Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1846-05-28
Che INDIANA State Sentinel.
From The Democratic Retie,r for May.
Tbe rudeueudeut Trensury.

continent by free and enterpfSing Ango-Saxon rsce
the great and unequalled advantages of soil, climate
and population which It has possessed have been
councraccd, TO very great extent, by two modes OF
seeking the same end, viz, to make the many work
for the few or to procure large profits fvr capital at
the expense Of labor. Tie used for this pur-
pose have been moned corporations and the protective
system OF all devices for appropratng the proceeds
Of the labor Of many TO the service of few, the
paper system, as conducted by monied corporations,
having special privileges. has been the most success
full and the injurious to the well-being Of the
country ct large. That the country, with its great
natural advantages, has progressed IN wealth and
power in spite Of the pernicious influence of paper
money, has been taken in many quarters as aproof of
the necessity Of such issues.
The body of men who first came to this country as
settlers, may be said to have stood on footing of
perfect equality in relation to each other That is to
say, each depended the proceeds of his own
labor and industry, and enjoyed tLeir fruits. The
common product of all their labor enhanced the
general wealth. Very soon, however, the scaem-
ing and the knavsh sought 10 Obtain more OF the
general wealth than their own industry would
yield them. This could be done on the part of the
government or those officers sent out from England
to enrich themselves at the expense of the coonss
only by direct taxation by Obtaining the products of
industry on promises issued in a shape TO circulate
as money The issue of this paper absorbed large
portion of the proceeds of industry on the specious
pretence Of furnishing currency" The feeble state
could not bear the weight of sudden and heavy taxes,
levied at the will of imported governor he there's
fore issued bills to the amount of what lie wanted,
and caused them to pass current in all payments.
moderate tax then commonly laid, or some per-
sons were found willing to engage their lands as
security for gradually sinking this debt and calling in
the bills. New exigencies and new demands upon
the government produced constantly increased ennis
sions and in spite Of all the rgor of the authorities
in attempting by laws TO sustain the value OF the
paper as compared with specie, the bills fell TO very
heavy rates of discount The intercourse of business
and the industry Of society suffered intensely under
the fluctuations of this wretchcd currency the increase
of which indicated the necessities of the government,
which the greater the more trade declined. by
Of the various expressions 1t underwent The
evils that grew out of this of paper great
and the clause of the Constitution Of the United
States, prohibiting the States from renewing
such a description of issue, evidence of the deep
sense entertained by the trainers of that instrument Of
the mischiefs that attend such currency They had
had experience of the paper money issued by banks
and the new-formed States imagined if corporations,
created by State governments, issued the I" bills of
credit" and pretended to pay them no demand in
specie, that that restriction would remedy the great
evils that sprung from the issues Of the government
made legal tender
The Constitution Of the new States forbade the
legalizing of paper money. 1t recognized gold and
silver only as a circulating medium, and gave to
Congress the exclusive right TO coin money and
regulate the value thereof" The idea of requiring
any corporation government TO furnish currency
was not dreamed of There was, however, at that
time nothing that could be called money in the coun
try; specie had disappeared, and issues of bills of
credit to which the Confederation had resorted as
of carrying on the war, had ceased, in con-
sequence of the worthessness of the paper money
Then 1t was, with returning peace renovated energies
and revived industry, that Congress should have adj
hered to specie In its transactions, and faithfully
performed Its duty of coming money and regulating
the value thereof" The gold and silver of most
countries is furnished in such quantities required
by the operations of commerce. and the " money "
of a country signifies merely the government stamp
fixed upon a piece of the metal, 10 certify that 1t
contains a certain quantity of certain quality Of
gold This stamp is affixed for other purpose than
to facilitate its transfer from hand to hand. The
prices of commodities signify the quantity of the
precious metals that can be obtained for them, and
also signify the quantity of any article that may be
obtained for certain number of grains of gold.
These quantities vary under different circumstances of
production in all countries. 1t is the business of
commerce to ascertain the differences, and to strive
continually equalize them The argus eyes of the
merchants of all countries continually seeking for
commodities in one location that will command
larger quantity Of gold silver In other situ1-
ton, and also where gold and silver wanted.
barrel Of -four in New York, for instance is worth
FIVE dollars. l29 grains of gold 900 thousandths
fine In Liverpool it is worth 30 shillngs sterling.
or lS5 grains of gold 9l5 thousandths ine 1t will
command, therefore, in Liverpool SO grains of little
better quality of gold than it will in New York.
part Of that difference Is, however, the value of the
labor and capital employed in the transportation.
When this difference in the quantity of gold that may
be obtained In each place extends many articles it
signifies the abundance of those articles but the
scarcity of gold and commerce, therefore, transfers
as much Of the precious metals to the place where
they wanted supplies the demand for them
When, however, they arrive in the country, they
IN. han nOf tod tn no sod aS Thn H.
lie familiar with the quantity and quality of
the metals contained In each piece of foreign coinage
and the labor of ascertanng those facts by assay and
weighing. reduces the operation of barter. 1t
IS therefore, OF the highest necessity that the govern
men should meet these arrivals Of the metals at the
threshold and with little delay and expense as
possible, place stamp upon them which makes their
value known to every citizen at glance. The de-
mand for the metals, and the necessity for this COIN
age was intensely felt when the government was
organized and in 1870 law passed establishing
the mint at Philadelphia. This location Of the mint
was an error. To be useful, the mint should be at
the point where the specie arrives from abroad, in
order that expense of its coinage may be incurred
by the owner Most of the precious metals arrive at
New York and until late years the expense Of get
ting il to Philadelphia great amount to
prohibition and down TO 1888 that mint the only
means of coming money for the whole United States
This of the government relation to the MINT
was accompanied by another In its neglect to establish
treasury Of the United States The fiscal affairs Of
the government left without regulation in the
hands of the officers for the time being. These off,
GERS sought the most convenient mode of conducting
the public business, and they In lcgalized
paper money and discouraged the of the precious
metals by receiving and paying out the promises of
local institutions money. At the same time the
specie that arrived in the country, lot being made
suitable to be readily used money. was sold TO
brokers or deposited in banks, and their promises
taken 10 use as money. Thus banks came TO borrow