Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-07-12
POLITICAL.
From Tie Richmond Wing.
TO HENRY CLAY, EsQ.-LLrThh ' IT.

-, mem On reading IL over, iind mysei a'scont,
,aed from my task for perceive ''"l u". sd,a
noth,up that may not already have oecut'e" u '"I
r,,did and heightened, nothing that u 'aetous an
malignant will not reject, nothing that tne 's'o.'n'
and nrc,udiced can be made to undefstiha .pn
se,ous OF this ! feel disheariened' bu' my Jus
ness sir. i, with you, and my own parry WI, NO
now permit myself TO dspafage the cahuou' u "i'''i
| have ,ppealcd nv yielding 10 a doubt whether you
vii lis,en ia what else have 10 offer. Nor viii
d,s,,nst that nIagnanmity and openncss oil nature,
which so remarkably distinguishes tie Poiiue''
Trends whom would wan fon the des'ruclo'' 10
which so many have eagerly devoted lhe'hse.es'-
Il Is 10 .the small and scattered remnant OF 'he rue
Church" of State Rights principles that would a.
rain address myself, IN the hope OF dispelIh9 some
of The prrjudccs against the Banking system, the
foil, ofwhich have Iivedt see
This was the aim of my last letter, in which en-
deasored to show, that as between the dilleieh'
interests Of the community. whatever loss mig ht re-
sui, from the adoption of that system, must nom
the nature e the thing be borne by the noneyed III
| terest it's creator aad director Whether That inter
est proycbally intelligent, sagacious aud vigilant
feoures the guardianship OF the rest OF the comnu-
nity 10 save IT from self destruction, IS question
which | do not propose 10 discuss. have nothing
to offer TO those who think that wisdom VIII die
with them; :" and that they owe IT "a the woilu 10
leave behind them complete system OF regulations
reaching even to the mnutest affairs OF individuals
The men to whom | address myself are not oil mat
school Of 'presunptuons ignorance put even 10
them II may be interesting 10 observe now, III pro-
noting the general prosperity OF the community 'le
money ed interest receives though not an equal snare
of bene6O full equivalent Tor the sacrifice IL makes
To the common good
It's curious instance OF the pcrvct5ily Oh sell oe
cepuon, that they who speak and act 7s the aei"
al presence OF gold and silver were the StHpnm 90
mum OF prosperity aud regard that as the only cur
cncy which a wise people would permit themselves
TO touch base their system ON principles which take
no account of the intrinsic value OF these precious
commodities. ~
! But gold and silver have intrinsic value / his
is measured by the cost OF production. All tie eie
mens of value are employed IN producing them, ana
these enter into their produC tion with 50 much UNI
iornnity, as TO point them out as the best common
measure OF all values.
They are valuable also, being fit for the Use oil
man IN various WAYS. For utensils and ornament,
they are preferred before any thing else. In tins
yew indeed, they not neccSSdricS. II they were
only valuable SUCH then, like all other neoessaties,
they might lose part Of their value, when The
demands Of nature were supplied. But the appetite
To which they minister, is one not liable to be gut
ted by abundance. Ii grows by feed ng. There is
no passion craving and nsaliac vanity II IS OF
the family Of the Horse LeeCh, and ones contlnu-
ally, Give! Gvc,' and will MT be sati- fed. Hence,
the demand keeps pace with the supply, however that
may vary, with sleadness not less uniform than tia,
o the cost of production; aud hence a pefmanency
o. value, by which all olhervalue may be measured
But Vanity itself must yield to Necessity ana
sacrifice part OF ITS Qualifications to tlIc wants OF
Commerce. and here tire laws OF demand aud sup
ply again display their operation. llence, H. iron
any cause, the precious metals are scafcef IN one
country than another, their value will be greater
there 1t will require more OF other things TO pro-
cure them, or IN other words. the pnces OF all thn2s
else will fall II therefore, there were no substitute
for them and If the amount in circulation III each
country bore unchangcably the same proportion to
the exchanges, prices would every where bear then
due ratio to each other. That ratio consists OF
such an excess OF price IN the country where an ar
ticle is consumed, and above the actual cost IN
the producing country, as shall afford far compen-
saiion for the capital and Labor employed in expora-
ton, and for the risk attending il. II the difference
/ is lass than this, expectation will be checked II
more, the capital OF the consuming county will "a
TO the producing country 10 contend FOR share
OF tins excessive compensation tor the employ
ment OF capital Thus money will be imported, the
profits OF cXporra on reduced To their proper stan
dard, and the due ratio between the compensation
TO the producer aud the price TO the consumer re-
stored.
ltany people could devise cheaper and per
feet substitute for s. ecle 10 be used in their domestic
exchanges, they would have no need of specie among
themselves. All they might have ON hand, woulo
be sent abroad TO those, who, having no such sub
sttute, would give mole for K than II would be
worth 10 them. Ia that case, the eNchangeabe va
lne oil tbs specie in foreign markets would be added
To the amount OF their imports and comforts. 1t
short, they would fluid themselves much richer
rs n they had equal amount OF supertlulty any
other arice.
This, though true, will not be obvious TO many
because they in the habit of thinking only oi such
substitutes as are conessedly imperfect. There Is
but one perfect substitute, and that is perfect, uni
versal and undnubtlug credit. Unfortunately sucl
Is not be found, ior ns existence would imply al
universal good faith prudence, and prr9clent N's"en
not gwen to man. But the people OF an,
country thus endowed. as coulessedly none IS they
would but the of the common CONS OF
other countries Tor the purpose Of keeping then
connts-but their money balances might all be set
tied III foreign markets There alone would money
: be wanting, aud none would want it but the mpor.
ter. To HIM, it would be enough to receive the
pledge OF his customer to pay him, in Liverpool OF
llavre certain number OF guincas of francs, to
be raised by the export OF cotton tobacco or any
other article. He would be, at the same time the
, common centre of all the mutual exchanges of his
customers, and credits with him would balance all
transactions that could be settled by simple bar
ter.
Ii will be seen that supposing an impossible
case, and II is because the is impossible, that
specie or any other circulating medium is necessa-
~ But am not sure that the true philosophy
OF the subject would teach us to inver the order
OF the common form OF Speech and to say that spe
Gle aud all is representatives are but substitutes ion
credit as II should be- and 1t surely would be-
were man neither shoft-sig hied ignorant nor wick
ed In proportion as the character OF any cnmmu-
ny IS marked by these faults is the coStiness of the
substitute for credit, which they find themselves con
strained TO use. Ii no man can be found who will
trust any other then the actual presence of specie
IN all purchases will be indispensable. This is the
much coveted golden age.
II there be some who may be trusted though not
universally, then he who is without money! and can
| md he enfl, ,,,,, IL /