Whig Republican. [volume] (Lexington, Miss.) 1840-18??, 1840-12-10

dimensions. yoll viii not increase the number
Of bushels measured BY them.
a This is very evident. 10 maintain the |
contrary would be absurd.
b. Yet this is the absurdity for which Nj
Buchanan contends. Bushels are the meas
ures Of quantity. Money is the measure OF
price, and prices are not more affected by the
amount of money in circulation, than quantity
is by the number of measures of It, wLIch are
made.
A. Still, it is generally asserted that the
discovery of the gold and silver mines OF South
America, by increasing the amount of the pre-
cious metals, and consequently of the circnla-
ting medium, was the cause of the general
rise in prices which afterwards took place.
u. Asserted it has been, it is true, but for
no other reason that can discover, than, that
at about the period the mines in sonth Amer
lea were discovered, prices slightly began to
advance, and have gradually continued to do
so.
A. 1t is said that all the circulating medi-
um representing all the wealth in it, as you
increase the former, you proportionably and
prices.
b. Sheer nonsense. How does the circula-
ting medium represent the wealth, or the
wealth the circulating medium! You own a
house, farm, and owe nothing-this house,
this farm, is certainly wealth; and yet in what
49,, 80, bo no 10 a., aOraar H. 4hou ra
connected in any degree with the circulating
medium, / am at loss to imagine.
A. But still you will admit, the rise in pri-
ces alluded to did take place;-if the cause as
signed was not the true one, what wasl
b. will admit it took place in the princi-
cause of it was, demand outstripping supply.
/ A. Oh! of course that is always the cause
of a rise in prices.
b. To be sure it's, and it was SO then, and
not the discovery of the mines.
A. But still the question returns-what
caused the demand to outstrip the supply, and
20 continue so to do
b. 1t is sufficient for me to answer, it was
not the disco very of the mines, il was not the
increase of the circulating medium; and to
throw upon those who advance a contrary opin-
icn the burden of supporting it, at least by
show of argument. Were i to reply to your
question, my reply must at best be theoretical,
and theory would dismiss from the subject as
much as possible.
A. Well! give ME your opinion at any rate
b. Ny opinion is then, thai at the time OF
Due discovery of the mines, new worlds were.
ALSO discovered, improvements in znaYieat. on
were ii'roducef. omen people end other coun-
1-le- A1eEsb Brought togef6efs> consumption
was quickcned to an extent before unpreceden- !
ted. Demand of course inc reased, aud high
cr prices were necessary to produce supply
and then came besides, the Introduction of
more rational political institutions, under
whose general influence, the human mind e7-
cry where took wilder scope.
a. It's certainly but rational to suppose
hat the mighty changes which then.came over
.he face of society, had their effect.
-. have still further objections to the the
Try that the discovery Of the mines IN South
America, by increasing the AMOUNT of the cir
-uideluS neuftiul. Increased prices.
A. What are they! f
Is In the first place, it does not follow that
because the precious metals became more album
liant, the circulating medium became larger in
mount 1t certainly did not increase unne-
;essarily as Mr. Buchanan seems to think is
sometimes tie case. Money was and is only
coined when wanted. 4
a. But did not the acquisition of so much {
wealth from the mines produce more lavish
expenditure! Did not people having more
money to spend, spend more, and thus cause
ligher prices2 s
BIN the first place deny that the pro-
luce OF the South American mines increased
he amount of material wealth IN Europe. The
'apital and labor expended in mining would
ave produccdas much wealth in some other
hape; besides. those countries which obtain |
q The precious metals from Spain, and in
Yhlch he rise in prices is most perceptible.
ptained them IN exchange for wealth of an
liner description, the produce of their indus 4
~. IN the next place, It is unpllilesophicalI
9 conclude, that the sudden acquisition Of :
Wealth leads TO increased expenditure. Itmay !
a some instances, but in most, it leads. 10 6
BOARDING, and when ST does not the prudent 1
oon obtain the excessive means of the extrav. :