Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-05-07

University ofilrginia he refers 10 this estimate Of NJ
Gaatins, and expresses concurrence Of opinion as
to the amount Of gold and silver used as money in
Europe and America MIR. Gaatin was, you know
formerly Secretary Of the Treasury, and universally
considered of great abilities, especially upon sub
jects connected with the currency
The currency of Great Britain estimated at seventy
millions sterling; of which Mirty.four millions sterling
specie Nearly half of her currency is therefore
composed OF the precious metals. The Bank of Eng
land issues notes of lower denomination than five
pounds. The Bank of France is allowed to issue no
notes under hive hundred francs, equal 10 about nne
y-ihree dollars OF our money, and the Bank of Havre
none under two hundred and fifty francs France has
specie currency OF EUe hundred and eighty millions of
dollars. The bank notes of France are of higher dc.
nomination than those Of Great Britain hence the for.
mer country has much greater supply of specie than
the latter and suffered less from expansions and con
fractions obank paper You recolect that about esh-
teen months ago much specie drawn from the
Bank of England, that suspension of specie pay
ments apprchended, and TO avoid this alternative
she was compelled TO borrow several millions of spe.
Gle. Where it obtained' In France country
which some Of your political associates consider or
Two centuries behind the age upon the subject of cur
| rency.
Great Britain has no small bank notes-no shinplas.
erS and hence she has larger stock of gold and silver
than the u s., and her currency is stable than
ours. The several States of the Union have acted
inoscreetly in establishing banks and al-
nearly TO have banshed specie from circulation. BY i'm
greater restrictions upon the banks, and by prohI
ong the circulation of small notes. specie will be more
abundant and bank cease to he fashion
aoie, so cemoralzng and runous. If paper money be
used US substitute Tor metallic money we cannot ex-
pect the latter will remain in circulation the cheaper
currency will inevitably dspuce the more costly one,
which is rapidly exported Withdraw small bank notes
from circulation, you then create demand for specie
which fills up the vacuum. If The Federal Co.
NJ nj rIll yt
and ultimately collect the in specie demand
will be created for the precious metals. More specie
will come to the u 5. and remain here AS your friend
MIR. Tyler said in 1919, "The demand for specie thus
Produced would have the beneficial effect of ntrodu-
cling more of into the country; for money like every
other article, and will find its way to the market where
il is most wanting.
The precious metals are not merely the sign of
wealth. They possess an intrinsic value, arising from
the cost of their production and their for other pur-
poses than currency Paper money never can add any
thing directly to The wealth OF a nation. 1t is used as
substitute Tor the precious metals which having an
intrinsic value, may that account be advantageously
used for other purposes. The augmentation of paper
money beyond the amount of the valuable metals
which il displaces, produces wealth If the paper
circulation should at any time be doubled, without any
increase of the of circulating medium, the nom
nal price Of every article will he doubled but the cur.
rency will be deprecated.
Paper money and prosperity not Synonymous
And an increased paper circulation is often very per-
nicous In 1924, when Mr. Clay contendcd that The
country was suffering almost without parallel, Mr.
Webster, speaking Of relief to be gained by the is
sue Of paper money, SAID
"The committee will not fail to observe that there is,
this moment, much the loudest complaint OF distress
precisely where there has been the greatest attempt 10
relieve it by systems of paper credit, and the other
hand, content, prosperity and happiness most OBJ
sersable in those parts of the country where there has
been the least endeayor to administer relief by law
in TRUTH nothing so banefu utterly ruinous to all
true industry as interfering with the legal value Of
money, attempting TO raise arlfrial standards to
supply its place Such remedies suit well the spirit
of extravagant speculation, Int Mey s0p Me rery o
dution Of all honest acquisitions.
Again. in a speech delivered in Congress in 1889, he
said:
"Of all the contrirdnces for cheating the laboring
classes Of mankind none have been efcctua than
that which deiHdes them with paper money. This is
the efectual of inventions to fertHi-c The rich
mans field by The snsat IF The poor mans bro~. Or
binary tyranny, oppression, excessive taxation, these
bear lightly on the happiness of the community CON-
pared with fraudulent currences and the roberries
mned by dfpreei1ted paper. Our o'cn history has re-
corded for instruction, enough, and more than
enough of tue demoralizng tendency, the injustice and
intoer oppression, the viruous and well dis
posed, of degraded paper currency, authorized BY
law, or in any acay rountenanced by Government.
IL be continued