The Highland weekly news. [volume] (Hillsborough [Hillsboro], Highland County, Ohio) 1853-1886, 1864-07-21
High Prices-.The True Cause.


attribute the present high prices to
an expanded currency. We are flip
PANTY told that this is the one cause
of commercial arrangement, and that II
the currency we're only reduced to the
standard Of three years ago, prices
would come down in the same proper.
ton. Let us think moment, and we
shall see the utter absurdity ofsuch O
conclusion. No matter what is tho me.
dunn for making exchanges, or what is
currency, or what is lawful money
whether it be gold or bank notes, or
treasury notos-,oar prices always were
and always must be high prices
Europe learned it during her Napoleon
ic wars; we learned it in tba war of f1912.
and the same stern teacher com pels us
to submit to it now. The reason is
clear and simple. Production is di
minished, and, by the aoaste of war con
sumption is increased. The war draws
the farmers sons from the plow, and
fewer acres are sown and smaller har-
vests are reaped. The mechanic arts
suffer in the same proportion. Scarce
) less than two-fifths of our adult male
population are now devoting their time
and energy to putting down the rebel
lion. OF these, vast number are in
the field with our brave generals, a large
part man our ships of war, now counted
by hundreds, and many are in hospi
tails; while those employed in the navy
yards; iron-works, machine-shops, and
In the manufacture of military clothinn
and equipments, and in producing mu
nit ons and supplies, swell the agpre
gate to the limit we have named. This
great class of producers cannot be with.
drawn from their ordinary pursuit.
without great diminution in the nro.
ducts OF the country. When the sup.
ply is greatly diminished, and the de.
mand not only continued but increased
prices must advance. There is no nos
sibIe help for it. IF we could return t,
specia basis tomorrow it would still
DC war basis, at war prices.
There is but one exception to thi
advance in prices, and that is the Gov
erment bonds, and they are no excep
ton to the rule, and only follow tn,
general law ofsupply and demand. Tn,
necessities of war have made then
abundant, and therefore thay are cheap
but when the war ends the supply viii
cease and they will cease and thew will
be dear, and the man who invests ia
them now is sure of liberal profit. A
reduction of the currency will-be well
and we have the official assurance ofthe
Secretary of the Treasury that it is ow
taking place, but it is not the iufaIlible
panacea'for financial disorder that manv
suppose. Mr.. Cisco, the Assistant
Treasurer of the United State at New
York, states that he has cancelled for.
ty-oue million Of interest bearing legal
tenders within two weeks, and that he
now holds thirty million of greenbacks
and yet bread and butter, wheat m
corn and cloth are no cheaper.
The first cause of the increased cost
of all commodities, gold included, is al
together outside of the currency. A
redundant currency increases the mis-.
fortune, but does not create it. But
suppose the Government does contract
the currency; what is to prevent the
State banks, that glue no security for
circulation, from quadrupling their pa.
per issues, as they have already done in
many parts of the country2 What,
then, can be more absurd thsn to make
the Government or Treasurery Depart
ment the scapegoat for evils that are
simply consequent upon the most ri
gantic war the world ever knew
the body has fever, is it jnst to make
the that supplies it's wants responsible
for its unnatural condition2-(Nev
York Examiner, June 23d.