The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1854-09-22
NEUTRALITY-SUSPICIOUS..

The universal enquiry over the length
and breadth of our country is, why is money
so scarce' Why are stocks so low, and still
sinking? Why do railroads fail to realize
the public expectation! The writer propos-
es to make some suggestions upon each OF
these heads of enquiry, for.the reflection OF
your readers. Then, first, why is money so
scarce? The answer is that it does not de-
pend upon the amount of money in the coun-
try whether circulation shall be scarce or
plenty, but upon the velocity of the motion
of money from hand to hand, so that what
ever checks The motion Of capital in the same
ratio, makes money scarce, and whatever
gives increased motion, tends to make money
plenty. The fact is not disputed, that there
never was so much money in both Europe
aud America before. Then why is money so
scarce, and times so stringent? The answer
is, confidence has been impaired in monetary
transactions, and the motion of capital has
been checked for the time being. Restore
confidence between man and man, and the
capital that is now locked up and withdrawn
from circulation, will meet the demand at
every corner, and money will be plentier than
it ever was before. If the stringency was
produced by the scarcity, or rather diminish
ed quantity of money as some have suppos-
ed, there would be just cause to apprehend n
monetary crisis, but as it is not, it is clear,
that the great ruling principle of human ac-
ton, selfinterest, must force The money into
circulation, and it must become plenty again.
Capitalists will no more let their money lie
idle, than will the Irish aborer his shovel,
they are each the tools with which they work.
and it is folly TO suppose they will long be
idle when self-interest demands their USE
The writer is aware that the scarcity ofmon-
eyis attributed by some to the large amounts
that our railroads have cost, and at first
blush to the superficial observer, it would
look so; but let us see, does the building Of
a railroad, costing million of dollars, really
destroy, annihiIate that amount of capital, OF
does il not in fact put into circulation that
amount? The company that builds the road
have parted with the money it is true, and
have the road in lieu Of the money, but the
money is still in existence. The owners
have been changed, but the amount of money
in circulation is just the same after, as before
the building of the railroad.
The questions still remain, why has conf
dence been impaired? What has produced
ita The answer is, the European war has
had much to do with it; the uncertainty Of
the war, rs to its duration, and as to its ef-
fects upon the monetary affairs of Europe, as
well as of America. But the more immedi-
ate cause has been the extravagant and wild
course Of our people; running after every
speculation that their fancy could create, re-
CARELESS of cost or practical results, over-act-
ing, excessive importations, inflated fancy
prices for real estate, unnecessary debt incur
red. In a word, we have been living and
acting too fast, or have run wild with ict-
tious prosperity, and we must now rest awhile
Confidence has been justly shaken in the
stability of our movements-but like over
acted physical exertions a little rest will work
the cure.