Lexington union. (Lexington, Miss.) 1838-18??, 1840-12-26


NH for labor IN such country ia diminished
fn%onsequcntly the wnges of the laborer re-
'uc\ while the price OF every article ofconsump-
ton measured by an inflated paper standard.
liza Nntry having an exclusive metallic curen-
cytheyverse is true, for the cost Of producing
beng leunder such asystem, favorable market,
boil folgn and dome'tic, is opened to it's pro-
duct; Y increases the demand for labor, and
consc'uefy the reward Of the laborer will pro.
Acknowledgements, while the price Of all att
Giles oi'onNption, being measured by specie
measure arNuch less than in a county having
an inflated per currency.
EHcHANoE''There is, perhaps no term in the
whole hnancil vocabulary that is more fire.
qucntly used ah less understood than the term
exchange. lgnnrce ofihe real meaning Of this
word when used y a financial sense, has led to
many erroneous cpchsions as to the true causes
that have influence Exchanges 20 our prejudice
aud consequently \s TO what policy should be
persuei by State \ iation TO ensuIe the cor
reclion and regula'iN Of its exchanges, from
the uniavorabIe state (which considerable losses
are sustained.
II the people in one tate or nation are com,
pellet to g'@a greateHmount Of currency for
the right to receive Stipulated amount Of the
same kinl of currency itanother state or nation,
exchange is then correc,l, said to be in favor OF
the latter State or nation and if they can obtain
this right for a less amour exchange is said to
he in favor of the former
The political retailer. ofthe bank party, who
profess a thorough know edge Of this subject,
dogmatically assert that tothe establishment Of
q United States Bank alon, are we to look fol
the equalization and regulation OF exchanges be
tween the different State ofthe Union, and thai
the destruction Of that intuition ia the sole cause
why exchange is nganstthe south. An exam
nation into this subject will however, convince
every mind that is not DO benghted by preju
dice to view things as icy really are, that thu
is an error, arising from misapprehension o
the meaning Of the term under consideration, o
a misconception of the relation OF cause ant
effect. A State or na,pn can only draw bill
on another to the amount Of the precious metal
or other commodities of intrinsic value that il ha
RENTED thilher, unless indeed they be accommo
dation bills which from their nature are ever at
considerable advance hence exchange will eve
be against the South until il shall be able TO ex
port commodities of some sort or other TO al
amount more than sufficient to pay its foreigI
debt No State or nation having foreign deb
suspended over it eau by the agency OF bank
OF any KIND, turn exchanges in its fayor-lt
contrary to the lava Of trade.
Should National Bank be established il mu.
necessarily be founded on Norlhern and foreig
capital, and as the great centre Of the system
would be located in come Of the eastern cite:
there would be n contiaual drain ththerward
hence the establishment of such an institution
would give the South no other means for III,
fertilization Of exchanges than accommodation
''i'ls which h..xs Lefilla siaIAd--~-i.---
at an advance. How preposterous then 10 it t
suppose that the people of the South can turr
exchanges in their favor by any other means II al
by the establishment Of such a rigid system o
industry and economy rs will enable them tc
pay their foreign debt and create balance o
trade in their favor.