Readings in Money and Banking: Selected and AdaptedPhillips, Chester Arthur
General
Readings in Money and Banking: Selected and Adapted
Phillips, Chester Arthur
Banks and banking; Banks and banking -- United States; Money
We knew only that money was astonishingly abundant. Provisions fell
short sometimes, and the supply of clothing was not always as large as
we should have liked, but nobody found it difficult to get money enough.
It was to be had almost for the asking. And to some extent the abundance
of the currency really seemed to atone for its extreme badness. Money
was so easily got, and its value was so utterly uncertain, that we were
never able to determine what was a fair price for anything. We fell into
the habit of paying whatever was asked, knowing that to-morrow we should
have to pay more.
Speculation became the easiest and surest thing imaginable. The
speculator saw no risks of loss. Every article of merchandise rose in
value every day, and to buy anything this week and sell it next was to
make an enormous profit quite as a matter of course. So uncertain were
prices, or rather so constantly did they tend upward, that when a cargo
of cadet gray cloths was brought into Charleston once, an officer in my
battery, attending the sale, was able to secure enough of the cloth to
make two suits of clothes, without any expense whatever, merely by
speculating upon an immediate advance. Naturally enough, speculation
soon fell into very bad repute, and the epithet "speculator" came to be
considered the most opprobrious in the whole vocabulary of invective.
The feeling was universal that the speculators were fattening upon the
necessities of the country and the sufferings of the people. Nearly all
mercantile business was regarded at least with suspicion, and much of it
fell into the hands of people with no reputations to lose, a fact which
certainly did not tend to relieve the community in the matter of high
prices.
The prices which obtained were almost fabulous, and singularly enough
there seemed to be no sort of ratio existing between the values of
different articles. I bought coffee at forty dollars and tea at thirty
dollars a pound on the same day. My dinner at a hotel cost me twenty
dollars, while five dollars gained me a seat in the dress circle of the
theatre. I paid one dollar the next morning for a copy of the
_Examiner_, but I might have got the _Whig_, _Dispatch_, _Enquirer_, or
_Sentinel_, for half that sum. For some wretched tallow candles I paid
ten dollars a pound. The utter absence of proportion between these
several prices is apparent, and I know of no way of explaining it except
upon the theory that the unstable character of the money had
superinduced a reckless disregard of all value on the part of both
buyers and sellers. A facetious friend used to say prices were so high
that nobody could see them, and that they "got mixed for want of
supervision." He held, however, that the difference between the old and
the new order of things was a trifling one. "Before the war," he said,
"I went to market with the money in my pocket, and brought back my
purchases in a basket; now I take the money in the basket, and bring the
things home in my pocket."
Public-domain text, read in full here on John Shaqi.
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