The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1840-03-18

the low prices Of all ARTICLES three Centuries ago,
~;,h ,he;r presen, greatly advanced rates. The
Rank Of England reco guises, and constantly acts
upon this principle. though often withou, sue
cess. When prices bseome so high. in conse-
ousnce Of redundancy Of paper currency aud
bank credits that it is more profitable to export
the precious metals from the kingdom than its
uanufacturcs. this bank constantly diminishes
,s loans raises the rate of interest, and reduces
its circulation, with the avowed object OF rsdu-
cinQ prices to such standard as will render IL
mol e profitable TO export merchandise than bull
lion. Ii is in this manner that the Bank seeks
TO n. .ulate foreign exchanges.
Blu: why need we resort to foreign nations
for illustrations Of the truth Of this position.
when ii has been brought home to the actual
knowledge of every man within this country.
Have we not all learned, by bitter experience,
that when our periodical expansions commence.
the price Of all property begins to rise? II
goes on increasing with the Increasing expan-
sion, until the bubble bursts and then bank
accommodations and bsnk issues are contract
ed. the amount Of the currency is reduced, and
prices fall to their former level. This Is the
history OF our own country. and we all know it,
A certain amount Of currency IS necessary TO
represent the entire exchangeAble property OF
country. and is this amount should be greatly
increased Without a corresponding increase in
the exchangeaLle productions Of the country,
the only consequence would be a great en-
hancement in nominal prices. say nominal /;
because this increased price will not enable tho
man who receives it TO purchase more real
property or more Of the accessories and luxur-
les Of life than he could have done before.
Sir, solemnIy believe that il we could but
reduce this inflated paper bubble TO any thing
like reasonable dimensions, New England
would become the most prosperous manutac-
turing country that The sun ever shone upon.
Why cannot we manufacture goods, and es
pecially cotton goods. which will 20 into sue
cessful competition with British manufactures
in foreign markets Have we not the neces-
sary capital! Have we not the industry
Have we not the machinery And above ALL
are not our skill. energy, and enterprise, proven
bal throughout the world J Land is also
cheaper here than in any other country on the
face of the earth; We possess every advan
tage which Providence can besiow upon US for
the manufacture of cotton; but they are all
counteracted by tho folly of man. The raw
material costs US less than it does the English
because this is an article, the price Of which
depends upon foreign markets, and is not regu-
lated by our own inflated currency. We
therefore. save the freight Of the cotton across
the Atlantic, and that Of the manufactured ar
ticle on its return here. What is the reason
that. with all these advantages, and with the
protective duties, which our laws afford TO the
domestic manufacturer of cotton, wo cannot
obtain exclusive possession Of the home mar
ket, and successfully contend for the markets,
of the world J 1t is simply because we manu-
facture at the nominal prices Of our own in
tiated currency, and are compelled TO sell at
the real prices of other nations. Reduce our
nominal TO tho real standard Of prices through
ou, the world. and you cover our country with
blessings and benefits. | wish to Heaven
could speak Ia voice luud enough to be heard
throughout New England; because, if the at
ten,ion Of the manufacturers could once be di
rected to the subject, their own intelligenc,
aud native ssgacity would teach them how in
Juriousy they are affected by our bloa,ed bank
i", .na eisdi' oys,s",, and would enable 'ier
10 apply the proper corrective.
What is the reason that our manufacture
have been able to sustain any sort Of competit
ion even in the home market, with those q
British origin! 1t is because England berse
~. to Il great extent paper money country
slough, in this respect, not to be compared
with our own. From this very cause, price
in England are much higher than they are up
on the continent. The expense Of living il
there double what it costs in France. Hence
all the English who desire TO nurse their for
tunes by living cheaply, emigrate from thei
own country 10 France some other portion
Of the continent. The comparative low prices
Of France and Germany have afforded such
stimulus to their manufactures, that they are
now rapidly extending themselves, and would
obtain possession, in no small degree, even o
the English home market. if it were not fol
their protecting duties. Whilst British man
ufaerures are now languishing, those of the
continent are springins into healthy and vi
gorous existence. 1t was but the other da,
that saw an extract from an English paper
which stated that whilst the cutlery manufsc
tured in Germany was equal in quality will
the British. it was 80 reduced iu price, that tn
latter woudfriye 10 abandon the manufaciur
altogether.
The Senator from Massachusetts. after a
ouf experience. doubts whether our currenc
has been inflated beyond the proper degree
and TO provs that il has not been hs says thu
the rates OF exchange upon England have oiie
been below par. This fac, does not tend
prove that our paper currency is not inflated :
home. Oar foreign exchanges now regc
lated by the specie standard Of the world. M
by the amaunt of our bank issues at home
and whether they are above or below par, d.
pcnds upon whether we are the debtor or tl
creditor nation. We ought always to b.
ana would always be, the creditor nation,
1t we're not lor our extravagant speculalious
foreign merchandise, produced by the rsdut
dancy OF our paper credits and circulation
Oar immense exports Of cotton ought always
produce balance OF trade in our favor; al
get this is rarely the case. There is general
particular period, however, in the progress
each one Of our expansions and contraction
when exchange is in our favor. This occu
after our cotton and other exports have pa
the debt previously contracted TO foreign III
tions; and before we have had the time an
The ability TO get fairly under way in ne
career Of exravasan; imporaiions. To ca
that this Circumstance proves that our pap,
currency is not inflated. is an argument whc
] cannot understand. il proves nothing b.
that Providence has provided us a resource
our vast production Of cotton, which enables u