Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1863-03-05
nsenonelr - s.er.ien.

From the Atlanta e0niedsracyl
These ore terms q very esRersl uss, bat j
4 the miuds d those who employ them of yer,
indefinite sigoiheatiqn. Were the distinction
( preserved between the causes Of an advance Il
( prices tls frequent misRpp.ication Of ihss
terms would BE- evoided- as q general distiue
t0n the difference between natural ard arti
cial scarcity IS fEst to be observed. Whateve
Produces iailure ia tho supply Of e0mmodi
lies from physcal circumstances, such a
dfpeg5t Hoods sorns, etc are Of course to b'
c.sssea with the former. The esusos that pro
duee thp latter are tower, bat Of more p8ienf
i1iiaahee. Among these IS the interruption d
eenme1cial intercourse oy war. sRch as block
ace, 81 tho want OF adequate inferral conmuni-
calonsi bnt the leading operating Cause Of tha
savGaee IN prices is from the undue increase OF
money whether pspeT or metelc, stimulating
cemand; the two classes Of causes of.en act
eoncuuently, or u the same direction. Natural
scarcity and artificial scarcity thus acting to-
advance IN prices from Increased demand, oi
which the ulhUate cause is undue increase OF
money, and the Immediate cause increased de-
mandi must follow from an over issue Of paper,
OF the want Of adequate iRternal communies-
iions, By which the abundance of one pam 0l
the eGuntry fails 70 relieve the scarcity of an
other; but the leading operating cause Of the
advance Ia prices rom artificial scarcity, e the
undue increase Of money, whether papeT or
metalic, producing an increase Of demand Ths
two classes Of causes, we have said, may act
eoneuneHty, or IL the same direction. Natural
and artificial scarcity thus acting together, ag-
grava5s tae evil Of high prices in the same
manner as if increased demand from tie natural
progfess Of wealth, and from fciifiaus causes.
such as the undue augmentation Of money had
eo-opeTa.ed to enhance prices. The increase of
prices. Of which the Ultimate cause is the undue
increase Of money, ana toe immediate cause
caange ia the relation between demand ard
supply, may proceed ffom the acton Of banks
or Of government
When rom the former, it is Of limited infu-
eHee while Tedeem1ble in specie. Il bscsmss
excessive when the operation Of this check IS
suspended at times by banks, but when exesss-
i've by the action of g0vernment, it causes en-
a1vGnee in prices, bofh E9m increased demand
and diminished supply. The governments agents
come into the market with 8 large purchasing
power, they inter into competition with pfivats
purchasers Ihis advances prices from ia
creased demand The Withdrawing Iarre ouar-
titles of any pertieulsr eommod.sy fr0u tie
10 lket, Of course, lessons the supply, which
further advances prices, not nom iha reduced
quantity only, bat from producers withholding
stocks from the market, in hopes Of obtsinirr siI
y
oyer-lssue Of paper money, prices advance bC-h
from increased demand and essened supply. in
the same manner IS is produced by both natural
and artificial scageity acting c0ncuuenHy
Now, il periles VINO employ the terms No
nopoly ard ExtOTtian, were IN the habis Of 3s-
between these causes of advanced
prices, they could not make so great O misap-
Blcaiion Of these terms IS chsracteuze leeisia1
i've debates and the language of the news paper
press They would distinguish between -ulh
an advance nom natural secretly and arfcal
scarcity, the latter often tho Consequence OF lha
action Of their own governments ffom sbsolu.s
necessity. Whan this is the case aud paper
money is freely issued, in the absence of ether
resources, 10 d4fray the necessary pub-
lie expenditures, they would consider this such
a change ia the relation Of demand and supply
e Is Inevitable IT, under such cireumstsHcas,
parties eTs 70 blame, the blame must rest ga
government and not on indiVidusis III prices
advance inordinatoly, is is the result of tho or
sreti0n q The law Of demand and supply The
sitecl will not cease until the cause is ri
1fawn. High prices viii not disappear before
he public expenditure declines, IL tke ahserca
Of all other hnsncial resources than are supplied
BY paper morey.
The advance IN prices, IN snca a state of
hiugs, IS precisely the same in effect as an equiv
q cny character is TO enhance prices. The
burden is disguised as q system Of taxation by
-akipg the form OF an axcasiv8 anc depTecisfsd
N the same msnner as excessive du-
aes or imports are masked as q system Of taxa
ion by tne name It has received of a tariff or
ieheme Of revenue. If tax on income were
imposed progressively Increasing and to the
,eme extent as paper emissions are made by
government, the Jisa Of prices would be the
Iame, ard the waste Of capital the same. The
lnly difference would be in the mode Of laying
N The hurtheu.
Ihis explanation presents no plea for iadivd-
lai monopoly and extortion. We view these as
leep offensss agaiIss The State-a5 e species Of
moral treoson, but it furnishes a valid reason
lgaiast legislation on the subject, either with
new TO control prices or to punish, from lhs
lfhcaity, If not impossibility, of discriminating
lesween the csusessof advareed prices.