The Nashville daily union. [volume] (Nashville, Tenn.) 1862-1866, 1864-10-01
The Fall in Prices.


whole mercantile community has beer
seized with a paraliling caution. Al
though the markets are generall,
lightly stocked and The interior Is uni
formly reported 30 be bare of goods
yet buyers, with one consent, have r.
! irSt' to purchase their ordinary stock.
att.ie high prices demanded. The re-
suit has been q general decline in
prices which SO far from inducing
buyers to operate, has only increased
the indisposition TO buy.
The natural result of this state oI
things has been an almost general eff
fort to force sales. The dry goods job
bers have repeatedly marked down
their prices, and are now selling much
below the quotations Of the importers
and manufacturers agents. Unable TO
sell the desired amount at their reduced
prices, they are now throwing large
amounts OF domestic fabrics into the
auction room, producing at each sue
/ ccssive sale a still further decline, and
giving greater impetus 10 the down
ward movement This movement in
the dry goods market is fair repre-
scntatiOn of what is occurring in other
kinds of merchandise. The decline
also extends to raw materials and im>
ported produce. Cotton has declined
within fourteen days 50c. per TO-, and
wool l2c. and neither is saleable in any
considerable amount at the reduced
prices. Tea, coffee, sugar and spices
participate in the downward move
ment, and the metals begin TO sympa-
thize also As yet, breadstuffs and pro
visions have resisted the decline with
considerable frmness; the cause doubt
less being the attempt of Western spec
ulators to hold back supplies from ship
ment until near the close of navigation,
in order to keep stocks light and prices
high at the East during the Winter
There appears 10 be combination
Of causes at work producing this state
Of affairs, among which the following
may be enumerated as the principal:
l. Military successes. The fall of
Atlanta, the occupation of Mobile har-
Dor, the double victory of Sheridan,
and the manifest advantage of Grant
over Lee in the position before Rich
mond, together with sundry indications
of rapidly growing weakness in the re
bel resources, have produced a deep
conviction of the ability of the Govern
ment to overthrow the rebellion
2 The natural result of this increased
confidence in the restoration of the
Union has been to appreciate the value
OF greenbacks and depreciate the price
of gold. The current value of the cur
rency sympathizes directly with the
prospects of the stability Of the Gov
ernment, and the probability of an
early close of the vast war expendi-
lures. Within the last thirty days, the
value of the greenback has increased
ten cents on the dollar; or, in other
words, the currency is now worth 25
per cent. more than on the Goth of
August AS the value of goods is
measured by the currency, an apprecia-
ton Of the currency involves d depre-
ciaton OF the prices of goods. The
advance Of one-tOurth in the value of
greenbacks requires decline in mer-
cnandise OF one fifth; so that the goods
that one month ago sold for 81 GOO are
worth to-day only $500. Here, then, is
one very direct and inevitable cause of
p decline in prices
8. Animproved administration of the |
national finances. Although Mr.. Fes- !
senden has, from the necessity Of his !
situation, perpetuated the unsOund !
system Of finance bequeathed to him |
by Congress and its late financial lead /
er, Mr. Chase, yet he has administered /
the affairs of his department with
degree of prudence that mas greatly /
restored confidence in the credit Of the
Government The chief feature of his |
administration has been reliance
upon bonds in preference 10 continued
large issues of currency. This limita~
ton of the volume OF currency has
checked the speculation based upon an
anticipation Of still further imitation,
and at the same time has increased
public condence in the value OF the
currency already ahoat
As % natural result Of his improve /
ment in the finances, the late prevail
ing disposition to invest money in staple
as the safest kind Of
property, is changed for a disposition
TO take money out OF those commodi-
ties and invest it in Government |
securities, paying in currency, 10 to l3
per cent. interest The direct effect Of
this change of investments is TO throw
large amounts of merchandise upon
the market for realization, producing
a weakness Of prices
T. The course Of the gold market
apart from the causes above indicated
tending to increase the value Of green
backs and depress the price of gold,
has been subject to inside influences,
tending to put down the rate The
large increase in the exports of produce
and the reshipment Of foreign goods
and produce have largely reduced the
exports Of specie. For the last ten
weeks, the shipments of specie from
this port have been only s., ,497 900, OF
about half million dollars per week
This reduction Of the exports Of specie
20 about one-half the average amount |
has TO a large extent deprived the gold
market OF It's principal source of de-
mand, and has 80 far robbed the
spectators Of the Gold Room Of their
resources for keeping up the price.
This has been one of the chief causes Of
the fall in gold from 2j6 to 200 within
thirty days; and that decline has Of
necessity involved a general reduction
Of prizes
S. The refusal of consumers 70 buy
There is a limit in prices, at which con-
sumers will, to the utmost possible
extent, reduce their consumption Of
And that limit Eas been
already reached Retail dealers IN sll
parts Of the country find their custom.
ers arc buying a greatly reduced guam
tity Of goods, and in consequence are
70 buy their ordinary stocks
Thus the supply is practically increased
1ut Of proportion 70 the demand. snd
prices naturally decline-N J. Con-
nTciaL
81 Loyalist" says that he remembers