Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-02-18

s,n, Vast increase of the precious metals put L
MA circulation in the form OF money, have greatly en-
oa ,ba nominal price OF all property throughout =
Ia ,-or,d Indeed ii is matter Of curious amhsc-
Nc, - contrast ,ne low prices of all articles three
.en,nrs uo With their present greatly advanced rates
III, Rank of England recognises and constantly acts
,non this principle, though often without success
Whom prices become 50 high, III consequence OF re-
ocy or paper currency and bank credits, that IL IS
- rc;,,hla ia export the precious metals from the
/ - dnn t,an lis manufactures, this bank constantly
its loans, raises the rate OF interest," ana "
duc.s ito c;rcuation with the ayowed a!cct OF reduc
inc prices to such STANDARD d. wiz ivnuer II 'ic
G,5bI t. export merchandise than bullion: II is IN this
that The Bank seeks TO regulate The foreign eX-
changes. ~,
trotions OF the truth of this position, when II has been
hrour, home TO the actual know ledge of every man
;,I7n Ills country Have we not all learned by bit
~ o,nerience that when our periodical expansions ,
commcce the price of all property begins to rise II
ocs on increasing with the increasing cNDansion unt
th hubble bursts; and then bank accommodations and
link ssucs are contracir the amount of the currency
reduced and prices fall 10 their former level Tins
IS the history Of own country, and we all kno" H.
certain anoGnt OF currency IS necessary 10 represent
III. entire exchangcable property Of country; and u
Ills amount should be greatly increased, without cor
responding increase in the cxchangeabe productions Of
hr country the only consequence IS great enhance
ment in nominal prices say nominal; because tins
increased price will enable the man who receives It
nn.ircl
,rcs and ux,rcs of life than he could have done be-
fore. 49,,
Let me now rccur to the proposition with winch
commenced; and repeat that do not pretend to MIA,
,hcms,ca accuracy in the illustration which snail
present The United States carry on trade with
GERMANY and France; the former hard money coun-
try and the latter approaching II so nearly as 10 have
no bank notes in circulation under the denomination
If five hundred francs nearly one hundred dollars
On the cn,.trary, the United States - einphatcaily
IfrIf N fraIh IN n ks nj
ssnc: all Of them emitting notes of denomination as
ow as five dollars and most of them ono two, and Three
dollar notes For every dollar Of gold and silver IN inc
vaults of these bans they Issue three four, five, and
some of them high tcn and even ftecn dollars OF
paper This produces vast but ever changing expansion
of the currency and increase OF the prices
of all articles the value of which not regulated the
foreign demand above the prices OF similar articles III
Germany and France. At particular stages oil our ex.
pansions we might with justice apply the principle
which have stated TO our trade with these countries and
assert that from the great redundancy OF our currcn
cy articles are manufactured III France and Germany
for halt OF their actual cost III this country Lrt
rne present example In Germany, where lie cur
rcncy is purely metallic, and the cost OF every thing IS
reduced 10 a hard money standard, piece OF broad
cloth can be manufactured for fly dollars: the manu-.
iaciGe Of which, IN country, from the expansion %
orr paper currency would cost one hundred dollars
What is the consequence, The foreign french or Ger
man manufacturer imports this cloth INTO our country
and sells il for a hundred dollars Docs not every per-
son perceive that the redundancy o! our currency IS
equal 10 a premium of hundred per cent. in favor
of the foreign manufacturer: No tariff OF protection
unless amounted TO prohibitions could counterfeit this
advantage in favor of foreign manufactures would
TO Heaven that could arouse the attention OF every
manufacturer Of The nation TO This important subject
The foreign manufacturer will not receive orr bank
notes in payment He viii take nothing home cXccp
:, rod and silver, bills of cxchangc, which arc cquiva
lent He does not cxpcnd this money here, where ne
wculd be compelled To support his family, and To pr
chase his labor and materials at the same rate Of r.ccs
which he for his manufactures On the COL
rarv he goes nome, purchases his laho ms WOOL aid
all other articles yc! cater into his manufacture, al
half .hcr cost in this country; and again returns 10 IN
undae us with foreign woocnS, and 10 ruin or donns
tic manufactures. might c;tc many other examples
but this, trust will be sufficient 10 draw public attcn
lion 10 The subject This depreciation Of our currency
is therefore, equivalent to direct protection granted
to the foreign over the domestic manufacturer. 1t Is
impossible that manufacturers should be able TO sus
tam such unequal competition
Sir, so!eanIy believe that il We could bG. reduce
this inflated paper bubble 10 any tI;nr ike reasonable
dimensions, New England would bceo#'c TIC :;io"
prosperous manufacturing caGmtry i!a The sun cvci
>ni" upon i!v cannot We E!ai'Gtnc!.!e goods aiiI
rs;ce.a. cotton gods, winch VII! g. ID;" sncces-iG
competition .iri Brush Manufacture II FOREIGN !:'af
kct. Have hot III" necessary capital. Have "'
no, Tx, industry: Have not Tie machinery: AHt
above al. not skill energy, anG enterprise, pro-
verbal tl:roug hout the world: Land Is also cheaper
here than in other country the face OF TIE earth
We possess every advantage which Providence can be-
stow upon us for the manufacture Of cotton but they
are all counteractrd by the folly otmGn The raw ma
lcria less than does the English, because this
is an article the price of which depends upon foreign
markets. and is not regulated by own inflated cur.
rcncy We therefore, tie freight oi the cotton
across the Atlantic and that o the manufactured article
on lis return here What the reason that with all the sc
advantages and with the protective duties, which our
laws afford 10 the domestic manufacturer, We cannot
obtain exclusive possession 81 the home market, ana
successfully contend fn the markets of the world
1t is simply because manufacture al the nominal
prices Of inflated currency, and are compelled
TO sell al the real prices of other nations Reduce our
nominal 10 the real standard Of prices throughout the
world aud YOU cover our country with blessings and
benefits | wish to Heaven could speak IN voice
loud c,ough 10 be heard throughout New England;
lbrcausr, il the attention of the manufacturers could
once bc directed 10 Tie subject their onn intelligence
and native slgacity would teach them how nIurously
they arc affected by bloatcd banking and credit svs
tenl and would enable them 20 apply the proper cor
receive.
What is the reason that our manufactures have been
able to sustain any sort of competition, even IN the
home market, with those Of British origin II Is be-
cause England herself IL, 10 great extent, paper M"
ncv country though, IN this respect, not to ne com
pared with cur own From this very causc, prices in
England arc much higher iI.n they are upon the Con-
,incut The expense Of living s there double what II
costs in France Hence, all the English who desire to
nurse their fortunes By living cheaPy, cngratc from
our country To France, or other portion of the
Continent The comparative low prices OF France and
| Germany have afforded such stimulus TO their ma
nulacturcs, that they arc rapidly extending them
selves and would obtain possessions in no small degree,
even Of the English home market, if il were not tor
their protecting duties Whilst British manufactures
languish!ng those Of the Continent are spring
ing into healthy and vigorous existence II was hui
the other day tia. extract from an English
paper, which stated that whilst the cutlery manmtac
ured in Germany rqnal in quality with the Bri.
fish, it reduced in price, that the latter would
have TO abandon the manufacture altogether
The Senator trola Massachusetts, after all eXpc
Renee doubts whether currency has been inflated
beyond the proper degree; and to prove that II has mol
been, lie says that the rates Of exchange upon Eng
land have often been below par This fact does not
tend 10 prove that our paper currency IS not inflated at
huac. Our foreign exchanges are regulated by the
specie standard Of the world not by the amount of
bank issues At home; and whether they above or
below par, depends upon whether the debtor or
the creditor nation We ought always 10 be, and would
l,, ,