Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-04-21
PRICES DURING
THE CIVIL WAR
Many Points of Similarity
Is Found With The
World Conflict

The United States Department of
Labor, through the Information and
Education Service, is issuing the re-
suits of a study of prices during the
war and readjustment period made
by the Division of Public Works and
construction Development. Discuss
ing the Civil War period as a prece-
dent 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 per-
lods. The course of prices during
the present period of readiustment
and the corresponding period fol-
lowing the Civil War show more
points of difference than of SINH
larity.
During both wars the wholesale
prices of commodities in general
rose steadily through the war per-
iod. The rise during the Civil War
period, taking the year 1860 as the
base, runs up to somewhat higher
level than the rise during the pres
ent war. In both wars, building
materials rose in price, but they did
not at either time reach levels as
nigh as the price levels of other
commodities.
AT the beginning of the year
1868, the end of the Civil War be-
ing in sight, wholesale prices broke
suddenly and violently. During the
nrst six months of the year, prices
in general fell off 81 per cent. from
the high level of January. How
ever, the break in wholesale prices,
though unprecedented in violence
and accompanied by the unsettling
influence of the end of the great
war, produced on business crisis or
depression. Through the latter half
of 1855 prices recovered from the
low point until in January, 1866,
they stood just 16 per cent. below
the level of January, 1865. From
the beginning of 1866 prices dropped
slowly downward. 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 premium. However,
commodity prices remained above
the prices of gold up to and includ-
ing the year lSIi.
Building materials declined in
price along with other commodities
during the first half of the year 1865.
However, the fall was less than in
the case of other commodities.
Whereas comm modities in general
dropped % per cent, building ma
terials dropped only 141a per cent.
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
level for period of a year before the
year 1864, and remaining at that
decline set in. The index figure for
the building materials group re-
mained higher than that for all
commodities up to and including the
year 1874.
THE currency was on a distinctly
basis in the Civil War re-
period. The sharp nuc-
tuations in prices gave rise to much
speculation and the opportunities for
of the resources of the
country, such as unused land, rivers
and harbors, building of railroads,
led to over-eXpanSion of business re-
sulting in the Financial Panic of
1873. This panic was not accom-
panied by any sharp decline in
prices.
LAS was stated above, it was thir-
teen years after the Civil War be-
fore 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 in the shape of new
forms of machinery and new kinds !
of business organizations. These
opportunities we do not have at the
present day in any measure COM
parable with the previous period"