The spirit of the age. [volume] (Woodstock, Vt.) 1840-1844, 1842-03-18

merca or political, foreign or domestc as may
be readily illustrated by reference 10 the ordinary
action Of foreign exchanges ON such currency. For
this purpose, let us assume that our circulating me-
dunn, when exchanges are easy ,amouns 10 $780,
coo 900, consisting it does, Of convertible hank
paper. Let us suppose that 1t is all issued by
what are called sound specie paying banks, with a
circulation of three dollars ofpaper money for one
in specie, which is regarded as constituting sale
banking, Next, suppose exchanges abroad turn
against us, TO the amount Of $4,000, 600. Is it
not clear, tina. instead Of reducing the circulation
! by that amount that is, to $50, 100000, whichit
would do if it consisted only of specie, i, would be
reduced three times the amount; that is, to $780,
OO0,OO0? Let usnow suppose the exchanges 10
turn the other way, from this pount Of depression,
and to be kept flowing in that direction till it camo
TO he s 600, OOO in our favor, instead that a.
mount against US. The result would be, under
the operation Of the same law, not TO increase our
circulation to ITO, 1000. COO only, which would be
the case ii consisting Of specie, but to $Sl30,0O0,-
900; making Il difference between the extreme
points Of depression and elevation of $50 900, 900
more than equal TO one half orthe usual amount
OF circulation by suppOsilion, with corresponding
increase Of prices-instead OF 800 000, 600, equal
only 10 u fifth, and with but proportional effect
on prices. A change the other way, from the e1-
IRENE point Of elevation to that of extreme depres-
sion. would cause the reverse effect. hold it GER
tain that no honest industry, pursued with the view
to moderate and steady profit, can be safe lin the
midst of such sudden'und VIOLENT vicissudes-vi-
ciSsudes as from Summer 10 winter, and from
winter to summer, without the intervention of fall
or spring. Such great and sudden changes in the
standard Of value must be particularly fatal with us,
with our moderately accumulated capital, COM
pared to the effect on the greater accumulation u
broad in older countries. In stating the case sup
posed, have assumed numbers at random, with
out pretending to accuracy as applied to our coun-
try, simply TO Illustrate the principle. The actual
vibration may be greater or less than that supposed
but in every country where bank circulation pre-
walls it must be greater, just in proportion TO the
extent of its prevalence,
For this diseased state of our currency, there is
but one certain remedy-to return TO the currency
orthe Constitution. Read that instrument, and
hear what il says. "Congess shall coin money
and regulate the value thereof; no Stale shall emit
bills Of credit OF make any thing but gold and sill
yer u legal tender" Here are positive and mega
tive provisions; grant ofpOwer to Congress. and
limitation Oh the power of the states in reference
to the currency. Can you doubt that the object
was to give Congress the control of the currency?
What else is the. meaning "lo regulate" the value
thereof! Can YOU doubt that the currency was IN
tended to be specie' What else is the meaning "tO
coin moaey?"Can you doubt ,on the other hand that
il was the intention that the States should not SUI
percede the currency which congress was authorized
to establish What else is the meaning of the pro-
visions that they shall not issue bills of credit, or
make any thing but gold and silver legal tender'
Can we doubt, finally, that the country is not IN
the condition that the Constitution intended, us far
as the currency is concerned' Does Congress in
point Of fact regulate the currency, No. Does it
supply Il coin circulation! No. DO the States, in
fact, regulate IL Yes, Does it consist Of paper, is
sued by the authority ofthe States' Yes. Is ,hiS
paper, il effect legal tender! Yes; it has cxpcl.
ed the currency Of the Constitution, and we are
compelled to take it or nothing. Well, then, as the
currency is in un unconstitutional condition, the
conclusion is irresistible that the Constitution has
failed TO effect what it intended, as far as the cur
roncy is concerned; but whether it has failed by
msconstructOn, or the adequate provisions, is not
yet decided Thus much, however, Is clear; that
il is through the agency of bank paper, that it has
failed, and tho power intended to be conferred on
Congress over the currency has been superseded.
But for that the power Of Congress over the cur
rency would have been this day in full force,
and the currency itself in constitutional condition.
Nor il it less clear, that the Constitution cannot be
III
remains; and this presents the grea, question, how
can il be removed | do not intend 10 discuss il
on this occasion. | shall only say, that the t,s; Is
one of great Gecacy and diculty, requiring much
wisdom and caution, and in the execution Of which
precipitation oughto carefully avoided ,bulwhen
executed them aud not til then, shall we have the
solid, stable, and uniform currency intended by the
Constitution aud which is indispensable, not only
10 the full success OfOur manufacturers and all 9TH
er branches of productive industry, but also on the
safety Of our free institutions.
The next indispensable slept secure to the man
uGciures the foreign market, is low duties and light
burdens on productions; yes, Us low and light rs
the wants OF the government. will permit. The
less the burden--the lreer and broader the scope
given to the products Of our Lanuaclures-the bet
ter for them. Above all, avoid the renewal Of the
protective system. 1t would be fatal, US far as
the foreign market is concerned
Its hostile effects ! have already shown from the
table ofeSports; and shall now, by few brief re-
marks, prove that it must be so. Passing by other
reasons shall present but one, bu. ,hnt one deci-
sive. 1t has been shown that the effect of the pro-
tcclve SYSTEMS to expand the currency in the man
ulacturing sections until the increased price of pro-
ducton shall become equal 10 duty imposed for pro-
lection, when impoilaiono Unprotected articles must
again take place. that is TO say, that its effects are
10 enable foreign manufacturers to meet ours in our
own country, under the. disadvantage of paying
high additional duties How, then, with that re-
suit would il be possible for our manufacturers TO |
meet the foreign fabrics Of the same description a.
broad, where there be no duty to protect them'
There can be no answer. The reason is decisive. |
do not wish, in what have said, to be consider
ed the edvocac Of low wages; and agree that the |
higher the wages the stronger the evidence ofpros-
perty; provided (and that is the important point)
they are so na,uray,by the effectiveness Of indus
try, and not in consequence Of IN inflated currency
or any other artificial regulation. When say the
effectiveness Of industry, mean to comprehend
whatever is calculated to make the labor Of one
country more productive than that of others.
take into consideration skill, activity, energy, in-
veniion, perfection Of instruments and means, me-
chanical and chemical abundance ofcaptul natural
and acquired; facility Of intercourse and exchanges,
internal, and external in word whatever may add
TO the producliyeness of labor. High wages, when
attributable to these the certain evidence Of pro-
due,ivencss, and is on that account and that only
Tho evidence of prosperity II il easjly understood