The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1846-07-11

OUT mere promises 10 pay money-tne
shadows Of cash. They may turn out
to be valuable, or not, according TO the
real amount Of property, and honesty,
which they possess who manufacture
and issue them as money. Therefore.
at the best, paper money is not, like
gold and silver, to be safely relied upon
as representing ualue. 1t may prove
good, it may prove bad, and is there
fore not to be relied upon as money.
This is an intrinsic objection of which
paper can never divest itself. There
is a possibility of its proving ,vorthless
in the hands of The holder, of ,ohich ii
can neuer divest itself. s..
will now refer 10 some Of the most
prominent evils which attend the use
Of paper money.
1. It's effects upon the nominal prices
Of property.
A currency composed entirely, OF
partially, Of paper money (as in this
country) is subject to constant and
sudden expansions and contractions in
its volune, or nominal quantity. 1t
owes this peculiar quality which it
possesses, to the great facility with
which its manufactures (the banks)
can make it. They can multiply, or
diminish, its quantity at pleasure.
A currency of gold and silver is af.
fected and controlled only by the wants
Of trade, that is by the actual demand
for it. As there is but limited guam
tity of the precious metalasin the world,
which can neither be increased nor
diminished at the will or caprice of any
man or set Of men, currency compos-
ed of those will remain comparatively
permanent and stationary in its volume.
or real quantity. Therefore, the prices
of all kinds of property and the wages
Of labor arrange themselves with refer
ence to this permanent measure OF value,
and are raised or depressed according
to the increase or decease of the ratio
ofsupply to demand. Such currency,
being incapable of any perceptible in.
flation or diminution, has but little eft:
feet per- Sc upon prices or wages.
But, not so with paper money. That
by sudden expansion, or increase oil
its volume ornominal amount, increases
the nominal, but not the real, prices OF
property, and the wages of labor; and
by sudden contraction, it decreases
them. And this effect is produced
without reference to demand and sup
ply. Thus the manufactures Of paper
money, (the banks,) haze The po,oer in
their hands to raise and depress prices
and ,0ages at their pleasure.
By natural right, and by all just sys'
TENS of laws, every man should have
the power of fixing the prices of his
property. or the wages which he de-
mands for his labor, leaving to others
the option to buy or hire, or not. But
the privilege Of manufac turing paper
money for a community, divests him oI
this natural right. and invests it in the
manufacturers Of paper money, who
own and control them. Laws which
cothe them with the power, constitute
them PRIVILEGED CLASSES, by conterlng
upon them privileges which other clas
ses OF the community do not enjoy
And thus, is the great fundamental re
publican principle of Equal RIGHTS
trampled under foot.
The exercise of every day shows
that those who control the issue of pa
per money, exercise the vast and mo
mentous power they possess, for the
benefit and aggrandisement of them
selves, and favorites, and TO the injury
and impoverishment ofothers. If they
have lands, merchandise, or stocks tc
sell, by increasing or expanding the
volume of currency, they increase the
nominal prices of property, and are
therefore enabled to get more than they
are Justly entitled to for what they
have to sell. If they wish to buy cheap
they contract the volume Of currency
and thus reduce the prices of property.
The scarcity of money forces persons
in deb! to sell cheap and sacrifice their
property, and at such times the regula
tors of the currency. or ragocrats, buy
By these two inseparable qualities ol
paper. money, viz: expansion and con,
traction, do its manufactures, the own.
ers and controllers Of the banks, be.
come the sharks and robbers of the
community under the cover and pro.
lection of law.
2. The USE OF PAPER MONEY vIo.
LATEs THE OBLIGATION OF CONTRACTS.
AsI have before remarked, all com.
mercia communities have found it ne.
cessary for the convenience of ex.
change, first, to adopt currency. and
then to fix upon unit of that currency
which is to be the measure of value
In this country that unit is the dollar.
Consequently, all prices are expressed
in the dollar, or parts of dollar. And