Baltimore daily commercial. [volume] (Baltimore, Md.) 1865-1867, 1866-03-14
Low PRiCEs-TRE LAW OF SUPPLY
AND DEMAND

The remarkable fall in most articles of prime
necessity which is at present taking place, is
only what might have been expected when
we consider the unnatural condition of things
which has prevailed condition of war on
which prices were based. If we were to take
these articles one by one, and scrutinize the
circumstances which surrounded and apper-
tanned to them, beginning with cotton and its
fabrics, and ending with bacon or coal, we
should find that in all leading articles there
were incipient reasons why they should for
the time be dear, these of course in the spirit
of extortion and speculation engendered, carry
ing up along with them the great mass Of
smaller articles.
In the case of cotton, for instance, it was
the merest matter of course that with the ter
ritory which produced it hemmed in by hostile
armies on the one side, and with a rigid
blockade on the other shutting off supply, it
should immensely advance outside in price,
the question of demand and supply telling the
story at once; and as with cotton, so Of tur-
pentine, rice, tobacco and other leading staples
of the Southern section Of the Union, cut OIL
as it was from commercial intercourse for the
time being And as the rule worked both
ways in this terrible civil war just closed, il
cotton and rice were scarce and dear on this
side of the lines, bacon and other articles for
merly supplied in immense quantities to the
South from the North and West, greatly APP
preciated in value down there.
And further still, in reckoning cause and
effect Remembering in regard to all these
leading articles, cotton. bacon, flour, coal,
and scores of those of less Importance, that
for the time being the former producers be-
came consumers; that first and last, Or both
sides. two millions Ct abebodied men were
either in the field or engaged in the myriad
occupations of the quartermasters and com
missary departments Of the army; that where
coal scantily mined, comparatively, found
transportation hard to be procured, almost
monopolized, as many of the railroads We're
for the time by Government transportation,
what wonder that it appreciated in value as
holders and dealers in it-besides supplying
the common demands Of the community
we're called upon to keep the vast steam
marine of the Government prodigally supplied.
We may take up the ar ticles Of wheat, corn
and oats, Of leather, and iron and wool; and
easily trace out The inevitable necessity which
existed for high prices whilst the war lasted
Vast armies OF men who consumed the flour
and cavalry and artillery horses which dis
posed of the millions OF bushels Of corn and
oats constantly going forward, solved IT,,
problem, of demand: whilst leather for shoes
and saddles, and harness for artillery and
wagon trains, kept prices np, making all the
available labor north in one way OF another
tributary to high prices and the imperative
needs of the Government. With gold apprc
ciating On the top of this, the Government a
borrower constantly, with large and active
faction busying itself in every way to destroy
its credit, what wonder that the prices of
everything became almost fabulous, the same
scenes being enacted here on limited scale
comparatively, which were finally at Rich
mond, carried to their remotest and most
ruinous consequences.
Thank Heaven that we escaped the-by
many-anticipated catastrophe; and after a
desperate struggle Of nearly five years, with
disabilities which have at times threatened
national as well as individual bankruptcy. it
is nothing surprising to find many of our
people of late coming to the conclusion that
these unusual high prices had at length come
10 be a present and future necessity: that we
might never expect to come back to ANYTHING
like our cid standard of prices before the war.
Let all such bear in mind, that this is the
most industrious and fortunate nation in the
line OF production Of values on the face of
the earth: with the most marvellous facilities
III the way of fertile soil and advantages of
transportation combined, any where known.
Let them take note that wheat is sown and
harvested and thrashed, by machinery, and
that no country--not even Buenos Ayres-has
much better facilities for stock raising at lit
tie cost, than the great West. Let all remem-
Der, too, that already the great armies which
comprised so much of the best labor of the
land have been at home-the bulk of them
now almost a year; and that the promise is
that with all, things working Alright, there is
not staple we have named or indicated
rice excepted-but which promises to be
measurably abundant. Even gold must come
in for its share of cause and effect in this great
question, illustrated by the fact to-day, that
an immense amount held by the Government
threatens and brings down the price Of that
article, the very standard of values itself
Then we say-that if these premises are
correct, what is the conclusion but that before
any great length Of time can elapse, the prices
of all the necessaries of life will gradually APP
proximate their old standard Indeed, wonder
has constantly been expressed by consumers
how prices could have kept up as long as they
have. But habit is much in this matter, in
the way Of conceding to extortionate demands,
and the difficulty of ascertaining the amount
of stocks, another, to prevent prices from re-
ceding too quickly; to say nothing of the des-
perate endeavors Of the larger holders to carry
their heavy stocks as long as their resources
permit :hem so to do. At last, however. the
case is adjusting itself; and prces-it is uni
versally conceded-must come down. Let us
hope that the changes may be gradual enough
to save US from the evil consequences of a
financial ''crash;" let us hope this last peril
may be surmounted for the good Of the whole.
We find the following in the Liverpool
Times: Mr. Adams the American Minister in Lon j.