Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1840-03-02

c'Ph'e, lnsteau OF hinusSlnB II III INC pockets OF
few. We ure borrowers; be il so. 1t is better,
infinitely better, to borrow, and thus difuse capt.
tai to excite industry and enterprise than to ainass
II ~ heaps and become lenders to nations, with
milton of paupers at home.
But, sir | fear liave'dwet too long on these
matters, and will hasten to notice that tor which
chiefly rose Much has been said Of labor, and
what is 1t? may say without offence, it is u
commodity bought and sold like merchandise in
the market A man has his skill and service to
sell TO wh0nsoever will buy them, and his anxious
desire is to obtain the most liberal remuneration.
Tie Senator says the value Of it is regulated by
bank paper Not so, MIR. President, not so but
chiefly by the amount in market, and the de-
mnnd which exists for il 4: currency may howev-
er, ut times, have its influence. If the supply is
great and the demand small, then wages are ne
cessnrlly low; but if the supply he small and the
demand great, they are high. When business is
hourlslng, the demand is urgent, and wages
rise; when it is depressed, the demand diminish
es, and wages fall Hence, TOO, in countries dense
~ populated the supply is necessarily greater, in
proportion to the business, than in countries thin
MReopled. Thus we see why wages in great
Tontry, new and full of resources, like ours, are
in quick demand, while in China, where there is
vast surplus population, the market is livestock
ed, and they are low. Hence, too, it is that IN
such conditions of society we always fud the
greatest poverty, suffering, and degradation. Bank
paper is obviously not the sole chief cause
which fixes the value OF wages
But sir, let us pursue this subject little fur.
ther rs it is capable of further illustration.
There are three classes of laborers: those who
produce from the earth are agricuurists those
who convert the products of the earth into useful
forms are manufacturers and those who are ell
gagged in transporting and exchanging the products
OF the other classes are commercial These great
divisions of mankind are founded on no law but
that oicviized social existence. In our country at
least each and every person may pursue any orall
kinds of business. But experience teaches us The
necessity OF these divisions, for wool, cotton & flax
Of little value till turned into cloth but the farmer
would find it difficult TO run mill to make cloths
or to build and sail ship TO take his produce to
market From this division, too, come our mar.
kets. We must have food and clothing, and we
must obtain them 10y an exchange OF the products
of labor but we cannot exchange horse for
witch, for Joint of neut or for pair of shoes
such property must first be broken into parts, aud
this is the peculiar Office and almost the only use
OF money. Ii measures the value OF property, and
brings it into form suited to our convenience.
This is the relation which it bears to business and
no other; and, while | admit its great importance
| deny that it lies at the foundation, and is the
great regulator of The affairs of men, as seems here
TO he supposed. The friends of This b know,
assume that we have an initiation, and TINT money
rules, guides, and regulates business when, in
truth, the inquiries ought to be, first, how much
is necessary ms u circulating medium, that we may
know whether there is AN excess ; and, second,
does paper necessarily create an expansion, or I'M
necessary enlargement of the currency, that we
may sc whether it ought to be abandoned?
These matters which are assumed, are precisely
what ought TO be proved. The Senators assume
as evident truth what is not apparent. They at
hrm thai paper becomes redundant, excessive. in
Hated. But they do not attempt to establish The
fact by any proof Since the first of January,
/ lnacn nun. IN IaI
hundred millions; it may, at some periods have
rrachfi one hundred AID twenty, inclusive OF
metal and paper. Is this excessive? Has it
reached point above the urgent necessities Of
business for two years past /! lfit has, how much
is enough? Some days ago put this inquiry
distinctly 10 the Senate, and it remains and will
remain, unanswered. Fit can be proved that we
have TOO much, It is not difficult TO ascertain with
sufficient eXactness what amount is necessary. /
desire Senators 10 make known the process by
which they arrive ut their con lusons in SO vitality
an important matter. They seem to take it for
granted that there is no evil but expansion to fear
while nothing is more certain than that too small
circulating medium works out as great if not
greater injuries than one too Urge.
} We have neard much defamation nbout bloat-
ed credit, gambling aud speculation, but if the ex-
isence of all these were established AT this mo
nent by unques,ionable proof, it would have little
tendency TO establish the fact of excessive circu.
each may exist Independent OF he other.
Will the Senator maintain the proposition that
paper cannot and has not eli culaed without inf1a-
ton or excessive credits in trade generally? | 20
further, and ask him if excess is any thing more
than an occasional occurrence, growing out OF
D markets qnckened into activity by events rather
caeual than permanent? Is there ahy excess oil
paper in the usual course Of business from sound
. hanks who redeem their pnper at sight, in metal
IL is not ensy to see how excess ever exists under
= such circumstances. i can go to-day into any
f bank in Boston or New York and draw out Il dol
# lar with the same amount of paper, and that dol
C lar is as good, and will buy as much, in France Oh
# Germany us any dollar there. The paper then
d is clearly worth as much The silver for il buys
it. 1.-THE paper of hanks is maintained at this valu,
II and so redeemed ut all times, il is easy com
e prehend how i; Is Inflated that more is in cir
J. cuIaun than is needed for use. The idea of in
e fialion presnpposes some unsOundness. All mon
o ey, metallic as well paper does and will huctuat'
I, in value, and II this be lnflaliOn then gold anC
: silver ISM more exempt from it than paper. 4
rs is by no means easy to determine which fiuctuate
II ofientimes money or property. Cotton is forty
o dollars hale to-day, Tomorrow il is lhrty-five
aud next day fortyfve; it does not follow that the
f. cotton alone has fluctuaied, or that it has fucI
Il aied 1T all for gold and silver may be so album
dant rs 10 dcpress the value of property or 81
scarce as TO rase it. 1t is every days occurrence
d TO find gold and silver huctuotng in value com
:, handing ut one time premium and then none
: nay, under some circumstances falling below
IS good piper. No matter what we have for cur
n rency, there will be fluctuations in its value greatly
y affecting trade, ms circulating medium Of uniform
y amount cannot be maintained any more than yot
+ can limit business to an exact amount.
This all proves what seems lot 10 he well I'm.
~ derstood, or Senators would reason differently =
u HAT there is but way 10 determine how much
ID circulation is necessary. 1t is impossible to ascer
= tain how much money may be necessary for eacl
ut member OF the Senate for the current year, ant
" it is equally impossible TO anticipate the wants o
Dr. the great Public The question is left, therefore
to be settled by The laws of trade, aud all Other
81 mnters of hnsinrss We lcnrn how miich hnn