179, 182, 185. Kerosene. See Petroleum. Labour, cost of, 65. daily, of nations, 53. economy of, 56, 81, 135. steam, done by, 53. Labourers' wages, 132. See Workmen. INDEX. 199 Lake traffic, United States, 165. Land, value of, 84, 108. Lard, price of, 179, 185. Laspeyre'a price-level, 7. Lead industry, 74, 130. ■ • price of, 182. Leather industry, 68, 122, 177. price of, 182, 184. Legacy returns, 142. Light-dues in Holland, 150. Limited Liability Act, 146. Linen exports, 61. manufactures, 63, 169. price of, 182. value of, 122. Liquor consumption, 92, 175. sum spent in, 86, 89. Liverpool, house-building in, 109. Living, cost of, 113. Loans, foreign, 22, 146, 149. • fraudulent, 150. Locomotives, steam-power of, 52. London Clearing-House, 21, 160. house-building, 109. Loss of gold and silver, 14. Luxuries, consumption of, 175. Machinery, agricultural, 81, 144, 146. industrial, 56. Maize, price of, 179, 184. Manchester Clearing-House, 160. Manilla sugar-crop, 174. Manufactures, consumers of British, 104. cotton, 59, 63, 168. hardware, 64. jute, 61. linen, 61, 169. men engaged in, 115. silk, 62, 168. textile, 58, 63, 168. value of, 123, 131. • woollen, 60, 63, 170. Masons' wages, 125, 131. Mauritius, statistics of, 103. M'CuUoch on prices, 189. silver, 12. Meat, consumption of, 90, 92, 143. exports of, 35, 91. in Australia, 91, 151. France, 89. Great Britain, 90. River Plate, 91. United States, 91. price of, 118, 130. sum spent for, 86. value of, 122, 177. See Beef. Melbourne Clearing-House, 160. Merchandise, weight and value, 34, 45. Mercury, product and consump- tion, 75. Messages, telegraphic, 50. Mexico, expedition to, 147. trade with Great Britain, 104. wealth of, 110. Military expenditure, 28, 162. Mining industry, 71, 76, 115. Mississippi steamboat traffic, 165. Missouri lead-mines, 74. Molasses, price of, 179, 185. Money market, 19, 160. Mont Cenis tunnel, 149. Montevideo house-building, 109. Mutton. See Meat. Navigation laws, petition for, 145. Neilson's " hot-blast," 73. New York Clearing-House, 160. house-building, 109. Newmarch's opinions, 1, 135, 189. Nice, annexation of, 147. Nitre, price of, 179, 185. Norway, agriculture, 84. earnings, 112. population, 96, wealth, 110. See Sweden, Scandinavia. Nugget, the largest, 72. INDEX. Oats in Great Eritain, 172. crop of all nations, 80. price of, 179, 184. Ocean telegraph cables, 50. Ohio river tra£Bc, 165. Oil, price of, 179, 185. Oilseed, price of, 179, 182, 185. Operatives. See Workmen. Oranges, price of, 179, 185. Overend Gurney crisis, 3, 148. Oxen, price of, 179, 185. Palmehston's fortifications, 147. I'aper consumption, 69. duties abolished, 147. price of, 182. Paris Clearing-House, 160. house-building, 109. Passengers, cabin and steerage 102. tariff on railways, 49. Peasant proprietors, 108. Pekin, capture of, 147. Pepper, price of, 179. Peru, British exports to, 104. Petroleum, yield and price, 75. Phylloxera, ravages of, 94. Pigs, price of, 186. See Cattle. Plate, quantity stamped, 158. See River Plate. Plevna, capture of, 150. Plimsoll Shipping Act, 150. Plough. See Steam-plough. Plumbers' wages, 125, 131. Population, breadwinners to, 99. increase, rate of, 97. rural, declining, 98. Pork, price of, 180, 184, 186. See Meat. Portugal, agriculture, 84, 172. — ^ cost of industry, 55. debt, 163. earnings, 112. energy, 53. finances, 162. Portugal, land, value of, 110. military, 28. population, 96. railways, 47, 167. • steam-power, 53. vineyards, 172. wealth, 110. Potatoes, area under, 171. in Great Britain, 172. price of, 121, 180, 186. value of, 122. Precious metals. See Gold, Silver. Price-levels, British, 154. European, 6, 155. of the world, 177. by various writers, 7, 188. of agriculture, 177. of manufactures, 177. of food, 93. Price of silver, 12. Prices affected by duties, 40. emigration, 101. energy, 56. military outlay, 29. money-market, 19. population, 96. railways, 48, 51. raw material, 58, 74. shipping, 41. steam-power, 52. taxation, 26. — telegraphs, 50. Prices, American, sixty years, 183. British, thirty years, 179. British, 100 years, 130. English, 700 years, 186. French, 500 years, 186. general survey of, 117, 130. Protective duties, effect of, 65. Public works, 109. QniCKSlLVEK. See Mercury. Railways, capital in, 22, 30, 48. cost per mile, 167. goods tariff, 49. INDEX. 201 Railways, men employed in, 115. — - of nil nations, 47, 167. of Great Britain, 50. passenger fares, 49. — - steam-power on, 52. traffic of, 167. Kaisius, consumption of, 176. price of, 180, 186. Eeaping-machine, 145, 146. Regenerator, Cowper's, 73. Rental. See Houses. Rice, consumption, 176. price, 180, 184, 186. River Plate, cattle, 83, 173. exports to, 104. wool of, 60. Roads and bridges, 30. Roumania, cattle, 83, 173. -T- debt, 163. grain, 80. population, 96. Rum, price of, 180, 186. Russia, agriculture, 80, 84, 171. • banking, 160 books, 69. capital invested, 22. cattle, 173. coinage, 16, 157. commerce, 35, 104. cost of industry, 55. debt, 30, 163. earnings, 30, 112. energy, 53. finances, 26, 162. food-supply, 86, 92, 175. gold production, 13, 158. import dues, 37. iron and steel, 64. liquor, 175. living, cost of, 113. manufactures, 168. military, 28. mining, 73, 76. population, 96. railways, 47, 167. shipping, 166. Russia, steam-power, 53. sugar crop, 174. summary, industrial, 115. taxation, 30, 162. telegraphs, 50. timber, 67. tobacco, 174. . trade with Great Britain, 142. vineyards, 172. wages, 125, 132. ■ wealth, 30, 110. Russo-Turkish war, 30. Rye crop of the world, 80. Sadowa campaign, 148. Sailcloth, price of, 182, 186. Salt, consumption, 92. duties, 99. price, 182, 186. Saltpetre, price of, 180, 186. Santo Domingo currency, 137. Savings. See Accumulation. Savings banks, 23, 143, 147, 101. Savoy, annexation of, 147. Scandinavia, agriculture, 80, 84, 173. banking, 160. books and paper, 69. coin, 16, 157. commerce, 35, 164. cost of industry, 55. death-rate, 99. debt, 30. earnings, 30. emigi'ation, 101. energy, 53. finances, 26. food-supply, 86, 92, 175. import dues, 37. living, cost of, 113. railways, 47, 167. steam-power, .53. summary, industrial, 115. telegraphs, 50. trade with Great Britain, 142. wages, 125, 132. INDEX. Scandinavia, wealth, 30. ■ See Sweden, Denmark. Scheldt dues abolished, 148. Scotland, agriculture, 172. emigration, 102. population, 96. wealth, 111. See Great Britain. Seamen of all nations, 115. Seamen, British, 42. Seed-clover, price of, 180, 186. Senior on prices, 189. Serfs, Russian, emancipated, 30, 147. Servia, debt, 163. population, 96. Sexes of emigrants, 101. Sheep, price of, 180, 186. See Cattle. Shepherds' wages, 131. Shipbuilding, 66, 163. Shipping of all flags, 41, 166. effect on prices, 4.5. Siclcness, days of, 99. Siemens steel, 64, 119. Silk industry, 168. price, 180, 186. Silks, price of, 182, 186. value of, 122. Silver, stock of, 11, 158. price of, 12, 145. Sleswig-Holstein annexed, 148. Smith, Adam, on prices, 189. Soap, price of, 182, 186. Soetbeer's price-level, 188. Sound-dues abolished, 146. Spain, agriculture, 80, 84, 171. banking, 160. books, 69. coinage, 16, 157. commerce. 35, 164. cost of industry, 55. debt, 30, 163. earnings, 30, 112. emigration, 101. ■ energy, 53. finances, 26, 162. Spain, food-supply, 86, 92, 175. . import-dues, 37. investments, new, 22. liquor, 175. • living, cost of, 113. manufactures, 168. military, 28. mining, 74, 76. population, 96. railways, 47, 167. shipping, 43, 166. steam-power, 53. summary, industrial, 115. taxation, 30. telegraphs, 50. trade with Great Britain, 142. vineyards, 172. wages, 126. wealth, 30, 110. wine, price of, 121. Specie payments. United States, 151. Spinner. See Cotton-spinner. Spirits, consumption, 175. price, 182, 186. value, 117. Steam, effect on prices, 135. Steam-ploughs, use of, 144. Steam-power of nations, 53. Steamers of all flags, 42, 53. Steel industry, 65, 119, 148. price, 182, 186. Straits Settlements, trade, &c., 103. Strikes of workmen, 149, 150. Suez Canal, 4, 149, 165. Sugar, consumption, 92, 143, 176. price, 121, 130, 180, 186. production, 94, 174. transport, 35. value, 122, 177. Summary of industries, 115. Sweden, agriculture, 84, 173. cattle, 173. • ■ debt, 163. earnings, 112. INDEX. 20J Sweden, finances, 162. food-supply, 87, 92, 175. iron industry, 64. liquor, 175. military, 28. mining, 73, 76. population, 96. railways, 47, 167. shipping, 43, 166. -wealtli, 110. See Scandinavia. Switzerland, banking, 160. books, 69. earnings, 112. emigration, 101. population, 96. railways, 47, 167. wealth, 110. Tallow, price of, 130, 180, 186. Tariffs, British and United States, 38, 164. Taxation of nations, 26, 30, 113. local, 31. Tea, consumption, 143, 175. price. 121, 180, 186. production, 94. value, 122. Telegraphs, purchase of, 149. of all nations, 50. Telephone invented, 150. Thiers, fall of, 149. Timber, consumption, 67. price, 120, 130, 180, 186. production, 67. value, 122, 177. Tin industry, 75. -price, 1-2, 186. Tobacco, consumption, 175. price, 121, 180, 184. production, 94, 174. value, 122. Tooke, opinions of, 135, 189. Toronto house-building, 109. Trade, balance of, 36, 164. British, 36, 139, 142, 164. Trade of nations, 34, 164. Traffic of railways, 167. — ■ British lines, 50. Transport. See Freight, Carrying- trade. Treaty, Cobden's, 4, 147. Tunis, annexation of, 151. Turin, house-building, 109. Turkey, debt of, 163. Turnips, area under, 172. United States, agriculture, 80, 84, 171. banking, 23, 160. bankruptcy returns, 24. books and paper, 69. ■ capital invested, 22. cattle, 83, 173. Clearing- Houses, 160. coal statistics, 72. coinage, 16, 157. commerce, 35, 38, 164. cost of industry, 55. cotton crop, 59. death-rate, 99. debt, 30, 148, 151, 163. earnings, 30, 112. emigration to, 101. energy, 53. ■ finances, 26, 162. food-supply, 86, 92, 175. gold, current of, 15, 157. production, 13, 71, 159. import-dues, 37, 164. ■ iron, 64. leather, 68. liquor, 175. living, cost of, 113. manufactures, 64, 168. militaiy, 29. mining, 73, 76. petroleum, 76. population, 96. price-levels, 6, 155. price-list, 183. railways, 47, 167. 204 INDEX. United States saviogs-banks, 160. — shipbuilding, 66. shipping, 43, 165. silver, 13, 15. steam-power, 52. steel, 65. summary, industrial, 115. taxation, 30. telegraphs, 50. timber, 67. tobacco, 174. trade with Great Britain, 38, 142. ' vineyards, 172. wages, 126, 128, 133. war, cost of, 30. wealth, 30, 110. wool-clip, 60. Uruguay, republic of, 84. Vienna Clearing-House, 160. crisis, 149. Vineyards of all nations, 172. "Wages and cost of food, 126, 132. and product of labour, 133. in various countries, 124, 126. in Great Britain, 125, 132. M'CuUoch on, 189. Tooke on, 189, 190. Wars, cost of, 30. effects of, 3, 59, 130, 134. various, 147-152. Washington, silver at, 14. "Waterloo, effect on prices, 130. "\Vealth of nations, 30, 110. increase of, 142. "Wear and tear of gold, 158. "Wells, oil, 76. West Indies, coffee, 173. debt, 104. population, 103. sugar, 174. tobacco, 174. — trade, 103. Wheat, consumption, 143. crop of the world, 80. price, 118, 130, 180, 184. • supply of Great Britain, i Wine, consumption, 175. price, 121, 180, 186. production, 172. value, 122. Wire, price of, 182, 186. Wood, price of, 180, 180. See Timber. Wool, carried over sea, 35. consumption, 58, 62. price, 120, 130, 180, 184. production, 60. value, 122, 177. Woollens, manufacture, 170. price, 120, 182. value, 122, 177. Work. See Energy, Labour. Works. See Public Works. Workmen's wages, 126, 132. average product, 81, 128. Worsted stuffs, 182, 186. Yarn, price of, 182, 186. Zinc, industry, 75. price, 182, 186. ?[. ilH. ©. <&. PRINTED BY BALLANTYNE, HANSON AND CO. EDINBURGH AND LONDON. OPINIONS ON THE AUTHOR'S WORKS. "They are the quintessence of statistics." —Leroy-BeauHeu. "Display a vast amount of research." — Times, ' ' Deserve the highest praise. " — Bmile de LaveUye. "Remarkably well arranged and clear." — Economist. "Inexhaustible treasury of facts." — Economiste Fran^ais. "Books of reference as trustworthy as they are unique." — Scotsman, "Written with great care and intelligence." — ?few York Nation, "Clear, accurate, and comprehensive." — Toronto Globe, "Useful and interesting." — Statistical Journal. "Moat original and intelligible of all works on statistics."—- "A boon to the student or public writer." — Irish Times, " Compiled in a convenient and easily intelligible form." — Spectator. "As useful as the Census Report." — Graphic, " No books of reference have higher claims." — Globe. 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