New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1847-09-10
Political Economy.
ryyrcr. or DEMAND AND purs MONEY ON PRICES.

troit the effect on prices Of tke distance 'ou' MAJ
ket and the facilities afforded by natural and arth
cial navigation for transportation, was shown BY
the comparative prices OF produce 10 'ne oine'e"'
States Of the American Union
The same author has many useful tables and re-
mark. On the effect Of demand on the prices OF pro
duce and merchandise, with gsnces at the inru'
enoe Of over-i,sues Of paper money on the market
For example he says Although the quantity
NJ Flour received at New York. il the year l-f4'
was more than four times as great as the amount
received at New Orleans, yet the prices were con-
sidersbly higher at the former than they were al
the latter place by reason Of the great demand 'or
IL Thus Butter and Lard when worth only from
to cents per pound at New-Orleans were
estimated at an average price on the hud-
son River Of 10 cents IN 1912. and u cents 10
ls,4. and while frkin Butter and Lard were estl-
mated at the same prices in Albany, the prices oil
Lard in the New-Orleans market were much de-
,,a.ssd below those Of Butter in consequence OF
the immense quantity Of Lard and the small guam
tity of Butter brought into the market fro"
these examples, we see the effect oil large suPPS
/ in proportion 10 the demand IN depressing prices
and by comparing prices in the interior ana al
/ New Orleans with prices in Boston and New ork
and with prices at the same time in Great Britain
we NAV learn how prices are raised by an increased
demand occssoned by competition among buyers
and that the demand for food is IN proportion 10
the density of the population and we may mus
realize the importance 10 the farmer OF the manu-
featuring towns in bis vicinity, to create demand
and furnish market for products which VIII not
] 70 dizfsnf markets In ms
wsv we may understand how much more 1t pro
notes tho agricultural industry and prosperity o'
any people 10 encourage manufacturing INDUSTRY
/ among themselves, and thus effect the double pur-
pose Of increasing their national industry ana Gre
ating market for their agricultural procucis' tnah
il does To consume the manufactures OF other couh
tries and thereby patronise and encourage the IN
dustry Of foreign nations, and thus contribute !"
support foreign laborers and TO create market ior
the farmers Of others countries
The Prices Current show that thesversge price
of Flour through the year, was greater IN thirteen
wears out OF eighteen than the average export price
n nust be obvious that it cannot be exported "heh
the domestic demand is such as to raise the
nrice above what buyers afford TO pay tor
tito export. We can export only when we can
I n
exported during each Of these eighteen years
when the average price in New York was aoovethe
average ex portprice yet it was exported rom We"
York only during intervals when the price was
below the average price We can thus see how
little effect the foreign market has had on the prices
of Wheat and Flour in this country that our prices
have been so high the principal part OF the tne' as
to prevent expectation that our market IS mostly
a domestic one that in nine years In ten, the tu
ropean market is utterly valueless to us,-almost
all our exports Of Flour being to the West Indies
and different parts OF the Continent OF America
and that high prices tend TO lessen and, when they
get to certain point absolutely preclude exporta
ton. and thus tend to depress and destroy the IN
dustry Of the country.
The consumers Of produce must always pay much
higher for il than the producers can sell 1t Tor De
cause they must pay the expenses OF transports
ton and the profits Of the intermediate dealers OF
merchants During several years, from 1886 70
lsas inclusive we were the consumers of European
Wheat. and had 10 pay the expenses OF transPor
ta.ion across the Atlantic. which raised the price o.
Flour made Of both foreign and domestic Wheat
/ from 81 TO about sll per barrel, some portion o.
the time This was memorable era OF Free ITo9'
and PAPER Moaey--of speculation in Bank anc
Railroad Stocks. wild lands andpaper cities wher
men were getting rich beyond the dreams OF ava
rice. by their wits instead of their industry by I'M
porting their clothing and portion other food IN
stead Of producing them by their own laoor-and
bv contracting debts making State and corporate
stocks. paper money, paper cities, and paper rail
roads.
The GROSS circulation Of bank notes in the United
States about Jan. l. 1880, was s6l,325 s9s Jan
l. 1894. s94 $50 80 Jan. !, 1897, sli9ls3,S9o
Jan I. 1910. sll6572 100 and on the LIST Jan. lsi5
il had sunk to SIS. sos 6ss Since that time It ha
increased, and amounted in December ls45. :
slO5. $50. 427 and was about the same in December
; $40
When the people of the United States were a
, flicted with such dcusive dreams of wealth as
1895 and 1897, they untitled for the sober pu
suits of industry and, the bloated paper none
raised the prices of labor as well Of produce an
property. our markets furnished rich and temp
ing reward to the industry Of other countries IN
; evils of Free Trade were thus aggravated and II
l. creased by the excessive amount Of our pap
= currency.
o The following table OF exports ana prices oi l.
IT dian Corn show also the effect, to some extent
: paper money on both prices and exports. ltshov
% that prices generally were high when our pap
money was excessive in amount and that whit
prices ranged high, or above 70 cents per bu'h'
a our exports were hut mere trihe with the e
. ception of the year ending the present season
n ls4s.) and that they have always been trIting
70 amount compared with our enormous crop OF fro
900 to over 400 millions OF bushels annually.
lie may be also remarked that, preyioss to lsio' net
" all our exports of Indian Corn have been TO q
West Indies and the Continent of America Al
; that generally, until the last two years. the Ear
pean market for this article has been nearly wort
less The prices Of Indian Corn have, previous
ls4s, depended almost entirely on the domes
- market, and have been scarcely affected at all
the foreign market Is it, or is it not OF com
queuce to the farmer, to divert a large portion
J.. our population from Agriculture to Manufaotur
/, that they may become consumers and not proc
- GERS in order to increase the American market
- corn, pork lard &c. and TO lessen the supply
these articles
rroyfs Of Indian CIV from tie JRitsd Sa;es 70 fore
n . -. 81 - sVrmN