Richmond Whig. [volume] (Richmond, Va.) 1862-1865, 1864-03-09
FINANCIAL AND COMMERCIAL.
oynOr or 1ar VINO. Much 8.h, 1864.

under the operation of the "Curr, ncy Act" but this
fact does not prove that the dec ae will not take place.
provdsd there is any surplus in the country aud vii
ngness 10 sell that surplus. 81 long as the demand
twenty times in excess Of tho ppy, prices Will COL
tnue to rule twenty mes or mors above the range oil
prc,s whioh would prevail II tie supply were equal to
the demand This would be the case If the currency
were GOLD instead OF Treasury no CO. Any decline
the prices of provisions must therefore, be precededly
an Increase in tie receipts at Rcamend, and Other CEN
tres of trade Will this increase take place Il can-
not take plce If it DE true, some assert, that the
couctry is exhausted of all s Jus graiD four peas,
meat, potatoes ETC. We 90 no, believe that this ex-
haustcn has occurred aud without dgres:ing 10 sta
our reasons for this opinion viii that there is
yet considerable quantity of provisions in the country
which may and will be spared b. the holders
If the country was teemng with provisions and the
holders keep back supplies from Market prices
would be just high here the country had been
entirely stripped of productions That very near
y our condition in toe city, no., aud 1t will continue
] to be so until erent spirit prevails In the agrcul-
tual districts Prices canIot dec inc until the receipts
.crease; ibe rcsips caDno. increase unless there is
something to spare in the country aud vH not increase
/
termine not TO part with their plus at any price,
nine in every hundred Of them appear to have done
since the passage Ct the CuTrercy Act"
We still balevs that the eff %: of the "Currercy
Act" will be 10 bring down the prices Of everything
even psoyisionF bui IL is eVidcn; thai the "good tme
Ginning" is to bs preceded by temporary period of
distress which viii require all III, fortitude of pee
pie to bear. Tho idea OF moal selling at $50 per
bushe Ia enough to evoke maledcHons which those
uttered by Solomon, in his Book of Proverbs against
the SishhOders of core, are bui pleasant words -
But maledctiOns will not bring down prices, nor dig
turb the equlnimity of those Who have become
crusted With sei6Ihness to disregard alike the voice
of and tle appeals Of humanity patriotism.
Oar conviction tina. the pIics Of all articles not ua
y scarce will Decline is based upon the simple pre-
that in proportion the Of currency r,ducs6
the ability TO purchase is diminished, and when the
| competition am)ng buyers is le'ssnej a reaction in
prices must take place. We will present an illustration
farmer who has more corn (Cor example) than he re-
quires for his use, will naturally desire to convert
the surplus nt) circulating medium, which will M
able him 70 purchase some o.her thing that he may
nsed. He stars OF, to buy that medium" Ia ordi-
nary pArance his is to sell his corn but is
much his desire to buy MONEY with the corn, as it Is
that of the customer he may chance to meet to buy Tie
corn with money. Nov, if money is very plenti-
fu Gas it was here short TINA Ago) h, will meet with
largo numoer o. persons in want Of the corn, who,
from motives of speculation, investment" trade or
subsistence, will compete with and bid against each
other so thai The farmer enabled TO buy with his Jrn
quite large Pile OF money. But it, before the farmer
starts oa. tie persons Eho held THU money have in
vested large portion Of in bonds or made any her
disposition of it, aud ara unwilling from fear Of less,
to speculate in corn, be would find tha. be would not
be able to buy as mush money from them he could
have done in the Flush times" The general rule,
demonstrated By all past experience is that when mo-
ney ID abundant high prices prevail; when money Is
not abundant nothing but the absolute scarcity If any
article and a want Of confidence in paper money (f
that happens to be the circulating mcdum) can cause
that article to command high price.
The withdrawal fro circulation OF from four TO five
hundred miEions CT Confederate currency from cir
culaoa of $3.50 900 OO0) will surely produce positive
scarcity OF paper money that scarcity will necessarily
lessen the ability ID buy and consequently, diminish
co npetton in the markets and diminished COMPETE
tioa will cause prices to fall whenever there anything
offered Coz sale.
Toe failure Of the farmers TO send in euppies can
only be accounted for the presumption that the
jority Of them do not yet comprehend the probable,
um lite effect of the "Ourrency Act" and, therefore,
or not to sell auythg until the new Treasury notss
ar, issued. Ia the meantime, the town people may
star,e but that clns be helped" whilst the producers
rema unconvinced that it J TO their interest to send
produce to market.
We do not claim infalibily for our views, but it
seems perfectly clear to thai the farmer who soils
little nOw-0r even muci-of what he has to spare (of
perishable articles at lelst il infinitely wissr than he
who holds to all until the general rush for the new
currency" takes place, and money is longer album
dart. If A (IOr eIample) sells corn nov at $50 per
bushe and carries the amount until the lst Of April,
when is reduced By tax of one-third 10 $40 coE-
verble into the "new currency, he does better than
B, who waits until G. D. and the whole alphabet, send
in what they may have to spIrs. Sellers will then be
| more numerous than buyers
Oar people have become so accustomed to "high
prices" that they scarcely revert the time when
corn selling at 40 20 so cents per bushel Let them
look back fourteen months ago, when tho amount Of
currency no: larger than tn. which will remain in
circulation month from this time, and they may
form idea Of the scale OF prices which ought to
prevail after the "CIrency Ac." haI effected deple
ton of the currency. b. vieWiug the subject in this
light they may be better enabled 10 decide whether /.
is advisable to sell present extraordinary prices,
aud carry tho proceeds, invst them at par, in four
per cent. bonds, free from taz4tOn; to hold on to
what they have until everybody else SELLS and then
change their commodities for tbs new currency" at
reduction ia prices varying from fifty to two or three
hundred pc: cent according to the scarcity abun-
dance Of the several art ces Sold to the extent OF
the demard for them when money scarce and buyers
few.
THE HOME INSURANCE COMPANY,
SAVANNAH, GA,