Northern tribune. [volume] (Cheboygan, Mich.) 1875-1885, 1879-10-18
wallpaper ofthe County and Village
THE ADyANCE IN PRucEs.

The Chicago Inter-ncean, in an edito-
rial in regard 10 the advance in prices,
and the cause thereof, says:
The Inter-Ocean does not stop to ex-
plain or attempt to explain The fact, but
it is fact, nevertheless, plain and pal
pable, that an an abundance of currency
tends to make prosperous times; and,
while it is extremely desirable that such
currency be sound, experience proves
that plentitude of it gives greater ac-
tivity to business, whether it is made up
of gold, silver OF paper money. OF course
if paper money exists in great quanti-
ties, and en- attempt be made to reduce
the volume tomeet specie basis, cash
is inevitable, and much suffering must
ensue; but when the volume is equally
large and consists of gold, silver or its
equivalent, high prices may reign, and
buyers may invest freely without at
least the double fear OF heavy fluctua-
ton i'll both the article bought and the
Currency with which it is purchased.
When Mr.. Forts resolution passed
Congress prohibiting the further retire
ment of greenbacks, the turning point
in our financial depression seems to have
been reached. The reconciliation of
silver followed; banking was free, and
all this was followed by an unprecedent-
ed flow OF gold into this country from
abroad. The result is that money has
been growing plentier and pleltier each
month, until the volume Of available cur
rency has become very large.
Like any other commodity, money de-
nends for its value on the demand Tor it.
We do MOI change the terms which des-
ignate its nominal worth, and a dollar
is called dollar as it was during the
war, though its purchasing capacity
may not be One-half of what it formerly
was, but still its real value has been les
sened. If we were selling gold and sill
yer by the ounce we might weigh but
$1.08 worth now for bushel of wheat
instecd of 75c worth, as little while
ago, and still the actual situation would
be what it is now. OF course, other
causes enver into rise of any given
commodity, as {. ffilure of crops OF an
exceptional denapd fO- given manu-
lecture; hut a general rise of all species
of property is largely attributable to a
cheapeninS of currency, brought about
by its abundance.
Within the last month there has been
a marked advance in prices for all kinds
of salable articles. Merchandise natur-
ally takes the LEAD, but more stable
property, like real estate, is sure to fol-
low. The rise may not be rapid; it is
better that it should not be; but steady
appreciation of values is about as GER
tain as anything not absolutely inev-
liable can be. 1t is thought in official
circles that the present enormous influx
OF specie will cease after little, but it
is generally conceded that this country
will retain at least what it now has, and
if this proves to be true, there must con-
tinue to be gradual upward tendency
in prices, especially in real estate and
staple goods. If, in addition to this, the
demand for our products abroad should
continue very large, and the present
flow of gold into this country last for
any length of time, there will be a bulge
in prices something akin TO that which
marked the period between '62 and '65
though, of course, not so marked or eX-
treme.
The Inter-Ocean called attention at
the time of the passage of the law,
granting arrears of pensions, to the
probable effect that the disbursements
on account of that law would have up
on business, At that time the amount
to be paid out was estimated at not less
than $50OCl 700; and by many at twice
this amount. The sum required has been
about $25,0010O0. but this money, paid
out of the Treasury where otherwise it
would have lain idle, is practically so
much added to the volume of currency
and cannot but have had decided in
fluence upon the business of the country.
Wehave nOwin this country not far from
$9C0.C1l,OO0 of money, a large proportion
of which is actively employed, and this
large amount, which is being added to
by every arrival Of European steamer,
by money brought into the country in
the han.is OF the better class of immi-
grants arriving, and by the production
OF our own mines, is having, and must
continue to have, a marked effect on all
kinds of property. There is a DISPOSE
ton manifested, as times grow better, to
indulge again, and perhaps to an ex-
travaSant degree, in imported goods,
but our American manufacturers are
constantly improving in the quality of
Foods made, and the rage for foreign
abrics is moi likely to reach such pitch
Is to materially retard our prosperity
On all sides the prospect is indeed most
encouraging. Ee, M