The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1840-03-18

soon increase the principal. will operate here
after in a contrary direction, and will tend to
raise, not reduce, the rate OF our foreiga ex-
changes.
These are Mr.. Buchanan's sentine n,s ;--they
are the doctrines Of the Administration,-t
an inflated paper currency i, Injurious to the
interests as we'll rs to every 9TH
er productive interest Of the country. That it
causes conv ulsions in trade, suspensions Of all
kinds of business, frequent pancs, and uuiver-
sal distress. These are truths which honest men
of all parties are beginning TO feel and aeknowI-
edge AS they were so seen and acknowledged
so long ago as 1924, both by Mr.. Clay and Mr.
Webster. The following extracts from their
speeches eonclusively prove this:-
Mr.. Clay says:
I'm casting our eyes around Us, the most
prominent Circumstance which fixes our at
tention and challenges our deepest regret. is
the general distress which psrvades the whole
country. 1t is forced upon us by numerous
facts of the most incoBtestible character. IL is
indicated by the diminished exports of navtis
produce; by the depressed and reduced state
of our foreign navigation; by our diminished
commerce by successive unthreshed crops OF
grain, perishing in our barns and barn yards for
the want OF market; by the alarming dimi-
mutton of the circulating medium; by the nu-
merous bankruptcies, not limited to the trading
classes. bu, extending TO all orders OF society |;
by an universal complaint of the want Of em-
ploy nent, and consequent reduction of the
wages of labor; by the ravenous pursuit after
public situations, not for the sake of their hon
ors and the performance OF their public duties,
but as means of private subsistence: BY
THE RELUCTANT RESORT TO THE
PERlLOUS USE OF PAPER MONEY !;
by the intervention of legislation in the delicate
relation between debtor and creditor; and, a
bove all. by The low and depressed state Of tho
value Of almost every description Of the whole
mass of the property of the nation which has.
on an average, sunk not less than abont fifty
per cent. within few years.
THE truth is. that no class OF society suf-
fers more, in the present staguatiOn OF business
than the laboring class. That is a necessary
effect Of the depression of agriculture. the
principal business Of the community. Tho
wages Of able bodied men vary from Eve to
eight dollars per month and such has been the
want Of employment, in some parts OF the I'm
ion, that instances have not been unfrequent.
of men working merely for the means Of pres
ent subsistence. If the wages for labor here
and in England are compared they will be
found not 10 be essentially different."-Mr.
Clay's speech Of 1924, as published m Niles
Register Of that date, uot 26, pages 370, 387.
Mr. Webster says:
The paper system OF England had eerain-
ly communicated an artificial value to property.
1t had encouraged speculation, and excited
over,rading. When the shock, therefore, came,
and this violent pressure for money acted a, the
same moment on the continent and in England.
inflated and unnatural prices could bs kept up
no longer. A reduction took place, which has
been estimated to have been at least equal to a
fall Of 80, if not 40, per cent. The depression
was universal and the change was felt in tn,
United States severely, though not equally s,
in every part of them. There are those. an
aware. who maintain that the events TO whicl
! have alluded did not cause the great fall o
prices: but that fall was natural and inevitable
from the previously existing state OF things. tli
= abundance of commodities, and the want of de
maud. But that would only prove tha; the el
feet was produced in another way, rather tina
by another cause. If these great and sudde
calls for money did not reduce prices. bu
prices fell. rs of themselves. TO their natura
state, still the result is the same for we per
ceve thar, after these new calls for money
prices could not be kept longer at their unnat
ural height.
About the time of these foreign events. OIL
own bank system underwent change: aud al
these causes, in my view Of the subject, con
Cured to prodnce the great shock which tool
! place in our commercial cities and through
many parts Of the country. The year 1915
was year Of numerous failures, and very con
siderable distress. and would have furnished "a
hiatt han fnr tha
gloomy representation of our condition ~hicl
has been presented. Mr.. Speaker has allude,
TO the strong inclination which exists, or Ina
existed, in various parts of the country, TO is
sue paper money, as proof OF great oxistin
difficulties. | REGARD 1T RATHER AS A vER
PRODUCTIVE CAUSE OF THOSE DIFFICULTIES
and the committee irW not fail TO obSerrc thG
there as, at HiiS moment, much The jOufeSt CON
plant Of distress precisely Where there has bee
The greatest dttempt 10 reiiere 1t by systems
paper crest. And, on the other hand conten
prosperity, and happiness are most observabl
j in those parts of the country, where there ha
been the least endeavor to administer relief
law. In truth, nothing is so banetul. so utteri
ruinous 10 all true industry, as interfering ,cii
The legal ralue Of money. or attempting 10 raj,
ARTIFICIAL standards 10 supply its place. Sue
remedies suit 'ceH the spith Of ertrdrdgdnt spec
,'tation. but they sap the uery foundation Of a
:, honest aeqaisitioa."-I Mr. Webster's speech
u 1924, as contained in Niles Register, vol. .,
u page All.
These authorities are certainly entitled to
, much consideration as any thing Nauasanse,
q has said orscan say, on this subject; and
y they be deemed inconclusive, we would ref
y hin, and his friends to many of the leading Vii