April 28, 1863, The Charleston Mercury
The healthy influence of the Tax Bill, which has just become a law, is already making itself felt in the provision market. Since the leading features of the tax have obtained publicity, the decline of prices, in flour, rice and other articles of food, has been steady and unmistakable. A variety of reasons are given to account for the fall; some attributing it to the sudden contraction of the currency by the recent funding of so many millions of our redundant currency in Confederate bonds; and others alleging as a cause, the restrictions lately imposed upon inter-State shipments for the purposes of speculation. Both these circumstances, doubtless, have contributed, in a measure, to bring about the reduction of prices; but the agency that has been mainly instrumental in effecting the welcome change is, in fact, the new Confederate tax.
At no time, we feel convinced, has there existed any real scarcity of food in the Southern States. But in every community, besides and distinct from the speculators and extortioners, there have been timid capitalists, who, investing their funds in an accumulation of provisions, and refusing to sell, rather with a view to security than profit, have virtually withdrawn from the market a very large proportion of its natural supplies. An artificial scarcity has thus been produced, while, in truth, there was abundance in the land.
But during the last three weeks, prices have reached their acme, and there is reason to believe that the decline which has begun is not yet ended. The new wheat and corn crops promise to be the heaviest ever known in the South, and will, ere long, be pressing into the market. The policy of importing provisions in large quantities has already been inaugurated, the well known Charleston firm, whose enterprise and tact has already, in other respects, conferred incalculable benefits upon the country, taking the lead in this last and most important development of the blockade trade. With the prospect of this early and active competition in the market, and with the certainty of the heavy tax upon hoarded produce which must be paid early in the summer, it is not strange that holders should everywhere be cautiously relaxing their grasp upon their accumulated supplies. Nor need we be surprised to find that, as those supplies, so long withheld, are wisely yielded to the demand, there occurs such a tumble in the price of food, as will add new nerve to the arms of our soldiers in the field, and send joy and thankfulness to the hearts of the whole people.