Northern Economic Inflation

[J. Donaldson]

Everyone should be fairly familiar with examples of Confederate economic inflation and pricing during the war. I've never seen much evidence of inflation as a factor in the North. Last week, while doing some research, I found the following newspaper article with examples of inflation in the New York wholesale markets.

Macomb Eagle
May 28, 1864

Democratic Prices and Republican Prices.

The following comparison of the prices for 1860 and 1864, on the leading articles of consumption by farmers, mechanics, and laborers, is taken from the regular market report of a leading New York journal. The quotations were for the first week of April and at wholesale rates. The column for 1860 gives the prices when Democrats administered the Government; the column for 1864 gives the price of the same articles after three years of republican misrule and maladministration:
1860. 1864.
Alcohol, 100 gals …………………. $44 00 ... $206 00
Coffee, Jave, 100 lbs ………............ 15 50 ... 47 00
Codfish, dry 100 lbs ………............. 3 00 ... 7 00
Cotton prints, Allen’s, yard ………. 9 ... 23
Cotton shirtings and sheetings……. 9 ... 43
Cotton drills, bleached …………… 3 Ό ... 42
Cotton jeans, bleached …………… 8 ... 40
Iron, Am. Pig, 100 lbs ……………. 12 00 ... 32 00
Indigo, lb ………………………….. 70 ... 1 40
Lead, 100 lbs ……………………… 5 85 ... 12 00
Leather, Hemlock sole, lb ………… 20 ... 84
Molasses, Cuba ……………………. 25 ... 1 14
Nails, keg ………………………….. 35 ... 70
Oil, Linseed, gal …………………... 60 ... 1 61
Oil, coal, refined, gal ……………… 25 ... 45
Oil, petroleum, crude, 100 gal ……. 17 25 ... 34 50
Rosin, bbl ………………………….. 1 57 ... 42 00
Rice, East India, 100 lbs ………….. 4 00 ... 9 00
Sugar, Cuba, 100 lbs ……………… 6 00 ... 15 50
Sugar, refined and crushed ……….. 10 00 ... 20 00
Salt, Turk’s Island, bush. ………….. 18 ... 43
Tea, young hyson lb. ……………… 29 ... 1 02
Tin, 100 lbs ………………………... 30 00 ... 45 50
Tar, bbl ……………………………. 2 45 ... 23 00
Turpentine, gal ……………………. 45 ... 3 50
Tobacco, 100 lbs ………………….. 6 75 ... 20 75

This comparison was made early in April. Since then prices have advanced 25 or 50 per cent. The prices of farm products have also increased in the same time, but not in proportion to the above; wheat is but a few cents higher, and corn commands a good price solely because of its scarcity. – Neither have the wages of laborers kept pace with the price of the articles they necessarily consume. The rule of Democrats was better, everyway, than that of the republicans has been. The rule of the latter has enabled the the rich to amass greater riches by [obscured.] - Macomb Eagle, May 28, 1864. Page 2.

While I have no way of verifying these prices, or their impact across the Nation, it is illustrative of the effect of the war, as well as Lincoln's economic policies during the era. One thing the column does not take into consideration is the scarcity of Southern-produced goods such as turpentine, tobacco, etc., which would naturally rise in price due to their absence from the trade markets. Additionally, this information comes from a Democratic newspaper, and the headline points to the editor's effort to make the Republican party responsible for the issue at hand.

Sorry about the formatting. The first column represents prices in 1860, and the second represents 1864.

[Pvt Schnapps]

Re: Northern Economic Inflation

Very interesting! Along those lines, I've attached a table showing fluctuations in the value of both US and CS paper dollars compared to gold over the course of the war. Because gold prices changed daily and it might take months for the effect of inflation to reach markets and stores, it's more a measurement of international capital's assessment of who's more likely to win at a given point than of actual prices. Another factor is relative scarcity -- I calculate that if one of Early's privates had entered Washington as a conqueror in July 1864 his $18CS monthly pay might have bought him four pounds of coffee. According to James Jones, though, the same amount in Richmond would not quite have managed two cabbages. So it doesn't reflect actual prices like your newspaper account. On the other hand, it's another perspective.

The most interesting aspect, to me, was how gold prices tracked the progress of the fighting -- look what happens to the Confederate dollar after August 1862 and then after the spring of 1863. Anyway, FWIW...

[Tyler Underwood]

Re: Northern Economic Inflation

Great information Bob, thank you for sharing it with us. I am actually surprised that some of the prices are not higher.