Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1862-11-11
Money Prices Land yet to Rise,

The master and financial heads Of the
country have At last taken to figuring and
writing upon The currency and gold ques-
tons, prices, speeulations. &c, and as ex-
pocted, have arrived at the conclusions that
tho co9ntry is abundantly safe SO far as the
finances are concerned, and that no cause
exists for the high premiums now paid for
gold on the contrary, prices have risen be-
cause of the abundance Of money and the
neglect Of government TO check its abund-
ance by forcing bank paper out Of use by
taxihg its circulation.
An able writer for the H. Y. Tribune
says as the Government paper has been
slowly coming into circulation, 90 The rise
of prices has been gradual. 1t began with
cotton, though in that instance from diff
fercnt cause, until the circle has wldencd
and included every commodity but real es-
tate, which Is always the last to De affected
either by expansion or contraction. 1t will
in time reach that also. When the Gov
erament began its issues, it WIS taken for
granted by many persons that they would
drive home an equivalent amount of bank
curreney-that a million of Government
notes would dsplace a million of bank notes.
They supposed the only missing currency
would be coin. and that the whole volume
would remain at about the same figure
But this supposition has proved fallacious.
Bank loans have increased instead of dimin-
ishing. Gold has been made the basis OF
enorn Gus loans with which more gold was
to be purchased until the speculation in
coin, combined with Government wants
has raised the premium TO point as high
as was ever reached in this country, even
when engaged in foreie n war. La that o.
1912, specie never rose above 40, though
the paper currency of that crisis was prob
ably more worthless than that of 1776
More Of IT was issued. and less Of it was
redeemed. The difference between those
two periods and this is very striking-then,
the Government clamored for money at any
rate of discount on It's paper issues; now, it
is the people who are camoring for similar
issues, taking millions at a premium, Others
at par, but none at discount The cur
tency, up to this time, is evidently not ex-
clssive. at least not dangerously so.
AS il has gradually become difused, il
has as gradually deprecated. The meas
uge of depreciation is seen in the difference
between the price Of paper and the price Of
gold. But the plesert high price Of gold
Is unnatural. The premium has risen spas
medically, by sudden jumps, and this is the
effect of excessive speculation. 1t would
have risen gradually as the currency ex
panded, had not speculation taken hold OF
IT, as in this country it rushes up every.
thing with probable margin attached tc
IL. Gold vibrales daily, rising and falling
sometimes 5 per cent. This oscillation is
conclusive evidence that the present enor
nous premium is not warranted by the act
ual condition Of the paper currency. II il
were, the premium would not he so luctu
ating; and if the spectators could be pre-
vailed on to let the article alone, the rea
depreciation Of our paper currency coule
be ascerta.ned with satisfactory accuracy
Under this manipulation, it's IN indefinite
quantity.
But The shock Of a general rise Of prices
is now.upon us. Every householder is be
ginning to feel 1.-THE ich man when be
lights bis shilling cigar, the poor one every
time be dips his spoon in the sugar-bowl
Tie nation, with its usual fexibility, Will il
time adapt itself to the altered condition d
things The sooner we do 50, tho sooner
we shall lie better of. All conmoelite'
have not yet felt the Influence Of this rise
but if the currency goes on expanding. non
will escape. II las already made thi
Stock. Board crazy. because stocks en- b,
quickly purchased and "a quickly soil
Other descriptions Of property, foi VII g
time is required TO change the ownership
viii be the last to be affected. If stocks
are the pioneer ind ators q a gener | sp.c
ultian, the rear-guard i real estate.