Richmond palladium. [volume] (Richmond, Wayne County, Ind.) 1831-1837, 1837-05-20
From N. Y. Evenins Sar.
THE CURRENCY, TtIF STANDARD Of VALUE,
ANU THE CIRCUL ATlNG MEDIUM.

From the N. Y. Even,s Sar
THE CURRENCY, TtIt. STANDARD Of VALUE,
AND THE CIRCULATING MEDIUM.
There seems to be an opinion prevailing. that
a sound state of things demand that there
should be gold and silver in the country e.
quail to all the other wealth Of the country
put together. Thus the enquiry. how can a
bank be solvent that issues $500, 900 Of pa
per when it has but 100000 Of the prec,o0s
metals in its vaults--tor the very same rea-
son that an individual with property to the
vault Of $500, 900 is solvent without having
or being possessed Of single gold or silver
coin. II the bank had but 5 1000 in spe-
Gle, and was to issue 100000, but without
equivalent for them, he would unquestionably
be insOlvent.But it must be remembered that
when the bank issues her paper,t is for good
and substantial paper or other security in re-
turn, and that when she has issued her $500,
600 in bills, she may not only have all origin
al capital IN the precious metals, but $780,
600 IN sound security bonds.
The bank bills represent not only the gold
and silver Of the country, but may represent
all the wealth Of the country in addition, &C.
IcOrding to their value in gold and silver; and
the superstition that it IS requisite to have
gold and silver in the country equal in value
to all the other property, IS as idle rs to sup
pose it necessary to have an amount Of iron
N the country equal to all the other property
or flour or cotton or any other article.
II the quality Of the precious metals is in
creased in the country, then greater amount
Of them will be required to purchase any 9TH
er article Of necessity and convenience; and
we should say, prices have gone up, an over
abundance vi the precious metals render them
cheap, or in other words, it will take more Of
them to buy barrel Of flour or a tun Of coal
or a bale Of Otton, for the very same reason
that when there is an over stock OF any Of
these articles, q greater quantity Of them will
! be given for dollar or for an eagle-Thus
the high prices of most articles in the com
munity may. in q great degree. be attributed
to the great quantity Of the precious me tails
in the country, and the high price Of money
to the difficulty Of making exchanges-for II
must be observed, that these high rates of in.
terest are paid, not for gold and silver, but
for the purposes of etfecting exchanges Of
property.
! Previous to the arrangement Of the ex
changes Of the country, the mechanic or the
manufacturer, who had his health and th<
implements his profession, could, without
dollar in money convert the raw material t.
, a shape that rendered it fit for use, and IL
|, tins shape bring it to market to the value o
one hundred or thousand dollars, effect
, sale If not for cash for note Of sone individ
. ual Of wealth and standing-With a note a
so or 80 days, for one hundred or 1000 dol
lars, he could not however satisfy those VIII,
, had worked with him to produce the article
from which it was realized, but through tn
: Bank he was accommodated with bank bill
that would enable him to satisfy his differen
: wo' krnen, his note Of one hundred dollars be
ing thus divided into sums of so, 10, 5, or I
and every workman satisfied, without on
= silver or gold coin having been used, and still
). every man paid his just compensation, accos
ding to the value OF his labour, in gold an
n silver. Civilization and refinement hav
y brought about q new order Of things, b,
d which every article intended for exchange
. IS valued by the standard fixed by law, whic
: with US is gold and silver, but the exchange
= effected by means Of paper. Thus one MAJ
+ has two pair Of shoes worth in gold and silve
five dollars, and another hat worth the lik
sum-by exchanging The one for the othe
both are accommodated, and this too with
. out the Intervention Of metal.
+ The beauty and harmony Of civilized SOC
a ETY. consist Of having just IS many Of III
: beauties, eIegancies and conveniencies as ar
, requisite, and no more. Thus we require
: certain amount of fuel-if we fall short Of tn
y required quantity we are inconven,enced-
n We run over we are in like manner more Q