The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1854-02-08
Communication.
For the Spirit Of Democracy.
"M0ney and Currency."
NUMBER II.

AAOMVy o0u 0U14 0AVys
NUMBER II.
Mr.. EDIToR:-In the first number of
"Ohio," on "Banks and Currency" the
following passage occurs: "But we have
been told by whig editors. whig stumpers
and whig leaders, for half century past,
that gold and silver are not plenty enough
for currency; that if we abolish small Bank
bills, money will be scarce!!!' And then
asks, "what are the facts of the case?" A
very appropriate question truly. But the
proposition has no necessary connection
whatever. Gold and silver may not be
plenty enough for currency, and at the
same time. to abolish small Bank bills,
would not make money scarce. Wing
editors, whig leaders. &C., may have main.
tanned with propriety that gold and silver
were not plenty enough for currency, or
in other words, that it would have been
bad policy. at any time within the last
quarter of a century, to have abolished
paper money. that it would have made
money comparatively scarce. The neces-
sity for small bills has never been urged
upon the same plea; but simply that change
would be scarce, and less convenient
For surely it would be more convenient for
Bank, so far as it was concerned itself,
to issue one twenty dollar bill, than 90
one dollar bills; hence we nationally con.
| clude that their issues would be to about
the same extent in the aggregate.
In "Ohio's" second number, he com.
mences by saying: ''ln my former commu-
nica,ion urged those reasons which oc-
CURED TO my own mind, to show that ws
did not need the pestiierious trash ::aat now
mandates the country in tie shape OF small
bills, in order to make money plenty"
| And what were those reasons? Did he
argue that the Banks would supply its place
with large bills. or that California and Aus.
trala were pouring out their shining gold
like water? This would have been ration
al; but no. they were not among those
reasons which occurred 10 the mind OF
Ohio" What then were thev1 Why
simply that money was too plenty; no,
small bills, but even gold and silver were
too abundant for the wants and convent.
ence Of the country. Am | righ, in This
position2 | will quote from his FIRST num-
ber. IA good horse will at present sell
for about 100 ounces OF silver, weigh,
very inconvenient to carry about a man s
person. lf silver were found in less abun-
dance in the mines, so that coin would be-
come twice as valuable as it is, (that is
twice as scarce.) the horse would then sell
Tor only SO ounces OF silver" But that
the SO ounces would then represent as
much property and labor as the 100 oun ces
does at present. lie further adds that
"amongst many doubtful and uncertain
propositions. one truth is plain and certain,
that as users OF metallic money the COM
munity is in no way interested in the abun-
dance or scarcity OF the metallic medium,
except that when it is very abundant, il
becomes weighty and cumbersome, and
therefore inconvenient."
In the above quotations we have about
all 'those reasons which occurred to the
mind" o. 'sOhio" in his first, second and
third numbers, that We did not need small
bills to make money plenty; Or indeed bills
Of any size. But rather that money would
be too plenty if we had no Bank bills o
any denomination; that gold and silver
were too plenty for convenience, as a me-
dunn Of exchange.
Thus we find that the position of "Ohio' u
is that our circulation is much too large.
that it should be reduced. or in other words.
that money should be made comparatively
scarce; made just what he says, the wings
predicted it would be, if we confined our.
selves to gold and silver currency-"nol
plenty enough" Although he character
ICES the assumption as false, false as the
RI Alcoran. &c. And why is il false? because
he adds. il we reduce The circulating me-
dium one-half, we reduce also the price
OF all property and labor in the same ratio,
and hence money will be plenty enough;
tha, is it will perform the same functions
as an agent. or medium Of exchange in
tire purchase of property and labor, that
it now does. To this end, he quotes ex-
tensiyely from Say, and HUME. 10 prove
the self.evident proposition that in proper.
tion TO sfe amount of the circulating me.
dum, will be the price Of property and
labor. This important lacs,hen conceded
nay proven, and the position Of Ohio
understood. we may safely proceed to ap.
ply his doctrines Of reducing The currency
} to the metallic standard, to the great in.
dustrial interests and business wants ol the
State and Nation.
# we were about TO commence the or
ganization Of state Of civil society, and