Semi-weekly North-Carolina standard. [volume] (Raleigh, N.C.) 1852-1853, 1853-03-02
For dc Standard.

instant, perceive editorial headed The Banks,
in which, after expressngthe apprehensions of you
self and others in referenceto the increase Of banks
this State and tile opinion that crash must hav
+ occurred ere now but for the influx of gold fror
California and Australia, you conclude as follows
g But the present high prices cannot be permar
emily maintained-a change falling back to tn
old standard must later take place, &c.,
AS understand your argument you first take fc
granted the fact that IS high prices " exist-and 20
then infer that they the effect of inflated pape
currency which must sooner later explode, whe
the " old Standard will be restored.
J Now, sir, do not agree with you either in tn
premises the conclusion, and l respectfully ask
corner in your columns for the following views Oh
! the subject:
First, deny the fact in general sense that {" 81
prices do exist in reference any standard whic!
has obtained during the last twenty years, in which
period l suppose it will be conceded healthy anc
sound currency has repeatedly been in circu laton
| Unless l an greatly mistaken cotton, readsuffs
pork, beef, nearly all manufactured articles, and, il
deed, all the commodities of prime necessity do no
range but little iany above the average prices which
have prevailed during that PERIOD and it can be said
with proprety, only of slaves urpentine and perhaps
mules, that they high and because they high
10 insist that high prices generally exist, is mani
! testify 10 mistake the exception for the rule.
Now ii "high prices =" do not prevail iteeems tc
follow that your inference of the existence of an in.
fated paper currency is altogether unfounded. But
you may contend the: its existence is established by
the " high prices of slaves, turpentne and mules
although it be conceded that every thing else is low
In answer have to say that turPentne has been
high once before, and mules repeatedly, when no
suspicion entertained of the influence of an in
ated paper currency, and subsequent event prov
ed Its existence. II is true, however, that slaves are
higher than they were before, except during a
period of some four five months Immediately pre-
cedIng the memorable crash that occurred in the
Spring Of 1887 and that they are now nearly as high
as then The question then is narrowed down to the
single point, to what the present prices of
slaves to be ascribed? If we recur to the advance
in nFIOp h,f hoD
to the revusion above alluded to, we shall find that
then the rise in the price of slaves followed that in
produce instead of preceding it now Cotton, for
example, then went up TO from fifteen to eighteen
cents per h.. before slaves reached one thousand
dollars Now slaves are worth one thousand dollars
while cotton brings only from ten eleven cents in
New York. Now, as produce is not high and slaves
only are high In reference to former prices, during
safe and sound currency, and produce was affected
In advance of slaves by the inflated paper calculations
which produced the crash in 1887, am forced 10
the conclusion that the present =" high prices" of
slaves are to be attributed solely TO unusual de-
mand for them, one TO which the supply is greatly
demand not speculative but based on the
means TO pay for them. That slaves are too high in
comparison with produce, if we are to be guided by
the past in making up oTinon, readily admit
and unless decided advance should occur as 10 the
latter do not doubt that the former must recede to
slight extent at least; but how it for moment
be supposed that produce will fall back to any old
standard " ! am unable to conceive.
Money is the creature of civilization, and it was
invented by the nations of the earth as universal
medium OF exchange for the sake of convenience.
Gold and silver better adapted to the purpose
han any other substance and hence their selection
IS the material out of which money is made. Gold and
silver do not become money until coined and as the
value of money is fixed by law, il follows hat golG
Ind silver bullion IS worth as much, according to |
We ght and hnenes (ess the expense of coinaoe) as
gold and silver coin money! and for :his reason
mining operations for these metals have heretofore
'een and are sl carried on, and the ceeds being
init tor any other useful necessary purpose, have
een and will continue TO be coined or converted into
money. Money, therefore, has increased into uuan-
Ity ever since the first Introduction of its use at some
erods more rapidly than al Others owing 10 the diff
erence in The richness of the mines worked. /
our own argument supposes that as money increa-
es 1t dePrecates in actual value, (houqh not in NOM
na) and no who has the least knowledge in f.
lancal matters will dispute the proposition. 1t is
quay true (since the nominal value of every coin is
xed by law that the depreciation of money is man.
tested In no other way than by raising the prices of
II things given in exchange for it, When an inflated
aPer currency prevails ii raises prices higher than
II increase Oh actual money TO the extent would
o. Tho difference only lies in this-the former |,
ooner or later, proves 10 be worthless and Suddenly
oes out Of circulation, when prices suddenly recede
In consequence of the scarcity of gold and silver
generally, ii has requiredhe lapse of many years to
reduce an increase of money sufficient effect a
ercePtib!e depreciation every century in the past
as caused greater or less advance in prices, and it
safe TO state that the pound sterling in the reign of
Queen Elizabeth would buy at least treble as much
in that of George The Sd, ewing to the increase of
money between the two periods. r
But we now in the midst of state of things
'hIch is without any known parallel California and
australia have it is estimated, produced least three
undred millions Of dollars in the short space ofthree
four years, and doubts that they will con-
nue. to produce in the ratio for quarter of $
entury 10 come. What the amount of money h
xsting before the discovery of gold in these coun-
es 1t is difficult if not impossible 10 ascerain-the
oWest estimate have is eight hundred millions
doIIars-the highest, three thousand five hundred Il
billions. If the former be four more wears
ill duplicate lift the latter, thirtyone. f
What it has required a century to accomplish in v
le past is now being effected in year or two and r.
gift of prophecy is not needed to enable one to
,resee that before five farthest ten more wears
nall have passed away, there will be in the United
tates specie basis large enough to sustain sound
nd convertible paper clrcula ion equal that of 49,
4, IS, and 36. Does it not follow that we shall 81
the same prices then obtained and that they
ill not only not recede but tend upwards ali the IL
lille My poor Judgment for it. the word decline et
not in the commercial dictionary of the present dav
nd yet you, Mr.. Editor, whom have suspected of Il
cling little too strongly tnctured with Young n
merlcanism in politics are old fogy enough in mo- al
ey matters to talk about falling back to the old M
andard." What old standar d? There is none-in 3
oney matters in the language of the scripture tod HI
Ings are done away and new hngs''-I forget the II
llance. ",
There is, however, a certain I" Standard - which r
any years ago was set up to enlighten the public to
ind-it has been in existence long enough to be If
He'd old. In its youth state of things did arise n,
PREVIOUS to 1879 which would have Justified it in IN
edictng that Loring (IOaoering) of prices was ae