Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1838-05-26
SPECIE.

ligence hailing every arrival Of the pre-
cious metals with the loudest applause,
and the most sanguine anticipations Of its
enriching and happifying effects. Let us
for moment examine this subject. To
one IMMERSED in the principles Of political
economy, it often seems that the ne Plus
ultra Of oil earthly enjoyment and luxury
consists in boundless profusion OF gold
and silver, to the exclusion Of all other
commodities. Under the influence ofthis
incarnation, they imagine they behold, in
the jingle and glitter Of the precious met
ais whenever they visit US upon voyage
Of enterprise and commerce, the phosphor
Of the golden millennium. To dispense
these visions before they have established
their dominion over the mind, and unchain
the imagination from the letters placed
upon it by such fanciful, sublimated theo-
ries, should be the aim of the political
economist. If truth would shed its sacred
light upon the production, distribution,
and consumption of wealth--if genius
would irradiate the path Of enquiry into
this intricate, but important subject, many
Iof the errors and absurdities that now
cloud and obscure its principles would in
stantly vanish, and political economy as
sumo that commanding character which
really belongs to it. Gold and silver are
like any other commodities produced by
the hand Of industry, regulated by the
same rules, and liable to Auctuate in value
in proportion to the relative demand and
supply. By the general consent ofthe COM
mercial world, we have been invested with
the character of Money. The reasons
why gold and silver were selected in pre-
ference to other commodities, are these:
first, its divisibility into extremely small
portions; secondly, an ounce of gold and
silver, whether in Europe, Asia, or Amer
Ca, is similar to another ounce, it matters
not from what mines they may be extrac-
ed; thirdly, with mixture Of alloy they
-esist great friction, and lose but little by
wear in the course of rapid circulation;
ourthly, the quantity Of these precious
metals is SO small in the world, and their
scarcity would prevent the accumulation
If too ponderous bulk in the ordinary
transactions of life; and filthy, their sus-
;eptibility of receiving a stamp or impress
ion TO denominate their value, or the
quantity Of the precious metal contained in
ZACH piece. Gold and silver are not mon
q, by any inherent or natural right, but,
M consent alone, have been clothed with
hat character, in consequence Of their
the above mentioned qualities
n a superior degree to any other commod-
ty that could be selected. At this time,
gold and silver do not constitute the money
Or circulating medium of every nation
In those countries, the precious metals
have no more pretensions to the character
Of money, than barrel Of flour, an OK, or
a beaver skin, and are brought and sold like
other merchantable commodities. Money
is an intermedial object between the object
in possession and the object desired. Peo-
pie do not want gold and silver, or money,
to eat, drink and wear. The wants Of
each individual in these particulars, limits
the immediate demand for specie, and few
people care any thing about any more spe-
Gle than is necessary 20 meet these de-
mands upon them in the ordinary transac-
tons of life. They, of course, will prefer
thar their capital or wealth should retain
that shape in which it will yield the great
oss profit, Ifhia capital would yield q
greater per centage by being invested in
land and negroes, or any other given chan
mel Of business, than in the shape Of gold
and silver, interest would advise him to
exchange his specie for the more proGtG-
bic commodity, and convert it into that
channel which will result in the greatest
profit. Whether an individual, whose
whole capital consists in solid masses Of
gold and silver, will realize greater pro
fit than one whose capital is in the shape
Of land and negroes, or a manufacturing
establishment, depends upon extrinsic Cir
cumstances, to wit; theFate Of interest,
which, Of course, depends upon the relative
demand and supplyfcr those products. II
the rate Of interest exceeds the per centage