The Potter journal. [volume] (Coudersport, Pa.) 1857-1872, 1864-08-24
F7lgh PriCes--The True Cause

High Prices--The True Cause.
1t is quite the custom just DOW to at
tribute the present high prices to an ex-
panded currency. we are fippantly told
this is the great cause of commercial de-
rangement, and if the currency were only
reduced to the standard Of three
years ago prices would come down ia the
same proportion. Let US think a moment,
and we shall see the utter absurdity Of
such conclusion. No matter what is the
medium for making exchanges, or what is
currency, or what is lawful money-whe-
ther it be gold or bank-notes, or treasury
notes-a0ar prices always were and always
must be hjgh prices. Europe learI el it
during her Napolsonic war we learned it
in the war Of 1872, and the same stern tea
cher compels US to submit to it now. The
reason is clear and simple. Production
is diminished and by the waste Of war con-
sum ption is increased The var draws the
farmers sons from the plow, and fewer acres
are Sown and smaller harvest are reaped.
The mechanic art suffer in the same pro-
portion. Scarcely less than two-ffths
Of our adult male population are now de-
voting all their time and energy to ending
the rebellion. Of these "a vast number are
in the field with onr brave generals, a large
port man our ships Of war, now counted
by hundreds, and many are in hospitals ;
while those employed in the navy yards,
iron works, machine shols ,and in the man
ufacture of military clothing and equip
ments and in producing munitions aud
supplies, swell the aggregate to the limit
we have named. This great class Of pro-
ducers cannot be Withdrawn from their
ordinary pursuits without great diminu-
ton in the products Of the country when
the supply is greatly diminished, and the
demand not only continued but increased
prices nauSt 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
ofsupply and demand. The necessities of
war made them abundant, and therefore
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
of liberal profit.
A reduction Of the currency will be
we'll and we have the official assurance Of
the Secretary of the Treasury that it is
now taking place, but it is not Infallible
panaeca 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 NIL
lions Of interest bearing legal tenders with
in two weeks and that he now holds thirty
million of enbacks-and yet bread and
butter, wheat and corn and cloth arc no
cheaper.
The first cause of increased cost of all
commodities gold included, is altogether
outside of the currency. A redundant
currency increases the misfortune, but
Goes not create it. But suppose the
Government does contract the currency;
what is to prevent the state banks that,
gives 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 ab-
surd than to make the Government CT
Treasury Department the scapegoat for
evils that are simply consequent upon the
most gigantic war the world ever knew,
if the body has fever is it just to make
the hand that supplies its wants respons,
ible for its unnatural eondition.-B0ston
Travelker.