Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1864-07-15
High PricesLThe True Cause.

Its quite the custom Just now to attribute
the present high prices to an expanded curren-
cy. We are f1ippently told that this is the one
cause of commercial arrangement and that if
the currency were only reduced to the standerd
of three years ago prices would come down in
the same proportion. Let us think moment,
and we shall see the utter absurdity ofsuch a
conclusion. No matter what is the medium for
making exchanges, Orwhatis currency, orwhat
is lawful money whether it be gold, or bank
notes. or treasury notes-tCdr prices always
were and always must be high prices. Europe
learned it during her Napoleonic wars; we learn
ed tin the war of 1872 and the same stern teach
er compels us to submit 10 it now. The reason
is clear and simple. Production is diminished,
and, by the lcGste of war, consumption is increas-
ed. The war draws the farmers sons from the
plow, and fewer acres are sown and smaller
haryests are reaped. The mechanic arts suffer
in the same proportion. Scarcely less than
two-fifths of our adult male population are now
devoting all their time and energy to putting
down the rebellion. OF these, vast number
are in the field with our brave generals large
part man our ships of war, now counted by hum
dreds, and many are in hospitals; while those
employed in the navy yards, iron works, machine
shops, and in the manufacture of military cloth
ing equipments, and in producing munitions and
supplies, swell the aggregate to the limit we
have named. This great class of producers can
not be Withdrawn from their ordinary pursuits
without great diminution in the products of
the country. When the supply is greatly di-
minished and the demand not only continued
but increased, prices must advance. There is
no possible help for it. If we could return to a
specie basis, at war prices.
There is but one exception to this advance in
prices, and that is the Government bonds, and
~ Il i L e I
low the general law ofsupply and demand. The
necessities of war have made them abundant
and therefore they are cheap; but when the wal
ends the supply viii cease and they will be
dear-and the man who invests in them now is
sure of liberal profit.
a reduction of the currency will be well and
we have the official assurance of the Secretary
of the Treasury that it is now taking place, but
it is not the infallible panacea for financial dis
order that many suppose. Mr.. Cisco, the As
sistant Treasurer of the United States at New
York, states that he has cancelled forty -One
millions of interest bearing legal tenders with-
in two weeks, and that he now holds thirty
millions of green backs-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 out
side of the currency. A redundant currency
increases the misfortune, but does not create it.
But suppose the Government does contract the
currency; what is TO prevent the State Banks,
that give no security for circulation, from quad
rupling their paper issues, as they have already
done in many parts of the country? What, then,
can be more absurd than to make the Govern
ment or Treasury Department the scape-goat
for evils that are simply consequent upon the
most gigantic war the world ever knew. Ifthe
body has fever, is it just to make the hand
that supplies its wants responsible for its unna-
tura1 conditiOn?-Nelo Yorlc Examiner, june 23