The Plymouth weekly Democrat. (Plymouth, Ind.) 1860-1869, 1864-09-15
High Priccs-Thc True Cause.

Itsquite the custom just now to attribute
the present high prices to an expanded
currency. We are fippantly told this is
the one great cause of commercial derango-
ment and that if the currency were only
reduced to the standard ofthree years ago,
prices would come down il the same pro-
portion Let us think a moment, and we
shall see the utter absurdity of such a con-
clusion. No matter what is the medium
for making exchanges, or what is currency,
or what is lawful moncy-wnether it be
gold or bank-note, or treasury notes--war
prices always were, and always must be
high prices. Europe learned it during her
Napoleonic wars; we learned it in the war
of 1872, and the same stern teacher COM
pels us to submit to it now. The reason
is clearand simple. Production is dimin-
ished, and, by the waste of war, consump-
ton is increased The war draws the
farmers sons from the plow, and
the fewer acres are sown and smaller har-
vests are rcaped. The mechanic arts suf-
fer in the same proportion. Scarcely less
than twotifths of our adult male popula-
ton are now devoting all their time and
energy to putting down the rebellion. Of
these, 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
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withdrawn from their ordinary pursuits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 great dimuntion 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 specie basis to NOR
row, it would still be a war basis, at war
prices.
There is but one exception to this
advance i'll 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 necessities of
war have made them abundant, and there
fore they are cheap; but when the war ends
the supply will cease and they will be dear
and the mpn who invests la them ROW
is sure Of a liberal profit.
A reduction of the currency will be we'll
and we have the official assurance of the
Treasury that 1t is now taking place. but
it is not the infalliblc panacea for finan-
cial disorder that many suppose. Mr..
Cisco, the Assistant Treasurer of the
United States at New York, states that he
has cancelled forty-one millions Of interest
bearing legal tenders, within two weeks.
and that he now holds thirty millions of
grcenbacks-and yet bread and butter
whe;. and corn and cloth are no cheaper.
The firsi cause at the increased cost of
all commodities, gold iEclut.c" Is ai'oge'h-
or outside of the currency. a redunu~'"
corrsncy increases the misfortune, but does
not create it. But suppose the Govern
ment does contract the currency; what is
20 prevent the State banks, that give no
security for circulation, from quadruping
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
Department the scape goat for evils that
are simply consequent upon the most 81
gantic war the world ever knew If the
body has fever, is it just to make the
hand that supplies its wants responsible
For its unnatural condition. Boston Tray
eler, June 23d.