The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-14

BY the above table, it will be that, when add
the estimated amount Of specie in 1884 and 1885,
spectively we find augmentation Of the entire
rency of nearly 81 per cent, aid augmentation of
paper circulation Of nearly g6 per Our entire
currency, then, during the years 1894, 1885, and
1886" has increased nearly "a per cent, and paper
circulation, during the period nearly 90 per cent
whilst the entire currency OF England has increased
ahont onethrd OF one per cent and her paper crcua-
ton, during that period having fucuated trlAe
at any time, and sometimes contracted is found
the end of the period mentioned to have increased only
about l-2 per cent. He had given himself the
trouble TO be very minute in the calculations above and
had used round numbers but Of authentic mate
rails could vary the result than mere fraction
and strict accuracy would most likely make the conpa-
rson uniavorable to the statement Of an equal
expansion in the two countries during the period re-
fcrred to
Instead Of equality, then, had, for England, an
increase the entire estimated currency of the nation
Of about one-thrd Of one per cent :.
In the United States, increase of about "a per
cent.
In England an increase OF paper currency of about
l-2 per cent '....M
In the United States, an increase Of about "a per
cent. s ...f .....
So much, (said Mr. King,) for an equal expansion of
the currency IN both countries AS to the " other Gre
dts, they not tangible, but every Of any OBJ
seryaon must know that on this item we should suffer
in the comparison than the other Credits were
certainly multiplied in England, in Districts by the
increase OF the number Of ointslock banks by which
connections formed and the member OF checks
drafts, &c increased But the increase Of Joint stock
banks, {deductng the private banks melted into them)
bears comparison to the increase Of banks in this
country as we find from official statements The conse-
quent increase Of credits, though they be ascer-
tanned with precision in either country may be compared
by he result. The increase 81 credit in England has
been based on the national cash capital as appears
By The unchanged quantity, as erhibitcd BIZ tie tables
red IL Ia
proren by ais hdr'ng produced general speculative
rise Of prices. To speak of redundancy OF currency
OR credit, ,chcn speculative rise commodities has
taken place, is perfect nonsense Where facts have
been stated and not proved, have taken ISSUE and dis
proved them by facts fully established. Where facts
are conjectured will presently introduce evidence to
prove the conectures groundess By proving absence
Of consequences npar'ably connected nth them. The
only way in which redundancy OF currency or credit
depreciaes foreign exchange is by producing specu-
lave rise in prices and consequent overtrading Eng
land has not ovcrraded the contrary she has ex-
ported more than she imported and left us enormously
in her debt. But whilst she had large balance against
us, erchange against her, and making continual
drain upon her bullion This strange financial and
commercial anomaly, embarrassing to the English,
will hereafter explain, after having completed the proof
on the first proposition. -.
He then read the evidence of Mr. Quincy, man of
much intelligence and authority on these subjects as
be called before the stock bank committee lately
appointed by Parliament. This witness shows remarka-
bic intelligence on the subject Of finance, but here
strangely embarrassed for Of facts Of which no
seems entirely ignorant Here Mr.. X. read the evil
dencc OF Mr.. Quincy as follows
Eridenee Of Mr. Gurney before The Committee of JOINT
Stock Banks.
GO 1892. Has there been any change Of late in the
state oil the London money market J"
There has been gradual increase in the raiuc Of
money ..'
q 1884 To what do you attribute that altered state
OF the money market in London
One cause has been the expectation Of bullion to for
egn countries but ! arprchend the CAUSE is,
the circulating medium existing in Europe and he NOR
edntc ports Of Amerira )is not increased in proper
ton TO the transactions aud that the same quantity of
circulating medium, or perhaps, even reduced guam
nty, has to perform much larger amount OF
tons.
Q 1895 Would not the effect oft, If owing to that
to which you have alluded be rather indicated in fall
IN the money prices Of commodities
Ihats the Tendency eft; but there are conflicting
causes that have marvelously maintained not ncreas
ed) the value of commodities generally.
e. MI Gurney is bill broker, who procures the dis
count or redscount Of country bills in the London mar
Ret lie was, therefore, well acquainted with the facts
and the subject on which he speaks, far England
was concerned and he tells that the value Of mo-
ney had gradually increased" And in another part Of
his evidence he tells that the increase about 20 per
cent He knew this a fact, and in England he was
cndbled, IN some measure, to account for it, for he
knew that currency had not increased whilst from the
progressive increase Of national wealth, commodities
and Transactions had He could therefore, account for
the depreciation of exchange and export OF gold to
America other snppostion than that the curren-
cy OF the commercial parts Of America" even
more contracted and dspioportioncd 10 commodities
than in England. But why was the appreciation of
money indicated by fall in the money prices OF COM
modtiesl" Though this the natural tendency"