83 



seasonal or cosmical influences, it affords no explanation of a 

 general and continuous fall of prices over a large number of 

 years when conjoined with an ever-increasing real demand. 



Wheat. — Take the commodity wheat for example. The 

 absolute measure of the intensity of demand is most surely 

 determined by the extent of its consumption, per head. In 

 the United Kingdom, this intensity of real demand is 

 indicated by the fact that the consumption in the year 1840 

 amounted to 2551b. per head per year, while its price per 

 ton averaged ,£16 60. The absolute intensity of requirement 

 or demand continued gradually to increase to such an extent 

 that in the year 1887 it is indicated by a consumption of 

 3541b. per head of population, or an increase of intensity of 

 real demand equal to 3882 per cent., while its price did not 

 increase in the ratio of real demand, but actually fell to 

 «£8T5 per ton, or a fall of as much as 5O90 per cent., that 

 is, half the price, as compared with the earlier period when 

 the real demand was much less intense. 



Meat. — Again we have another anomaly, which, taten with 

 the former instance, is equally Unexplainable by what is 

 termed the " scarcity of gold theory of decline of general 

 prices, or by the Law the Ratio of Demand and Supply." 

 Thus in the United Kingdom in the same year, 1840, the 

 average consumption of meat was 871b. per head, while its 

 market price was >£54'5 per ton. Both demand and price 

 gradually increased, but at very unequal ratios, until the year 

 1887, when the average consumption rose to 1091b. per head, 

 or 25'29 per cent, increase, and the market price rose slightly 

 to ,£58 5, being an increase of only 7 35 per cent. 



Average Wages of Agricultural Labour.— A. still more re- 

 markable example of inconsistency with either the " Scarcity 

 of Gold" or the Ratio of Supply aud Demand theories, and 

 constituting indeed a complete inversion of their theoretical 

 conclusions, is to be four.d in the United Kingdom, between 

 the years 1840 and 1887, in respect of the rapid fall in. 

 demand for agricultural labour gent rally, associated with not 

 only a gradual increase in agricultural labourers' nominal 

 wages, but a still more decided increase in the purchasing 

 power of the same wages. 



Thus in 1840 there were 3,400,000 labourers employed in. 

 agriculture with average wages at 12s. per week. In 1887, 

 notwithstanding an increase of 38 86 per c nt. in the total 

 population, the number of agricultural hands fell to 2,560,000, 

 or a decline of 24' 70 per cent., while their nominal wages 

 rose to an average of 15s. per week, or 25 per cent, increase, 

 and while also the real purchasing power increased fully 50- 

 per cent. a 

 a. See fuller particulars page 17. 



