The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1865-12-22
High Prices. III

o"AiS w ehS AaSe euet tAAC oCiiAoAiu fOA Soouo
&c, is greater than the supply, excepting,
will add, in SO far as that increased demand Is
caused by an inflated paper currency. III
This argument you attempt to sustain by
quotations from the Nation; but the argu-
ment of the Nation is, that the preuniling high
prices are caused, not by the excess ofdemand
over supply, but by the enormous taxa
ton, which is so great that even combinations
OF individuals against high prices, are power
less; and that they win prevail, until taxation
is reduced. [3.l
Now, it seems to me that if you should
withdraw, or strike out one half the
paper money now in circulation, you would
in short time, correspondingly reduce prices I;
for the reason that while the amount of arti-
cles to be purchased would remain the same,
the amount of money required to purchase
them would be reduced one half. The man
who thinks he has ten dollars, with which to
purchase an article worth that amount, viii
certainly not purchase It fhe finds he has but
five dollars IA. Here, let itbe borne In mind,
that with the laboring classes, money is as
plenty as ever; and they constitute the bulk
OF the community, and Of consumers. 1t is
with the trading community, and with large
operators that money is scarce; because they
cannot borrow money as freely from the
banks, as they did a few months since.
The scarcity Of money has not yet reach
ed the consumer; and until it does high
prices viii prevail. Reduce the volume of
currency largely, and permanently, and the
consumer, not having so much money as now,
with which to purchase, will pay less, and
prices must fall. [5. Reason about it as you
will, an inflated currency is the foundation
upon which the superstructure of high prices
rests. [6] ...s =. -.
Upon your argument, would ask, how it
is that you can purchase to-day, an imported
broadcloth for seven dollars yard, which
twelve months ago, cost you ten? The supply
and demand are the same now, that they were
then. (7l Or, to descend from the outer, to the
inner man, how is it that we are now import
ing our butter, poultry &c. from the British
provinces and underselling the farmers OF this
vicinity Certainly, not because the demand
Is greater than the supply. One word as to
the argument copied by you from the Nation:
that high taxation is the cause of high prices.
Ii this be SO, why is it, that real estate, and
rents in the city of Portland, stand today
nearly where they did four years ago? They
have not advanced to exceed twenty-five per
cent. ISL And again, with due Difference to
the "Nation," com5ination may prevail
against high prices. Do you recollect the ex-
element here, lately, upon the milk question;
when the dealers combined to raise the price
to ten cents per quart, and the grocers and
consumers combined to resist the, outrage !;
and the milkmen had to succumb, and "give
down their milk" at the old pr.cesp You say
that prices have advanced in England, and
upon the continent of Europe. However this
may be with many articles of their own pro-
duction, it certainly is not the case with many
staple articles of American production there; I;
materially declined in price. [9.] Take for in
stance the article Of American -four in Liver
pool, the price OF which recently declined SO
much, that could the same flour have been re-
shipped, and at once replaced in New York, it
could have been sold at a handsome advance
over Liverpool prices, after paying the cost of
transportation to New York. The very fact
of the large shipments of gold by almost
every steamer that leaves this country for
Liverpool, is an indication of the low prices of
our productions abroad. Instead of being able
to meet foreign balances against us by the
shipment and sale abroad of our own pro-
ducts, we are obliged to meet them by the ex-
port of specie. The reason is obvious; viz:
that prices are low there, and high there. -
T.
1. In our former remarks upon the current
and advancing prices which rule throughout
the country, to which 1T. refers, we dealt
rather with facts than with theories, not in
tending to set up any theory that we felt
bound to support, but rather to state certain
facts patent to the commonest intelligence,
and allow the reader to construct his own the
ory. We have yet in hand certain facts and
suggestions touching the currency itself, which
are important to a proper understanding of
the matter, and until we have an opportunity
to present them we do not propose to be
drawn into discussion of the general sub
ject,-and yet we feel disposed to present. in
connection with the present article, such facts
as seem necessary to vindicate our former po-
sitions. For our own convenience we do so
in the form of notes. - -71--s.., ~
2. We do not understand how the demands
of people, or their tcants, are necessarily in
creased by the imitation of the currency.
Money enables man to crafty his wants, but
does not necessarily create or increase them.
A man eats not to spend money but to graft
fy hunger, and we don't know that a reasona-
BILE man eats any more because of the super
abundance of money in his pocket than he
would if his pocket was simply abundant.
g. We did not quote the Nation to -ssus-
tain" our own propositions, but rather because
its general argument was opposed to the very
popular idea that high prices are referable on
ly and exclusively to an inflated currency. n,-,
4. 1t may be sound maxim that all the
money of country is just adequate to pur-
chase all the marketable commodities of such
country, but eve don't see it in that light" II
every man finds half his money gone, destroy
ed beyond hope of recovery, he may not pur-
chase the same amount at half the price, for
possibly he will purchase only half the amount
at the full price, or he may give his note of
hand instead of money. 1t must be shown
obliged to sell, but to sell for cash, before this
doctrine will acquire practical soundness.-
That the destruction of half the money might
affect prices we will not dispute, but not ne
cessariy so. Money is an article of CONNER
cial Convenience not of absolute necessity.
Without it we could have barter and perhaps
high prices, while the argument of sT., y if re-
duced to a fine point, would prove that the
destruction of all money would be the annihi-
lation of all prices, as though barter were a
thing unknown. s--t,7sr ,.,T- am
5. five gather the idea here involved
clearly, it is this: that high prices should be
forced down by creating scarcity of money,
and thus rendering the process of obtaining it
difficult. "Ask half dollar for such bird as
that ?" said a newly arrived Paddy in the pro-
vision market, pointing to tempting plump
rooster, "why, shure, in my counthry you can
buy such for saxpence |" "Why didn't you
remain in your country, then" inquired the
provision dealer. "Shure," quickly replied
Pat, sand wasn't 1t because l couldn't get the
saxpence ?" ........, ..--.
6. Is this proposition subject to no qualifi-
cation No one pretends, we think, that a
- N