Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1840-02-20
From TIE WHO.


When, at the close of the general war, i'll
Europe, the Emperor Alexander looked into
the state of his Finances, he found the faith
of the Government pledged to an amount al
most incalculable. The evidences of public
debt consisted, for the most part, OF sort OF
Government paper, or Treasury notes. lat a low
rate of depreciation. This paper formed al
most the only currency of the country. The
rest consisted chiefly Of little copper coins to
which an arbitrary value was affixed, and
which answered no purpose as a basis tor the
ment testified that the Government had re-
ceived from the holder value equal to Its
nominal amount, while to him 1t was not
worth the tenth part of that value.
Kings and Emperors are SO far above the
ordinary temptations of cupidity, that they
must be very wicked or they are apt to be toll
erably honest. Honesty is the first virtue
that fails in the rulers of a free people. In a
despot it survives all the rest. The Emperor
Alexander being ''ndifferent honest" told his
ministers that this debt must be paid and
they told him that the thing was impossible.
He resolved, however, that he would do what
he could, and that if the principal debt could
not bepaid, he would at least pay the interest.
To effect this he issued uliaSe authorizing
the holders of Government paper toPay I'M
TO the Treasury, and to receive in exchange
for it, scrip for Government stock bearing in
terest, to be regularly paid in specie.
To make sure of the means of paying this
interest an specie, it was deemed necessary to
require the payment of all tareS and Gorcrn-
n.ent dues in specie, so that the circulating me-
dunn was not directly redeemable in coin, nor
receivable for taxes, but merely convertible
into stock.
The offer was eagerly caught at, for 1t at
forded prospect to the holder, of receiving
yearly, by way of interest, a sum not much
less than the whole market value of the paper
he held. The consequence was, the paper
was poured into the Treasury from every
quarter, and it seemed as if the whole would
be presently absorbed.
Now let it be remembered that the issue OF
base currency, or baseless paper, in any
community, has the inevitable tendency to
drive out all better currency, and that, where
there is enough to fill all the channels Of
commerce, the other will entirely disappear.
Sol had been in this case. The Govern
ment paper had become almost the only CIR
Culating medium of the empire, and when IL
was thus suddenly sucked into the vortex
Of the Treasury, the channels OF commerce
began to be laid bare. So many III their ca
gerness to fund their paper, left themselves
without the means of purchasing what they
wanted, that the competition among buyers
market bought at lower prices. In other
words, the market value of the paper rose,
and as the supply continued to diminish, the
value continued TO rise. Meantime interest
fell due, and it was punctually paid. 1t was
found that the stock was worth as much as a
ny other stock. There is nothing that great
capitalists would rather have than stock
well secured, and yielding regular returns of
interest; and it is the great capitalist who
as long as twas at ar DeTOw par tfrt9 uic,rf,.t
oil funding would go on, and the diminution
OF the supply would be felt more and more
The funding did go ON, and the reoular NV
ment of interest increased the cumfidcnce 3r
stockholders, till, by the compound operation
OF both causes, the paper rose TO par. AS
soon as this took place, it became obvious
that 1t was worth par; and then result dis
closed itself, by which the honesty of the
Emperor was rewarded by discovery in f.
nance tcOrM more TO Desp0fism Man nHMc mr.
mics Mat hare done tie 6id7ing IF UsurDeys anil
1yrants from Cesar to Napoieon.
What that was, and how our own rulers |
mean to avail themselves Of it, l proceed to
show.
as long as there was any difference in value
between the paper and specie, the fund-hold- l.
ers would invariably draw from the Treasury |;
their annual interest inspecie. But when the |,
paper had risen to par, and became firmly es-
tablished as d uniform standard of value. the
nducement to demand gold and silver from !
he Treasury ceased in great measure. For I
al purposes, but that of paying Government !
iues' II was no better than paper; and to s
such as did not want it for that purpose, there
vas no motive to demand the payment Of in
'eIest IN specie. The result has been, that, :
while all Government dues of every SOFT are :
PAID an specie, the amount which is paid out
d the treasury is comparatively small a