The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-05-22
CIVIL WAR RISE
IN PRICES LIKE
THOSE Of TODAY
Department of Labor Declares
Some Commodities High in
1865 With Country Hit by
UnSound Finance.

WASHINGTON, May 23.-The o.. 8.
department Of labor, through the In.
formation and education service, is is
suing the results of a study of prices
period made by the division of public
works ana construction development.
Discussing the Civil war period as q
precedent 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
more points of difference than Of sim
ilaritY.
Civil War Level Higher.
During both wars the wholesale
prices of commodities in general rose
steadily through the war period. The
rise during the Civil wal period, taking
the year 1850 as the base, runs up to
somewhat higher level than the rise
during the present a In both wars
building materials rose in price, but
levels as high as the price levels Of
other commodities
"At the beginning of the year 1865,
the end of the Civil war being in sight,
wholesale prices broke suddenly and
NlOlClIlN. DuIlHS II lHSl OLA IIlO4lAllo
of the year prices in general fell off
81 per cent from the high level of jan
uary. However, the break in wholesale
prices, though unprecedented in vio-
lence Inc accompanied by the unset.
Ting influence at the end of the great
war, produced no business crisis or de.
preston. Through the latter half OF
1865 prices recovered from the low point
until in January, 1866, they stood AJust'
16 per cent below the level of January,
1on A. l. A~-t@-N~- . 1QcE -NtnAA
dropped slowly downward. They did
| not reach the prewar level until the
| veal 1873. As is well known, during
that period of inflated currency gold
was at a premium. However, commod-
ity prices repained above the prices of
Building Stuff Declined.
Building materials declined in price
along with other commodities during
the first half of the year 1855. How
ever, the fall was less than in the case
| of other commodities. Whereas COM
modities in general dropped q per cent,
building. materials dropped only 14R
per cent. The recovery during the sec
ond half Of the year was more marked,
| prices of building materials returning
to the level of the last quarter Of the
year 1864, and remained at that level
for a period of a year before the de-
cline 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 recon-
struction period. The sharp fluctuations
in prices gave rise to much speculation
and the opportunities for development
of the resources of the country, such
as unused lands, rivers and harbors,
building of railroads, led to overexpan-
sion of business. resulting in the flnan.
cial panic of 1873. This panic vas not
accompanied by any sharp decline In
prices. a.
wears after the Civil wal before prices
returned to the prewar Level: The prin-
cipal cause Of the return to the pre-
war level was the fact. that there was
such abundant opportunity for the de-
velopment of new n more economic
methods, of production in the shape OF
new forms OF machinery and new kinds
of business organizations. These OPP
portunities we do not have at the pres
ent day in any measure comparable
with the previous period"