The Kalida venture. [volume] (Kalida, Ohio) 1841-1865, 1846-05-14

OpGIdttuuS--WO iucVItdUAc consequence 10
the supposed, of the destruction Of the as
signat (paper money! currency, Yet, what
is the historical fact? The assgnat bubble
burst, inficting, without doubt, serious
amount of individual distress. but the pro-
ductipe popcr Of France being uniwured,
and the products of its industry being real
tcealth, and paluabIc commodities in cr-
change, RUSHED INTO FRANCE IN POWERFUL
STREAM, FILLING SPEEDILY EVERY CHANNEL
OF CIRCULATION WITH IT'S PROPER, USEFUL,
AND RELATIVE PROPORTION OF COIN.
a Instead Of France, with her great wealth,
being prOsirated and in poverty, as was pre-
dicted by these great men, she QUICKLY Pos
sEssRp MORE GOLD AND SILVER THAN ANY MA
TIoN IN EURoPE--a result in strict accordance
with we'll established principles in the none
tary system.
"France possessed large supply, COM
paratively, Of money, because she was, in
fact, the richest nation in Europe, excepting
England, who had forcibly driven gold and
silver out of circulation, by substituting bank
notes. Considering that these incontroverti-
BILE principles, in regard to gold or silver
money, have been practically verified in the
powerful aud instructive example of France,
it is truly surprising that, in subsequent
times, complaints should be made ofthc want
of metallic coin"
The experience of England corresponds
with that Of France.
"Even in England, where !he lowest issue
of notes, at any time, was Gl sterling,
ga 56,) and for several years past, not less
rs, the absence of an abundant supply of
gold coin was deemed 10 be such an essen
tial efect in their currency, that the prime
minister, Lord Liverpool, forcbly remarked:
Looking at the example Of Worcestershire
and London, all the difficulties on the sub
iec, completely vanish. Why did gold cir
culate Mere9 Because they had no paper
currency. Why pas there no gold IN other
nlace,? Because they had paper currency.
M fact has beer more clearly established by
exnerience on the subject, than this: That
ooM and paper neper could be broughtto to cir
culate together No paper would circulate
where gold did; and no gold where paper
circulated. There could be no common is
sue of both. This, he repeated was clearly
proved by experience. The object of every
description Of currency should be to make
the value of property as steady and as little
variable as possible"
But why should we further enforce the
proposition with which we commenced this
article? All politicians and political econo-
mists of anv note, concur in the statement,
that if we destroy our paper circulation, spe-
Gle will supply its place-that paper clrcu-i
lation drives out specie, and that paper
circulation, to be perfectly sound and stable,
can never exceed the amount of specie which
would have circulated had there been no pa
per. Let US turn to the authoritiesupon this
subject.
Mr.. Crawford, in report upon the subject
of the currency, makes the following obssFS
vatons:
"If paper can be made to circulate, inde-
pendent of its employment in the transmits
sion of funds, gold and silver, TO the same
extent, will be exported. lfpaper will be
received and employed generally as the me-
dum ofexchange, and especially if it is is
ned in bills of small denominations, the a.
mount Of specis which will be exported, will
be great in proportion to the paper in crcu-
ation."
Mr.. Appleton, who is decided bank man,
uses the following language;
aft seems to be the opnon of the best
writer's on the subject, that the most perfect
bank circulation would be one which should
be precisely equal in amount to what the cir
culaton of the same country would be in the
precious metals, were no other circulation
permitted"
Professor Tucker, who is also strong
! bank man, in his work on Money and
Banks,' page %, acknowledges the same fact:
sAhiiough, in all these countries, (referring
to the paper money countries mentioned by
him,)a part of their circulating money is pa
per, yet so long as paper currency is re.
deemable in specie, it may be fairly pre-.
sumed that gold and silver, to nearly the
same amount, would have circulated there,
if the paper had not been substituted for it,"
Hear, also, what DR.. Wayland says upon
this subject:
"This deserves to be seriously consider
ed. Banks do not create capital. The issu-
ing ofpaper money does udt render money
abundant. If is issued to such an extent
that IFS soundness is doubted, it itproducss an
effect precisely the opposite. IT. while it is
perfectly sound, it be issued to an amount
beyend the want of the community, specie
viii be exported, until the equilibrium is
restored. ifbut twenty millions of value be
needed in exchange, you can employ but
twenty millions"
Hear, also, what that great political econo-
mist, Dr.. Smith, saysi
II II III ,,,h,>Io N, nor nopev of every kind