Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-05-28
POLITICAL ECONOMY.
FOR THE ENQUIRER.
"Ihe times are ont Of ioint.n

The value OF money, like that of every
other article, depends upon the supply and
demand for il. Were there but one coun-
try III The world, il woul,i make very little
difference how much money was i'm ii ;
whether there were one or two millions
of pieces. One million would be as suf-
flcirni TO circulate lis exchangeab!e com
modiiIes, as If there were Two. A bushel
of wheat wo ld indeed only be worth one
piece. instead of two; but would eve
ry other article differ in that proportion {:
and thus, though every article would be
represented by half the number Of pieces,
yet as every article would be in the same
proportion III regard 10 money, their re-
lai.,e value with respect 10 each other
would remain The same. There would, it
Is true, be some difference in the uses 10
which we udapply the money itself, if
n consisted OF the precious metals for
these, being not only the medium of cx-
change, but having an intrinsic value of
their own, woald be more or less used for
other purposes. II they were more album
dant, more Of Them would be melted down
Tor plate, for domestic utensils, &c. But
while they remained in the shape of mo-
ney ,,ihe great difference would be, that "A
man would have twice az large or twice as
many pieces in his pOckci aud that ev-
cry article would require twice as many
piec,s 10 pay foi If.
This is also true with respect TO the
whole commercial world, consisting Of
many countries. For, lei the mines pour
more metal into The market, and it the
demand does moi keep pace with the sup
ply, every article Will nomirdiiy rise in
value, though the food uay not he fell
precisely at The same moment throughout
The whole world. 1t will take some little
lime TO equalizc the supply butthat sup
ply will sooner or later be made. Coin
being so portable, having so much value
III so small bulk .'wii! easily pass 10 The
country where II is most wanting. What
then Is meant by want or excess OF mo-
ney III one country? Where there is more
money ~ proportion 10 the commodities
II circulates, than IN another, il is said 10
be excessive IN ihe one, aud deficient in
The other il is ofcourse worth less in the
former than in the latter; and will IN the
course of trade readily pass from the one
TO the other.
The multiplication Of paper money
through the commercial orld ould have
nearly the same effects upon price, as the
discovery Of new mines. All articles
would nOmlnaily sell for more, provided
The increase of tie quantity ofariicles 10
be circulated did moi keep pace with the
issues OF paper. Ii in one country larger
Hood OF paper money vas poured out III
proportion 10 lis circulation, Than in an
other, The effect wouIs nearly he the same,
as II new mine OF precious metal was
opened IN IT. Some portion Of its money
would leave IL /; but as lis paper is of lit
tie or no value out of the country, il
would be that portion Of IFS currency con-
sisting OF gold and silver, which would be
selected for transportation. 1.-THE banks
confirmed TO issue more and more paper,
II would ebb back upon them 10 be ex-
changed for gold and silver; which would
again be shipped through those channels
OF commerce which were most ia want Of
the gold or silver. Thus one link would
follow another. Thus, country might
be almost flooded with paper currency
while II would be gradually drained of lis
precious metals. Tie banks might issue
The paper, but IL would come back upon
them for gold silver. 10 HEY opcy-
dc0h that Is, if they lent too mn Il Of
their owD paper III exchange for that OF