in the Citations Section.

Transcription

1 Thank you for using the download service. These data may be used for any scholarly / research purpose including use in the public sector. For commercial purposes the download material may be used only with explicit written permission see the website: in the Citations Section. All use of the data should be accompanied with the appropriate citation. The citation for this data set is: Donald G. Paterson and Ronald A. Shearer, A History of Canadian Prices, ; A New Wholesale Price Index, Canadian Journal of Economics, 36, 1 (2003), and the Economic and Social History Database and Journal, Dated: March, 2003

2 Paterson/Shearer Canadian Wholesale Price Index March 2003 Page 1 A New Canadian Wholesale Price Index, Monthly, Donald G. Paterson and Ronald A. Shearer University of British Columbia, March 2003 Technical Description Table 1. Major Category Weights Warren - Pearson Paterson-Shearer * 1855* Farm Products Processed Foodstuff Leather Products Fuel & Light Metal Products Building Materials Drugs & Chemicals Alcohol (Spirits) Miscellaneous Textiles and Clothing House Furnishings Total * Weights change in June The data that are used here are mostly wholesale prices taken from the 'Wholesale Prices Current' reporting. With only a few exceptions they are from Montreal. Some date as continuous series from 1840, but others from 1850, 1855 and It is not clear why the fragmentary reporting suddenly becomes continuous or why there are some breaks in reporting. The months from January 1850 to May 1855 are a particular problem. New techniques in printing and the newspaper industry also facilitated the use of templates and tabular material. For weights within a category we use the weights presented by Hanes - these are adaptations of the weights used by Warren and Pearson in their pioneering studies of US wholesale prices. The original Warren-Pearson weights varied from year to year but are in practice fixed from 1860 onward. In many cases we can match the individual commodities and where this is not possible we use close substitutes. For instance, in the Food Products Index the beef entry is the same: the price of salt beef (mess) in barrels. On the other hand, for Canada we do not have separate prices for hams, mess salt pork and prime salt pork and use the price of Canadian mess salt pork to cover all three. In the lists below, where weights have been grouped the original Hanes-Warren-Pearson (HWP) weights are shown in brackets. The weights that are

3 Paterson/Shearer Canadian Wholesale Price Index March 2003 Page 2 shown below may total to less than 100 if full coverage cannot be achieved. In these cases the index is computed by scaling all the weights proportionately. Monthly Food Products Index ( ). The following is based on the weights which are used in Hanes (1998) "Consistent US Wholesale Price Series" and are modified Warren-Pearson weights: Food Products Commodity Prices Beef Salt beef, average of prime (mess) and prime in barrels Pork (Hams 4%; Mess 5%; Prime 5%) Salt pork (mess) in barrels Butter/Fats 8.00 Fats Tea 1.00 Tea, average of Twankey and Suchong Coffee 3.00 Coffee, South American or Rio Sugar 8.00 Sugar, Cuba bright - not always described Molasses 1.00 Montreal molasses (clayed) Flour/Bread (Bread 2.5%; Bread-Navy 2.5%; Cornmeal 3%; Flour 14.5%) Superfine flour Rice 0.50 Patna rice not always described Salt 1.00 Liverpool salt Total Monthly Food Products Index (June 1850 May 1855). Food Products Commodity Prices Beef Salt beef, average of prime (mess) and prime in barrels Pork (Hams 4%; Mess 5%; Prime 5%) Salt pork (mess) in barrels Butter/Fats 8.00 Fats, Butter Flour/Bread (Bread 2.5%; Bread-Navy 2.5%; Cornmeal 3%; Flour 14.5%) Superfine flour Peas 1.00 not always described Total Monthly Food Products Index (June ). Food Products Commodity Prices Beef Salt beef (mess) in barrels Pork (Hams 4%; Mess 5%; Prime 5%) Salt pork (mess) in barrels Butter/Fats 8.00 Butter Peas/beans 1.00 Peas Tea 1.00 Tea (Twankey) Coffee 3.00 Coffee, South American or Rio Sugar 8.00 Sugar, Cuba bright Molasses 1.00 Montreal molasses (clayed) Flour/Bread 22.5 (Bread 2.5%; Bread-Navy 2.5%; Cornmeal 3%; Flour 14.5%) Superfine flour Rice 0.50 Patna rice Fruit 3.90 Average price of Dried Muscatel raisins & Dried Currants Salt 1.00 Stoved common salt Olive Oil 0.10 Olive Oil Spices 0.20 pepper Total We achieve a 78.2% coverage of the HWP commodities with the principal omissions being: Potatoes 6%; Milk 3.4%; Fish 1%; Cheese 2%; Tallow 1%; Lard 5%; and Eggs 3%. The Food Products Index is calculated for the period Spirits & Alcohol ( ). This is the unweighted average of the indexes of the prices of: Spirits Hennessey Brandy or Best Cognac - not always described Jamaica rum Beer London porter at Montreal, per doz., Total Spirits & Alcohol (1850-May 1855). Not available.

4 Paterson/Shearer Canadian Wholesale Price Index March 2003 Page 3 Spirits & Alcohol (June ). This is the unweighted average of the indexes of the prices of: Spirits Hennessey Brandy Jamaica rum De Kuypers' or Holland gin Beer London porter at Montreal, per doz., The HWP uses a grain alcohol price. Building Materials. The prices of lumber here are the Quebec City posted prices from the Forsyth and Bell Circulars. All other prices are from Montreal markets. The principal part of the building materials index is made up of wood. Although certain key building commodities are not included here such as lime, cement, bricks and glass (except in the period ) and their absence accounts for only a 15% difference from the HWP index. We would not expect the time pattern of the index to be very much different had these prices been available. Building Materials ( ). White Pine Boards White pine 24%; yellow pine 8%) Quebec City pine deals Oak Timber (Oak timber 10%; oak headings 3%) Quebec City oak Spruce Boards 5.00 Quebec City spruce deals Staves & Shingles (Shingles 12%; staves 14%) Quebec City staves, "firsts" Paint 4.00 paint, average of white & red lead Linseed Oil 2.00 Best boiled linseed oil not always described Turpentine 0.40 Turpentine [May 1844 to December 1848 only] Nails 2.00 nails, average of common wire & 14lb. nails Glass 3.00 Window glass, 6.5 X 7.5 Total Building Materials ( ). White Pine Boards White pine 24%; yellow pine 8%) Quebec City pine deals Oak Timber (Oak timber 10%; oak headings 3%) Quebec City oak Spruce Boards 5.00 Quebec City spruce deals Staves & Shingles (Shingles 12%; staves 14%) Quebec City staves, "firsts" Total Building Materials (June ). White Pine Boards White pine 24%; yellow pine 8%) Quebec City pine deals Oak Timber (Oak timber 10%; oak headings 3%) Quebec City oak Spruce Boards 5.00 Quebec City spruce deals Staves & Shingles (Shingles 12%; staves 14%) Quebec City staves, "firsts" Red Lead paint 4.00 Red lead paint Putty 0.10 Putty Linseed Oil 2.00 Best boiled linseed oil Total Building Materials ( ). White Pine Boards White pine 24%; yellow pine 8%) Quebec City pine deals Oak Timber (Oak timber 10%; oak headings 3%) Quebec City oak Spruce Boards 5.00 Quebec City spruce deals Staves & Shingles (Shingles 12%; staves 14%) Quebec City staves, "firsts" Red Lead paint 4.00 Red lead paint Putty 0.10 Putty Linseed Oil 2.00 Best boiled linseed oil Tar 0.50 Coal tar Turpentine 0.40 Turpentine

5 Paterson/Shearer Canadian Wholesale Price Index March 2003 Page 4 Nails 2.00 Common wire nails Total Drugs and Chemicals. Excluded: cement 2%; (after 1849) glass 3%; bricks 5%; and lime 5%. The US Hanes Warren-Pearson index for this commodity group uses five commonly produced and used drug and chemicals prices with equal weight applied. We follow the same procedure with four or five such goods as available. Two are the same as the HWP: Alum and sulphur. The HWP uses the prices of: blue vitriol, copperas and indigo. Here we use: carbonate of soda and borax. Drugs and Chemicals ( ). Alum Alum Borax Borax Carbonate of soda Carbonate of soda Sulphur Sulphur flour Indigo Drugs and Chemicals (1850- May 1855). Not available. Drugs and Chemicals (June ). Alum Alum Borax Borax Carbonate of soda Carbonate of soda Sulphur Sulphur flour Miscellaneous Commodities. The HWP Miscellaneous Commodities Price Index for the US has five commodities that can be closely duplicated in Canada. We have substituted the price of saltpetre for the unavailable gunpowder and borax for soap. Borax was the universal cleaning agent of the 19 th century (and later) and could be used in various concentrations. Apart from various household cleaning uses borax was also used for personal hygiene. "It allays the heat of sunburn, bleaches out tan and redness helps freckles and moth to a great degree" [Jefferies and Nichols (1894) p.111]. We have no corresponding price to that of rubber. Miscellaneous Commodities ( ). Ashes, pearl Ashes, pearl Saltpetre (Gunpowder 30%) saltpetre Starch Glenfield starch - not always described Soap Imported Total Miscellaneous Commodities (1850- May 1855). Not available. Miscellaneous Commodities (June ). Ashes, pearl Ashes, pearl Saltpetre (Gunpowder 30%) saltpetre Starch Glenfield starch Borax (Soap 30%) Total Excluded: rubber 10%.

6 Paterson/Shearer Canadian Wholesale Price Index March 2003 Page 5 Hides and Leather Goods ( ). Hides Green or fresh slaughter hides Leather Average of: leather, Sole No.1; calfskin leather; and patent leather Hides and Leather Goods ( ). Not available. Hides and Leather Goods ( ). Hides Green or fresh slaughter hides Leather Average of: leather, Sole No.1; calfskin leather; and patent leather Fuel and Lighting ( ). Coal, Bituminous Newcastle grate coal (occasionally described as 'Welsh') Candles 3.00 candles, average of Belmont and common Oil 2.00 whale oil, average of whale and sperm oil Total Fuel and Lighting ( ). Not available. Fuel and Lighting ( ). Coal, Bituminous Newcastle grate coal (occasionally described as 'Welsh') Coal, anthracite Lehigh coal Candles 3.00 Belmont candles Oil 2.00 whale oil, often described as 'bleached' Total Excluded: Petroleum 10% and Matches 1%. Metals and Metal Products ( ). Pig Iron pig iron (Gartshire, No. 1) Sheet Iron sheet iron (best brands), Nails, Wire (Nails 10%; iron wire 5%; wood screws 5%; butts 2%) cut nails (occasionally described as 'assorted') Spring Steel 5.00 (Shovels 5%) spring steel (best) Tin (Tin, pig 5%; spelter 3%; zinc plate 5%) charcoal tin plate (IC) Lead* 5.00 lead, average of sheet & shot Total Metals and Metal Products ( ). Not available. Metals and Metal Products ( ). * Added commodity. Pig Iron pig iron (Gartshire, No. 1) Sheet Iron sheet iron (best brands), Nails, Wire (Nails 10%; iron wire 5%; wood screws 5%; butts 2%) cut nails (occasionally described as 'assorted') Spring Steel 5.00 (Shovels 5%) spring steel (best) Tin (Tin, pig 5%; spelter 3%; zinc plate 5%) charcoal tin plate (IC) Total Excluded: Copper sheets and pigs 15%; and Quicksilver 1%. Textiles and Clothing ( ) Proxy.

7 Paterson/Shearer Canadian Wholesale Price Index March 2003 Page 6 Textiles and textile products made up 16.0% of all imports by value in 1855 and 27.4% in Linen imports were 4.3% and 5.1% of all textile imports in the same two years. Cotton textiles made up the bulk of textile imports in 1855 (59.1%) but the second largest category in 1865 (33.2%). Woollen goods were 38.0% of all textile imports in 1855 but were the largest class in 1865 at 47.4%. As noted in the text there are no useful textile prices for Canada of this period. Furthermore even in pursuit of a proxy for textile prices there are few alternatives. The Liverpool price of raw cotton, which is available, is not a good indicator because raw cotton prices tended to be more volatile than the price of finished textile goods. Here the proxy is the simple average of the price of two popular weights of linen yarn. Although the prices are quoted at Belfast they were essentially the Liverpool ones. Source: Belfast Linen Trade Circular, ( ), Belfast. The systematic reporting of prices did not begin until January The assumption is that linen price movements matched the prices of near substitutes. This can be confirmed for woollen goods on an annual basis. Summary Statement of the Quantity and Value of Foreign Merchandise Entering for Consumption, Sessional Papers, various years. Linen Yarn Lea, Linen Yarn, Weight 8lbs. per bundle, Medium and Prime Warp Linen Yarn Lea, Linen Yarn, Weight 8lbs. per bundle, Medium and Prime Warp Total Not Applicable Not covered in the this index are 'house furnishings'. These account 1% in the Warren-Pearson All Commodities Index. All Commodity Index. For category weights see Table 1. Montreal wholesale prices are taken primarily from the Montreal Gazette published in a section usually described as "Wholesale Prices Current". In certain years there was an individual description of particular markets such as the "Leather Market". Occasionally there were annual reviews (1861 and 1863) of monthly prices. These prices were quoted in other Montreal newspapers on an irregular basis over the period: The Montreal Herald and Daily Commercial Gazette, The Montreal Transcript and Commercial Advertiser, and The Pilot and Evening Journal of Commerce. Also The Morning Chronicle of Quebec City and The Ottawa Citizen occasionally carried Montreal market information. Reference: Paterson, Donald G. & Shearer, Ronald A., "A History of Canadian prices, ; A New Wholesale Price Index", Canadian Journal of Economics, 36, 1 (2003),

8 Paterson/Shearer Canadian Wholesale Price Index March 2003 Page 7 Table 2 Canadian Wholesale Price Index, Monthly, Average of 1860 = Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

9 Paterson/Shearer Canadian Wholesale Price Index March 2003 Page 8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Notes: Figures in italics between Jan and Dec are interpolated.