Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1838-04-21

cieeulatioo u coin, and the other pars paper rest
inS upon coin. and intended 10 be Convertible, -
The whole mass more than may be fairly judged
necessary IN repressn, the property, the transac-
lions, and the business of the country? Or, in !
order to sustain such amount Of circulation,
and TO keep that part Of it which is composed OF
paper in a safe state, should We be obliged to at
Tempt to draw to ourselves more than our inst .
proportion Of that metallic money, which is in the
use Of all the commercial nations? These qucs-
lions appear to me to be but different modes OF
Stating tho same inquiry.
Upon this subject We may, perhaps, form some
general idea, BY comparing ourselves with others.
Various things, no doubt, exist, ia different places
and countries, 10 modify, either by cn!afglng or
diminishing, the demand for money or currency
in the transactions Of business; still the amount
Of trade and commerce may furnish a general ell
emcnt Of comparison between different states or
nations. The aggregate Of American imports
and exports in 1888, was three hundred aud eigh-
teen millions; that Of England, reckoning the
pound sterling at a so, again, was four hundred
and eighty millions, near as ! can ascertain;
the currency Of England being, as already stated,
sixty millions sterling, two hundred and eighty
eight millions Of dollars. II work out q result
from these proportions, the currency Of the United
States, il will he found, should be hundred aud
inety millioos, in order to be equal to that Of
England; but, according to the estimates Of the
Treasury, il did not, even in that year, exceed
one hundred and eighty millions.
Our population 10 about equal 10 that Of Eng
land and Wales. The amount Of mercantile
tonnage, perhaps, one-fifth Jess. But then we
arc to consider that our country is vastly WIDER
and our facilities Of internal exchange, by means
Of billie Of exchange, greatly less. Indeed, there
aro braoches Of our intercourse, ia which remit
tances cannot be well made, except in currency.
Tske ono example: The agricultural products Of
kentucky arc sold to the South; her purchases Of
commodities made At the North. There can be-,
therefore, very little Of direct exchange between
her and tho places Of purchase and sale. Tho
trade goes round in . circle. Therefore, while
the Bank Of the United States existed, payments
wcoc made to . vast amount in the North and
East by citizens Of Kentucky, and Of tine States
similarly situated, not in bills Of exchange, but
in the notes Of tho Bank.
| These considerations augment the demand for
currency. Moro than al, the country Is new, sir;
almost the entire amount Of our canital active
and the whole amount Of property, in the aggre-
gate rapidly increasing In the last three years,
thirty seven millions Of acres Of land have been
separated from the wilderness, purchased, paid for,
and become subject 10 private individual owner
ship, to transfer and sale, aud all other DISPOSE
tions 10 which other real estate is subject. II has
thus become property, to be bought and sold for
money; whereas, while in the hands Of Govern
mcnt, IL called for expenditure, formed tho ba-
sis Of no transactions, and created no demand fof
currency. Within that short ported our people
O0v0fOmS0J8
NJ the whole Of England and Wales, and, taken
together, far moro fertile BY nature. This seems
incredible, but the returns show II. Suppose all
this to have been bought IT the minimum price Of
. dollar and quarter per acre; and suppose the
value to bo increased in the common ratio ia
which We know the value Of land is increased, by
such purchase, and by the preliminary steps and
beginnings Of cultiva.ion; an immense augn,en
tation, il will readily be perceived, is made, ever
!: in short time, Of tho aggregate Of property
in nominal price, and, to a great extent, IN rca
value also.
On the whole, sir, I confess know no stand
J ard by which can decide that our circulation i
: ut present in excess. do not believe il is so
Nor was there, think, any depreciation in thu
, value OF money, up TO the moment OF the susPcn
sion Of specie Payments by the Banks, comparin.
: our currency with the currency Of other nations
An American paper dollar would buy silver dol
lar in England, deduc,ing only the charge Of trans
porting dollar across the ocean, because It co
. manded Q silver dollar here. There may be eH
+ cess, however, admit, whore there is NO Presen
. dspreciasio in tho sense in which ] now Us
+ tho term.
+ on tho evils Of suddenly deprecated circulation
: II arrests business, puts an end to it, and ove
% whelms all debtors, by depression and downfa
of prices. And even Il We reduce circulation
not suddenly but stl reduce it farther than is NJ
= cessary to keep il within just and reasonable Il"
8, NS-W0 produce many msSCuseSsS W. ""Su'0'
,. the necessity Of foreign loans; we contract bus
ness, discourage enterprise, slacken the activi'
ID Of capital, and restrain the commercial spirit
d the country.-It 10 very important to be semen
ID bered sir, that in our n,erco with other n
of tio"s, We are acting on principle Of cqualit!
of that Is to say. do not protect our own shpP'n
n interest by peculiar privileges; We ask Gle.
10 field, aud seek no favor. Yet the materials &
{: shPbuilding are high With Us, and the wages
a. ship builders and seamen arc high also. We ha'
u to contend against these unfavorabls circnr
&c stances; and IT, in addition to these are to 81
- fer further by unnecessary restraints on currenc
CT and by a crampcd credit, who can tell what ma
be be the effect? Money is abundant in Englan
b very abundant the rate Of interest, therefore,
z low, and capital will be seeking its investme
b wherever il can hope to find il, II We deranl
nd our own currency, compulsively curtail circo'
- tion, and break up credit, bow arc the CONNER
X, aud navigatoo Of the U. States to maintain the'
Il selves against foreign eompetitions
re Before leaving, altogether, this subject Of I
'e- excessive circulation, Mr.. President, will say
N, few words upon topic which, il time would p
y, mit, should be glad consider Mt moro leug'
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