New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-06-14

cents against II cents January, 1S0o, whilo '"o
average quotationsI Of wool were over ~ pe
cent lower than In January lsoo But hpou'
this time the enormous demands Tor Columns
for the Army and Navy fell upon markets WHO"
were suddenly forced to contemplate the prop
ability that cotton must for time DC anhos'
r,boIv dIsused and wool found to take Its place.
This state of things fully sufflced to cause inc
rise Of AZ per cent In the last three months o.
1861.
7, WINS in January. 1902 that the first legal
tender bill passed tho House. and late IN fco-
mary II became n law Neither quotations 81
wool nor tho premium on gold advanced ior
some months. Wool averaged lower uhti 'h'
latter part Of July. the impression prevailing
that the war would presently end lho premium"
on gold did not rise rs high as IL nan ooio''
tho first Ieealtender bill was passed. until after
tho second bill, authorizing another issue VI
St50 600 900. was asked by the Treasury. Tbs
controlling events at that time. which are 30
often overlooked by students Of currency and
prices. wero the disastrous battles IT. June ahd
.Iulv the invasion of Maryland by Lee In Sep
TENDER tho fact that his army, though repuiseu'
was able to get away scarcely crippled. and the
Democratic victories in the great States October
"a and November A. These taken together
caused profound disheartenment distrust or tho
currency doubt how long the war would last,
and an advance in the price OF gold to 81 a.
while the price OF cotton rose above 0o CENTS
and the average price OF wool above Oh cents
The figures hero used for wool arc the most
Trustworthy published at that time, by the
Shipping and Commercial list" eighteen quo
tations, the highest and lowest for nine dlnereht
classes, Saxony. full-blood merlno. ore-haf ana
three-quartor blood, native and one-quartcr
blood. extra pulled. super pulled pulled NO 4
and California fine and common. Identical quo
tations far they 60 were compiled for some
dates from The Journal Of Commerce" by Sec
rotary Chase the next year. 1t Will be agreed
that such a record is more trustworthy than one
giving only three quotations of Ohio washed
wool. which, moreover. differed essentially from
the quotations published at the time by tho
most careful Journals. Messrs Justice. Bate
man Sc Co. say: "On a gold basis wool prices
were actually lower in October. 1862. than in
October. 1861 although in paper money they
showed an advance Of 20 per cent The
paper value of gold dollar was 12S.o." No ex-
act date is given. though October 1 is apparently
meant but the price Of gold did not rise to l2S
until October 10. and the average price Of wool
October ! was not 20 per cent, but in fact
TN per cent higher than October 1. 1851. name
~. 1894 cents. against 42.33 January l. 1862,
and 1888 October l. 1861. The point OF I'm
portance IL not the exact accuracy OF the fig
ures but that tho disasters to the Union Army
and the subsequent political disasters caused
the distrust OF the currency and the resulting
imitation Of prices at that early stage. for the
issues Of circulation had not then become so
great as to involve necessary depreciation.
It will be interesting to note that wool at the
highest poin. during the war, September z, 1854.
averaged for the same qualities above named
4O6 cents thus being 1868 per cent higher
than in January. 1860. but on tho previous day
gold had sold at q premium Of 154h per cent
and that summer at premium of 1So per cent
1t was tho enormous depreciation OF currency
in the later years which caused most of the adj
vance in prices, nor did farm products as a.
whole mount materially over the level OF 1910,
even In deprecated currency. until 1SG3 when
tho disasters above mentioned had passed. but
currency imitation had become serious. Then IL
was that prices OF products in currency mounted
above tho premium on gold. every holder want
ing to insure himself against possible deprecia-
ton OF paper from day to day, and prices SO
continued above the level of gold for years. de-
priving every wage-earner of a part Of his earn
inRs.