Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1838-05-15
"THn PRICE OF LIBERTY is ErBaSAL Ven
(ML) TUESDAY, MAY Is, 1888.

ducts of Kentucky are sold to the South:
her purchase Of commodities are made
at the north. There can be, therefore,
very little of direct exchange between her
and the places of purchase and sale. The
trade goes round IN a circle. Therefore,
while the Bank of the United States exis.
ted, payments were made to vast amount
m the North and East by citizens of Ken.
lucky, and Of the States similarly situated.
not in bills of exchange, but In notes of
the Bank. .a {3
These considerations augment the de.
mand for currency. More than all, the
country is new, sir; almost the. entire
amount of our capital active; and the
whole amount of property, in the agere-
gate, rapidly increasing. In the last three
years thirty-seven millions of acres of
land have been separated from the wilder
ness, purchased, paid for, & become private
individual ownership, to transfer and sale,
and all other dispositions to which other
real estate Is subject. 1t has thus become
property, to be bought and sold for money!;
whereas, while in the hands Of Govern,
ment, it called for no expenditure, formed
the basis OF no transactions, and created
no demand for currency. Within that
short period our people have bought from
Government territory as large as the
whole of England and Wales, and taken
together, far more fertile by nature. This
seems incredible, yet the returns shows it.
Suppose all this to have been bought at
the minimum price Of dollar and quar-
ter per acre; and suppose the value to be
increased in the common ratio in which
we know the value Of land is increased,
by such purchase, and by the preliminary
steps and beginnings of cultivation; an
immense augmentation, it will readily be
perceived, is made even in so short a
time Of the aggregate property, in NOM
lnal price, and to great estate in real va
lue also.
On the whole, sir, / confess know no
standard by which | can decide that our
circulation is at present in excess. | do
not believe it is so. Nor was there, as 1
think, any depreciation in the value of
money up to the moment of suspension
Of specie payments by the banks, COM
pairing our currency, with the currency. of
other nations. An American paper dol
lar would buy silver dollar in England,
deducting only the charge of transporting
a dollar across the ocean, because it COM
manded silver dollar here. There may
be excess, however, admit, where there
is no depreciation in the sense of which
now use the term.
1t is hardly necessary to dwell, Mr..
President, on the evils of suddenly de-
preciated circulation. 1t arrests business,
puts an end to it, and overwhelms
all debtors, by depression and down fan of
prices. And even if we reduce circuIa-
tion-not suddenly, but still reduce it fur
Their than is necessary to keep it within
just and reasonable limits-we produce
many mischiefs; we augment the necessi-
ty of foreign loans; we contract business,
discharge enterprise slacken the activity
of capital, and restrain the commercial
spirit Of the country. 1t is very import
ant to be remembered, sir, that in our in.
tcrcourse with other nations, we are act
ing on principle Of equality; that is to
say, we do not protect our own shipping
interest by peculiar privileges; we use a
clear field. and seek no favor. Yet the
materials for ship building are high with
US, and the wages of ship builders and
seamen are high also. We have TO con-
tend against these unfayorable circumstan-
ces; and if, in addition to these we are to
suffer further by unnecessary restraints
on currency, and by a cramped credit who
can tell what may be the effect? Money
is abundant in England, very abundant;
the rate of interest, therefore is low, and
capital will be seeking its investment where
ever it can hope to find it. If we de-
range our own currency, compulsively
ctlrtal circulation, and break up credit,
how are the commerce. and navigation OF
the United States to maintain themselves
against foreign competition.
Before leaving, altogether, this subject
of an excessive circulation, Mr.. President,
| viii say a few words upon topic, which,
if time would permit, I-should be glad to
consider at more length: mean, sir, the
Ipfoper guards and securities for a paper
circulation. have occasionally address
ed the Senate on this subject before, espe-
cially in the debate on the specie circular
in December, 1886, but | wish to recur to
it again, because | hold it to be of the ut.
most importance to prove, if it can be
proved to the satisfaction Of the country
that a convertible paper currency may be
so guarded as to be secure against pToba
bic dangers. say, sir, convertible pa
per currency; forI lay it down as unques
tionable truth, that no paper can be made
equal, and kept equal to gold and esilver
but such as is convertible into gold and sill
yer on demand. But Ihave gone farther
and still 90 farther than this: and | con
tend that even conVertibility, though itsel
indispensable, IS not a certain and unfall
ing ground Of reclaimed. There IS ia6ilit
to excessive issues of paper, even while pa
Iper is convertible at win. OF this, Their
can be no doubt. Where, then, shall
/ regulator be found What principle 3
prevention may 1keFely onl oaa asfsl
7sslIow, Think, SIR Il IS too comfAonwit
] banks, II Judging of thaiiE condition, tossG
! lsof an their liabilities against al their n
sources, They look tp the quantity
!, specie IN then vaults, and to the notes ap
bills becoming payable, as means 81 assest
! and, with these they expect to be abe
1 meet their returning notes, and to aaswt
the Claims Of deposits. So far Is t
& bank Is to Be- REGARDED as d mere bar
1 &c discount, all this IS very wen. b