Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1843-10-20
TO THE EDITORS OF TIE ENQUIRER.

The following reflections on currency are Tor your
perusa; and if, examination, they contain aught
which may interest the many readers of the Enquirer,
an insertion in your paper will oblIge the writer.
Among the variety Of things necessary to the use,
convenience and support of mankinda portion requires
but small amount of labor, and occupies but short
space for production whilst others are produced at the
expense Of very great labor, constantly bestowed for
long period Of time, thus producing al once The prac-
cablty of free and equal exchange OF labor, or the
direct product Of labor. Hence arises the necessity
for that medium designated moneys thing cons,u,
ted by law, written unwritten Possessing within
itself two functions the of value, and the
representation of value, it is perfectly immaterai OF
what money composed; whether it be of gold, silver
brass, paper, that II enjoys public faith and con
fdence, passing from man to in all contracts,
without previous stipulation; and in this way full
filling the desired end. Any thing which requires q
previous bargain does not value. For exam
Pile: buys of horse, at one hundred dollars, and
IN payment hands one hundred dollars in Virginia
Bank notes; this sum receives, and quietly placing
the same in his pocket, thanks A for it. The amount
thus passed. performs the functions of money-t has
measured the value Of the horse, and represents the
same in BIS pocket until he parts with The amount for
something necessary to his wants. But on the other
hand if A had agreed 10 give hundred dollars
for his horse and in mt had rendered one hundred
dollars Of James River scrip would refuse It, on the
ground that below par and will only take 1t for
so much as it may be worth in the market Here,
then is previous bargain and the scrip being below
necessity of being measured in turn prevents it from
being of value.
II is conended by some, that the precious metals
only should be used for circulating medium in con-
sequence of their intrinsic value-in short, the idea
prevails that they carry within themselves standard
Of value. This erroneous supposition, for they
possess nlrnscaliy higher standard of value than
any other production of labor. If the amount OF
gold and silver produced in every country and in
every situation precisely in the space OF time,
nd p,t Tho nj n la thpv
of themselves become very correct standard OF value
but il frequently happens in mining that the labor oil
few hours only will produce greater amount OF these
metals than years labor Of the character al an
other time or the annual labor Of mine will only
produce fifty nts in the dollar upon the amount
pended whilst another mine of greater value, will be
found TO yield 500 cents The dollar invested 10 labor
We can therefore, come TO no other Inclusion, than
that the value of money arbitrary value fixed by
Law or custom Whilst the value of the precious me-
tails NAV be established BY law per Trey Avoirdu-
pos weight there is yet connected with them rela
tive value which depends upon the quantity IN cIrcu-
lation given time, within given space, and limited
10 large or small amount OF articles OF trade For
example, we will suppose the State of Virginia to have
in ccu laton gold and silver amounting to FIVE millions
of dollars She raises and exports produce TO the ex
tent Of five millions 10 one year. With this state OF
things in existence, her Legislature enacs law, au-
thoriznp the Treasurer to borrow from abroad, the
credit of the Stste, five millions more Of gold and
silver and loan il TO the people, upon pledge OF their
property thus doubling the circulation of the State in
one year. If your crops remain the same, will not
prices rise ? Will not competition, by reason of this
sudden naux of apita raise prices fifty per cent? II
this advance of prices could be confined to your
ports alone and corresponding advance could thereby
be produced in the markets abroad might perhaps,
prove wise and udicous measure but, unfortunate
w. the the case for every thing partakes OF
this general advance, Foreign we'll as domestic pro-.
duce) in your markets at home, whilst no reciprocal
change occurs abroad. AS consequence, all orders
for your produce are now Withdrawn, and your own
merchants find themselves alone engaged in the expor-
taton Of the produce OF the country. When this
reaches the distant markets Of the world where has
to contend with supplies from other countries, prices
are found for the same, wholly unnfuenced by yonr
abundant crculaton-but, ON the contrary, reduced,
in degree, by reason of the withdrawal, from ois
tant points, of the Identical five millions which you
have acquired Along with this state Of things abroad,
it will be found that the general advance of prices with
Won at home. has attracted the shipment Of foreign
goods on which good profits realized, by the own
ers abroad and the forthwith Withdrawn
through means Of your redundant metallic Circulation
few short years Of such experience only, VIII De neces
say satisfy all who doubt, that the State OF Virginia
has been driving business totally ADVERSE 10 Tue pest
interests Of her people.
That Banks property constituted, guarded and re-
stricted their operations through means OF an inter
ested control and management, q mean suca control
ling power as will have deeper interest IN the
vation Of the capital Of the Bank than any winch can
be acquired through or by reason Of any speculative
profits to arise from hazardous operations,) aford
channel through which values fow from one secton OF
our country to another ESQ far they have commu-
nifty of neres,,) cannot be doubted; that they for.
nish medium better suited to distant trade and travel
we have evidence from Holy Wr-for, it IS recorded
in Matthew ch. 9Th v, that when christ sent ms
Apostles ont to preach The Gospel he said, "Provide
neither gold silver brass in your purses, nor
scrip for your journey" Scrip must have purporled
some paper medium for convenient use at distant points,
in order TO avoid the ncumbance OF gold and silver
That Banks had existence at that period, we have
proof in the same sacred book. See Luke AlA ch.,
SD v: ..Wherefore thou gavest not thou my money
into the Bank, that at my coming | might have re-
ceved my own with usury?" This was the language
of the noblemau to his servant.
will now conclude, with the hope, that have not