The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1854-06-22
Viii the High Prices Continue? 7?


past. Although its more immediate and
visible impulse was the gold discoveries
OF California and Australia, yet it has
roots which reach below these. For
nearly forty years, the civilized world has
been substantially at peace, and intently
pursuing the arts of peace, which have
consequently made great progress within
that period. The population of the civ
ilized world has largely increased, caus-
ing corresponding increase in the val
ue of lands; for the greater the popula
ton to the square mile of any district, the
higher (other things being equal) will be
the price of lands within that district
Industrial progress has increased the ef-.
fciency of labor individually and in the
aggregate, so that the annual product OF
human work throughout Christendom is
at least double that of 1914. Luxury
and extravaganza have doubtless become
diffused within these forty years; yet ev
cry year Of peace and prosperity secs
some surplus or earnings over spendings
accumulated and invested in buildings,
canals, railroads, improvement of lands,
&C., so that the aggregate value of prop
erty, the unconsumed product of labor, is
probably at least double this day what it
was on the 1st of June, 1914. Hence
confidence, credit, currency, have all been
expanded and diffused. Lands and
buildings afford perfect security for
nearly their present valuation whenever
it is morally certain that such valuation
will not be diminished for years to come;
hence loans or mortgages on the person
al obligation of property-holders are ne
gotiated with facility, and continued with
out reluctance or distrust. Thus trade
expands and is accelerated money be-
comes abundant; paper circulates freely,
and coin is rarely demanded or needed.
Will the present high prices continue I
In SO far as they are based on the in
creased efficiency of human labor, they
will, of course. 1t is not likely that the
implements of Industry will ever be ruder
or less effective than they now are. On
the contrary, it is highly probable that
Invention and Improvement will reiter-
ate their successes, until one mans labor
will produce as much as that of two now
does, just as one mans now produces as
much as that of two did some years ago
On this head, therefore, there is no pros
pect of general reduction of prices.
Nor do we think it probable that col
lapse will result from the exhaustion Of
the Gold Mines. California may grad
ually cease to produce the shining dust;
we hope for her sake that she may
Australia may follow, though probably
at late period but the impulse they
have given will not soon be arrested. Al
ready Southern Africa; the vast South
American region forming the sources Of
the Andes; Central America Northern
Mexico; Oregon and Washington Terri
tories; and even good portion Of our
Southern States, are haunted and haras-
sed by goId-seekers. Most Of the indi-
vidual hunters will probably be disar-I
pointed; but some of them will open new
fields or increase the product of old ones;
and the general result of their operations
will be large and steady increase of the
Go!d-yield for many years to come
probably for at least generation. And,
so long as the aggregate amount of the
precious metals in circulation or in bank
ers' vaults is increasing, the amount Of
Paper Currency in circulation will tend
to increase, and prices consequently to
rise still higher.
We regard the great war just com
menced as the chief anita gonist influence
to the threatened imitation. War is ter
rible consumer Of property at best; it alb
'tracts men and capital from productive
industry and devotes them to the work OF
destruction. Two fleets or two armies
meet in battle, and, whichever may con-
1ucr, the net remainder is worth a good
deal less next day than they were the day
before. A fleet bombards a fortified
'ity, and the feet and city together will
have less cash value at the close
han either had at the beginning of the
ray. The British and French fleets are
low consuming an immense quantity of
'oal which ought to be applied to smelt-
NJ nun hJuOuli tiiIs Wi COulIuuC ufG
years, it will have dcyoured more prop
rty than Turkey in Europe would sell
or if brought to the block, with George
robbins for auctoneer, And this, if we
10 not misread the laws Of currency, will
end to depreciate prieces generally
True, depreciation is seldom realized dur
ng the continuance Of the war, because
he Fictitious activity and prodigal ex-
enditure incident to war fully counter
cts for the time the effect of Property
lmlnution on currency; but whenever
'eace is restored, and business resumes
IS natural and healthful channels, the
hasms created by. War become evident
If the world has grown richer in pro- ,
lous metals since ls49, it must be plain I
nat this wealth has been acquired at the !
xpense of poverty in some other quar- ;,
'r. The men who have dug, say Five
hundred Millions in gold, would, but for e
lis employment have cleared off more Il
'rest, broken up and fenced more prai- p
e, mind more coal and ore, made more o