Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1840-08-10
THE SUB-TREASURY rs. THE LABORING
! CLASSES
OF VIRGINIA.


CLASSES.
YOU'VE NEUTRALITY-SUSPICIOUS. MEN--READ!
We have been highly gratifed at the perusal of
the speech Of Mr.. Osborne of Connecticut on the
Sub.Trensury bill, and would he glad to give ii TO
our readers entire, would it not exclude other i'm
portant matter. An extract the paramount
question, The effect Of The Sub Treasury upon The ual
ne Of property and The cages orlaJor, is appended.
In connexion with lhis subject, new doctrine
has been recently advanced, which deserves the
grave consideration Of the American people. 1t
is now alledged that, under our system of credit
and paper money, we have too greatly enhanced
the price of property aud the cost Of production,
Those who adopt this reasoning say that prices
depend on the quantity of currency, and that in
proportion as you increase or diminish the amount
of circulating medium, in that proportion you en-.
nance or reduce the nominal price both of proper
ty AMI labor. A comparison is Instituted between
the United States and England, France, and Ger
many and it is aledged That our currency has
greatly enhanced Inc cost of manufacturing, that
we cannot enter Into a successful competition with
these foreign nations. The argument on this point
is so well stated in the printe, speech hold in my
hand, that will ask the clerk to read the passages
have marked. The Clerk here read the follow
ing extracts from The speech of Mr.. Buchanan of
CiusyINuuId, ucNoiCu w uiO CShutCJ JANUARY
l94O:]
EXTRACT FROM MR.. BUcHANAN's SPEECH.
"On Friday las, when very Unexpectedly adj
dressed the Senate, stated principle of political
economy, which shall now read from the hook.
1t is this: that il you double the amount of the
necessary circulating medium Of any country, Won
thereby double the nominal price OF every article.
If, when the circulating medium is fifty millions,
an article should cost one dollar, it would cost two
il vytIiout of The ma af n RI lufpp
medium, the quantity should be increased to one
hundred millions The same effect would be
produced whether the circulating medium were
specie, or convertible bank paper mingled with
specie 1t is the increased quantity OF the medi-
UNI, not its character, which produces this effect.
Of course leave out of-yiew irredeemabe bank
piper"
"The discovery of the mines in South America,
and the consequent vast increase OF the precious
metals put into circulation in the form OF money,
have greatly enhanced the prce oil all properly
throughout the world.
"The United States carry on trade with Ger
many and France; the former hard-money cOun-
try, and the latter approaching it so nearly as 10
have no bank notes in circulation under Tie de-
nomination of five hundred francs, OF nearly one
hundred dollars. On the contrary, the United
States is cmphaticay Il paper money country,
having eight hundred banks Of issue; all of them
emitting notes of denomination as low as five
dollars, and most Of them one two, and three dol.
lar notes. For every dollar OF gold aud silver in
the vaults of these banks, they ssle three, four,
and five, ard some of them as high ten, and
even fifteen, dollars Of paper. This produces
vast but ever changing expansion of The currency;
and consequent lncrease OF the prices Of all ar
ticIes the value OF which not regulated 10y the
foreign demand above the price of similar articles
in Germany and France At particular stages OF
our expansions, we might with justice apply The
principle which | have stated to our tIade with
these countries, and assert that, tiom the great re-
dundancy of our currency, articles are manulac-
ured in France and Germany for one half of their
actual cost in this country. Let me present an
example. In Germany where the currency is
purely metallic, and the cost OF every thing is re-
duced to n hard -mOney standard, piece of broad
cloth can be manufactured for fifty dollars the
manufacture of which, in our country, from The
expansion of our upper currency would cost one
| hupdred dollars. What is the consequence The
foreign French or German manufacturer imports
this cloth into our country, and sells it for hun.
| bred dollars. Does not every person perceive that
! the redundancy Of our currency is equal to pre-
mium of one hundred per cent. in favor of the for
eign manufacturer No tariff or projections, UNI
less il amounted to prohibition, could connieract
this advantage in favor Of foreign manu- features.
| would to Heaven, that could arouse the utten.
ton of every manufacturer of The nation 10 this
important subject.
| aWbal is the reason that our anulactures have
been able TO sustain any sort of competition, even
in the home market, with those of British origin
1t is because Eng land herself is to great extent,
paper-money country, though in this respect,
not to be compared with our own From this very
cause, prices are much higher than upon the con
tinent The comparalive>low prices of France
aud Germany have afforded such a Stimulus to
their manufactures, that they are now rapidly ex-
tending themselves, and would obtain possession
in no small degree, even of the English home
IN fnair ftnu llf
Whilst British manufactures are now languishing,
hose of the continent sprnging into healthy
aud vigorous existence. Ii was hut the other day
that saw an extract from an English paper, which
stated that whilst the cutlery manufactured in Ger
many was eqInl in quality with the British, il was
so reduced in price that The latter would hnVe To
abandon the manufacture altogether"
| desire, Mr.. Chairman, To call the attention of
the House and of the country, ms distinctly as am
able, TO the doctrine and the policy here 0vowed.
And, in the first place, let me premise, that II is
agreed on all Sides that we ought to have no great
er amount Of paper currency than can keep
convertible. No question here arises regarding
irredeenabe bank paper. The whole reasoning
n is designed to show that we have great an u
mount OF good currency-by which, mean gold
aud silver, and bank paper convertible into gold
aud silver II is The quantity and not the quality
OF our currency which is here complained Of The
argument would I've the same II our whole curren-
cy consisted Of gold and silverprovideJ the amount
remained nndiminished, The object sought TO be
accomplished, is, not TO make our paper money
convertible, but to reduce the quantity of crcnat-
ing medium, until we have brought the cost of
producing and the cost Of manufacturing, in this
country, or in other words, the wages of labor,
to what is called "the real standard of pIices
throughout the world" The proposition is, TO di-
mnsh the amount of currency for the mere pur-
pose of bringing down tho price Of properly and