The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1837-06-07
From the Bos'. Aduocate.
CURRENCY.

z currency, circulating in 1882, when h'
D wrote, at something less than Sl2O, ,OOO, 900
y of which $50, 900 consisted of banI
notes, and the other $40 ,00O, 900 Of specie
The recent expansion of the paper portion
of the currency, is supposed, ny Mr.. Wood
q bury, to have added fifty per cent, to Its a
= mount, making it 100 instead of $50 ,OOO,-
900. Add the $50, 200, 600 for the specie
. now, or recently in the country, and the
u total amount of the mixed currency even
e in its recent expanded and diseased state
s was only two hundred millions.
As the recent expansion Of the paper por-
ton of the currency has ended in the failure
of all the Banks, it requires no argument
to prove that it was unnatural and excess
i've. Assuming the state Of the currency
when Mr.. Gallatin wrote to have been suf-
ficienty healthy, it would follow that 8 100,
O00, 900 is the amount of mixed currency,
/, composed Of paper, and the precious me-
tails, and the usual proportions, which is
required to carry on the business of the
country.
But it would be an error to suppose that
J if the currency were exclusively metallic,
the amount required, would be the same.
The effect of an augmentation of the n
mount of the circulating medium, whether
by the addition Of paper, of the precious
metals, or of coin of a baser kind, is merely
to raise the nominal prices Of articles, nd
to make it necessary to employ nominally
larger amount OF currency. Thus lfthe IL
mount of the circulating medium be in any
way doubled, other things, remaining the
same as before, nominal prices will also be
doubled, and twice the amount of currency
will be required in order to do an equal
amount of business.
These principles are admitted by all np-
plying them to the case before US, it will
appear that, supposng the currency, at the
time when Mr.. GalIatn wrote, to have con-
sisted of eighty millions of dollars in bank
notes, and fifty in specie, the effect of these
eighty millions of bank notes was merely to
triple the nominal prices of all articles, and
to make 1t necessary, t0 employ three dol
lars to do the same business, which was
done by one before or, in general, to tri-
pie the nominal amount of the circulating
medium, its real value remaining exactly
what it was. We find, accordingly, that a
rise of prices at least in this proportion, has
gradually taken place in this country, in
connection with the gradual introduction of
paper money. Houses which rented for
500 fifty years ago, now rent for ut least
$500. The products of labor, in all lis
forms, have risen in equal proportions, cx-
ceptng where the improvement OF methods
and machines enables the producer to bring
his article to market mt less cost, and con-
, sequently to offer it a lower proportional
9 price.
. In making these remarks it is not my in.
, tenti0n to express an opinion in favor Of an
., exclusive metallic currency. No person,
0 us far ms am informed has entertained or
d expressed any such opinion. 1t is one of
$ the silly articles of the wings to attribute
i this notion TO Gen. Jackson, Mr.. Benton
a and others, that they may afterwards have
i the pleasure of refuting it, With what sue
y cess have already shown. Neither Mr..
II Benton, Gen. Jackson, nor any one else
h within my knowled &c, have recommended
# currency composed exclusively of the
d precious metals. Every one knows that a
c sudden depreciation of prices in proportion
;. of three to one, which would be the effect
Il of IT, would create general conyulsion.
d What the friends Of o reform in tho cur
Il rency design, is to enlarge the proportion
a of the precious metals, by substituting them
r for bank notes of the smaller denominations
This is the plan of the Administration, and
: IT is one in which they are sustained by all
e the prominent leaders Of the opposition.
I Mr.. Webster, Mr.. Clay and Mr.. Calhoun
, have expressed themselves as strongly in
, favor of it as Mr.. Rives, Mr.. Benton, and
Gen. Jackson. Mr.. Biddle is decidedly in
favor of it. 1t is approved by all parties,
excepting some of the infatuated bank
maniacs of our commercial cities, who can
, see no salvation except in the use Of little
bills, and who in defending them, make no
'cruple offying daily in the face of their
own political leaders.
The strongest proposition, in the way Of
reform of this kind that have seen made
by Mr.. Benton or any one else, is that Of
gradually substituting the precious metals
for all notes below twenty dollars. In the
excess Of presumption, Mr.. B. aud others
are denounced as agrarans visionsries, des-
truc,lonists, and to sum up all in one word,
Loco Foeos, or as the Atlas elegantly writes
it, Loky Fokys. Now in England there
are no bank notes under E5 or about S25.
In France, none under 500 francs, or SIO0.
| am willing for one, to concur in the en-
travagance, if it be such, Of placing our cur
rency upon the same footing with that of
the greatest commercial nation in the
world.