The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1864-07-08

It is quite the custom just now to attrib-
ute the present high prices to an expanded
currency. We are &ppantly told that This
is the one cause of commercial deranpe.
ment, and that if the currency were only
reduced to the standard of three years ago,
prices would come down in the same pro-
portion. Let Us think moment, ard we
shall see the utter absurdity of such a con.
clusi0n. No matter what is the medium
for making exchanges, or what Is currency,
or what is lawful money-whether it be
gold, or bank notes, or treasury notes
ac0r prices always were and always must
be high prices. Europe learned it during
her Napoleonie wars we learned it in the
war of 1912, and the same stern teacher
compels US to submit to it now. The rea-
son is clear and simple. Production is
diminished, and, by the yoste of war, con-
sumption is increased. The war draws the
farmers sons from the plow, and fewer
acres are sown and smaller harvests are
reaped. The mechanic arts suffer in the
same proportion. Scarcely less than two
tfths of our adult male population are now
devoting all their time and energy to put
ting down the rebellion. Of these, a vast
number are in the field with our brave
Generals, large part man our ships of
war, now counted by hundreds, and many
are in hospitals; while those employed in
the navy yards, iron-works, machine. shops,
and in the manufacture of military cloth
ing and equipments, and in producing mu-
nitions and supplies, swell the aggregate to
the limit we have named. This great class
OF producers cannot be withdrawn from
their ordinary pursuits without a great
diminution in the products of the country.
When the supply is greatly diminished,
and the demand not only continued but in
creased, prices must advance. There is no
possible help for it. If we could return to
a specie basis tomorrow, it would still be
war basis, at war prices.
There is but one exception to this ad-
vance in prices, and that is the Govern
ment bonds; and they are no exception to
the rule, and only follow the general law
of supply and demand. The necessities of
war have made them abundant, and there
fore they are cheap; but when the war
ends the supply will 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 disorder that many
suppose. Mr.. Cisco, the Assistant Treas
urer OF the United States at New York,
states that he has cancelled forty-one mil
lions of Understanding legal tenders
within two weeks, and that he now holds
thirty millions of greenbacks 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 alto
gether outside of the currency. A redun-
dant currency increases the misfortune, but
does not create it. But suppose the Gov
eminent does contract the currency what
is to prevent the State banks, that give no
security for circulation, from quadrupling
their paper issues, as they have already
done in many parts of the country? What,
then, can be more absurd than to make
the Government or Treasury Department
the scape goat for evils that are simply
consequent upon the most gigantic war
the world ever knew? If the body has a
fever, is it just to make the hand that sup
plies its wants responsible for Its unnatural
condition ?-Ne,U York E.caminer Of
June 23d.