Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1846-02-18

quantity will. Of course, greatly increase
Then prices will rise. Money beinl
plenty and cheap, ARTICLES Of consump
tion will seem to be. scarce and dear
Debtors will be enabled to- discharg'
their debts by payment Of less than thei
real amount. Creditors who have part
ed with property for a price TO be PAX
IN instalments, will find the price, whei
paid, to be far less than the fermer yalns
Of the property. Speculation will, o
course, prevail, with all its altendan
circumstances Of fraud, deceit. prodigai
ity. and corruption. There are not
happily,in in recent times, many exam
pies legislation of This sort. 'rhe inn
policy and bad moral consequences O.
such forcible interference with the natu.
raj flow of the metals to the places
where they are most needed, have be
come apparent to most, il not all modern
civilized communities; and attempts to
increase the quantity OF coin by restric.
tive Legislation, have been, generally,
abandoned as futile.
Nor are fluctuations from natural eau.
ses, or produced by restrictions on ex.
portation Of coin. the only causes Of
change in the value of currency. 1t so
happens, that Governments have always
busted themselves with ts regulation;
and it is doubtless quite right, that every
government should determine the form
and weight of coins, and the proportions
Of pure metal and alloy, and take care
that they be not debased or counterfeited
and declare, by statute, the value oI
foreign coins, in the national currency
But here, we apprehend, the legitimate
functions of government end. No gov
ernment should attempt to fix the rela-
tive values of coin and other exchangea-
BILE articles, or to change the intrinsic
value Of coins, without changing their
legal value. Few governments, how>
ever, if any, have been wise enough to
confine themselves within their legiti
mate spheres Of action, in reference to
the currency. Almost every one has
resorted to measures for the purpose oil
enlarging its quantity or enhancing it:
value, or affecting it some way or other.
Every measure Of this kind. so far al
we are acquainted, has signally failed te
accomplish any beneficial purpose, ant
has, on the contrary, introduced disor
der and confusion, and given a legisla
tive sanction to fraud and wrong, pro
ductive ofthe most fatal consequence
to public and private morals. We shal
give an account Of one or two instances
ofthis kind, with view to establish this
general position.
The French liyre, originally, contain
ed twelve ounces Of pure silver. Philip
the first decreed, that this coin shoult
be composed Of eight ounces of pure
silver mixed with four ounces of base
metal. He imagined that it was in th'
power Of government to make money
remain of the same value, though chang
ed in quality. He was not singular il
this; Tor many statesmen, so called, il
every age, have been Of the same opinion
Indeed, there are not few. even now
who Imagine that whatever the law makes
money. is money, and that it will circu
late at the value prescribed by law. But
though supported by the opinions of fl
nanciers the Monarch found himself de-
ceived. The adulterated coin circulated
indeed. but 1t circulated at only two
thirds Of its former value. The edict O
the Monarch, made the new coin re-
ceivable, as the old, for all debts, sala
ries, and the like. OF course a man
who held claim of hundred livres
must accept, in payment of the debt
two thirds of its rea! amount. Tenant:
could pay their rents, grantors could
pay annuites, employers could pay sala'
RES, by tender Of two thirds of their ac-
tual value. Government itself, perhaps,
the greatest debtor, and we may infer
this from the fact, that almost all de.
Easements Of the currency, whether af-
fected by lowering the value Of the coin
or otherwise, have originated with in>
debted governments could pay its obi.
cations at real discount Of one third.
Subsequently, the real value of the livrc was
still further reduced, the legal value remain.
ING unalleTeus at IuC CohlHCuCCLlCut VI IuC
reign of Louis VII, it had been reduced to
four ounces oc pure silver When the French
revolution broke out it lad been reduced to
one eighth of an ounce.
These were the devices of indebted govern
lnents, before the expedients of a paper cur
rency were thought Of And similar expedl'
ents have been iesorted to in ancient as well
as in modern times, and by almost all govern
ments. The leading motive too has been al
most always the same; namely, to pay debts
with less than their real amount.
The Roman Republic resorted to this expe
dent, in order to pay the expenses incurred
in the prosecution of the wars against Car
thage 1t reduced the copper coin, in which
the public accounts were kept. first to one
sixth, and afterwards to one twelfth of its o.
rlginal value, still oblging creditors to receive
| it at it's nominal value.
The consesue nee of these arbitrary altera'
tions in the standards of value, have always
been pernicious. Indeed the alterations them
selves being acts of dishonesty, no other than
bad consequences could be expected TO flow
! IL,