The Madisonian., 1840-02-15

further as IL il capable al iurther husHaHo"'
There are three great classes OF iaoo'efs'
those who produce from the earth are asneu'-
turisis; those ho convert the products oi 'pe
earth into useful forms are manufacturers
and those who are engaged 40 transporting anu Z
exchanging the products OF the olner Glasses
are comr ercial. These great divisions oi
mankind are founded on no law but that oil cl-
vil,zed. social existence. La our country ut
least, each and every person may pursue any
or all kinds OF business. But experience
teaches US the necessity of these divisions, for
wopl, cotton, and fax are Of little value till
turned into cloth, but the farmer would find il
difficult 10 run mill 10 make cloths, or to
build and sail ship TO take his produce to
market. From this division, too, come our
markets. We must have food and clothing,
and we must obtain them by an exchange OF
the products Of labor, but we cannot exchange
horse or watch for joint Of meat or ior
pair Of shoes such property must first be bro
ken into parts, and this is the peculiar ofhce
and almost the only use of money. IL mea-
sures the value of property, and brings u into
a form suited 10 our convenience MS Is the
relation which bears TO business, aud no
other; and, while | admit its great impor-
tance. deny that il lies AT the foundation, and
is the great regulator Of the affairs Of men,
seems here TO be supposed. The friends Of
this bin, know, assume that we have an in
fl,on, and that money rules, guides, and re-
guaies business; when, in truth, the inquiries
.onght to be, first, how much is necessary as a
circulating medium, that we may know mhe
ther there is an excess; and, second, does
paper necessarily create an expansion, un-
necessary enlargement of the currency, that
we may Judge whether it ought to be aban-
doned !! These matters, which are assumed,
are precisely what ought 10 be proved. The
Senators assume as evident truth what is not
apparent. They affirm that paper becomes
redundant, excessive, inflated. But they do
not attempt tu establish the fact by any proof.
Since the first of January, 1888, our clrcula-
ton has not much exceeded one hundred NIL
lions; 1t may, at some periods, have reached
one hundred and twenty, inclusive of metal
and paper. Is this excessive Has it reached
point above the urgent necessities of busi-
mes Tor two years past II it has, how much
IS enough Some days ago put this INQUIRY
distinctly to the Senate, and it remains, and
will remain, unanswered. Ifn can be proved
that we have ton much, it is not difficult to as
certain, with sufficient exactness, what amount
is necessary. | desire Senators to make
known the process by which they arrive at
their conclusions in vitaly an important
matter. They seem to take il for granted
that there ls no evil but expansion to fear,
while nothing is more certain than that too
small circulating medium works out as great
II not greater injuries than one too large.
We have heard much defamation about
boaied credit, gambling aud speculation, but
II the existence Of all these were established
at this moment by unquestlonable proof. il
wonid have little tendency 10 establish the fact
OF excessive circulation, for they have no ne
cessary connexion, but each may exist inde-
pendent of the other.
Will the Senator maintain the proposition
that paper cannot and has not circulated with
out imitation or excessive credits in trade ge-
neray! go further, and ask him if excess
IS any thing more than an occasional occur
renee, growing out Of markets quickened into
activity by events rather casual than perma-
nentl Is there any excess Of paper in the
usual course of business from sound banks
who redeem and are able to redeem their pa
per al sight, dollar for dollar, in metal Ii is
not easy to see bow excess ever exists under
such circumstances. can 90 to. day into any
bank in Boston or New York, and draw out
dollar with the same amount of paper, and that
dollar is as good, and will buy as much. in
France or Germany as any dollar there. The
paper, then, is clearly worth as much as the
silver, for ii buys ii. If the paper Of banks is
maintained at this value, and so redeemed at
all times, it is not easy to comprehend how it
is inflated, or that more is in circulation than
is needed for use. The idea Of initiation pre-
supposes some unsoundness. All money,
metallic as well as paper, does and will flpc-
tuatc IN value, and, if this be initiation, then
gold and silver is no more exempt from it
than paper. Ii is by no means easy TO deter
mine which ffuctuntes oltentmcs ---moncy or
property. Cotton is forty dollars bale to-
day, Tomorrow il is thiry-ive, and next day
forty five; it does not follow that the cotton
alone has fiuctuated, or that it has nuctusted
at all; for gold and silver may be so abund
ant as to depress the value OF property, or so
scarce as TO raise it, 1t is every days occur
renee to find gold and silver huc,uating in
value, commanding at one time premium
and then none nay, under some circum-
stances, falling below good paper. No mat
ter what we have tor currency. there will be
fluctuations in It's value greatly affecting trade,
as circulating medium Of uniform amount
cannot be maintained any more than you can
limit business to an exact amount.
This all proves what seems not to be well
understood, or Senators would reason differ
I enly-that there is but one way to determine
how much circulation is necessary. 1t is i'm
possible 10 ascertain how much money may
BE- necessary for each member Of the Senate
for the current year, and IT is equally impossi-
BILE t. anticipate the wants the great public.
The question is left, therefore, to be settled by
the laws oitrdde, as all other matters of busi-
ness. We learn how much -four and corn
nre rennlred annually hv the dntnand Cor