Lexington union. (Lexington, Miss.) 1838-18??, 1840-12-26
METALLIC CURRENCY.

METALLIC CURRENCY.
1t has been asserted by one who very Justly
stands at the head Of the wing ranks in tins State,
that a metallic currency is subject to as great
changes in its value by increases and dminutions
ofi's quantity ne is bank paper currency, and
that, by the Adoption OF an exclusive metallic
currency the ptce OF labor wou!dbe reduced in a
greater proportion, than would the prices of the
VARIOUS articles ofconsumption; and than conse-
quently such policy would prove oppressive the
to laboHug class. Were We convinced ofthe truth
OF this position, we should most ceuainly regard
The adoption of purely metallic currency rs
highly impolitic, for the laboring community
being the only true producers Of wealth, have un-
! doubtedly higher claims TO the fostering ptotcc-
ton of government than any other class 81 citi-
zens. Being however, fully convinced of the
converse, we shall endeayor, in a very concise
manner, to prove to our readers the incorrectne.s
OF these assertions; the which we shall do with
due Difference 10 the high source whence
they come, resting our hope: of successful reuta-
ton, not upon our own abilities, but upon the
drmcr foundation of the correctness Of our posi-
| ton.
! The assertion that gold anil silver currency
is as subject to great alcina,ous in value, by
increase and diminution Of quantity, as is paper
eirsncys At yglr I, I'LL the yery natlare thiAs
and opposed by The oaidaneos Of past experience.
The great demand for the precious metals thro'-
out the civilized wolldnot only as an intermediate
object OF exchange, but for ornament and ser
vice, render it impossible thaNheir value can be
sensbIy affected, save by an inordnatc influx OF
fresh supply. The comparative scarcity ofthese
metals in the bowels Of the earth, and the great
labor and expense attending their metallurgy, are
ample sureties that the supply will never SO far
exceed the demand as to produce a perceptible
change in their value. And that the supply will
ever SO rapidly diminish as to produce such an
Increase in thcr value as would palpably effect
currency composed exclusively Of them, will be
contended for by no one who is at oil conversant
with the geological history of the world, ior TN
less the supply should be entirely cut off, cur
rency of the precious metals, would undergo bu,
slight change in yalue, as the demand, created
by mere elimination Of the supply, would be
satisfied by reducing to coin some of that portion
that now exists in the form Of ornaments aud
plate.
The following historical fact goes far to estab-
lish the position that metallic currency expert
ences but little change in value by increase or
dmlnution ofqnantily. As a consequence oflhe
discovery of the gold and silver mines of Ameri-
ca, tcnio!d supply Of the precious metals was
rom 'hlown into market, but having an Inherent
value which created n demand for them for other
purposes than mereTcirculating medium, this
great influx only reduced their value to one fourth
of what It had formerly been, instead ofone-te tenth
as would necessarily be the case with bank cir
culation if increased to the same extent.
If nation have an exclusive metallic currency
the value Of that currency cannot be diminished
by an increased supply, unless that supply exceed
the demand for the precious metals throughout
the civilized world, for SO soon as the supply of
these METALS become greater than the demand in
such nation, they will in obedience to the laws
Of trade, continue to flow into other markets un.
~ VIC uSuAAnu NC universally cQuullZeu'
If on the other hand nation adopt paper as its
circulating medium, the consequences of an over
supply, are very different, paper having compar.
atively no intrinsic worth cannot seek foreign
market, and consequently every increase Of the
paper money is followed by corresponding de
crease ofits value, an imitation of prices which
is productive the same evil consequences.
We regard the proposition, that the adoption
Of an exclusive metallic currency would be on
pressive to the laboring class, as exactly the con-
verse Of, such policy, aud feel confident that
the presentation of few PLAN facts will be am.
ply sufficient to produce like conviction in every
rejecting mind that is not warped by prejudice.
The price Of labor is governed by the de.
mand for it, and tie demand 70 labor increases
or diminishes. as there is, or is not favorable
market for the commodities it produces. In
country where an expanded paper currency exists
the cost ofproducing is thereby greatly increased
beyond the cost ofproducing in countries having
better currency, and as a necessary oonse-
quence its exports become restricted 10 such com.
modltics as are peculiar to itself Thu, tho de.