Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-11-18
THE EVENING STAR.
TIE HIGH PRICES OF FRRKAnsruFEs

THE HIGH PRICES OF BREADsrUFFs.
To-day, with gold at less than l4o, domes-
tic goods at aooat the same rates as previous TO
the war, and NEST MANUFACTURED articles In
common use at bat . small advance; why is it
that after oountiful harvest, breadstufrs cost
ne nearly three times as much 10 as they did
in 1e6o-'61, when gold was at parl This ques-
ion is often asked, but has never been salts
factorily answered. The subject is one OF ID 9
greatest import anee, and has led 10 consider
able discussion among business men and in In
newspapers. 1nRumerable theories have been
started 10 account for a fact which exists in
spite OF elaborate arguments 10 prove that Il,
ought not to, but none of the causes assigned
for the continued high prices Of our staple food
have been entirely satisfactory, and econo-
mists are sun puzzled.
There are those who summariiy dismiss n
subject by the we'll known formuIa-sIt is
all mere speculation. few rich monopolssts
buy mp the grain and Keep it on hand until
scarcity brings about rise in prices. That is
all" To these il may be replied IA tempo
rary infiation Of prices might result from such
combinations, but the inevitable laws OF sup
ply and demand must break them do I'm sooner
or later" Others say the surplus OF currency
enables the banks TO accomm odate the farmers
with liberal loans on their produce, which
they are thus not forced TO sell, and hence
hold 1t for rise in prices. Those who use
this argument are reminded that here again
the laws OF supply and demand interfere with
the programme; loans must be paid, payday
is certain to come, and borro wers might be
forced TO sell all at once, and thus bring
down prices with run. Another theory
is that the great lines of communication
between the West and the East are in
the hands of rich monopolists; that bread.
stuffs are cheap enough where they are
produc ced; but that the extortiouate rates O,
freight charged for their transportation 10
market cause The high prices, and enrich a
few mammoth corporations at the expense Of
both the producer and the consumer This
sounds reasonable enough, and may be par.
TALLY true, but thai it does not altogether &C.
count for the high prices is shown by the fact
that in that great center OF the grain trade
Chicago, corn is daily selling at 81 .Q5; whea,
at an average OF SlS5, aud flour at SI4
SO the high freight argument is not per-
iect The latest theory we have seen ad van ced
is that OF a Chicago CORES spondent OF the New
York Commercial, who argues that the West
ern farmers who previous 10 the war were
poor and in debi, and compelled to hypothecate
their crops before they were gathered, all got
rich during the war, ard they are now inde
PENDENT. and can afford 20 sell or hold On Ia
their produce just as hey please, and tha. they
do hold on until they get their price This is
all very well; but supposing they don't get it,
how then
That all of the agencies mentioned have thsi,
effect in keeping up prices is likely enough
oHt after all may not the principal cause of the
unprecedented-we will not say unnecessary-
high prices OF breadstafs be found In the fact
that the supply is not SO great in proportion to
the demand as 1t was seven years ago. We be-
lieve that reliable statistics would show this
TO be the case So many men taken from farm.
ing pursuits during the war, and becoming
producers instead OF c onsumers; vast areas OF
cleared land lying unproducuve during that
time; the European demand for our breadstuf,
and the rise in gold were among the causes
which made bread dear. Some OF them still
exist, and are yet powerful In keeping mp the
prices. When they cease to exist altoseth or.
and our production shall be as great in pro
portion to the required supply as it was pre-.
vious to the war, we may expect prices to ap
proximate 10 the ante bellan standard-ip
spite Of the efforts OF Spectators and mono,
rolists to keep them up-but not until then.