Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1840-03-20

low but if they supply lie small and the demand
great, they are high. When business is flourish
| ing, the demand is urgent, and wages rise; when
| il is dcpressed the demand dimnish.S, and wages
fall. Hence, too, in countries densely populated,
the supply Is necessarily greater. in proportion to
| the business, than in countries thnly populated
| Thus we see why wages in great country, new
aud full of resources, like ours, arc in quick de-
| mand, while in China, where there is vast sur
| Plus populations the market Is ovcrstocked, and
they are low Hence, TOO, is, that in such con-
dltlons OF society always find the greatest pow
very, suffering, and degradation. Bank paper Is
obviously not the sole or chief cause which fixes
| the price of wages.
But, sir, let pursue this subject little further
a. il u capable of further illustration.
There are three great classes of laborers those
| who produce from the earth are aaricultllrstS
| those who convert the products ot the earth INTO
useful rms are manufacturers and those who
| are engaged IN transporting and exchanging the
| products OF the other classes commercial.
Thee great divisions of mankind are founded on no
law but that of civilized, social existence. In our
| country, at least each and every person may
pursue any or all kinds ofblisiness. BIT experience
| teaches us the necessity of these divisions, Tor
wool, cotton and flax are oflile value till turned
into cloth, but the farmer would find it difficult to
run mill TO make cloths, or TO build and sail u
| ship TO take his produce TO market. From hc>e
divisions, too, come or markets. We must have
| food and clothing, and we must obtain them by
an exchange Of the products Of labor, but we can
not exchange hor.e or Il watch for loint of
meat or tor pair Of shoes such property must
lie broken into parts, and thus is the peculiar Office
and ano [ the onl Use ofmoney. II measures the
value of properly, and brings 1t into form suited
TO or convenience. This j, the relation which it
| ears 10 business, and no other and, while
admit its great importance, deny that 1t hes at
the t)tmdaton, and Is the great regulator OF the
affairs OF men, a> seems here 10 lie supposed The
friends Of this bill, know, assume that we have
an imitation, and that money rule, guides, and
| regulates business when. in truth, the inquiries
ought TO be, first, how much Is necc>~ AIRY a. cir
| la'ing medium, that we may know whether there
is an excess and second does paper necessarily
create an expansion, or unnecessary enlargement
OF the currency, that we may Judge whether 1t
| ought to lie alandonef. These matters, are
precisely what ought to lie proved. The Sc
majors assume a. evident truth, what is not appa-
rent. They rim that paper Lecomes redundant,
excessive, inflated. But they do not attempt to
establish the fact by any proof. Since the first OF
January, 1888, our circulation has not much cX-
ceeced one htnlr d millions 1t may, at some Pc
RODS, have reached one hundred and twenty, in
| elusive OF metal and paper, Is this excessive.
Has it reached point above the urgent necessities
OF business tor two years past. If 1t has, how
much is enough. Some days ago put this inquiry
dlStncy 10 the Senate, and ii remains and will
| remain, unanswered. If 1t can lie proved that we
have too much, it Is not difficult 10 ascertain, with
| sufficient eNactneSs, what amount Is necessary. |
desire Senators TO make knwn the process by
which they arrive at Their conclusions in vitality
and important matter. They seem to take ii for
granted that there Is no evil but eXpans on TO fear,
While nothing is more certain than that too small
| a circulating me iiun works ut as great if not
| greater injury than one toe large.
We have heard much defamation about hloated
credit, gambling and speculation, lut if the ex-
lStence Of all these established at this moment
| ly uuq,e>tionable proof, it would have ltilc ten
dency TO establish the fact OF excessive circulation
Tor they have no necessary coneXlon, Lut each
may exist Independent OF the Other
VIII the Senator maintain the proposition that
paper cannot aud has not circulated without inila-
| ton or excessive credits in trade generally. | 90
| further, and ask him if excess Is any thing more
than an occasional occurrence, growing ont Of
| markets qelckenei into activity by events rather
casual than permanent. Is there any excess of
paper in the usual course of business from sound
| banks who redeem and are able 10 releen their
paper at sight, dollar for dollar, in metal. 1t is
not easy to see how excess ever exists under such
circumstances. | can 90 today INTO any Bank in
Boston or New York, ana draw ont dollar with
| the same amount Of paper, and that dollar is
good, and will buy as much, in France or Ger
many aS any dollar there. The paper, then, is
clearly worth a, much as the silver, for it.-lf the
paper of banks Is maintained at this value, and 50
redeemed al all times, ii is not easy 10 comprehend
| how ii is inflated, or that more is in circulation
than is needed for The idea of imitation pre-
slppo>es some un>oundnes,. All money, meiac
as well as paper, does and vii hucuate IN value,
and, fthis lie initiation, then gold and silver is no
more exempt from 1t than paper. Ii is ly no
means easy 10 determine which fnctuates otlen-
time,-lnoncy or property. Cotton is forty dollars
Tale today, tomorrow it is thrly-ive; it does
not follow that the cotton alone has huctuatcd, or
that il has huctualel al all; for gold and silver
| may e so abundant 10 dcpres> the of properly,
IN lIs, 1, * ln,'-a
currence TO find gold and silver hucuatng in value,
| commanding at one time premium, and then
| none nay, under some circumstance, falling
| below good paper.-No matter what we have for
currency, there will lie fluctuations in It's value
| greatly affecting trade, a circulating medium
| oiunIiorm amount cannot lie maintained any more
than you can limit business TO an exact amount.
This all proves what seems not to e well UNDER
| stood, or Senators would rea>en dierently-ihat
| there Is but one way to determine how much cir
| culaon is necessary. 1t is impossible to ascer-
tam how much money may he necessary for each
| mem! or OF the Senate for The clrrent year, and il
| Is equally impossible to anticipate the wants If
the great Public. The question is left, therefore,
| 10 lie settled hy the laws of trade, as all other
| matters Of business. We learn how much flour
and corn are required annually, by the demand for
| them. just so we learn how mnch money is
required TO carry forward business, by the ability Of
| men 10 buy il. So much is necessary, lie The
amount great or small and in growing country
| II would he Just as wise 10 limit the amount Of
| produce as the amount ofmonclary capital. Sure
| lynolhng can be more absurd, than to attempt to
| determine the amount, without reference 10 the
| eXigencleS Of the counlry-to say that eighty mil
lions, or any other arbitrary amount Is enough.
| There Is no advantage to he gained by lowering
the value of properly, unless the same amount Of
| labor, or the same amount OF property, enables MS
TO Obtain more Of the nccessaries of life. This
fact should, therefore, lie first clearly established,
| for the process is necessarily attended with great
sacrifices. The Senator from Pennsylvania seems
to understand that reducing the circulation will
reduce property and wages in the same ratio. If
il does, in what is our condition beltered, even if
we could reconcile debtors to II, who would lie
| ruined! lie seems to believe that our relations in
foreien trade will he improved, but shall show