The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-07-26


full much as they d, thair people, and eonrsrso
t is obviously m The dlscnssion OF every new
financial proect here, 10 consider what lie effects are
likely TO DO on the currency aud tho markets OF
England.
Ii evident from the bare stating OF these facts that
every dranght which make upon tho common STOCK
OF the precious metals greater or less degroe
the basis of the convertible currency oil fneiand ana
reduces in corresponding degree, the prices OF the
commodities carried to her markets iof sale. Every
expectation Of specie from hat country 10 This. with
view To eoualze exchanges, has the effect Now,
4 ask, how we Of The planting States, whose whole
capital is laid producing those very commodities,
be supposed TO hAyea special interest," or indeed,
any interest at ALL ia policy Of which, eGeris parbns
this is the inevitable result do not speak Of the
amount OF the mischief that may ee done us The adj
sonai quantity Of specie necessary TO carry the new
system may be, some slege, only or 10000. 900
dollars, and that taken from the whole stock
listing in the world BE il for the present this
will create demand FOR or 900 900 and above
what HIS been hitherto required for circulation. and
up that amount il will operate proporonaly upon the
basis Of English cnrrency-~bich, as wc have seen.
feels ever, thing of the kind that happens ~ any part OF
the commercial world with extreme scnsitiveness-and
consequently dminshes somewhat the prices Of sta
pie commodities II is supcrhuous 10 add that conn-
ieractng causes. e. an extraordinary demand for
cotton twist and yarns abroad &c. might raise prices
more than this curtslnent would dcpress thcm and so
disguise the effect ofthe latter from superficial ohserv
ers Still would not he the less real for heing
perceived Suppose the fall of price more than half
penny pound,he loss to the south on something like
or 600 600 900 pounds OF cotton. would prr-
cevc, be only So or 100000 And should your pub
lie deposes swell up what the baarres in tho trra-
sury the first day Of the years 1886 add S37
or to S26 749 500 in the former. and s45 068 5e3 in
the latter year--he tax should he compelled TO nay
the way of fall Of prices might not he far short
Of what il last ycar-viz something like R20 or
80 600 000o say nothing Of oil the other emharrnss
ments Of the country which would spring ont Of such
terrible arrangement OF the currency Rafhrr ccstiy
improvement this.
There is another point OF view in which this inscpa-
rabe connexon between the currency aud commerce OF
England, with The prices Of our southern products de-
be considered here IL evidently renders us.
far as those prices concerned independent OF all
fluctuations of the confined 10 this side Of the
Atlantic, those occasioned by irregular paper issues
necessarily are. What our cotton, RICE tobacco, &c.
shall fetch, depends as we have seen, upon the State
of the English market We are paid the full value OF
those commodities London and Liverpool. We are
paid in currency regulated with view TO the
changes of the whole world, and almost always att
premium in reference TO the money Of countries.
buying aud selling principally iii the precious metals
The only effect Of any deviation from the specie stard
ard m the United States, wonld he to raise dcpress
the nominal prices Of our staple products herche real
being always determined Inv the actual value Of those
products in reference TO all other commodities in the
markets Of Europe Thus, suppose money deprc-
cated by excessive issues 10 per cent, while the real
exchange is at par sell housend bags Of cotton
Charleston English merchant, who paws for them
bill upon hi house in Liverpool. This bill NAV lie
disposed Of in two WAYS; either send il 10 England
and invest The proceeds il British manufactures, where
plain that neither gain sc hv the transfer Of
IT, or, cause il to be discounted and mako nv pur-
chases here The latter Is tho usual course, and may
need word Of explanation Our paper being by the
halo I Il, A.,
counting my English bill $i0 for 800 sterling money.
When come to make my purchases OF English pro-
ducts, the operation is precisely reversed; pay Sl0
for every 500 and things are, in effect. exactly they
were IN the former case IN short, this is a familiar
example OF what is well known the nominal ex-
change and acknowledgement from the real Exchange
or balance OF payments between two countries
These are elementary principles YOU win say; Won
are like true American beginning at the beginning.
and reading lecture from the hornbook of political
economists Just so, sir; and yet, il you have been at
the pains Of looking into the yoIunnous speeches and
essays published this subject. you that in
both Houses OF Congress- well as elsewhere. Of
leading influence sud ability have advanced doctrines
utterly al variance with these unquestionaie truths and
(whal you cannot know ard would scarcely gucss3
have advanced them with decided effect Thus, in
smother part OF this building, it repeated over and
again, with the sanction Of high authority, that
through the operations Of the banking system, our
southern people compelled to sell specie prices.
and 10 buy at paper prices or, in other words to sell
cheap and buy dear in the verv same paper money!
for they that nothing Yes, sir the holders Of
the most important, commodity Of modern commerce, a
commodity indispensable the material Of the most
fourishing manufactures Of the richest nation in the
world and just Us indispensable medium OF ex-
change between that nation and most flourish,
ing Staes-the holders Of this privileged and precious
commodity, are grarey represented in an assembly Of
experienced statesmen, as being completely at the
mercy Of their customers, that those excessive
issues of paper money that fail to raise all prices
whatsoever, have effect all upon what they have
to sell, and thus occasion them dead loss the ex-
tent Of the depreciation every article which they
compelled to buy! Strange as this misconception will
appear You, this time Of day, YOU that it
has had much effect at least, any other argument
advanced in this discussion, upon gentlemen at all
wanting in general intelligence and information ouly
familiar might be wished with the principles
Of currency You know that the thing is impossible
that but idiot could be brought part with his
cotton terms so dsadrantageous that as the planter,
who is generally hope, pretty well informed to say
the least, knows what the price Of his commodity in
sterling money NJ Liverpool, and knows, by the
change, the difference between sterling money his
deprecated paper, he will either insist having
the former, full equivalent in The latter Take
familiar illustration that will bring the truth home 10 the
meanest capacity The true par of exchange between
England and the United States is not 100, but 1909 .,
owing to different valuations Of the precious metals at
the respective mn,s Of the two counties. Yet who
dreamed that this nominal difference had any effect
whatever upon the transactions Of commerce--excopt
the addition Of few figures TO the accounts in which
balances are stated 2
So far, then, think am quito safe in saying that
whatever has bccn made out by those who would
have believe that the South is particularly interested
in the projected change Just the reverse We are
less concerned in than any other part OF the country
Undoubtedly, is desirable for us, for all well regu
lated States, that currency shond he stable
l,lp hltth at ttru lAFly tn
effect that result by requiring payment Of the public
dues that is from .3 A OF the whole Of dutia