Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1819-02-10

Tee are induced to recommend the adoption |
Of the following resolution:
Resoloed, That it is not expedient Tor |
congress to adopt any regulations for pre-
venting the expectation Of The gold, silver,
or copper coins of the United States.
Treasury Department, Dec. 90, 1913.
SiR : In reply to your letter enclosing the
resolution of the senate, of the ed ihst. III
structing the committee Of finance ito In
qurs into the expediency of prohibiting
the expectation Of the gold, silver and cop
per coins of the United States" have the
honor 10 state that, from the best conside-
ration which have been able to bestow
upon the subject, it would be inexpedlent
to adopt the measure at this time: LIST, be-
cause it cannot be rendered effectuaI and
Cd, that, SO far as it may be rendered eff
fectual il will operate in favor Of the cor
rupt part Of the community, and injuriously
to the fair and conscientious merchant
The latter position is so nanifestly true that
no argument will be offered in lis favor.
In support Of the first position, the expert
ence of other states, furnishes the most If
REPUTABLE evidence. During the dark ages,
and those which Immediately followed the
revival of letters, arts, and commerce in
Europe, the expectation, not only OF the
current coin Of the respective states, but of
the precious metals generally, was prohi-
bited, under the most sanguiHaTy penalties.
This general prohibition, yielding to the
progress of reason, and to the advancement
| made in the science Of politicaleconomy,
during the seventeenth and eighteenth GEN.
taries, has been gradually reduced in
most of the states of modern Europe, to the
gold and silver coins Of the respective
states. According to The testimony OF the
most enlightened men Of every state, for
the last century, the absolute ineffieacy OF
this modified prohibition, as permament
measure, has been satisfactorily establish
| ed.
BY the immutable laws of commerce, the
expectation OF the precious metals must ne
cessarily depend upon the general balance
Of trade, in despite of any municipal re-
gulation. which human ingenuity can de-
wise, or human power execute, short oil
wrestling from individuals the possession OF
it. As general principle, it may be safe.
ly asserted, that the state which imports
merchandise to greater amount than it
exports, must pay the balance in the pre-
cious metals. In free states where public
c,edlt is flrmly established, and monied in
situations founded upon just principles,
and wisely administered, it is admitted
that balances may be sometimes adjusted
without the aid Of specie, by transferring
to the creditor interest bearing securities,
such as funded debt aud bank stock. II
needs, however, no effort OF reason to de-
termine, that this means OF adjusting ba-
lances, musi not Oniy be limited in lis ex-
tent, but injurious to the party which re-
sorts TO it, as II uniformly tennis TO increase
and perpetuate the balance 10 the extent OF
the interest which is annually payable 10
the creditor.
But it may possibly be commended, that
however inefficient the measure may be-,
as a permanent regulation, yet there are
conjunctions in the affairs Of every state
which not only JUSTLY but imperlousiy
require its temporary adoption.
IlcanRot he denied that the history of
our own government strongly countenances
this distinction. During the embargo of
1918, and that OF 1912, the expectation
Of Specie of every description was rg:dy
prohibited by law. Admitting, for the
purposes Of this enquiry, the correctness
OF this decision, il may be proper 10 deter
mine whether our political or commercial
relations with foreign states, OF our in
ternal affairs present case, which calls
for the temporary adoption Of the measure.
According to general appearances, il is be-
slieyed that cur relations with foreign states
have at no period OF our national existence,
furnished less cause OF inquietude.
The vexations to which our commerce
was subjected by tue principal beiigerent
nations, prior to the commencement Of the /
late warts almost total suspension du-
ring the war, and the irregularities aud vi /
cissitudes incident to lis resumption, on
the return ofpeace, have, doubties. produ-