Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1864-07-15
HIGH PRIrEs-THE TRUE CAUSE.

It is quite the custom just now to attribute
the present high prices to an expanded cur
rency We are told that this is The one cause
of commercial arrangement, and that if the
currency we're only reduced to the standard of
three years ago, prices wenld come down in
the same proportion. Let ms think a moment
and We shall see the utter absuFditY. OF such
conclusion. No matter what is the medium
for making exchanges, or what is currency, or
what ia lawful money-whether il be gold, or
bank notes, or treasury uotes-iOar prices al
ways were, and always will be high prices
Europe learned tin her NapoIeOnic wars. We
learned it in the war Of 1912, and the same
stern teacher compels as to submit to it now.
The reason is clear and simple. Production
is diminished, and by sbe waste of war, con-
sumption is increased. The war draws the
farmers son 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 -ffths Of our adult male
population are now devoting all their time
and energy to putting down the rebellion. OF
these, a vast pumber are in the field with our
brave generals, a large part man our ships OF
war, now counted by hundreds, and many are
10 the hospitals; while those employed in the
navy yards, iron-works, machine shops, and IN
the manufacture of military clothing and
equipments, and in producing munitions aud
supplies, swell the aggregate to the limit we
have named. This great class Of producers
cannot be Withdrawn from their ordinary pur-
suits without a great diminHtion in the pro-
ducts of the country. When the supply is
greatly diminished, and the demand not only
continued but increased, prices must advance.
There is no possible help for it. IF We could
return to specie basis tomorrow, it would
still he a war basis al war prices.
There is but one exception to this advance
in prices, and that is the Government bonds,
and they are no exception to the rule, and on
ly follow the general Law Of supply and de-
mand The necessities Of war haye made
them abundant, and therefore they are cheapi
but when the war ends the supply will cease,
and they will be dear-and the man who In
vests in them now is sure Of liberal proht.
A reduction of the currency will be well,
and we have official assurance Of the Seereta-
ry of the Treasury that it is now taking place,
but it is not the infallible panacea of financial
disorder that many suppose. Mr.. CISCO, the
Assistant Treasurer of the United States at
New York; states that he has cancelled Al
millions of the interest bearing legal tenders
within two weeks, and that he now holds 30
millions Of greenbacks- yet bread and but
ter, 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. But suppose the Cow
erument does contract the currency, what is to
prevent the State banks, that give no security
far 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 Depart
ment the scape goat for the 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
position.-N. Y Examiner, June 23d,