Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-06-08
POLITICAL ECONODIY.
FOR THE ENQUIRER.
FVN 7 n Z EMU n III.
Tile Present Time (osa,n) ,xRected from
the Past

the Past.
The Edinbug Review of December
contains a Review oi Ricari!u's " propo-
sails for all Economical and Secure Car
rency, which presents a sketch peculiar
" appropriate 10 our present situajIou--
Alter discussing and approving Mr.. Ri
cardo's plan. wiz. delivering from the
Bank OF England aacoined bullion IN place
OF CON- the Reviewer thus concludes lis
remarks on The Bank OF England:
But the mischief occasioned by tue sudden
'esi'ic'ioh oi the paper currency and the con-
seqment rapid augmentation of its value has
been sun greater thln what what was preyi-
OnSiH caused by its increase. u is To this that
the late unprecedented destruction of sricn
inrai capital. aud the widespread misery rs
winch the farming class has been ueariy over
wheinltd, Is chicSy 10 be ascrihed' iThis
part of the picture is NOT yet fulfilled in Anne
rica. ! pray tn Get II may pever be, But
The prudence OF OurfarmerS canalone prevent
itJ " hc first fall in The prce OF agricultural
pfoduce. III the autumn of 1913, and IN the
early part Ot 1914, was certainly owing 10 iui-
portaiious from The continent But its fall in
the latter part of 1911 and 1915, was not so
muct "wIpg 10 This circumstance, as TO the IL
niVVr>dI reduction of the Issues of the country
banks, and To the failure of an immense num-
Der about 2l0) Of these establishments. That
support On which MANY OF the agriculiurists
rested. was torn away at the time ii was most
confidence entirely ceased and the tall of the
prlce OF raw produce, "a 1t was chiefly occa-
stoned by rise in the value Of money, was ac-
companled by pr0porIioDabie increase of
rent IhIs ~ badly expressed; II ought to
have been increase of Ike raiue, not the rnte of
rent. The inter, of course. IomHaiiy fails in
This state Of things. Ii Was then that tie
defects of the fictitious system, Oh which we
had been proceeding. became apparent
Thousands. who but twrivemoHih before
considered themselves wealthy, al once sunk
rs IT by eiichantment, and without any ranit Of
their own into the abyss of poverty
With the exception of the misery occa-
sioBcd by the aesifilctioD OF the asSignats IN
France, we do not think that the misery and
subversiOn OF private fortunes uccasiOuod by
the late sudden reduction OF Bank paper in
this country, has ever been parallcied. Nor
was this misery of a temporary or tVdnPScent
character Its pernicious fleets III long con
time 10 he felt, not only by iudvidIais, but
by the nation al large. During the period III
which the depreciation was greatest the state
buITuwed several hundred miIllUEs. Aud il
will now have this money, which was borrow
cd when "a bank note was not worth more than
lis. or l5S.. to pay. when it's value is at par
AL those taxes, TOO, which were imposed
When the currency was thus reduced must
nov, thOugh not uOmiualiy, bcreaily increased.
And II may be questioned, whether, making
allowance for the difference is The value OF
money, the country was not less heavily bar
dpued in 1872 aud 1913. than IL is AT this mo
OF the IuCOmrtaX and war matt duty.
Ola every account. therefore, u IS Of inf
mite importance that the value of the currency
should be rendered AZ little fuciuating as
possible or, in other words that the Bduk
Sbonld be Obliged TO give cash or bullion ~
exchange for It's notes. When a public debt
has been contracted depreciation Of paper
induces what Is really equivalent 10 Il national
Bankruptcy. Now surely II ~ too much 10 ia
tTust a'IN corporate body. however respeciabis,
with the power OF reducing the naiiOnal cre-
dit 20 nntinug aud OF rn!nIng all those living
U tiNct incomes. Bui u - still more dan ei-
ru> 10 iHtruSt them with The power Of euTich-
ing aHinitaEiS aud stOCkhOIdrTSdt Tie expense
OF tie productive cia>scs,--Or TO arm them
VITA tie II"iOEaiiVe 1t imposing iHdedMite tar
eS: For tbFy eNerCis" that puwC most tfieC-
tndHN. when, Ey diminishing their paper, and,
COnSt qnSuilN, raising its value, tlirY reduce
the money Viice OF commodities. aHd Ob!ige a
farmertO sell TWO qHdrtsiS OF wheat, or a Ma
nuiactHrer Two yards of cloth, To yAN those
taxes tor which ore had formerly snfIiCcd.-
Such poWt vested IN the hands OF "a body
unknown TO the Constitution. and acting un-
der responsibility, a. pcriectiy aDomdIOueS.in
a tree cOuntry. aud j. altogether subveTSive oil
the srCuiuy of property.
p" WINE ~ - IN Tie power at the Directors
Of the Bank Of England TO increase or dimi-
uish the currency OF the country at thair plea
snre, no person can iOrm ANY probable esti-
mate Of the value OF his property at auy perio
but little remote. The estate that IL putcias.
ed to-day, and reCkOued = gOUu bargain, may,
by the Banks limiting its discounts, OF wltii-
drawing its note, from circulation, be rcndef.
ed, in a very short time, not worth half the
SUM paid tor IL And, on the contrary. IL tbs
Directors were more hb al ia granting dis
counts, and increased tie humber OF tbeIr
uotts IN circulation, either by lending to the
State or to IndN .dHdls. the estate might spec
diy become worth duHbie the money. that Or,
double tie paper IL had been sold fOT, This
unnatural system, renders tlBc BiOHeg
refre OF al the property ia die empire depend
eut on the NieWSt> Opiniurs-ihe wiIi,ns and ca
pic - oitWcHtg faRr individuals ItIsfheirf fat
alone which makes one transaction good, aud
another bad. They hold tbe scale OF value,
a"d change its grSduhii6o as die y judge pro-
pei"
Such, wiflI some exceptions, are The
g evli tunes ou which Ne have fNIlen." Il
IS RIM. ~ il VAS Nen, thai the money y @