Daily union and American. [volume] (Nashville, Tenn.) 1865-1866, 1866-05-16
THE COURSE OF PRICES.

PRICES PAST. PRESENT AND FUTURE.
The New York Economist gives a table
of thirtv-three leading articles, showing the
range Of change in prices for the last six
months, aud to prove that the tendency is
toward the formfr range Of value We
quote:
In the currency value Of these articles,
there have been in the aggregate decline
since November of 10 per cent, and since
February 18th Of II per cent. In order to
ASCERTAIN the change in the real value, how
ever, il is necessary To reduce the aggregate
of prices 30 gold; and on so doing, we find
that since November !, the fall has been
about per cent, and since February Is,
% per cent. So that, from November TO
February, there was an actual rise of II
p,r cent. Itmay be considered somewhat
singular that high prices have not had, to a
greater extent than is here shown, the eiict
of working their own remedy, by limiting
consumption. The ordinary course of that
law has been interrupted by adventitlous
demand.
The South, with ten millions of popula-
ton. has been steadily drawing upon our
markets since the close of the war; so that
fhe people of other sections have contracted
their consumption 10 an extent which, with
ont that new demand, would undoubtedly
have greatly reduced prices and wages yet
that contraction Of consumption has had no
effect. in consequence of the extra demand
from the new source.
In estimating the probabilities of the iu-
ture decline in prices, il must be taken into
account that the demand from this source
will be continued at a more or less liberal
rate so that we must continually have
large demand compared with our means of
production, tending proportonately to check
the downward tendency of prices; on the
other hand. il must be kept in mind that
the South will be producers As well rs con-
sumers, and that SO far As they contribute TO
the general supply of commodities they IA
ciltate the fall Of prices ltwould perhaps
be unreasonable. under all the circum-
stances 10 expect any rapid decline in
prices. The iirmncss with which operatives
ar nearly all classes maintain the price of
labor. and the fact that in some cases they
are procuring an advance Of pay, show that,
as vet. the contraction of consumption has
not gone 10 such an extent as 20 reduce pro
duction below the labor capacity of the
country Ii is, however, the lnyariable ei-
fec: of high prices 30 beget inventions Tor
the saving of labor and the Chcapcning OF
production: and this tendency must IN due
time produce its effect upon prices.
At the same time the high wages, which
attend high prices, have a tendency TO at
tract emigrants to our shores in increased
numbers. and rs that class are always pro
duccrs 10 a larger extent than they are CON
sumers, il is reasonable TO expect an increase
Of the aggregate production of the country
over its consumption from this cause which
again will tend to aid the downward ten
dency Of prices.
The decline in currency values, shown TO
have occurred in the above comparison, is,
however. sufficient 10 embarrass business
aud 20 involve merchants in loss. The mer-
chant. who stands between the producer and
the consumer. has 10 hold commodities m
his possession from one 70 four months and
any decline in prices which occurs during
that period is so much loss TO him, unless he
should adopt the unbusineSslike plan OF sell
ing rather according 10 the cost of his goods
than according TO their current market value.
The only protection for the merchant con
,ists in his holding the lowest possible stock,
80 as TO be renewing his surprises from day
to day aud this course appears TO be adopt
"a in most branches Of trade.