Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-02-24

u 70 oe diminished or augmented by the greater or
number or productiveness of mines and thus their
gfegate value relatively TO other commodities is a
10 perpetual change The influence of these facts up
r prices, upon public aairs and upon commerce, vi
Is pie in all The financial history of modern times.
= BESIDES winch, pin is subject 10 dehasemen TO
MADE legal tender at rate exceeding lis actual vau
ny Inc arbitrary act of the Government which contrc
us coinage and prescrbes It's legal value. In tim
when The uses OF paper currency and Ct public stock
were not understood or not practsed and communiti
mao not begun TO resort TO paper symbol nomin
representative OF money capable of being fabricated
wi the adulteraiion OF coin instead of was is
q known, the frequent expedlent Of public necessity
public cdpidty to obtain relief from some pressing
mary embarrassment.
? Moreover the precious metals, though of less bul
III proportion 10 their value than most other commod
lies, yet cannot he transported from place to pac,
without cost and risk coin subject TO be soic los
and IN that case cannnt easily be identified . 10 b
iecla'heu; the continual counting OF IT large sums
Inconvenient; it would be unsafe, and would caus
much money to remain idle and uniruitful il every
chant kept constantly hand sum coin for all hi
Fl transactions; and the displacement of large amounts
coin, It's transfer from community country
another, is liable to occasional fluctuations in the yalu
Of property and labor, and TO embarrass Commercial
operations And there necessity, that, for each
every commercial transaction between two individual
or two communities, there should be transfer of coil
from one TO the other to make payment therefor TIN
mutual dealings of all the members Of the community
or oft~o separate communities, WILL TO certain degre,
produce state reciprocal Indebtedness, the indebted
of the one balancing less that OF the other
and the only of which needs TO be paid in coin
And TO release individuals and Governments from thu
inconvenience attending The continual personal cuslo
dy and handling, and the unnecessary transportation o
specie from one place to another, bills OF exchange
banks and other establishments for dealing bills and
money, and receiving money in deposlte and for the
adjustment Of and other accounts by bank
info nd hac,
fixed ingredients in all the monetary operations of the
modern civilized world.
Bills of exchange, it is obvious, though performing
the functions of medium of exchange, like money,
are not money. They are for the most part, and in
their proper use, only the representatives of the
ney of the value of the merchandise on which they
drawn; and in this respect they Of such
yersally admitted utility as 10 render certain their con-
tinued employment in the business of society.
Bank credit, checks, or bills though they also per.
form of the functions Of money, and constitute
circulating currency, are not money. They are no
thing but promises or orders, for the payment of money
according to their tenor. And whilst paper, actually
and truly redeemable in coin demand, is not money
still less is that paper in any money which, whe
Their proessedly or not, s yet in point Of fact not
deemable in coin on demand
Bank paper, if stand a solid specie basis, has cir
culaton by reason Of its convenience, and IFS being
therefore preferred TO the coin itself This preference
may continue TO exist so as to have the effect of keep
ing suspended in circulation at all times certain guam.
ty of the paper and TO free the bank from the necessity
of retaining always on hand amount of specie equal
TO the amount of paper issued And thus cheap me-
dunn of circulation is supplied in place of dear
And if the redemption Of its bills be continually
forced, and the prudence of its conduct necessarily
tested and secured, the operation useful the
community as we'll profitable one to the bank.
But in this way the bank acquires the faculty, not
indeed Of creating value, but OF creating at will that
which commands value. 1t is tempted by the cupdity
of gain expand its issues The redeemability in coin
set forth the face of it's ZONES to be fiction
or falsehood If ~ TO go on, or lie Country see
yerenty acquesce in il, the gradual expansion OF Inc
currency stimulates 10 an artificial excitement IN bust
ness property in nominal yaluei II 10 quickly ex-
changed for that which has intrinsic value; and
every thing wears the aspect ofhgh prosperity until the
bubble of inflated paper circulation bursts throwing all
the currency into confusion suddenly reducing prices
arrestlng business and filing the community with bank
ruptcy and distress.
Hence, il be needful to leglslate concerning the
coined standard of value, equally and for the same
reasons needu to egslae concerning that which takes
its place performs its functions augments ITS nomlna!
quantity affects its value, and acts potentially on all Inc
relations of labor and property II is idle to forbid IN
dyduas 10 coin money, if they be left to make at will
that which usurps all the Of money And, &C
cordingy in those countries where the issue Of paper
10 circulate as money exists, it exists by permission and
under regulation of Government.
And il speedily becomes Government question in
another and still more important point OF view 10
issue paper hayng currency money, in fact TO bor-
row money, and command commercial values at will.
WHY, then, should individuals or corporations have
the exclusive enjoyment Of this withdrawing power
WHY should Government itself participate IN 1t, or
take il to itself, 1t has done BY the issue OF DIS
of credit or assgnas has, under the pressure Of war
and foreign invasion, absorbed all the labor and proper
~ of the community for public uses.
There is no difference in principle between bills not
redeemabe in SPECIE issued by the Government Tor CIR
thf.
cuation currency and similar DIS issued IN lc se
way by corporations by individuals, except that Co.
yernment may have the power TO make them forced
LEGAL tender Nor is it material if they be not actually
,edeemabe SPECIE whether they be issued on ana
credit only like the common promssory notes OF ndv
duals or whether they be nomnally secured by the
nledpe of lands or effects set apart for their redemption
In either case such bills constitute act OF borrOntng
not an emission of money In both cases. the course oil
hnrs is the same, whether they be issued on puoc or
private responsibility They continue to have currency
as money, long as, from ignorance, inadverance OF
necessity, men voluntarily receive them But, IN,
der the most favorable circumstances possible, ana
when such bills issued upon the highest conceivable
credit and though Governments Inculcae ana commu-
niles believe that the bills are equal in value 10 conn.,
still they speedily begin to undergo gradual
on ;ndcated in the rise of the comparative prices OF
The precious metals And, in general, OF all such issues
The fate is the same, depreciation in value TO greater
r loss extent sometimes absolutely 10 nothing, having
Tho effect 10 impose and levy tax on the community,
n abstract from property or labor without compensa-
,,on nearly 10 the total amount OF such depreciaon
There have been, and may more be, occasions
imposing upon the Government the indispensable ne.
cpssty of resorting to such means oil obtaining re-
sources as the only possible to maintain It's nde'
incidence or existence. In such cases, government
representing the political unity and welding the phy'
cal force Of the nation has the rig ht 10 take the pro-
perly or the labor of individuals for the salvation OF all
and the question of the form Of taxation IN when inns
shall be DONE whether by the forced course OF paper
currency, or otherwise, may be reduced to a mere
problem of expendiency or praclicablty, But, IN
every such operation the premises are case Oh over
wheiming public necessity
But there can be no such considerations TO Justii!
governments in allowing private individuals or corpo
rations TO issue irredeemabe bills TO circulate as mo
new and thus to extor tax from the community, 'o
,he nurposes of mere private gain. 1t is conceded tina
individuals ough, not to aduteratc the CON- or ias'ly
its denominations for which reason The COZ" rs, pace
under the safeguard of the public authority ne Iea
son is greater for subectng the issues OF paper cur
rency to public authority, because the sx re, ., Int
possible evils is greater and the nature OF 'e enee, o,
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