Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1852-06-05
OMMUNICATI0NS.
OUR METALLIC CURRENCY.
ron TIE NATIONAL IsrELLIaENcER.

Among the specuatons which have lately APP
peared in the public journals on the subject of our
metallic currency it is gratifying to find that they
nearly all agree in recommending single standard !;
conclusion to which all the best reasoners on the
subject of money had arrived for more than Gen.
fury, though few nations have acted on IL from a
mistaken apprehension that if either metal was not
a legal tender it would cease to circulate as
currency. r.
I This is great point gained in the advancement
of sound theory On the complicated and much mooted
subject of money. But, supposing we adopt single
measure of value, which shall it be, silver or gold
Though the reasoning on this question is not
quite as conclusive as on that of single double
standard there appears to me to be great prepon-
derance. of argument in favor OF silver,
Besides that the silver dollar is the general mo-
ney Of account, and is the popular standard by
which the value Of gold and of every thing else is
measured gold seems far likely to alter in value.
This metal thought to be less liable to uctua-
ton than silver for the discovery of America had reduced
its value Anly to bird while it had reduced that Of
silver to ,one.jourtA; but have every to
believe that it is destined rapid depreciation
than either metal ever before experienced.
In the early part Of this century before the Russian
mines yielded much gold the whole quantity of that
metal annually produced in America and Europe
supposed to exceed fifteen millions of dollars Nor
the average annual product Of all Spanish and Portuguese
America at any period, according to Baron Humboldt
more than twelve millions But the Russian, Californian
and Australian mines now yield six seven times
much America and Europe produced thirty years ago.
and bid fair to yield ten times that quantity.
There is in every civilized community large class of
contracts which endure for long series Of years. and
to these would desirable for the sake of doing JUS
tce to both parties, to have unvaryng standard Of
value but this from the unceasng fluctuations of supply
and demand in the precious metals well every thing
else is impossible yet should to it
Gold and silver have been universally preferred
for this purpose because their changes slower and
gradual than other commodities and, for the
that they have been thus used should select
the the standard which least likely to change
gold should depreciate to reach the proportion
which it bore to silver before the discovery Of America
and had held for more than thousand years. that
about for one then the holders Of perpetual ground
rents Of public debts, and of al fixed dues in money
would lose onethrd Of what they had contracted to re-
ceive
Some may be disposed to doubt this depreciation of
gold since the great quantity yielded by California has
scarcely yet produced sensible effect but it must be
collected that the quantity great as it is, does not yet
bear considerable proportion to the quantity that
ptoft THESE re-
cent accessons there inadequate supply of the
metal which WIS manifested by its gradual rise of price
But when the quantities drawn from California alone
say nothing ofsthe products of the Ural Mountains,
Siberia Australia &c. shall double the quantity in the
world it bids fair do the price must inevitably fall
As the amount ofher commodities viii remain nearly the
same, viii INCREASE in far less ratio, either the value
of gold must fall Or be used Since this
last alternative nadmissbe Of necessity adopt
the first Indeed when we that large addition to
the supply affects the price of every thing else how it
be supposed that gold alone is obedent this uni
versal Law?
But writer in the Inteigencer, under the signature
OF An Observer" objects silver the standard
two grounds: One that it viii impair the obligation Of
contracts and the other that it will occasion heavy
charge the Treasury Let examine these objections
The adoption Of silver the sole standard WILL accord
ing the view have taken far from impairing the
obligation Of contracts tend to prevent least to les
SEM their violation Let look at the and extent
of this obligation Contracts ought be fulfilled because
policy ustice and honesty enoin their fuflment; but
when their execution is inconsistent with these
ditions the obligation The Law refuses give its
sanction to contracts violate law that made in
bad faith when made with incompetent persons sc.
But contract made to pay much money is substan-
raimen which money ismean represent; and this
essentially violated if the debtor pays his creditor
but twothrs of his debt any thing less than the
whole value he stipulated TO pay To say that the debtor
has the right pay the pieces Of money he contracted to
pay however they have deprecated is say that he has
a right to do wrong.
is true that under ordinary circumstances the par
ties may be considered agreeing torun the risk Of those
small and gradual alterations in value which the pre-
cous metals have always been liable, but when they
coed that limit it is honest just that either party
should profit by the letter Of his contract to violate its
substance and Legislatures in the exercise Of Of
their highest attributes win prevent such injustice, By
rendering the metal that is in Of depreciation
longer slegal tender.
But it is urged, when both metals legal tenders
at the time the contract made the debtor had the
right to pay either metal and that this right to pay in
the that has fallen in value might have been taken
into consideration when he made the contract and having
thus paid the price for this advantage is just de-
prve him Of it. The argument would be fairf this
the sole contingency contemplated but there was another
and very important this question which is that
1t competent for the Legislature any time to change
the law legal tender and for the furherance Of pub
lie policy justice 10 alter the proportonate values Of
these metals and have two standards instead Of one or
one instead Of two Every nation has occasionally done
this and il has been done than once by the United
States These changes have been made under the power
given to Congress to regulate the value Of con and no
alteration has been made be made that does not
lessen the legal value Of metal the other and
Z II. = LL 80 -. 4 =