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

aud tear Of ie metals, loss By casualty, must also
be taken into the account and the annual dimnuilon
from these causes estimated at per cent making
on the whole stock Of gold and silver, very large
amount SO much for the supply While this has
been so rapidly diminishing the densd for them has
been Just rapidly nereasng First, from the increase
OF population according TO admitted principle, Great
Britain, which IN 1900 counted only 10 millions OF M
habitants had, IN $780, less than 20 mloDs rus
which at The peace Of 1915 received something more
than 10 millions, U thnk) boasts OF her 10 millions.
Russia has grown al least as rapidly 90 OF o'hef
nations. With our extraordinary progress III 'hat
way you are familiar Then, as 10 productive power.
another important element ia determining the vaue OF
gold and silver. need not mention that u mas oesn
anywhere immensely augmented and with H. OF course,
tho mass OF commodities 10 be circulated by money
Look a, the cotton trade for example Lastly, the con-
sumption Of the precious metals Ia furniture anu manu-
factures is become immense and Is every day on me
increase not as has been said. in the course oil thus
DISCUSSION because they have been aepreciaed and so
driven out OF circulation by paper; but as necessary
consequence Of the progress OF commerce and riches
and the elevation of the standard Of comfort among all
classes OF society. The metals are 10 demand as com,
noditics, precisely because they are precious. "e1W
have them any price because the use OF ihem - re-
CURED by the existing Of civilization and because
the mighty fortunes acquired by industry or TRANSMITTED
by inheritance put The power Of thousands ana tens
Of thousands obtain them now, where tens or hun
dreds formerly could Compare England with France
rcntly singular but really natural and instructive result
France has in circulation much more than twice or even
three times tho amount Of gold and silver that England
has, estimating tho specie currency Of the latter AZ so
000 000i hut in plate, furniture &C. the tables are
exactly turned and England possesses twice or three as
much as France This does not show that the metals
deprecated in the ioracr country but the very re-
verse There is greater demand for them, because
there is ncompsaby greater opuence and luxury IN the
country of banks and paper money than IN the country Of
an exclusive metallic circ ulaton This Is IN the present
condition Of society," an inevitable effect OF great
cunulaton of capital, which can only be prevented by
sunptnaiy aud agrarian lsws--a system OF legislation
familiar enough in antiquity. but quite inconsistent with
our modern IDEAS Of individual liberty aud personal &C
know no writer who has recently. denied that the
fall OF prices universal within the last twenty years.
has been owing, il, some degree the diminished sup
ply Of the precious metals, what comes TO the same
thing who pre- tends that those metals have been dcprc
GATED by tho paper currency substituted Tor them IN
some countries. as some menhcrs Of Congress nave
roundly asserted without any means oil ascertaning the
Of facts designing 10 consider them al ALL
McCulloeh, who thinks that very exaggerated I'M
portance has been attached the effects oil that dln
mutton, still admits that may have operated to the ex
tent Of from 3 TO 5 per cent? The author Of
clever little treatise 10 Which had occasion frequently to
refer in my speech at the extra session. hestaes not to
affirm that within the period just mentioned thousands
tcable embsrassmens, of the secret sources Of which
they had no suspiciont My own opinion, il may
venture advance such subject is that no~ith
standing ahat has been said Of the Of the specie
trade with the East the breaking up Of boards IN conse-
qucnce Of long peace and established social order the
economisngof the metals by Of paper circulation
&c ,suchis the immense development ofcommcrce indus
try population and riches, that the demand for gold aud
silver both for currency and for furniture and nanuiac
lures will before many years, become greatly dspropor-
toned TO the probable supply OF them. Some other
means OF conducting the exchanges of the trading
world will become Indispensable at least. the Of
gold and silver for any other purpose than as standard
for the ultimate comparison OF prices will be superseded
and the great bulk Of every circulation like that Of
England aud the United States, will consist OF bank
notes aud private paper Far from thinking that the
credit system OF these two great commercial nations
with their advanced civilization, is accident
anomaly, which is 10 be exploded IN few years, IN
order to return TO the old Dach plan, consider IT
The natural fruit of that civilization, aud expect 20
them flourish together in the course OF things, on other
and less congeniai soils. The bauk note payable on
demand, was as great an Improvement. at home, as
the bill of exchange, when the Lombardy merchants
first learned dispense with specie in their renl,tances
from country TO country and 1t we've just as rational TO
wish bring society back to the 10Th 18th century,
when payments between distant places made only
in specie, to wish to explode the money and labor
saving conrvances OF Lombard street. by which trans
actions 10 the amount Of untold millions are carried
almost without show Of coin. Commerce is
change OF commodities; why cucumber this simple
operation farther than absolutely necessary, by In
Producing third commodity, like the precious metals,
of which the value relation To all other products is
continually fuctuang IN greater or less degree
have hitherto considered this question in what may
he called its external aspect, IN reference, namely. TO
the effect which the projected reform in our currency Is
likely TO have the distribution of the precious metals
throughout The whole commercial world. wish now
=. # ttnF aFn tn
our own circulation exclusively. think will be APP
parent, that here, too not only attempting 10
strong aud settled current OF practice and opin-
ion, but are waang war, fruess Of course, such
must always be, with the nature Of things
There is question which have often propounded to
the advocates of metallic circulation, and which
would be glad to have answered IN satisfactory manner
How comes IT, that at period Of history has this
country had supply Of gold and silver at all adequate
10 the wants Of the community, even Tor the most or
binary purposes Of circulation! The answer usually
gwen though not unplausblc is by no means suff-
cent one, viz: that all the channels Of circulation
having been KEEP, perpe,ua!ly chokcd up with paper,
there place for metallic currency, which was
thus expelled the country But it is, in the first place,
obvious observe, that this tacf admitted it
would be itself Effect to be accounted for, and the
difficulty would only be removed one step further How
it, would he the next inquiry that paper should,
in every part Of this country aud at all periods Of its
history, have circulated much more exclusively than
excepting few very and extraordinary occasions
it has ever been known TO do elsewhere 10 what
peculiarly Of character condition is this to be
crbed
But in the next place, it is no, historically true that
the precious metals have been always kept out Of cir
culaon in the United States by paper. ltcan be shown
clearly on the contrary that certain periods Of
history there has been pressing and universal want Of
circulating medium; and yet, contrary to the general
principle, that gold and silver will, like other commodi-
lies 90 wherever there is demand for them, they
have not made their appearance among MS. cited, on
a former occasion. The Washington Papers, TO show
tina, during that period OF our history when we were