Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1840-03-26

"
trated condition of the currency and the
banks, but which would have been'compar
atively harmsss Of themselves. Among
these was the important change in the
charter ofthe-Bank Of England, at the last
renewal; about The time our surplus reVe.
nue. began to accumulate, by which its
notes were made legal tender in all ca
ses, except between the bank aud its cred
itors. The obvious effect ofthis modi6ca-
tion was TO diminish the demand for spe-
Gle in that great mart Of the world, and,in
consequence, must have tended powerful
ly to keep the exchange with us in an
easy condition, while the tide of circula-
lion was rapidly rising to a dangerous
height. But there was another cause
which contributed still more powerfully
to the same result: l refer TO the great
loans negotiated abroad by States and cor
poralions. To these I add the operation
of the United States Bank Of Pennsylva-
mia, the direct object of which, in some Of
its more prominent transactions, was 10
prevent the exchange from becoming ad-
verse to US.
By the operation of these causes COM
bined, the exchanges were kept easy for
years Notwithstanding the vast expansion
which our circulation had attained, from
the powerful action OF the more direct call
ses to which ! have adverted. The stroke
was delayed, but not averted, and fell but
the heavier and more fatally, because de.
layed. Aud where did it fall when il came,
most heavily Where the measure which
cause it originated; OH the heads of its pro-
jectors. Behold how error, folly, and vice,
in the ways Of an inscruptable Providence,
turn hack on their authors.
1t is full time for the North, and more
especially for New England, to pause and
ponder. If they would hear the voice Of
one who has ever wished them well,T
would say that the renewal Of the protec-
tive system would be one of the greatest
calami,ies that could befal you. What.
ever incidental good could be derived from
it, you have already acquired. ltwould.
if renewed, prove pure, unadullerated
evil. The very reverse is your true policy.
The great question for you 10 decide is,
how 10 command the foreign market
The home market, OF itself, is too scanly
for your skill, your activity, your energy,
your unequalled inventive powers, your
uutiring Industry, your vastly increased
population, and accumulated capital
Without the foreign market, your unex
ampled march to wealth and improvement
must come 10 a stand. How, then, are
you to ahtain command Of the foreign mar
ket! That is the vital question.
The first and indispensable step is a
thorough reformation of the currency
Without solid, stable, and uniform cur
rency, you never can fully succeed. The
present currency is incurably bad. 1t is
impossible to give it solidity or stability
A convertible bank currency, however
we'll regulated, is subject 10 violent and
sudden changes, which must forever unfit
it to be the standard Of value. 1t isby far
the most sensitive of all to every change,
commercial or POLITICAL foreign or domcs-
tic; as may be readily illustrated by refer
ence to the ordinary action Of foreign ex-
changes on such currency. For this pur-
pose, let US assume that our ordinary cir
culaling medium, when exchanges are
easy, amounts TO Sl00,0O0O 900, consisting,
as It does, OF convertible bank paper. lie,
us suppose that i, is all issued by what is
called sound specie paying banks, with a
circulation OF three dollars Of paper foron
dollar in specie, which is regarded as con-
s,itu'ing safe banking. Next. suppose ex-
change abroad turns against US, to the
amount OF S10,000,000. Is it not clear,
that instead of reducing the circulation by
that amount, that is, to sou, ,000, 900, which
il would do if i, consisted only Of specie,
il would be reduced three times the a
mount; that is, to, $40, 100000! Let US
now suppose the exchange to turn the 9th
er way, from this point Of depression, and
to be kept flowing in that direction till it
came to he Sl0,000,000 in our favor, in-
stead oflhal amount against US. The re-
suit would be, under the operation of the
same law, not 20 increase our circulation
to S11O,000,000 only, which would he the
case if consisting Of specie, hut to $780,
100000; making difference between the
extreme points Of depression and eleva
ton of S60,000,000-more than equal 10
one-half ofthe usual amount of circulation
by supposilion, with a corresponding in
crease OF prices-instead of S20,000,0O0,
equal only to fifth, and with but pro-
por,ional effect on prices. A change the
other way, from the extreme point Of elc-
vation to that of extreme depression, would
cause the reverse effect. l hold it certain
tha, no honest industry, pursued with the
view to moderate aud steady profit, can he
safe in the midst Of such sudden and vio-
lent Observation-Disclosures as if from
summer to winter, and from winter to sum-
mer, without the Intervention of fall or
spring. Such great and sudden changes
in the standard of value must be parlicu-
larly fatal with us, with our moderately
accumulated capital, compared to the ef-
feet on the greater accumulation abroad,
ia older countries. In stating the case
s,nnoeed. have assnmetl numbers at ran