Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1881-12-22

ly increased, and a larger quantity Of
circulating medium is required. Be
sides this, the rise in the prices OF
manufactured products and Of some
food products has not been confined to
this country, so that the rise cannot be
due entirely 10 such a cause as an in
fation which exists only in the United
States.
What will be the effect Of this rise
in prices upon the commerce Of the
country Its first effect will be to
check exports. Notwithstanding all
our boasts Of being a great manufac-
turing nation, it remains a settled fact
that by far the largest portion of our
exports-more than 50 per cent
consists in agricultural products, food,
and raw materials Of manufacture; or
IN those very commodities the prices
OF which have increased most. The
most important part of our foreign
commerce is at once affected. The
returns of tho Bureau Of Statistics
show that in the month of October,
1880. domestic merchandise to the
value of $~S4,272,73e was exported,
while in the same month Of 1881 the
value was only $66, 799, 465, and this,
too, in spite of the increased price in
the latter year. 1t is true that in 1880
there was a great demand for food
products; but there was also something
of a demand this year. The specula-
ton in grain has caused a greater
reduction in the amount Of grain
exported .than would have resulted
from the fact that the crops in Europe
had yielded more in the year 1881
than 10 the year 1880, and that conse
%quently less would be required from
this country. There was an upward
tendency in the price of wheat as soon
as it was represented that the harvests
would prove deficient, but this ten
dcncy was SO intensified by speculation
that for a time wheat was actually
cheaper in New York than in Chicago.
All this has reacted upon exports; for
tie exporter can obtain less profit by
exporting q high-priced than a low
priced commodity, and q foreigner
entering a market whore prices rule
high cannot find it to his interest to
buy goods.
Imports will also be affected by the
high prices, but in q different manner.
AS prices rise the foreigner will find
that his profits arc increased, and he
will be induced to send his goods to
tEis market, unless the rise be due to
an imitation of an irredeemable cur
rency, which would in whole or in
part neutralize his gains. But there
is no depreciation in our currency, al
though there is no imitation. So that
in making his exchanges the foreigner
will lose nothing, because 81 of paper
is exactly equivalent to 81 in gold. The
high prices, then, will tempt importa-
tious, but discourage exports, and,
unless prices are forced down by au
Yer-importation this may be carried
so far as to create o so called balance
of trade against this country and,
should this be brought about, gold OF
securities will be exported, for there
will be no demand for our silver. AT
present the greatest riseshas been in
the prices of ~exportable commodities,
and not of imported, save in the case
OF iron.
But every period Of great specula-
ton and high prices in the history OF
this country has been attended with a
great increase OF imports, aud fol-
lowed by a crisis. The very interest
ing tables OF the prices Of staple com
mOdities in the New York market
since 1926, in the last report of the
Director Of the Mint, when compared
with a table of imports and exports,
clearly show this tendency of import,
to increase under a regime Of high
prices. Ia the month of October
1881, the imports had increased bl
more than four and one half million.
over the imports for the same month
in 1880, while exports Of domestic
merchandise had decreased by more
than seventeen millions. With these
facts before us, the only question thai
can arise is, will the action of thii
agency be so strong as to turn against
US such a balance as was for the ter
months Of 1881 in our favor (Sl80,473,.
603)?" We think not. If gold il
taken from US at all, it will be because
it is more heedcdin Europe than here