The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-04-22
Prices During the War and the Readjustment
Period

The United States department of labor
through the information and education service
is issuing the results of study of prices during
the and readjustment period made by ths
division of public works and construction develop
ment. Discussing the Civil war period as pre-
cedent for war prices, the report says:
"a comparison of the course of prices during
the Civil war and the present war shows many
points of similarity during the two war periods
The course of prices during the present period OF
readjustment and the corresponding period fol.
lowing the Civil war show more points of diff
ference than of similarity.
During both wars the wholesale prices OF
commodities in general rose steadily through the
war period. The rise during the Civil war per-
iod, taking the year 1860 as the base, runs up to
somewhat higher level than the rise during the
present war. In both wars, building materials
rose in price, but they did not at either time reach
levels as high as the price levels of other COM
modities.
cat the beginning of the year 1865, the end
of the Civil war being in sight, wholesale prices
broke suddenly and violently. During the first
six months of the year, prices in general fell off
279o from the high level of January. However,
the break in wholesale prices, though unpreced-
settled influence of the end of the great war; pro-
duced no business crisis or depression. Through
the latter half of 1865 prices recovered from the
low point until in January, 1866, they stood just
16% below the level of January, 1865. From the
beginning of 1866 prices dropped slowly down.
ward. They did not reach the pre-war level until
the year 1878. AS is well known, during that
period of inflated currency, gold was at a pre-
MUM. However, commodity prices remained
above the prices of gold up to and including the
year 1877.
Building materials declined in price along
with other commodities during the first half of
the year 1865. However, the fall was less than
III the case of other commodities Whereas COM
modties in general dropped 2795 building mat
erials dropped only 1412fo. The recovery during
the second half of the year was more marked,
prices of building materials returning to the
level of the last quarter of the year 1864 and re-
at that level for period of year be-
fore the decline set in. The index figure for the
building materials group remained higher than
that for all commodities up to and including the
year 1874.
The currency was on a distinctly unsound
basis in the Civil war reconstruction period. The
sharp fluctuations in prices gave rise to much
speculation and the opportunities for develop
ment of the resources of the country, such as I'M
used land, rivers and harbors building of rail-
roads, led to over-expansion of business result
ing in the financial panic of 1873 This panic
was not accompanied by any sharp decline in
prices.
AS was stated above, it was thirteen years
after the Civil war before prices returned to the
pre-war level. The principal cause of the return
to the pre-war level was the fact that there was
such abundant opportunity for the development
of new and more economic methods of production
n the shape of new forms of machinery and new
kinds of business organizations These oppor
unities we do not have at the present day in anv
measure comparable with the previous period"
D For Burlesan /