The miners' express. (Dubuque, Iowa) 1849-1854, 1850-10-30
Banking and the currencv.-No. III.

nor quantity to that which already existed, it
can be of no sort of profitable use But that
does not answer the question, and we must now
apply ourselves to its solution. Before we can
do this explicitly, we must know what currency
| is Currency is that standard of value which is
lntrnsically worth much as it will buy. Thus,
a five dollar piece is worth five dollars, whether
it is stamped with the mint mark or whether it
is in the crude lump; but five dollar note is
worth nothing intrinscally, and therefore its val
ue depends upon the standing of the individual
or institution by which it is put in circulation,
but nothing can !girc 1t intrinsic ralue 1t is
mere promise to pay, which promise may or may
not be kept, according to circumstances.
Now, suppose we cOnccdc, for the sake of ar
gument that five dollar bank note when in
circulation, adds five dollars to the value of the
currency, of which it is merely the represe nta
tive at BEST it must be conceded on the other
hand, that any other promise to pay given
thing adds equally to the quantity of that thing
This being the case, man who has.twenty tons
of hay for sale, may double, treble, or quadruplc
his twenty tons, by doubling, treblng, or quad
rupling his promises. But you will say this
suppostion is an absurdity. That is just what
we want you to be convinced of; we know that
1t is perfectly absurd to suppose that any promise
to pay can, by any possibility, increase the guam
tity or value of the thing to be paid therefore
bank note promise to pay, no more increases the
quantity than the hay which was then IN cxis-
: tence.
That being the case, what then, is the use of
bank notes? We have told you that last week.
They are of no use whatever to the community;
on the contrary, they are, as you arc no DOUBT
convinced, detrimental to the interests Of the
public. We have shown you how paper money
is profitable, and for whose benefit, and we have
also proved that it adds nothing to the value of
currency. This answers our first question of
to-day.
Currency is to the commercial world what
food is to the animal economy 1t takes a GER
tain quantity of either to sustain their respective
objects, and if that quantity is increased, it be
comes comparatively useless, inasmuch as it
cannot be consumed. Now, it must be evident,
6 that ovcr-production reduces the value of the
thing Produced For, suppose that it takes a
certain amount Of currency to transact the com
merclal business of the world, 4 certain am
cunt of food to sustain, in healthy state, the
appetltcs Of all who eat it must be sclf-evidcnt
that if the quantity is increased, the value of any
portion of the whole is diminished. Fer, if the
value OF the necessary quantity be given am
cunt, the value Of more than the necessary guam
oil f,r -
the specific use for which it has been made Gold
and silver are of course useful for other purpos-
es than currency; but if they were both as plcn-
ty as iron, they should lose their value as
cy, because Iron would then suit tic purpose of
currency rs well gold and silver. SO in Tic
case OF toodi If there was more wheat produc, d
than could be used in flour to advantage, it may
be used for another, but less valuable purpose
But our assertion, that the greater the quantity
produced, the less value is any specific portion
OF the whole, as compared with the same guam
tity, when the whole production is lcss-cannot
be gainsayed.
ltpapcr, then, be currency, as gold and silver
IS, 1t must follow that the value Of gold and sill
yer is diminished in proportion to the increase of
Ipapcr but know that the value Of cold and
silver is nat diminished by the increase Of paper;
therefore it must follow that paper is not, and
cannot be, CURRENCY.
Again: if the amount Of gold and silver now
IN the world, could be doubled or quadruplcd at
WILL as bank notes can, every such doubling or
quadrupng would make the value of a specific
quantity Of gold or silver Of double or ouadruplc
less value chan it had been before; 50 also would
a dmnut!on Of the whole quantity increase the
value Of a specific portion as compared with 4
similar portion Of the quantity now existing
Hence it follows, again, that it is to the increase
or diminuton Of the precious metals we must
look for a standard Of vaIuc-or currency
Once morc:-lfa promise to pay gold and sill
yer is as good as gold and silver, and Will pass
as such, buying the value of what it p,lrports 10
be worth-wc contend, that on the same princ
pic promise to pay ton of hay, or bushr of
wheat, or load ofcorn, is as good as ton ofhav,
bushcl of wheat, or load of corn; and we would
therefore advise countrymen to come prepared
with their promise to g We in exchange for pro-
lnlscs-and give their hay, wheat, and corn to
those only who will give them an equivalent in
money or goods, Of intrinsic value There can
be nothing unfair in this. Surely good farm
er's promise to pay five dollars worth of hay,
wheat or corn, ought to be regarded as of as
much value as some unknown individuals pro-
mise to pay five dollars in money. If there be
any sincerity in the advocates of Banking, they
cannot object to this reciprocity of promises fl
they don't want to lave the benefit of all that
men promise, can you expect, when they speak
of the advantages Of Banking, they will have
the candor to state this one among them
On such terms as these, we are ready to vote
for promises to pay as soon as they can be got
ready, because we know that on these fair terms
no Bank will ever be established.
Correction.
The following was received from Hon. Geo
w. Jones, too late for insertion last week We
hope the Washington City papers will do Gen
Jones the justice to copy.
DUBUQUE, Iowa, Oct. q, 1850.
! DoCT. HoLT-Sir: | see in the last No of the