Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1837-10-21


prove, because II will have that eiIect-I am dis
posed to ease off The psoeess. he, would suppose
3 very sOlicitous on lhai point
But 90 farther am 81 iheimpresson, 10
make his great measure successful and secure il
againsl reaction, soma stable and sale mediums be
circulation to take he place Of bank notes in he
fiscal operations Of Government, ought to be issu-
ed. | inisaa 70 propose nothing. Il would be
impossible, with so great weight Of opposiliOn,
70 pass any measure without the entire support Of
toe a4minelralion; and. if it were possIble, it
eugdt 1ofio bealienpIed where so much must
depend % the mode Of execution. The best
measure that could be devised might fail, and i'm
pose heavy responsibility on its author, unless
met with the hearty appreciation Of those who
are 10 execute il. then Intend merely 10 throw
out Suggestions. in order TO excite the reflections
OF others on a subject so delicate and Of so much
importance, acting on the principle that il is the
duty Of all Ia so great uncture 70 present their
views without reserve.
1t IS, then, my impression, that ia he present
condition OF the world, paper currency, in some
form, # not necessary, is almost indispensable in
fnancia, and commercial operations Of civilized
and extensive communities, In many respects,
Il has vast superiority over metallic currency,
especially in great and extended transactions, By
as greaier cheapnessslghness and the facility Of
discriminating the amount. The great desidera-
ltm Is, TO ascertain what description Of paper has
the requisite qualities Of being free from luciua.
lion IN value. and Liability TO abuse, in the greaesi
perfection. have shown, trust. that the hank
notes DO not possess these requisites in Iegree
sufficiently high for this purpose. go farther; il
appeaEs % me, after hestowing the bcsss reflection
lcangive the subject, that no convsrtible paper,
that IS not paper whose credi. res.s upon prom.
isc 70 Peg. IS suitable for currency. Il IS the
form ofcfedit proper 10 private transactions be-
tween man and man, by; not for a standard OF
value, to penoFm exchanges generally, which
constitute the appropriate functions OF money or
currency The measures Of safety in tho two
cases ase wholly different. Apromnssosy note,
OF conytiliblc paper, is considered safe SO long
Snsihc drtxer has ample means TO meet his en-
gagomons; and in passing from hand to hand,
regard Is bad only 10 this ability and willingness
topsIy. Very different is the case in currency.
lhe aggregate value Of he currency necessarily
bears small proportion TO the aggregate value oil
property. This proportion ID not well ascertain
ed, Is probably subject 10 considerable variation
in different countries and ut different periods in
the same country. j, may bezassumed coniec-
turally, IN order 10 Illustrate what shy, at one to
thirty.
Assuming this proportiontc be correct, which
probably ~ not very far from the truth, il follows
that, in sound condition Of the country whore
the currency Is metallic, The aggregate value OF
the coin Is not more Than ono in thirty Of the ag-
gragatc value of the property ltaplso follows
that an Increase in the amount Of the currency,
ny the addition Of paper circulation Of no intrin-
sc'yaluc, but increases the nominal value of the
aggregate Propcrtys Of tho country in the same
proportion that the increase bears to the whole
anoun, ofcurrcncy; so that il the currency be
doubled. -
Hence i lssihat when the papercufFency Of a
country Y N theashape Of pronssory notes, there
IS q constant tendency 10 excess, We look foi
their safety 70 tho ability Of the drawer, and SO
long bis means are ample to meet his engage.
nients Here IS no distrust, without rejecting that
considered as currency, il cannot safely exceed
oncain thirty in value compared 10 property, and
the'delnsionis further increased BY tho constant
increase in value Of property with The increase Of
tho notcsin circulation, SO as to maintain the same
relative proportion.
II follows ihata Government may safely con-
trac. debt many times thesamouni Of its aggr'-
gate ejaculation; but f were to attempt to put
lls promissory notes IN circulation inamouut equal
70 its debts, an explosion in the currency would
be inevitable. And hence, with other causes,
the constant tend0ncylo an excessive issue Of
bank notes nprospcrous times, when so large a
portion ofthe community are anxious to obtain
accommodationHna shoare disappointed whom
negotiable pafef Il refused BY the banks, not re-
hectng that il would not be safe 10 discount be-
yond the limits have assigned for safe circu.
lation, however good the paper offered.
On what, then, ought proper currencyto restl
would say on demand and supply simply, which
regulates the value of every thing clse---the con-
slant demand the Government has on the cosnmti.
nifty FORTS necessary supplies. Amcdum rest
ing on this demand, which simply obllgaies the
Government 10 receive III all Of its dues 10 the
exclusion Of every thing else except gold and sill.
YER and which shall be optional with those who
have demands on Government to receive or not
would, i seems to me, DO as stable IN Its value rs
those metals themselves, and be as little liaby "a
abuse ~ the power Of coming. Ii would con.
tain within itselfa seli.regulatng power. ltcoud
only be issued TO those who had claims on the
Governments and 10 those only with their consent
and ofconrso only al OF above par with gold and
silver which would be its habltual state; for, as
far as the Government was concerned, il would
BIO equal IN eyeryrespect to gold and silver, and
superior in many, particularly in regulating the
distant exchanges ofthe country. Should, how.
ever, dcfnandfpr gold and silver from abroad
or other accidental causes, depress il temporarily
as compared with the precioas metals, il would
then return to the Treasury, and as il could moi
be paid out during such adepresson, It's gradual
dlminu,on in the market would soon restore il 10
an equality, when i would again flow out into
the general circulation. Thus there would be a
constant alternate flux and retlux into and from
fhn TraaSnrv haf,raao anl .ka