Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1864-06-25

Hon PRIOEs-THE TRUE CAUsE.-It is
quite the custom just now to attribute the
present high prices to an expanded currency.
We are AippantIy 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 would
come down in the same proportion. Let us
think q moment, and we shall see the utter
sbsurdity of such a conclusion. No matter
what is the medium for making exchanges,
or what is currency, or what is lawful money
whether it be gold, or banknotes, or treas
ury notes-iOar prices always were and
always must be high prices. Europe learned
1t during her NspoIeOnio wars we learned
1t in the war of 1912, and the same stern
teacher compeIs US to submit to it now. The
reason is clear and simple. Production is
diminished, and, by the iOaste Of war, con-
sumption is increased. The war draws the
farmers sons from the pIOw, and fewer acres
are sown und smaller hsrVests are
reaped. The mechanical arts suffer in
the same proportion. Scarcely less
than two-f ffths of our adult male population
are now dovoting all their time and energy
to putting down the rebellion. OF these q
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 EhOps, and in
the manufacture of military 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cannot be withdrawn from their ordinary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 increased, prices must
advance. There is no possible help for it.
If We could return to a specie basis tO-mor-
row, it would still be war basis, at war
prices.
There is but one exception to this advance
| in prices, and that is tho Government bonds,
| and they no exception to the rule, and
| only follow the general law of supply and
| demand. The necessities of war have made
| them abundant, and therefore they are
cheap; bat when the war ends the supply
will cease and they will be dear-and the
man who invests in them now is sure of
licsral 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 TAX
ing place, but il is net the infsllibls psnAoes
for financial disorder that many suppose. Mr.
Cisco, the Assistant Treasurer of the United
States at New York, states that he has can
celled forty-Ons millions of interest bearing
legal tenders within two weeks, and that he
now holds thirty millions of reenbaeks-and
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 altogether
Outside Of the currency. A REDUNDANT cur
renOy increases the misfortune, but does not
create it. But suppose the Government does
contract the currency what is to prevent tbs
State banks, that give no security for circu's
ton, from qusdrupling their paper Issues, as
they have already done in many parts Of the
county What, then, can be moro absurd
than to make the Government or Treasury
Department the sOspe- goat for evils tAst are
simply consequent upon the most gigantic
war the werld 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 ?-NetO York Examiner, June 23d.
iune25 I56