, 1841-07-24

ence in value between the currency Of this
country and that in use by nations Of whom
we buy, is, to the exact amount Of the diff.
ference, a premium 10 the foreigner agains,
ourselves, over and above all the natural
profits Of trade; hence the cause Of our pur.
chasing more.than we sell. These facts with
political economists, are mere ~truisins, and
are well understood by many intelligent
statesmen, who are endeavoring to awaken
the people to the importance Of the subject.
If we carefully analyse the distresses
which pervade the financial world, and search
into the system upon which our currency is
f,5adea, Cor Eirse rss.asal ixfrmity from which
they have sprung, we believe no intelligent
individual will experience difficulty in ira
cling them to its too wide expansions and de-
parture from the specie basis, leaving not
sufficient specie in circulation 70: the securi-
~ Of a uniform currency. This, the great
expansion and the wide introduction Of pa
per as the principal currency, for sums as
small even as one dollar, we repeat. Is the
great essential vice Of the sys,em-and it is
one to which the attention Of the country
ough, TO be directed. We are q CONNER
cial and manufacturing as well as an a~gricul-
tural people-at leastwe might be with ad-
vantage to ourselves--and the evils which
we have been and are still suffe ring, have
arisen from n policy hostile to them all, and
TO every species OF American industry. 1t
is not when considered merely with a view
to our domestic relations. that this evil in
our system presents lis worst aspect. 1t is
when we contemplate the compound relation
formed by this, in connection with our IeIa-
ton to foreign States, that we are made fu'-
ly sensible of the truly deplorable condition
that the policy hitherto pursued by US clear
ly exhibits. Our currency, except for the
small sums required for change, is composed
principally Of paper. which can and is dis
tended and contracted adii5ilum. Very lit
tie gold circulates among us. and even silver
dollars have almost entirely shrunk from the
communicating touch Of paper. There be-
ing not the slightest affinity betwee the two.
the place OF the former has been almost
wholly usurped by the latter. This paper
purports to be convertible inlo, and equal 10
specie; but the experience of the last few
years has proved TINT as an aggregate, l,
bears upon its face 4 palpable f~alsehood.--
The great expansion of the credit system
raises prices TO an unnatural height-far a.
boye what would be possible in countries
like England and France. and especially the
latter. where gold and silver form so large
a portion of the currency. The foreigner
is, therefore, by The instinct of interest. IN
duced to food this country with the product.
Of foreign industry. What avails q tariff
even a high tariff Of protection2 1t Is but {
tax upon the people OF the nation laying Il.
The unreasonable and unnatural rise OF pri
ces, more than counterveils the imports fO'
revenue. At home, public opinion f~avorlne
the paper portion of our currency remain
in the hands Of the people. The foreigner
siudious Of his interest, has less delicacy-
he converts his paper into specie, and ex
ports il. II is, truth. the cheapest commodi
~ in our market. and the dearest in his, anc
is thus rendered most prolific source o
trade. This always happens when the cur
rency is redundant. Such redundancy al
always occasions large Importaiions Iron
abroad. and the consequent export OF tn
precious matals, or debts against US, whIcl
amounts to the same thing. This effect is a
certain as the laws of nature. The expor
Of the precious metals brings with II, OF ne
cesity, a sudden contraction Of the curren
CIV. Bills run home upon the banks-price
fall-colleciions are difficult, and then. whel
our own merchants and manufacturers ar
suffering under the depression, and reall,
need additional use Of credit, lar from bein!
able 10 obtain it, they find the banks them
selves, having previously m~onoPolized an
use6 up 4 great portion Of the credit of IN
country, entering the manly market. and in
stead of being lenders, are actually borrow
ing for their own purposes, all the funds the.
can reach. These are a few Of the NOR
glaring consequences OF mistaken inancia
policy.
CONGRESSIONAL ANALYSIS.
LII, E,k tCat