The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-06-30

the Government has a neyer.failing source In lis
taxing power on the people Ii then the Government
Is determined TO resort 70 gold and silver medium
will restore an exclusive metallic medium 10 the
country and that involves, al once, the question,
whether II Is practicable or desirable.
The practicabiliy Of introducing an exclusive
metallic currency into The country, depends upon
the amount necessary 10 meet the demands OF indus
try and commerce, and the means of supplying that
demand. From the best estimate which have been
able 10 make, circulating medium OF less Than nom
hundred and fifty TO two hundred millions Of dol
lars will not be adequate We have now about
S70000O00 including all the specie In the vaults Of
the banks. How is this deficiency TO be supplied,
and keep pace with the annual increase which our
increasing trade and commerce demands. From
the mint lis utmost production in any one year has
not equalled S4.00000O which would scarcely keep
pace with The annual increased demand. From COM
mercel That depends upon the annual amount OF
our domestic exports over our foreign imports,
which, Judging from former operations, would me-
yer be adequate. Generally The imports exceed the
exports. have various estimates Of the amount
OF specie in the world in which our portion Is va
riously estimated at from $50 100000 TO $1,000 600.
We have then now our due proportion, and we have
no reason 10 conclude that other nations will be so
unwise as 10 surrender their own specie currencyto
our demands. The influx an defiux ofspecie is re-
gulaied BY the laws oftradelaws as unalterable as
those Of the Modes and Persians, and as regular as
rests Of trade would prompt US not 10 seek an ex-
change Of our productions for the precious metals
beyond inevitable necessity because il is calculated
10 cripple commerce and increase taxation. Those
articles OF comfort and convenience necessary 10 u.s.
are more valuable than specie and it is from such
our revenues are derived. If by exchange we can
procure those articles Of comfort and convenience
which il is the of specie TO purchase, see no
necessity ofinteryening specie into the transaction.
In support of the Interchangeable character of the
laws Of trade, and their influence upon the influx
and efiux of specie here quote passage from the
speech Of that distinguished statesman, George Can
ming, delivered in the Parliament of Greal Britain,
on the Sth Of May 1871 on The report of the bullion
committee. He said:
"The expectation of CON- or OF bullion melted from
COIN when the exchanges are unfayorable beyond
certain limit, is looked upon much in the natural
Of things, that writer's who have treated of
coinage and trade, have laid il down consequence
not to be disputed and not necessary be proved
According to the concurrent opinions Of such writers,
the efflux OF bullion from one country to another, is
governed by causes nearly steady and uniform in
their operation those which govern the seasons or
the tides As well might you pretend TO FIX limit on
the shore and bid the flowing advance farther
as attempt by the nterposton Of statute to stop the
tide Of the precious metals, whatever direction
made to flow by the influence Of commercial necessity
and commercial demand"
In addition to this it is known that all legislation
to prevent the expectation of specie however strong
The penal sanctions, has utterly failed, as il always
will do.
The foregoing facts are conclusive, that sufi-
cient metallic medium cannot be relied upon, and
that some other must be brought TO its aid or our
trade, commerce and general business will be great
ly depressed Indeed, from the fact, thar the spirit
of commerce is extending, and the nations seeking
through its channels an increase of those comforts
and conveniences which are to be had through an
interchange OF commodities and productions a large
increase Of the circulating medium will be neces-
sary. ! ask, them, why il is that the Government
should ask to separate itself from medium so in
dspensible to the business of the country and the
people? Why Il Is, thatthe Government should not
rather seek to give that confidence and that credit 10
this medium, which its receipt of il in discharge of
IFS revenues is SO well calculated 10 produce, and
thereby render il extensive and more effective
in its operations, and more conducive 10 the general
INTEREST," This is duty which the Government
owes 10 the people, and which the people will not
tail TO exact at its hands. But sir if praci
cable as evidently il is not, would an exclusive me-
tallc currency be desirable In country Of such
extensive domestic trade and such immense emigra-
ion as the United States, the convenience and eco
nomy of a sound convertible paper medium, is too
manifest to require arguments every man OF obser-
walton has seen and knows the fact-the experience
Of traders and emigrants proves beyond all possible
aone sns ana Even II pfaeaioabe from its
great Inconvenience and extravaganza as general
circulating medium, mol desirable; duty in the per-
Torrance Of the parental execution of the powers Of
this Government would seem to require rather the
publication and consolidation of the credit Of our
paper medium, than lis discredit and destruction
Destroy our bank convertible medium and the
vacuum will inevitably be filled by an inconvertible
paper medium, which will share the fate, and in
volve all the loss and destruction which its pedeces-
sors have uniformly done.
TO be eontianed.l