The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-25


State to the Wings, have zoe ever reproached
it with treachery!" We charitably looked
upon it only as the misfortune Of its vast in
fluence! Dives warned his friends against
emigrating" where he sojouned: the Argus
with like benevolence, under similar circum-
stances, has given like warning to the De-
mocratic party May, it profit by the admo-
milton
Extract from the Resources of the British Empire
BIZ John Bristed 1911.
perhaps II might be allowable TO notice mistake
respecting the condition Of France, which IS now
travelling pretty generally over the Union. The
American merchants and captains of vessels on their
return 10 this country from France uniformly report
that much specie but scarcely any paper money is in
circulation through the French Empire; and there
fore" say the class Of politicians whose opinions are
now under consideration, since France has plenty
OF money and in coin and no paper, and since Br-
tain has no money in specie and large quantities OF
paper currency, France is richer than Britain p
c. E. ID. vi.
But this very palpable non-sqnitnr originates in an
extreme unacquaintance with the most obvious
truths and the very fundamental principles of poll
tcal economy. For the substitution of paper money
in the room of specie is of those great improve
ments which necessarily takes place in country
where credit and confidence are established by
steady and equitable administration of justice; pro-
tecting private property, and giving scope TO com
mercial enterprise II substitutes cheap for dear
instrument with which TO carry on the operations Of
trade it leaves large quantity Of specie to be en-
ployed in those branches of foreign commerce where
specie is absolutely necessary; it abridges time and
labor, and thus facilitates and quckens commercial
TRANSACTIONS since check for hundred thousand
dollars may be signed in minute; whereas 1t would
consume whole day TO count out that sum in spe-
Gle. See this subject fully explained in Dr. Smiths
" Wealth of Nations" Book ID, chapter 3D.
Accordingly those nations which are best govern
ed, which have the most internal liberty combined
with the most extensive commercial enterprise, use
the least quantity of specie, and the most paper cur
rency in their transactions. In Britain and in the
United States, the only two countries in the world
where there are any pretensions to regular admi-
nistration of justice the merchants trade on credit
because they have sufficient confidence in each
others integrity and in the laws of their respective
countries for enforcing the payment of just debts.
But among the French, Italians and Russians there
is little or no commercial credit But commercial
II
whence in Britain, where commercial credit stands
higher than any where else specie is less frequently
seen in circulation, and paper money constitutes
nearly the whole medium of exchange in that coun-
try. In the United States, where commerce, before
it was for while destroyed, and at all events per-
manently crippled by the embargo laid on in Decem-
Der 1907, followed hard upon the footsteps Of British
trade in extent and importance; there was proper
tionaIly rather more specie in circulation than in
Britain; but il the trade Of this country shall
revive and be increased beyond its former size, spe
Gle will be more and more withdrawn from the home
market and paper currency will supply its place.
In the British dominions bordering on, the Union,
namely. in Canada, Nova Scotia and New Bruins
wick. before the American embargo had lulled to
sleep the commerce Of the United States, gold and
silver were the common currency, and little or no
paper money was to be seen but now, since the en-
barge has poured vast and continually increasing
food of trade and wealth into those colonies, has
ouadrnpled their annual exports the official docu-
ments now before me testify banks begin to be es-
tabshed and paper money to be substituted for spe-
Gle viii the politicians whose differences are now
in question conclude from these facts that the colo
mics were richer than these United States because
before the embargo they had more specie than paper
money-and also that these colonies, since the en-
barge has so intellectually augmented their trade ca
pital and productive industry, are poorer than they
we're before because they have now less gold and
silver, and more paper money in circulation