The daily union. [volume] (Washington [D.C.]) 1845-1857, 1845-11-15
Price per quartero on

fSee Nc Cailechs Com Dcf .9 sd rel l. D. 5lA for all
errspt the tipo inst years.] ~
this: they show concusively thai there ,cas general
fall Of prices oper the whos commercial ,cosid, from
1916 to 1882.
Was that universal result produced by the opera
ton of the American tariff, which stimulated s.do-
nestle competitioni" Or, was It produced by other,
more general, and more adequate causes!
With men Of tolerabe share of common sense
and common honesty, it would hardly be necessary
to argue these questions. That the trAing and in
significant cause ofan increase Of duty by the Amer
lean tariff should produce an effect so widespread
to reason against. Yet out Of compassion for such
benighted wings az believe such nonsense, will
proceed briefly to assign the real and substantial
causes which have effected the fall of prices since
1916 to the present time and in spite Of high duties,
designed to prevent such result.
The causes of the high prices in 1918 in England
and similar causes operated in other countres) were
the following:
l. I'm inflated state of The currency At that period
lSl9) the Bank Of England had suspended specie
payments, and thus was removed the only check
against an expansion of the currency. The inevita-
BILE consequence followed, viz: vast increase of the
volume Of the currency But, three years previous,
(l8I5,) the Bank then being in a state of suspen-
sion the circulation of England was 1887 $50 900, or
S22. per head for her population. (See Ex Doc.
No. 81, Cd sess. 23d Congo
2. England iras then in state Of ,par The wars
with Napoleon and with this country had indeed
closed but she had not then disbanded her soldiers
Nearly the whole world was at that period under
arms. Thus were there large portion Of the popu-
atons Of the different kingdoms of Europe abstracted
fom the productive products. Instead Of being
producers Of manufacturing and agricultural products,
they were consumers; and thus was the demand for
all articles of consumption greater in proportion to the
supply than at subsequent periods.
3. Themnchineryussd in manutactures,oas then much
more imperfect and defective than is no,c and, OF
course, could not multiply the different articles and
fabrics Of manufacturers rapidly as at the present
time. This was another cause why the supply
was less in proportion to the demand.
II was these causes, viz: an imitation of the cur
rency, and greater relative consumption in proper
ton to production, which caused the high prices OF
articles Of manufacture, and even in many articles
VI PaS'a'~''S ~ uic pcriou
Similar causes at the same time were in operation
in the United States. In 1911, the currency of the
United States was S45,OOO,0OO, which in 1916 had
been inflated 70 Sll6 600 OOO all the banks south Of
New England being in state Of suspension. In
this country, also, from 1879 1875 large masses
Of mon were taken from the occupations Of industry
to encounter the dangers and perils of the field.
Thus ras the number Of consumers increased In PRO
portion to the producers, causing the usual effect Of
larger demand in proportion TO The supply And machi-
merry used in manufactures was also comparatively
imperfect and defective as It was in England, and in
other parts Of the world. Such were the main causes
Of high prices in this country, in England, an d
throughout the civilized world.
Now, what has effected such vas, reduction of
prices as the tables have presented tend to prove
'cas The rery rsrer cftte causes that eieraied hs
viz;
l. a contraction If The currency. In England,
the active circulation, AZ before stated was S22 50
per head Of her population. In l82s-the latest es-
innate after the bank had resumed specie payments
Il was only "a per head. In this country, il was