Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1840-04-06
INFLATED CURRENCY.

lilo 10 NhV oiuOld y DOA WlltllCC DIO-
coed all our national woes, according to
the organs of the locofoco party. What
makes the national treasury bankrupt p
The inflated currency, answers the Patri-
OF. Why can't we manufacture as cheap
in this country as in Germany! Because
of an inflated currency, replies Mr.. Blu
chanan. Thus it goes,---if the govern
ment officers rob the nation of millions,
the treasury is empty because of an inila-
ted currency. And if our manufactures
stop it is owing to athe inflated currency.
And if reason is required why the Sub
Treasury should pass, it is to cure an in
hated currency.
Now our readers should understand that
all this defamation about an inflated cur
rency, and the cure which the sub-treasu-
ry will effect, is only another way of say
ing that the price of labor and agriculture
al products arc too high, and that the sub
treasury scheme will bring them down.
If there is any initiation in our curren-
cy, it is in the circulation of our Banks.
But can the currency of this kind be cal
led inflated when the banks are always a
BILE TO redeem it in specie when presented
This has always been the condition Of the
New England banks. We say always, for
this was the case even when they suspen-
ded in 1887 They were then able, but
refused, to prevent their specie being car
ried off by the government and the wes-
tern banks, who would not or could not
pay specie in return, for their bills.
But the Patriot and Mr.. Buchanan still
complain that the currency furnished by our
banks is INFLATED, though they redeem
every dollar with specie when presented.
| And if it is INFLATED, please to tell us
gentlemen how much. Mr.. Buchanan has
given US some data by which we can guess
what he thinks the ratio of excess is. He
says twice over in his late reply TO Mr..
Davis, that he would prohibit the banks
from issuing any bills under ten dollars
Now every man of business knows that
more than one half of the money necessa-
ry to transact the business of the country,
is required in parcels under ten dollars
Consequently, our bank circulation would
have to be reduced one half, in order to
take out the bloat, or INITIATION, accord
ing to Mr.. Buchanan. The result would
of course be, if our banks now issue two
and half dollars in bills for one in spe.
Gle held by them-which their report:
shew to be high average-that, after Ia
king out the INITIATION complained of, the
currency, or in other words the MONEY o.
the country, would be reduced in amount
from one third to one hal, making all al
lowances for the specie which would be
distracted from banking purposes, TO sup
ply the vacancy occasioned by the with
drawal of the small bills.
But the next alarming consequence il
yet to be named. Money is the measure
of values. And if the money or curren
cy of country is reduced one quarter, o
one third, or one half, the price Of labo
and the products of the country must b
reduced in the same proportion Coul'
the people bear the change? Yes the,
could, if necessity required and if ev
cry thing were reduced to the SAME
scale. But this would not be the CASE
The prices of foreign commodities woult
not be reduced thereby farthing; Meth
err would the debts one owes but on thu
contrary both would be raised in the same
proportion as the currency is diminished
What say our readers TO this? What say
the poor man? Is he willing to work ;
day for pound of tea, which he can now
earn in half the time? What says the
young farmer who has paid for half of hi
farm and owes for the other? Is he will
ling to give up his whole farm and what he
has paid, to get discharged from what he
owes? Then, what think you all of the
INFLATED CURRENCY so much prated about
The truth is, and it should be understood
by all, that the currency of country Car
never be materially reduced without dis
tressing the poor-ruining the debtor, anc
making the rich doubly rich.