Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1864-06-30
High Prices.--The True Cause.

1t is quite the custom just now to at.
tribute the present high prices to an ex.
banded currency. We are flippantly
told that this is the one cause of com.
mercial arrangement, and that if the
currency were only reduced TO the stand
ard of three years ago, prices would
come down in the same proportion.
Let US think moment, and we shall see
the utter absurdity of such conclusion.
No matter what is the medium for max.
ing exchanges, or what is lawful money
whether it be gold, or bank notes, or
treasury. notes---scar prices always were
and always must be high prices
EuroH learned it during her Napoleonic
wars we learned it in the war of 1872
and the same stern teacher compels US
to submit to Ii now. The reason is clear
and simple---Production is diminished,
and, by the toaste of war, consumption is
increased. The war draws the farmers
sons from the pillow, and fewer acres are
sown and smaller harvests are reaped The
mechanic arts suffer in the same portion.
Scarcely less than two-fifths of our adult
male population are now deyoting all
their time and energy to putting down
the rebellion. Of these. IA 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
the hospitals; while those employed in
the navy yards, iron works, machine
shops, and in the manufacture of mill
tary clothing and equipments, and In
producing munitions and supplies, swell
the aggregate to the limit we have
named. This great class of producers
cannot be withdrawn from their ordl-
nary pursuits without great diminu-
ton in the products of the country.
When the supply is greatly diminished,
and the demand not only continued but
I increased, prices mast advance, There
is no possible help for it. five could
return to specie basis tomorrow
it would still be a 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 neces-
stiles of war have made them abundant,
and therefore they are cheap but when
. the war ends the supply viii cease
and they will be dear-and the man who
invests in them now. is sure of liberal
profit.
reduction of the currency will be
well, and we have the official assurance
of the secretary of the treasury that it is
not the infallible panacea for financial
disorder that many suppose. Mr.. Cisco
the assistant treasurer of the United
States at New York, states that he has
Cancelled forty-one millions ofyinterest
bearing legal tenders within two weeks,
and that he now holds thirty millions OF
greenbacks-and 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 al
together outside OF the currency. re-
dundant currency increases the misfor.
tune, but does not create it. But sup
pose the government does contract the
currency what is to prevent the state
banks, that 9iveno security for circula-
ton, 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 gov
ernment or the treasury department the
scape-g goat for evils that are simply con-
sequent upon the most gigantic war the
world ever knew If the body has
fever,is it Just to make the hand that sup
plies its wants responsible for its unha'.
ural condition ?-Nttc Fork Exas5s'er 81
Jnne 23d.