Mississippi Democrat. (Carrollton, Miss.) 1844-18??, 1845-02-19
Some remarks on the Paper Money Sys.
tem-IS erl effect on Commercial Ope-
rationS--HS inutility.

The commerce and industry of the country,
however, it must be acknowledged, though they
may be somewhat augmented, cannot be altoge-
Their so secure, when they are thus, as it were.
suspended upon the Decadaian wings of paper
money, as when they travel about upon the so.
lid ground of gold and silver. Over and above
the accidents to which they are exposed from
the unskilfulness of the conductors of this paper
money, they IRE liable to several others, from
which no prudence or skill of those conductors
can guard them.-(ADAM SMITHS wealth. OF
NATIONS.
The capital of Louisiana is the most
important commercial point in our Union
there are few equal to it in the world.
1t is not stretching the imagination very
far TO believe that in the course of not
many years, it will actually exceed any
other on the globe. Our export trade is
now the largest and most valuable in the
Union. Ii will scarcely be matter Of
surprise, then, that all questions affecting
commerce will receive deep attention
from the trainers of the new Constitution,
and that none will be more maturely con-
sidered than the system of paper money,
now wound up in every operation of COM
merce, and vitality affecting every move
ment of the mercantiie world.
Having shown that paper currency, no
matter from what source it may flow, is
forbidden by the National Constitution, we
will offer some remarks to prove that this
restriction, if it were suffered to prevail: in
practice, would be more beneficial to COM
merce, than any other governmental regu-
lation that could be devised and this chief
ly as the intelligent reader will at once
perceive, because the effect of such re-
strlction, if enforced, would be to leave
trade in state of freedom, and to shield
the great mass of the mercantile commu-
nifty, and of society, from the grasping
rule OF a monopoly, such as paper money,
as system, must always be.
OF all commodities the value is determi-
ned by the amount of labor necessary to
bring them info existence, equal quantities
of labor producing equal value: as money
is that commercial commodity which, for
the sake of convenience and facilitating
division of labor, we employ as a standard
to measure the value of all others, it is
difficult to imagine how any can be brought
to believe it alone does not require this
quality which labor alone imparts; but
paper money not being created by labor,
can only be kept up to its nominal value,
by two circumstances: first, It's amount
must be limited second, ii must be made
a legal tender, either directly by positive
enactment, or virtually, by being received
in payment Of dues to the State, for taxes,
&c. The first of these conditions, it is
clear, can never be attained or secured
while the issue of paper money is in the
hands of companies whose only object is
to make profit for stockholders. In such
circumstances, individuals having an inte-
rest opposed to that of the commercial
community and the people at large, 60
vern the amount Of the circulating medi.
UNI, which will therefore rise and fall, and
ffuctuate with the views entertained by the
managers Of the banks of their own inte-
rest. This interest of course will be TO
have the greatest amount possible of notes
in circulation, for without this there can be
no profits, and the extent to which the is
sues are pushed will be limited only by
fear of insolvency, and not always by
this, as the last few years have shown
Such a control Of the circulating medium
cannot but be hostile to the commercial
regularity and prosperity, and we fnd that
when the amount of bank paper is small.
est, and so the profits Of the system least
the stability Of business affairs is greatest
All paper money is essentially the same
though in various societies, assuming vari.
Gus forms; sometimes issued by States
sometimes issued by corporations Oh
companies; but always equally destruc.
tive to legitimate commerce. The expe
rience of one hundred and fifty years. in
America, and of centuries in Europe and
Asia, shows this to be fact. Is is no
time then 10 reform? 1t is far from oul
purpose and ability, as it is equally far be
yond the space we must occupy, to give
anything like a review of all the relation:
and effects of paper money. All, we be
lieve, are now convinced that without pa
per money we would have escaped those
commercial revulsions which have in tht
last few years desolated society and almos
produced revolution. These evils are now
matters of recorded history; but it woulC
be the part Of wise Convention to pre-
vent their recurrence, by Graduating thei
cause.
We deem it necessary, before conclud
ing, to notice one argument, the most pro
minent which is employed in support 0
paper money, and one which is general.
deemed valid, by those who have atten
lively considered the subject. 1t is, tina
":here is not specie enough to carry OF