Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-06-30

present generation to n condition of hcpele,
o,nk'uptey, and transfer Of all their accumu
suons To the Golfers of tho capt. lists. and Sus
pension of industry, involving n loss greater tina
the entire amount of the currency both metallic Az
paper-and al! this to gain whatl simply recprocl
commerce, which may be more perieclly obtainc
ny duties on imports, which shall secure to our owl
INDUSTRY such advantages in the home market, q
VIII protect cur currency from the destructive in
huence OF foreign exchange.
system vi countcrvailing duties is therefore on
only hope whilst European policy continues 1t i
| at present Let this be distinctly understood, no
for the protection OF the manufacturers but for IN,
protection OF the currency Of the nation and neccs
sary for each section, north, south, cast and west
precisely IN the proportion in which their vrriou:
currencIes ATE more or less constituted of credit.
To render this position more clear, and exhibit il
IN the bold relief its importance demands, let us ex.
anime the nature ofhs currency OF credit, ascertain
what are Its uses and benefits, and how 1t may be
broken down and destroyed.
Currency has been the topic of long and labour
cd investigation, and II may seem presumptuous TO
attempt To settle any principle in relation to it. But
II Is an important subject, and ought to be under
stood; we therefore give our views of il, in the
hope OF aiding in the settlement of the great ques.
too. Currency is that form OF capital or credit
used rs 4 circulating medium or any thing which,
IN given locality will purchase commodities pay
debts without further negotiation. This is the SIM
plest illustration Of the term. Currency is also
capital seeking investment" Capital Is accumulat-
co by labour, aided by capital; and its first form is
Il
this projuci is to he used Ivy the producer barter
cd Tor some other form Of capital each party desir
Ing to consume what he Obtains, currency is re-
CURED or used but If the producer desires 10 invest
the product OF his abour for future IN sub
stance not At hand he first converts II into currency
that It may be ready for investment when the deSir.
cd object Is presented, and whilst thus waiting in
veSiment, II remans currency. To determine
whether II Is currency or not, II is immaierial whe
Their the substance be bank notes, bank deposites,
or gold the fact that the owner desires 10 invest il,
and can do so when the object OF desire is presented,
constitutes its essential characteristic Gold boarded
not currency but capital invested Tor future
80 BANK notes and bank dcpoScS, while the owner
or holder has no desire TO change their character;
10 use them, are capital invested but the moment
the desire 10 inves: arises, they become currency
hence money or currency may be extremely scarce,
whilst the apparent amount oil money has not in any
degree diminished the desire invest having ceas
ed, the currency Is diminished proportonabiy.
The most Objectionable form Of currency IS bank
dcpoSlIes. In recod OF cOufiienre the bank hold
ing, and the party owning them, both DESTROYS
.! investing thsm and currency Is thereby doubled;
while IN period OF doubt or panic they re ,dy
at hand to be invested IN metal the object then
most desired. Bank notes must first be collected be-
fore they can be invested, aud then can only be
once invested; they are, therefore, a less objection.
able form of currency.
The currency Of the United States, with tho ex.
cCpuon of n small amount OF metal IN circulation,
consists Of bank dCposites and bank notes, or the
estimated, but one hundred AMI seventy FIVE mil
lions Of dollars is an approximation TO the truth,
ard Sufficiently corTec; To illustrate our purpose
This mass Of creci, has gown up with the nation
during the last half century. /; adds nothing 10 the
SUBSTANTIAL capita. OF the country yet u performs
al! the functions OF capital, and is gain to the ma.
ton equal to the amount Of mcnl which would be
required for is currency. Its liquidation in meta
IS an lmpossUity, and II never was contemplated 10y
the parties who issued or received il, nor can Il
mi of he I
vii! continue TO exist and perform lis functions while
confidence remains, and vii. perish whenever It's
Character IS doubted, whenever, 10 any great ex-
tent, ITS conversion into metal IS demanded. An &C
tive foreign demand for ten per ofthe currency
IN metal would AZ destroy the ccnver,ibI!ity OF
the whole mass. Uul he metal, 1t viii not revert 10
capital, ihtI being material substance always eX-
chanSeabie but viii utterly perish, leaving the
community in want Of one Of the first elements Of
wealth. currency. By "legal!zel suspensions"
or facilities" IN various forms, miserable subst
tutes may be provdcd and these substitutes are not
matters OF choice, depending upon the wi! OF the
banks or The public, but OF a6solute necessity, essen
TIA. 10 the very existence of the social compact; for
currency, good or bad, will exist.
To nation like our own, OF limited capita, and
ample room for us employment, the benefits Of
currency OF credit can hardly be appreciated and
these advantages render 10 iIe PROPOSE IT'S aban
Comment. The proposal 10 destroy onc-hunired
and seventy hve millions Of the capitol Of the nation
would be an 0bsuTd;y perccpuJle once; Ju, since
credit performs nj is functions, and has done So for
nifty years, IL Is only by falling 10 see its true rea.
ton 10 the interests OF the country thatits abandon.
ment IS advocated by those !eAy desiring the coun-
trys welfare.
Such IS the currency Of the United States
mere mass Of credit; the representative of real
wealth IN the hands ofhe debtors OF the banks which
furnish II, and rarely exceeding in amount one ha
OF the property upon which II res.s-periorminy al
the functions Of capital, and scarcely less valuable
than Ike amount OF metal ye; liable to he parayz
ell or destroyed ~ an hour 10y adverse condition
Of the foreign exchanges. This adverse condition
OF exchanges may arise from various causes. tx
cessIve importation Is the most formidable. Euro
pean wars, inducing disposition TO hoard, or the
payment oil armies, might bring this calamity upon
us, from the fact thai prefer 10 Europe an omen
Market TO which she will resort whenever she wshss
TO be rid Of her surplus, or desires to purchass
gold. From this condition il IS impossible for us
by any other process than counteryii.ing duties 10
eKtricate ourselves. Ii we abandon the system we
cannot abandon the obligations which have crown
up under II. The individual and public debt will
still rcmiin. II We denounce the banks and ruin
their credit, they have only to suspend their own
loans Of credit, and they will still. hold the obIg..
tons OF the public for three hundred and fty mil.
ions, the amount Of their capitals, TO be paid by
community without currency, which would swscD
INTO the Golfers OF the banks the entire estate Of the
nation. A.. industry would be al an end, and ",aye
Who can would be the universal sentiment Of 80.
Getty. Such condition Of things cannot be confrr1
plated without horror. i. must never be-lyt !,
will occur unless, by the .rOng arm Of avy, W. pre.
vent the lmpo"a:ionS which destroy our own indus.
tfy, aud create a balance against US. We have no
longer credit m EurOpc-a fortunate event. Our
State Stocks arc too low DO the scale Of depre
cation TO meet the difference IN exchange; and il is
Idle to suppose that by any other process we can
prevent the occurrence Of the circumstances We have
described.
The European manufacturer secure Of his home
market, salUss forth TO find an outlet for his sur.
plus which, whether a profitable one or not. is
comparatively Of lt.Ie importance. II suffered 10
remain at home, u deprscIaes the value Of hrs re-
mlinlEE stock more than IT, cost. Into the fr.t
open market II Is therefore thrust, and EXCHANGED
for gold, IT nothing better can be found. All The
COMMERCIAL world, CTccpl the United $ atcr. haze
either metallic or deprecated currency, or IN.
rii d protection; here then all centre 10 be soto
the highest bidder
Now comes the crisis in our aif iirs. The C0nsT
luton Of the United States having forbidden 20 the
States the creation Of any other legal currency than
goId or silver, and the enactment u any Ilw i'm.
pairing the Obligation OF cOn'rlc.a, the banks fad.
ing the current Of exchanges adverse e.. tr1c, the
currency this produces p.cssufc which but agcra.
Yates the cNu-pnnc cnsIcs, confidence Is lost, and
the whole fabric Of the currency falls, involving io
one common calamity, hunks, the public, md the
goveTmgnt
To demonstrate beyond the possibility Of doubt,
mat TINS IS The secret source Of the evils we endure
let as contrast our condition with that Of France 49,
frnce has population Of 30 millions; that Of The
ynNs1 SL''c7l u millions, We arc then as 30 2yr
France numerically ~ rOnt Of capital, in nuIs,
poih Tor extent and fertility IN buildings, animals,
ro'ds, canals, rtII-ryId#, snipg gc1rnHoIt. MINE