New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-01-10
pR1cES-rHE VAR. THE CURRENCY.

when we are just entering upon new phase OF our
financial experience it is important should not be
overlooked.
The first is that while paper money has played an
important part in our affair during and since the war;
and has constantly given an artificial balance to com
modtiGs and securities it is not that which has made
trade active, business prosperous and individuals
rich during this period; but, on the contrary these
results are to be imputed to the gigantic expendi-
lures of the Government, which would have produced
similar results if the circulating medium had never
beop oxpanded. or indeed if the war had been con-
Quoted If that had been possible on the basis OF
specie payments.
The essential cause Of the prosperity OF the loyal
norton of the country being the fact that vast con-
sumner of all its products suddenly appeared. ana
steadily devoured them with an Unsuitable appetite
during four years and more. The Government, when
had hitherto bought little Of the people, all at once
became their best customer. And those whom the
Government expenditures made suddenly rlch also
became great consumers. II needs no ghost to tell us
that every productive force in the country was SET III
motion by the war It's manufactures ana lts agrlcu-
trol products were all in active demand. Every thing
that could be raised or made found ready purchaser
at high and rising prices The manufacturer OF Hoii
of Wood of Cotton. of Wool of Heather the rasels Oh
Pork of Beef of Grain, the miners OF Coal ana Cop
per and Lead the owners ofralroads and canals ana
steamers, factors and merchants, middle men ana
laborng men, all had their labOrs stimulated to the
utmost extent. Everybody pocketed stupendous
profits and Of course everybody got rich Government
AGENTS took "A much as and often more than all other
purchasers combined. Bounty money was showeredon
the working population and these all came in for
share i'm the golden harvest Then came that COM
placent reflection: How stranger Glow strange
IL, nd
should change its character for u.s. and create pros
perity and plenty! How does it happenf Paper
money. All we see 1t is this which does it." And
here we see the birth of that great popular deluson
which still holds possession Of the public mind The
instrument Of the diffusion Of prosperity was at the
start COMPOUNDED with the cause of it. So good is
four hundred millions of paper money, ex-
claimed Thadeus Stevens, that we should have
n thousand millions Of it. The essential, fundamen-
tai but remoer cause of the rise of prices and RAPID
accumulation Of fortunes, was then overlooked and
TO great extent has been since So that writers
of financial articles every day are still sounding the
praises of n redundant paper circulation Tor beng
the cause Of the prosperity of trade, while they admit
il ought to be curtaled and that the country ought to
return to specie payments, for some vague reason
in their minds that inflated currency is somehow
injurious; while, if their views of the agency and
uses Of paper money be correct the last thing that
ought to be done is to diminish its volume.
These writers and the public overlook the fact that
the Government has scattered the prodigious sum OF
g. 800 O0OO0 and more which it has given Its notes
for and dues today and it has also distributed other
hundreds of millions which 1t has drawn from tho
people by taxation from all classes and that TO this
fact and 20 this almost alone is owing the exraord
nary and excopve prosperity the loyal States have
enjoycd during and since the war.
This extraordinary consumption Of products was Of
itself sufficient to enhance prices in most important
degree whatever the character or volume of the
money in circulation. II great enough to raise
prices Of many articles not only here but in all the
prinepal markets of the world. The imposition of
high duties and high taxes was, of course, another
element in the increase Of price of commodities, and
another was most certainly the excess of paper
money 1t is, perhaps, DO wonder that while these
agencies were acting in concert the public mind did
not discriminate closely, and did not look beneath
the surface 90 the exact influence OF EACH
Paper money was plentiful, and the plentiful
ness Inado high prices 1t was not necessary
to 20 further to account for what was occurring
But il il strange that at this late day, the joint
operation of equally important agencies should be
overlooked or not understood, and that the habit
should still so extensively prevail of ascribing the
vance of prices solely to the excessive volume of the
circulating medium 1t may be asked, if these views
are sound how is it that the industrial activities of
the country have until recently, suffered no abate-
mcnt since the war ended How does ithappcn that
business has continued good and that prices have
kept ND since the Government demand ceased.
Outside the paper money men, there are those who
have endeayored to find the cause in some miracu-
lous powers of our Nation every other, in its
capacities Of consumption. In the second place 1t Is
imputed 10 the habits of universal prodgality en-
gendered by period of war and unusual prosperity,
and the general neglect of tho old economies Of
living In the third place it is attributed TO deficient
production caused by the destruction of so many
lives in the The first of these suggestions is
merely dream Of the bubAers. The second is
very small cause to assign for very great result
The third to have weight but really possesses
little soundness for these reasons:
The productive force Of the country in everything
but agriculture and to large extent in that is not
in muscle, but machinery. But the have
lost by the war have been nearly made good by emf
grafton while machinery of production has been
enormously increased by it. The manufacture Of
small steam engines, rs well as new inventions for
all manner of industrial purposes within the past few
years. is something remarkable. The productive
power Of the country is thus not diminished but has
really augmented. And the extraordinary activity
and yivacity of tho National character ALWAYS give
tremendous impulse to the agencies of production so
long MS a channel of trade is left to be inundated.
Our countrymen do not forbear driving ahead from
prudential considerations under any circumstances.
Such is the genius of our people They never half do
do just enough. They rush to extremes. Ii Is the
American way We never believe ice is weak till we
have tried il and gone through. We never believe n
ship has got all the sail she carry till We cap
size her We will not admit n boiler wont bear more
steam till we have burst 1t.
We are not then, having high prices from deficient
production. The real of them, and Of the gem
eral animation of trade since the war closed, Is this