The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1854-04-05
2 For the Spirit of Democracy.
aMoney and Currency"
NUMBER VII.


1.'iaE aMoney and Currency"
NUMBER VII.
MR. EpIroR-In my last number, tried
10 point out some of the causes Of Bank
.contraciions and expansions. and to show
Eahaa oontractions, caused by balance Of
stFGds against us. would inevitably occur,
il we had no banks Of circulation in the
country. But "Ohio" seems utterly at a
loss 70 understand. or comprehend. such
Snidea. He says, ''the fluctuations in the
-Sdsrency are all owing to the small note
stipulation He might as well say. that
IL Ne had no gold or silver pieces Of less
value than twenty dollars, we could have
no fluc.uation Of hard.money currency;
thst balance OF trade against US, which
would reduce the currency one-fourth,
.eonld produce no contraction, were il not
s6er ihs small pieces Of silver and gold.
ssslf the reader viii but take common
sense viev of the subject for moment. he
will lind i very plain one, and easily
understood. We win suppose then for
illustration, that we had a hard-money cur
ifsncy only. and that the aggregate of spe-
&c in the country was one hundred mil
.ious Of dollars; that from failure of crops
~. oser-,rading. q balance Of trade would
tbs aesinstu Us Of sa5, ,OOO. .0oO. which would
kevs 10 be paid in specie; thus reducing
lks currency 10 s75, 900 900. Money deal
seps would Of course put their money to the
ivory hest account; its relative value would
sisnuasdiafely rise; which could be seen how
ever, only in the decline of the prices Of
labor and, property. and in the increased
.raiesspf interest II this state Of things
,shoeld continue any length Of time, would
not s'hsrd money a csn,raction be fully es-
tsbiished, with ell the evils attena ing a re-
duciion Of prices, and general commercial
ewbarrassment? This is one Of the Incl
dsnts Of commerce and trads-a misfor-
.inne NOT 10 be sought after Of course; but
10 bei endured when no remedy can be fur
hished. ~ hste saSi3
e r. The gentleman. in his most fruitful
@aginetion, could inyep, something to
sprssens 2. contraction in the currency.
when - oalsnoss o. trade was largely
Afainsl us, he could probably invent some
Sissasufe. to prevent q contraction in the
money capital of individuals in their Pri-i
.ssle transactions by enablingthemto to pay
their debts honestly without reducing their
.sapitai. Such measure would indicate
me highest state Of progress, and cover its
seAlhor all over with laurels.
~0hio" seems TO think that the prices Of
labor in England. are not SO yery'iow at
ser Al. but ne makes this discovery, only,
sltsr having devoted whole chapter TO
erovs; shat "banks Of circulation were the
sBsne and the destruction OF our manufac.
yltss; because they made labor and ma
Asgisls 20 much higher than they were in
Gsaas Britain; which country, he treated
an . hardsmoney country. But the idea
.6flow wages, for the benefit OF the manu-
Ihetnfsr, i neither new, nor original with
2n! tjende MT. John Basset, . member
nf the Briiish House Of Commons, remark.
30 IN 1880, ethat the high wages paid in
this country, made It impossible for our
textures 10 maintain competition with
the produce Of the Indian looms. An
English mechanic, pc said. instead OF
slaying ike native Of Bengal tor piece
y copper. exacted shifting q day. -
acaulays England. vol. l. page oxl'
fhus "Ohlo. Is not without precedent e'ai1
for his notions o. cheap LABOR. tie says
HE "antagonist steps from !ac's 10 fancy
IN putting the price Of Eng'lsn iaoor a.
snch : low figure. and quotes from macan-
ley the wages paid the mechanics 's' at the
Gfeenwlch HosPitai lor ixo years 70 prove rove
thai wages were not 90 low. Inns ques'
Won proves ..,.o one thing only, ana ina. Is Is
tnal wages were ABOUT uouoieu III tne laS'