Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1864-07-01
HIGH pRICEs-THE TRUE CAUSE

NUN Nuns II T. / NJ n lhl = r.
1t is quite the custom Just nov to attribute
the present high prices to an expanded cur
rency We are flppantly told that this is
the one cause Of commercial arrangement,
and that If the currency were only reduced
to the standard Of three years ago, prices
would come down in the same proportion
Let US think a moment, and we shall see the
utter absurdity Of such conc usion. No
matter what is the medium for making ex-
changes, or what is currency, or what is law
full money-whether 1t be gold, or bank notes
or treasury notes-war prices always were
and always must be high prices Europe
learnt it during her Nupoeonic wars We
learned it in the war Of 1912, and the same
stern teacher compels us to submit 70 it now.
The reason is clear and simple. Production
is diminished, and. by the waste Of war, con.
sumption ia increased. The war draws the
farmers sons from the piow, and fewer acres
are sown and smaller harvests are reaped -
The mechanic arts suffer in the same proper.
ton. Scarcely less than two-hfths of our
adult male population are now devotinR all
their time and energy TO putting down the
rebellion. OF these, a vast number are in
.he field with our brave generals, large
part man our ships Of war, now counted by
hundreds. and many are in hospitals a; while
those employed in the navy yards, iron works,
machine-shops, and in the manufacture of
military clothing and equipments, and in pro-
ducing munitions and supplies, swell the aR-
Fregate to the limit we have named. This
great class of producers cannot be withdrawn
from their ordinary pursuits without great
diminution in the products of the country
When the supply is greatly diminished, and
the demand not only continued but increas-
ed, prices must advance. There is no possible
help for H. If we could return TO a specie
basis Tomorrow, il would still be war basis.
at war prices.
There is but one exception to this advance
in prices, and that is the Government bonds,
and they are no exception 10 the rule, and only .
follow the general law of supply and demand .
lie necessities of war have made them abund-
ant, and therefore they are cheap but when
the war ends the supply will cease and they
will be dear-snd the man who invests in
them now is sure of a liberal profit.
A reduction of the currency will be well
and we have the official assurance of the Sec
Rotary of the Treasury that it is now taking
place, but it is not the infallible panacea for
financial disorder that many suppose. Mr..
Cisco, the Assistant Treasurer of the United
States at New York, states that he has can
celled forty-one millions Of interest bearing
legal tenders within two weeks, and that he
now holds ,huty millions Of greenbacks-
and yet bread and butter, Wheat and corn and
cloth are no cheaper
The first cause Of the increased cost Of all
commodities, gold included is altogether
outside OF the currency redundant cur.
rency increases the misfortune, but does not
create IT, But suppose the Government does
contract the currency what is to proven,
the State banks, that give no security for cir
from quadruplng their paper issues,
AS they have already done in many pa ts of
the countrys What. then, can be more ab-
'nrd than to make the Government or Treas.
lry Department the scape- goat for evils tina,
'fe simply consequent upon the most gigantic
war the world ever knew. II the body has {
fever, is il just TO make the hand that sun ;
'lies ils wants responsible for its unnatural d,
condition IN y Examiner Of ,Jnne oad