Lexington union., 1840-08-08
PAPER AGAINST SPECIE.

PAPER AGAINST .SPEClE,
Among thenoveltics ofpolitical econ.
omy, which the sagacily of the wings
has discovered, the proposition that
. gold and silver are no more exempt
from huctlalion than paper" stands
preemnent. We had always suppos-
ed that SPECIE was the LEAST VARIABLE
object Of value in the world, which
combined the requisites for a circula.
ting medium, and that for these reasons,
viz: durability, incorruptiblity, scarce
ness and srEADlNEss OF SUPPLY, it had
been adopted BY most nations of the
world as the measure Of value of other
commodities. We had, also, supposed
that it was this very iact--lts superior
steadincss of value at all times to all
other commodirics-that caused the
trainers of the Constitution to allow no
TENDER to BE A LEGAL OFFER OF PAY
MENT, except the tender be made in the
current coin. We did not think, too,
that this was the reason, why the char
ters Of all Banks made it imperative on
them to pay sPEclE for their notes,
rather than COTTON. TOBACCO wheat or
any other commodity.
But we suppose we must have been
wrong since the oracIes of the wings
have given different answers. Yet,with
The perrersity towhich human nature is
subject, OF to speak more 10 the mind
OF our whlg friends, to which a Demo
crat is subject.
We feel still compelled to persist in
our erroneous notions, and held these
wing NEwLIGHTs as little better than
oREENHoRNs in the science of political
economy, or no more HONEST than they
should be--whichcyer horn Of the d.
lemma il suits them to take. And, in
the first place, it will be plain 10 the
most superficialobserye that whatever
fluctuations Of specie arise, have their
origin IN the RELATIVE SUPPLY AND De
hANp. The supply is always pretty
nearly the same. The discovery and
successful working Of geld and silver
mines is not Labor fora day ora month.
But they are found only at long inter
yals and successfully wrought only BY
the application Of great labor and ex-
pense for a long period. Ofeourse the
result i, That although there may be =
difference of supply in some Two years.
yet Il you take a period Of ten or
twenty years, you will find that the
supply has only just kept about an
equal pace with the increased wants
OF civilized society, and not enough 70
produce any effect upon commercial
operations.
10 The second place, we admit that
there is an APPARENT fluctuation ii
gold and silver, besides that occasioned
by the irregularity Of the supply. ii
there be large annual product, specie
VIII APPARENTLY become more value,
while ~ truthit is o y the cLur or rHE
PRODUCT, which reduces ITS price com.
pared with specie, and the reverse y
this is true. In each case ii is the cLur
or SCARCITY Of OTHER commodities.
which makes the Dollar worth more OF
less apparently. For suppose wheat
to be worth four Dollars 4 bushel in.
stead Of one Dollar bushel, which we
will call the usual price-I'he SCARCITY
OF wheat makes the Dollar APPEAR
worth four times as much lis usual. 81
Of every other commodity, which i.
produced III its ordinary abundance i
Twill purchase no more than usual
Showing, beyond, doubt that specie re-
mains nearly stationary; while ID,
value fall other articles are CONSTANT,
changing ~ proportion to their pLrNry
lor sCARCENEss.
| Now Mr.. Biddle says, that The erea
excellence Of paper money "consists i
its ELAsTIcTrY---i.s power Of aiternat,
expansion and contraction. ."-Iftbis BE-
the fact 1t seems clear that this grea
power of EXPANSION may be extend
ed indefinitely in the spdce Of twent,
liour lNourS--.and that acohrli.,., ~, a, I.