Weekly national intelligencer., 1851-05-03

than metallic he funcons OF medium OF exchange In fac
when country has arrived TO certain degree Of wealth, ths
development of its productive forces gives room pecunsy
transactions numerous rapid and important that there
physical impossbily in their accomplishment by metallic
money. Thenceforth, the employment Of money il
accordance with the rspdy and magnitude Of the exchanges
becomes imPerous necessity and unavoidable
since the richest and most intelligent nations in spite Of the
danger being drawn into The abyss of crises by the abuse
paper money, have thought Of suppressng this nds
pensabe auxiliary Of metallic money When 10 remem
beed that in London alone there take place. ON
every day payments to the Of more than mil
lions Of pounds sterling. will easily be understood that
would be impossible TO effect them IL were necessary
employ gold and silver pieces.
The reform of the monetary SYSTEM them is one Of the
greatest questions Of manknd having far higher reach than
is generally imagined, and gratitude TO the author
crises for having engaged in it with ankness and without
heaon in spite OF hindrances, and above ALL Of the
erfu interests which his doctrines necessarily alarm
We about to lay before readers the arguments
by means of which NJ Ch demonstrates the possibility Of
the reform in question, and the which he advises
for preventing the abuse of money the material of which
almost vaueles and the fabrication Of which requires but
little labor and expense.
H. In the preceding paragraph have given brief
mary Of the doctrines contained in the work have under
taken to anaze and have approved of the views therein
eIPosed concerning the Of crises and the Of
venting them But should be the first consider these
doctrines brilliant chmeras, the author had taken
10 at the serious objections which be
opposed to him, and to show afterwards that the system is
capble Of reazaon by pointing practical for its
execution We confess that after the first reading of this
book the mind asionished by finding itself away out Of
the sphere of ideas, adopted by opinion until this
time the base Of monetary theories We convinced
that gold and silver the money par srcece that the
understanding refuses recognize the existence Of other
substance capable OF serving monetary materials and that
this substance although having almost value could acquire
very great and exempt from variations and consequently
be most proper for fulfilling perfectly the functions Of
dum of exchange.
Thereo IN of M holl
Of thought and lively desire of innovation. but also
remark severity of method and scrupuous to maintain
the discussion within the domains of reality who pro-
the adoption of money Of paper the time shows
himself very nimca to paper money whether bank
other, since these promises issued dscoupet hat to
say, without there being IN reality the coin which they
regarded as representing, and without having ben pev
ousy deposited In the cash boxes Of the establishments which
attributes to paper money the power Of augmenng cap
tai OF The count and Of creating of production,
M. Chiti thinks that capital being the products which the
possessors abstain from enjoying in every state, these
products are discriminate quantity only to be augmented by
productions and absnences the paper issued
dscouve is only engraved paper of no utlip add
ing nothing to the capital in existence, and serving ly
instrument Of deception abuse the public confidence
lend funds not possessed dispose Of products which
the disposition Of another The Of this intrusion
into the circulation Of imaginary capital Of false monetary
signs the arrival in the market Of purchasers who living
in payment ideal values, provoke increase in
the demand, deceptive advance of prices fatal exagea-
on of all the industrial and commercial enterprises the
country, and at last brings about the crisis the hideous ss
which jnfalby results when the productive forces w,sted
away by bis febre overeIciemen obliged abandon
works undertaken, leaving on the field Of labor but ruins and
desolation.
Considering the issue Of paper money decouust ulder
another point of view the author arrveSn like to
the same result BY The issue of paper money decour
ne observes the amount Of money in circulation is augmented
and consequently fall in the value Of money produced.
Then, since gold and silver pieces preserve their metallic vaue
which is distinct from their monetary, they are in
part from the circulation and become again ngos be sent
out Of the country, and this rerea. Of gold and silver
provokes Issues Of paper money, and therefore melt
ngs down Of metallic; that the time comes when all
almost all the Office Of exchange effected by Of paper
money SO far the evil i, Tot very great II the metallic
pieces have gone OF the country under The form OF neots
they have brought into it foreign products Of equivalent
vaue but the country is placed the brink of precpice
by the absence of metallic money See how this is The
paper money which then almost the only kind n crcula-
ton, bears the promise Of redemption sight and in cash.
So the Of sensby deprecaes its value
confidence in is shaken the fearful the far
sighted hasten to have redeemed and very the cry
alarm the Of holders Then the mask falls
the inability redeem becomes agran the paper loses on
the instant all its value and since the metallic pieces have
been sent abroad the country finds itself at deprived Of
money, fulfil his contracted engagements and the
nation in is forced to declare itself Of ruin.
thus that the scadng of the pretended capital paper
wealth succeeds the sad reality Of inability continue works
conceived too large scale. The paper money losing,
then, all Its prestige becomes what used to be- paper and
the country obliged submit to rude sacrifices in order
bring back the metallic money into the circulation and to re-
establish order in its interior economy And the paper money
not being redeemsbe the crisis would the less take
place the issues should be repeated often apd pousey
as happened overwhelmingly in France after unlimited
fasgnatsi unless by wise they limit them, with
draw the quantity Of paper which exceeds the want Of the
naun and thus the primitive value to that remaining
10 circulation. The Bank of England acted in this
after the peace of 1915 she brought up the value Of the
again to that Of the metallic pieces by gradually with
drawing from the circulation the quantity which in
cess, and which the cause of their depreciation.
The conclusion which the author deduces from these
sderatons s that the issue Of paper money decourt pro-
ductive always of perturbation more or less great in the
economy Of the country and end if the issues exceed certain
limits by plunging it into the caamities of a crisis
According then, to the ideas we have just set forth the
Of crises is the excessive issue of paper money and
have in the preceding paragraph that the only Of
preventing these issues the reform OF the monetary SYSTEM
that to say the substitution Of money OF paper for money
of metal for then the money being Of paper there longer
exists any motive for con6dng to paper money the Office Of
exchange.
II remains now to us TO speak Of the possibility of realizing
this substitution AT first we shall briefly the ideas
of the author monetary vaue through which he draws the
conclusion that to paper easily be given great value
and exempt from variations and afterwards we shall point
the practical which he thinks should be made
OF in erder 10 introduces without arng the money Of paper
into circulation.
ls Of it's usefness 3D. Of the EXTENT intensity and urgency
Of the wants s destined satisfy 3D. Of the extent OF the
which those who feel those have at their dis
posa satisfy Them Alb. Of the quantity ored. In which
is comprised not only the quantity offered in market bu: also
that which it is presumed be 5h Of the urgency the
t,f And