Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1835-06-26

tAis time, and | hope will
cdfiorth the speculations Of others much more compe-
tent TO do justice to the subject than myself.
Cariaiiag medium.
The first subject, undoubtedly, TO which we must turn
our attention III an investigation of this kind. is TO the
currency. What is the currency? What are the items
which compose il? Every thing which passes from hand
to hand, and will perform the function Of money, must
be regarded az currency. First, then, come the cold and
silver coins, and bank paper; these Of course, form a
part OF the circulating medium, but not the only, or even
the greatest OF most important portion. Bonds, promis-
sorry notes, scrip notes, bills of exchange, stocks Of eve
~ description, form likewise a portion of the circulot-
ing medium. All Of these pass from hand to hand, and
represent value, and therefore perform the functions of
s@aasSS tract oSand fy which
IerF$SS,OO0, and pay for it by passing to tie SCI
Ter ten bonds of a thons--t tcllass each. Now.
this exchange is effected without a single dollar of
real money, merely by the agency Of credit; in the snmc
way I might have paid for itin stocks, or BY givingL hills
Of exchange, &c. But although these are to be looked
on az circulating medium, il is evident that equal guam
titles Of them will not perform as many exchanges as
money; for the value Of money is well asceTtained-it
bears no Interest whilst ia our hands, and therefore it
circGiates rapidly and effects many exchanges: whereas
the value ofbonds. pionissory notes, bills Of exchange,
stocks, &c. have a value more indefinite; and most Of
this species Of paper, too, bears an interest while in
our hands. Its circulation is therefore comparatively
sluggish, in consequence, first, of the difficulty Of fixing
its value; and second, because we make a profit on IL
whilst lying in our hands, and therefore are in no hurry,
generally. 70 get rid Of il. But although this portion Of
the circulating medium be greatly inferior TO money
IN the performance OF the functions Of circnlatIon, yet,
it much more than makes up for this deficiency by the
vast amount Of it which il in circulation. In England,
for example, it has been computed that the bills Of ex.
change alone ia circulation are ten times more in amount
than the whole money in tie country: while The latter
IL estimated al 40,000,GO0 the former reaches the cnor
nous aggregate of 200, O0O, 900. In our country, the
Bank Of the United States alone does a business In ex-
change, amounting in the year to more than $3.50, 900 COO;
while is own paper in circulation has never reached one
capital, or SIS, GOO 900. Now, the bonds, or promissory
notes Of individuals, may be looked on as rising in
amount, infinitely beyond the aggregate Of the bills Of
exchange and money together. Comparing, then, all the
items Of the circulating medium, ~eriuSiDc of money,
with the money. sc shall be astonshcd 10 see how insig-
ni6caat in quantity the latter IS, when compared with the
former. The fact is. money performs but few Of the
exchanges Of society, by actual passage from hand to
hand. 'In England says Mr.. Wade, "by the use Of
bills Of exchange, bills Of loding, checks, scrip notes,
clearing houses. and a variety Of other c0ntrvances,
aided BY a vast fabric Of credit taken and given in open
account, money On is common acccpiauonD hardly ever
enters into mercantile affairs; il is thc substance really
meant and shadowed forth; butt rarely, as one may say,
bodily passes from hand to hand" in our own country
every one, too, must have observed how rarely the ex-
change Of large mosses Of property is effected BY the IN
t%erventon Of money. IN the great majority Of cases,
the property IL paid FOR BY the passage Of bonds, bills Of
money. Hence, what nre called cash sales, If too IRE.
quent. oil Of a sudden, in a particular nciqhborhood, even
IN times Of great prosperity, will cause the property to
be sold a. a sacrifice, because Of the great difficulty Of
the actual money to make the purchase.
Effect Of ragiday If Circulation
kQzmz I'D my notion Of the compo-
Noouni 10 oil the other