The Ohio Democrat and Dover advertiser. [volume] (Canal Dover, Ohio) 1839-1840, 1840-05-01

esies upon credit Under the paper sys-
TEN there are no sales for cash, but all
upon credit; either the credit given to
the purchaser for bis own note, or the
notes OfSa bank. The sale for bank |
notes was still but sale on credit. Ii,
on making purchase, give 10 pay
meni the note Of third person, il is. a |
sale on credit; and il IL the same thing
when ! give the notes ofa bank. The
transaction is delusive, il is nominally
a sale for cash, but in reality upon cred-
, IT, BY these sales upon credit the no~
minal prices Of the wages Of labor are
augmented, but not the real value of
those wages. The real value ofhis wa
ges TO the laborer, consist not in the
nominal price paid him, but in the val
ue Of that price. Thus, if one man in
a paper money country receives for
his monthly labor thirty dollars, and it
costs him in that country, from the on
haueed prices Of all the necessarles Of
lte, thirty dollars month to support
himself aad family, the real value Of his
wages is not 80 great as that Of the la
borer who may receive, in a hard money
country, but fifteen dollars per month,
and can with twelve dollars month
support himself and family; and con-
lend lhatthe expulsion Of bank paper
will enhaAce the real value ofthe wages
of labor. 1t is denied, so far as my
knowledge extends, by no writer on
Currency, ha,lupon the introduction Of
paper currency, wages are the Iast
thing 10 advaDca, and in the least pro-
portion. BY them the change from
metallic to paper currency, the real
value Of the labor Of wages, 10 depres--
sec; aod ii ihIs be 50, how can il injure
the laborer to return from paper to a
specie curretcyl The reason given by
some for this relatively slower and small
:. ler advance in the wages oflabor upon
tho Iu,roduet0n OF paper currency ls
this: that he cepitallets who employ La
borers, telng fewer in number, and more
! wealthy end powerful, can more readily
. combine Ia prevent a rise in the wages
3 of labor. But, although this might have
> some sIigh, Temporary etfec, upon the
8 first intrd dductlOn Of bank paper in coun
a llry, il appears 10 me wholly insufficient
n to accoun. for the general and perman.
an. prevalence Oitbls great principle.
The true reason for The rule appears 10
me 10 be bis: that the exIstence Of only
"a specie currency in any country increa
.es most n that country the amount Of
and demand fol labor, by creating mar
kets for ils product, both at home and
abroad. The amount flabor mus! de-
: pend upon tho markets for its products
These markets are first the foreign, and
secondly the domestic market Let US
, examine the ELECTS 0! paper currency,
frat as regards the foreign market This
currency enhances SO much the cost OF
producing and manufacturing in the
couutry where it exists, as 10 decrease
the amount of its exports, and, also IL
diminish the profits from the sale ofthese
exports, and, Gis0, 10 dlminish the prn-
its from lhs sale of these exports, in Q
foreign matkst. With an expanded pa
per CURRENCY, will any one contend thai
we can export, at profit, any article to
any hard money, country, whose soil y
climate permit il 10 raise or manutac-
1 ure the sutDo article; aud in felaiIon to
! Ill ar,ic Ies ~hich cannot be raised in 4
country with specie currency. and
!, which We do export there, cur profit on
those exports are greatly diminished,
by the increase of expense Of raising
them in paper money country; and thus
also, subjecllng US to the hazard OF be-
ing driven out of the market, or under
, sold by other hard money cou,ries, rails
ing and selling abroad the same spe-
, cies Of exports produced at a greatly OIL
minished expenditure. Thus The effect
Of paper money system here, is clear
. ly to diminish exports, aud to decrease
, the profit of all We do export. Now
what is the effeot Of the paper system
upon the domestic market? II is TO de-
prive the domesG2 producer aud man-
ufscturer cyan o! the home market; TO a
/ gree; extent, and thus diminish the a.
mount of the products Of labor. Thus,
. under our paper system, countries hav-
f ing better currency, and manufacture
6 ing at cheaper rate, are enabled, even
: in the face Of high ,arilfs, TO monopolise,
\ or nearly so, even the domesiic market,
= for most of the important articles Of mar
!, ufacture, which they could not do, if we
. had only a specie currency. Nay more,
England first purchases here, for in
=, stance, the article Of cotton, paying q
q high freight and insurance abroad, ant
= a considerable duty upon the import O.
the raw material. She sends, then, tht
y manufactured cotton goods into hi:
!. country, paying new freight and insu'
!, rance, and new and heavy duty upor
the import hero, and uudersel's the A.