The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-05

cVuhehance winch the edIiof OF the S0AtheTH F9
trtot has given To this strange misconcepton. Tia
editor, you know, is inconsiderable adept in pc
liical economy, although perhaps like other cleve
people, he sometimes thinks he IS detecting the en-
rors OF others when he is only exposing his own
But all his other errors pardonable in compare
son ofihe extraordinary notion which he PROFOUND
ed In enc OF his recent numbers that Tor the Go
yernmen 10 demand It's dues in gold and silver, wa,
the sovereigna remedy on earth for disordered
currency, in the absence Of a general regulator
Why, how in the name Of common sense, could MIR
CmDozo imagine such thing1 Mr. GALLArs
as you will perceive by referring 10 one OF the notes
appended to my speech, speaking OF this very plan
OF collecting the revenue objects TO Il as thing adj
mitted on all hands, that Il had no tendency what
ever TO restrain the issues Of the banksi How
should II have2 Look at the facts before our eyes
Specie Is completely driven out OF ciTcuation--ii
has, according 10 n law invariabe and involable
as that OF grayiaiion, ceased to be currency, and
become mere merchandise. Il is bought and sold al
price by those who want it--nobody expects 70
receive, nobody thinks Of demanding IT, In the usual
transactions OF life--yet the Government Is now
and has been for some months past, receiving its
dues in gold and silver, al least some part Of them
We saw this very strikingly, exemplihed al
Washington. Many hundred thousand dollars,
al least were disbursed to the members the officers
and employees of Congress, during the late session
What became Of IL Did 1t enter into the circulation
single halt eagle half dollar take It's place by the
side Of "the bank rags and shin plasterss that filled
all the channels of circulation Not one, strand
what is more, they would not have done So If Con
gress had expressly enacted they should and put the
whole militery force Of the country at the disposal Of
Mr. WOODBURY. and Mr.. CAMDRELENG, to see the law
enforced Not only will You do absolutely nothing
ito widen the metallic basis" by simply receiving
and paying away gold and silver in your govern
ment transactions, but you could do nothing ac-
complish your object, If you were to enact all the
bloody laws of 'the Republic, one and ndivsible, +"
to help your theory, t. triumph over the common
sense and personal interests OF mankind. The gull
otine ITSELF worked by stronger hands and less
pulous heads, than We have yet among our "rege-
nerators failed utterly TO procure circulation for
aSsignats at par.
The Editor Of the Patriot surely need not be in
formed Of the existence Of that law Of currency TO
which have referred He knows that SO as it
is perceived that from any cause whatever gold and
silver have ceased be as valuable in one country
they are in others, they to circulate money
there, and 60 abroad like any other merchandise in
quest Of better market This may be occasioned by
very intense foreign demand, for instance
of Thus in the campaign Of Russia against Tur-
kew IN 1928, million and half pounds sterling was
drawn out Of the Bank Of England and sent to the
Continent for military purposes, although the Exchang-
were greatly in favor Of England at that moment,
So, during the Restriction, Exchanges on Amsterdam,
Hamburger &C., rosesome times high 80 per cent.
against England, which owing, NJ dc RoTHcHILD
remarkss not to excess Of circulation, but to foreign
expenditures and SUBSIDIES. So, when the Bank Of
England preparing to resume specie payments, gold
in value, in consequence Of this demand,
much ten per cent. according to Mr.. TooKEs est-
mate, which appears to me very probable onet Ex-
changes have been for some months past and still are
against u.s. (though they rapidly the decne)
owing, as believe, not to redundant currency here,
but intense demand for the precious metals to pay
foreign debt. But precisely the same effect would
be produced by redundant currency even that
demand to entirely and the real Exchange or
balance Of payments to be turned in our favor Gold
and silver will not circulate with paper which is deprec
ated below their yaue-tha is to say, body who has
Sovereign Eagle will exchange for goods in a
country where prices higher, owing to excessive
issues of paper, &c, than they abroad. He will
send them where they may fetch what they are worth
That is sefevident. The thing happens in
OF panic, from INVASION revolution or the like
causes: All the coin in circulation, however greet
its amount instantly disappears to be boarded against
accidents and may continue boarded for a series OF
years. Thus Of the twenty thirty millions pounds,
which circulated before the Restriction Act of 1897
very considerable portion lay buried in holes and corners,
until it called out Of them by the recoinage Of 1916
&c. il silver and gold be both legal tender, and Of
them be underyalued, will insllby be driven out Of
circulation, and probably (hough that does not
sarly follow out Of the country In all the ransac
tons Of lfe prices will be designated and debts paid in
that coin which is not at a premium.
The principle is that of two currences-the less
valuable, will dspace the other The lean kine will,
as DAoSEssEAu expresses it. every where swallow up
the fat
Now sir, this being the nAexibTe, universal law Of
currency how possibly be imagined by any one so
thoroughly verscd in such matters the editor of the
Patriot that the bare fact Of the government collecting
its in gold and silver while the banks continue
to fill all the channels Of circulation with their paper
have any effect whatever (any favorable effect, nean
checking their issues and either restoring specie
payments or maintaining them after they shall have
been restored The government by the suppostion,
abandons those institutions to themselves-put them all
unfortunately the ban Of the Empre-gves itself
no concern about their conduct-abures all connection
with the monetary interests Of society except by
and then coming few dollars and eagles, and requiring
the merchant pay his duties in them: how ask are
these pieces Of gold and silver comparatively few as
they will be, at all evcnts-but few. many-how are
they be made to circulate money, if either from
foreign demand Gas at presently distrust OF paper,
(which this system will bege) excessive issues Of
the banks themselves (Which it does nothing to pre-
vent,) they continue at premium! How is the me-
talc basis Of the circulation, to be wdened by them
Will they ever go into circulation at ALL while exchanges
are against U.S. while bank paper is depreciated from
whatever causei Why do they not now But sup
poses exchanges TO become favorable and the country
TO be flooded with gold and silver, would the proposed
system have the least tendency keep them in crcula
ton should the banks at any time hereafter issue so
much paper to raise prices again beyond those OF
other countries, commercial, and still more, poll
teal panic occurl In word would it not depend abb
solutely upon the banks so left to hemselves-upon
their being moderate the reverse~hether the
gold and silver thus brought into the country should
circulate at all money, or be sold at home or abroad
as bullion or merchandise To talk Of its creating a
new demand for the precious metals, and so attracting
them to our (oherwse) inbospabe shores, is in the
last degree absurd There is always demand enough
for them, If their place be NOT supplied by something
cheaper less paiudbe; but if their place be SO pre-
occupied or invaded YOU may pour all Pactous into the
country and il will flow out Of it without leaving here
grain Of gold, except specimens, perhaps in
the cabinets Of the curious, Experience speaks but
language upon this subject, and were not for the
paradoxes put forth, and gravey put forth by able
men, should reckon it suporfuous to appeal to IT.
will content myself with citing two instances The first
take from the history Of English currency During its