Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-08-21
Effect of High Prices as the Result
of Initiation.

rency in order to bring back the high
prices of the war and several years inn
medately after. They appear to think
that high prices then conduced to pros
perity, and that if the same scale OF prices
could be re-established now, by Initiating
the currency, prosperity would follow.
1t is remarkable that men should be so
unmindful or forgetiu of facts as the
greenbackers are in this matter. II they
would turn back and read few pages OF
current history in the times of imitation
they would find answers to their demand
for the high prices OF the war that would
strike them dumb. What was the effect oil
the high prices caused by infationP Was
it general prosperity Let them look at
the columns of the papers opposed to the
republican party from the close of the war
and thence onward several years, and read
the complaints with which they teemed
concerning the currency and the times.
Read Scion Chase's tracts issued before
he became a greenbacker, and see how
hard the imitation OF prices made it for his
representative poor man, Bill the shoe
bottomer, to get living.
If something of an official and more
authentic character Is desired to show that
high prices did not conduce to general
prosperity. we may find it In the report of
the Secretary of the Treasury for 1866.
In that report the Secretary says:
1.-The great destruction of merchant
vessels by rebel cruisers not only induced
sales to neutrals, but discouraged build
ing. After the war, however. the scarcity
of American vessels ought TO have pro
duced, and, but for a redundant currency
and high taxes, would have produced ac-
tiviy in our ship-yards and rapid in
crease of tonnage; but this has not been
the case. The prices OF labor and mate
rails are so high that ship building cannot
be made profitable in the United States,
and many of our ship-yards are being
practically transferred tc the British prov
inces. 1t is only few years since Amer
lean ships were sought alter, on account OF
their superiority and cheapness; and large
numbers of vessels were built in Maine
and other States on foreign account or
/
our own mercantile marine was being rap
idly increased. Now many of our ship
wards are abandoned, and in others very
little activity prevails. 1t is true there has
recent Y been some increase Ia our foreign
tonnage, but good part of this increase
is app aren't only, and is the result of the
new rule of admeasurement. Ii is an im-
portant truth, that vessels can be built very
much cheaper in the British provinces than
in Maine. Nay. further, that timber can be
taken from Virginia to the provinces, and
from these provinces to Eng land, and
there made into ships which can be sold
at profit; while the same kind of vess. IS
can only be built in New England at loss
by the most skiliul and economical build
ers. But the evil does not stop here. 1t
the only loss was that which the country
sustains tv the disconlinuance of ship
building, there would be less cause OF
complaint. 1t is well established gener-
al tact that the people who build ships
navigate them. and that nation which
ceases to build ships, ceases of conse-
quence to be commercial and maritime
nation. Unless, therefore, the causes
which prevent the building of ships in the
United States shall cease, the foreign car
~ ing trade. even OF its own productions,
must be yielded to other nations. To this
humiliation and loss the people of the Uni
ted States ought not to be subjected. Ii
other branches of industry are to prosper,
if agriculture is TO be profitable, and man
ulaCtures are to be extended, the COM
merce of the country must be restored
sustained, and Increased The United
States will not be a first-class power
among the nations, nor will her other in
dustrial interests continue long to prosper
as they ought, il her commerce snail be
permitted TO languish.
/ The same causes--a redundant currency
and high taxes-that prevent ship-buld-
ing, tend to prevent the building OF houses
and even of manuiact ,ries. SO high are
prices of every description that men hest
tate to build dwellings as fast rs they are
required, and thus rents are so advanced
AS to be oppressive TO lessees, and the
healthy growth of towns and cities is re-
tarded. So 1t is in regard to manulacto-
ries. Mills which were built before the
war can be run profit IDLY, but SO expen-
sive are labor and materials that new mills
cannot be erected and put into operation
with any prospect OF fair returns upon the
inv estment, unless upon the expectation
that taxes will remain as they are, and
prices be sustained, if they are not adj
vanced. The same causes are njuriousy
affecting agriculture aud other interests
which it is not necessary to particuarze
1t Is everywhere observed that existing
high prices are not only expressing the
masses OF the people, but are seriously
checking the develo pnent, growth. and
prosperity of the country"
1t it were necessary TO present other
evidence to demonstrate that high prices
caused by an inflated and irredeemable
currency are opposed to the prosperity OF
the country, even during the period that
high prices rule, it might he produced in
volumes from the records of every town
and city in the United States. These high
prices were the effect of unhealthy condi.
tons in the currency. Business stood upon
an unsound and uncertain basis. Values
according to the greenback standard were
constantly changing. There was nothing
stable upon which calculations for the