The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1837-11-24

between man and man, but not for standard o
value TO perform exchanges generally, which con
stleule The appropriate functions Of money or cur
reney. The measure Of safety in the two cases
are wholly different. 4 promissory note or con
verti0lc paper, is considered safe SO long as the
drawer has ample means 10 meet his engagements
and IN passing from hand to hand, regard is had
only to his ability and willingness to pay. Very
different Is the case in currency. The aggregate
value Of the currency of a country necessarily
bears small proportion TO the aggregate value
Of ifs property. This proportion is not ell ascer
tanned, and Is probably subject to considerable va
Ration IN different counties, and at different pc
RODS 10 the sane country. II may be assumed
conJecturallY, IN order to illustrate what saw al
one 10 thirty. Assuming this proportion 10 BE-
correct, which probably Is not yery far from the
truth, II follows that in sound condition oil tbs
country where the currency is metallic, the aggTe.
gate value Of the coin is not more than one ID ihir
ty OF the aggregate value Of the property. II al
50 fellows, that an increase ia the amount of The
currency, by an addition Of paper circulation OF
no Intrinsic value but increase the nominal value
OF the aggregate property 0! the country, in the
same proportion that Tie Increase blars 10 The
whole amount Of currency SO that il The currency
he doubled the nominal value Of the property will
INV w AbhOtSAf IL 49, mat 6Htki TIC pa
per currency Of countfy is il the shape Of pro.
mlssory notes, there Is constant tendency 10 ex
cess. We look fer their safety 10 the ability Of
the drawer, and SO long as his means are ample
to meet his engagements there is no distrust,
without rejecting that, considered Us currency, il
cannot safely exceed one IN thirty ID value CON-
pared to property and The delusion is further n-
creased by the constant value OF property, with
the increase OF the notes ia circulation, as to
maintain the same relative proportion. Il follows
that government may safely contract debt una
ny times the amount Of its aggregate circulation
but, Il II were 10 attempt to put ITS premlssory notes
~ circulation 10 amount equal % It's debts al eg-
posion IN the currency would DC inevitable. And
hence, with other causes, the constant tendency
10 an excessive issue Of back notes in prosperous
tines, when % lafges portion q the community
arc anxious to o5iafH accommodation, aud no are
Disappointed wien negotiable paper Is refused BY
the hanks, not II hecling that il would not be safe
10 discount beyond the limits have assigned for
q safs crca.aton, however good the paper offered.
On what, then, ought paper currency 10 rest
! would say on demand and supply simply, which
regulates the value OF every thipg elsr--ths con-
slant demand which the Government has on the
community for its necessary supplies. \ medium
resting on this demand, which Simply gbllgates the
Government, 70 receive 1t in all OF It's dues, TO the
exclusion oeyety thing slse except gold and silver,
snd which shall be optional With these who have
demands on the Government 20 receive or mol,
would, 1t seems 10 me. be IS stable ia lis value
those metals themselves aud be as little liable 70
abuse the puver Of coming. II Wcnld contain
within itself a self regulating power. Il could on
II be issued To those who bad clsms On the Govern
nent and TO those only it'll Ihes consent, and OF
49, sk atsAe liar
which would be its hGbiinal state ior as TAR as the
Government was concerned, il weuid BE- equal in
every respect 10 god and silver, and superior 10
many; particularly IN regulating the dsiaat ok
changes Of the country. Should, however, DE-
nand sor gold and SILVER from abroad, or other
cidertal causes depfess II temporarily as compar-
cd with the precious metals, il would then return
10 the Treasury, and as It could not be paid out
during such depression, it, graGaal GlmnutioG Ia
the market WullC soon restoTe Il 10 all equality,
when il would again ilow out lGto the general cir
culatioa. Thus there would bs constant alter
nate fux and rttlux into and from tie Treasury,
between il aud the precious metals cut II al
any time permanent depression ~ lis value, be
possible from any cause the only effect would be
10 operate reduction OF taAes on the cammun-
It's ard the onig sufferer would ba Ehe Govern
ment itself Against this, lis own interests weud
bsa Sufficient guarantee.
Nothing but experience can determine what a
mount ana Of what denominations might be SAFE.
" issued bnt it NAV be safely assumed, that the
country would absorb an amount greatly exceed
ing its annual income. Much OF It's exchanges,
which amount to vast sum, as well as Its bank
ing business, would reyolse about II, and many
millions would thus lie KEEP. in circulation, beyond
the demands Of the Government 1t may throw
some light on tho subject to state that North Ca
ons, just after the revolution, issued large a.
mount Of paper, which was made receivable IN
dues 10 her 1t WIS also made ltgal tender but
which Of course, was net obligatory aler The adop-
ion 1T the Federal Constitution. 4 large amount,
say between four and five hundred Thousand dol
lars remained in circulation after that period, and
continued to circulate for more than twenty years
ii par with gold and silver during the whole time
with no other advantage than being received in
the revsnue of the State, which was much less
than 100000 per anBum, speak on the intor.
nation of citizens of that State on whom | can
rely.
But whatever may be the amount that can be
hold II clear, that 10 that amount, It
wsuld be as stable in value gold and silver It.
self provided the Government be bouad 10 receive
il exclusively with those metals in alilts dues ami
that II be LETT perfectly optional With those who
have claims on the Government, 10 receive 1t, or
not. Il will also bs a necessary condition, that
notes Of too small denomination should not be
issued, so that the Treasury shall have ample
means to meet sill demands, either in gold az sill
yer. or the bills of the Government at the option
Of those who have claims on 1t. With these con
ditons, no further variation could take place be-
tween tand gold and silver, than that which would
be caused by tho action Of commerce. An UNI
sual demand from abroad for the metals would OF
course, raise them little in their relative value.
and scpress relatively the Government bulls III the
same proportion which would cause them to flow
into the Treasury, and gold and silver to flo" cut;
while on the contrary increased demand Tor
the bills in the domestic exchange would have