The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1854-01-18
For the Spirit of Democracy.
Banks and Currency.
NUMBER III.

NUMBER HI r
mir. Eduor:-ln my former communi-
cation, urged those reasons which oc-
Cured to my own mind, to show that we
do not need the pestiferous trash, thatnow
the country in the shape Of small
bills, in order TO make money plenty. In
this shall make some extracts from wri-
ters, whose fame has filled the civilized
world, to let your readers see their views
of the subject, admonishing them not to be
at hard French word which
does not admit of easy translation. Iquote
from JEAN BAPTIST SAY:
"There is in France a daily sale Of so
much wheat, cattle, fuel, property movable,
and immovable, which sale requires the
daily Intervention Of given value in the
form OF money; because every commodity
is first converted into money. as step too
wards its further conversion into other OBJ
iects Of desire. Now. whatever be the rel
ative abundance or scarcity OF the article
money, since a G iven quantum is requisite
for the business OF circulation, the money
must Of course advance in value as it de-
clines in quantity, and decline in value as
it advances in quantity. Suppose the
money of France to amount now to three
thousand millions of francs. and that by
some event, no matter what il be reduced
to one thousand five hundred millions; the
one thousand five hundred millions will
be quite as valuable as the three thousand
millions. The demands Of circulation re-
quire the agency of an actual value oi
three thousand millions; that is to say,
value equivalent to two thousand million
pounds of sugar. (taking sugar at thirty
cents per pound) or to one hundred aid
eighty millions of hectoltres OF wheat.
| (taking wheat at twenty francs the hectic
| litre.) Whatever be the weight or bulk ci
the material whereof it is made the total
value Of the national money will still re-
main at that point; though in the latter
case that material will be twice as valua-
will buy eight instead of four pounds Of
sugar. and so OF all other commodities:
and the 500 millions of coin will be equiv
alent to the former 5000 Blu, the nation
will be neither richer nor poorer than be-
fore. man who goes to market with a
less quantity of coin will be able 10 buy
with i, the same quantity Of commodities.
A nation that has chosen gold for the ma
terial of lis money is equally rich with one
that has made choice Of silver. though the
volume Of its money be much less. Should
silver become fifteen times as scarce as a,
present, that is to say as scarce as gold is
now. an ounce Of silver would perform the
same functions, in the character of money
as an ounce of gold now does; and we
should be equally rich in money. Oh
should it fall to par with copper. we
should not be jot the richer in the article
of money, we would merely be encum
bered with more bulky medium OF circu
lation.' Political Economy pages 1919
DAVID HUME wrote half century be
fore Say. and in different language
Perhaps the readers Of the Spirit would
like to see an extract from his works:
"Were all the gold in England annihi
lated a: once, and twenty-one shill,ngs sub
stituted In the place OF every guinea. would
money be more plentiful or interest lower
No. surely; we should only use silver in
stead of gold. Were gold rendered a:
common as silver, and silver as common
as copper, would money be more plenti
full or interest lower! We may assuredly
give the same answer. Our shillings wouls
then be yellow. and our hali-pence white
and we should have no guineas. No 9th
er difference would ever be observed, NJ
alteration in commerce. manufactures
navigation or interest. unless we imagin,
that the color of the metal is 81 any con
sequence.
"Now wha, is so visible in these create
variations of scarcity or abundance in tht
precious metals must hold in all inferio
changes. If the multiplying of gold ane
silver fifteen times makes no differenc,
much less can doubling or tripling them
"Money having chiefly fic
tltious value the greater or less plenty o
it is OF no consequence, if we consider
nation within itself; and the quantity o
specie when once fixed, though ever 81
large. has no other effect, than to obligt
every one TO tell out greater number o
those shining bits of metal, for clothes
furniture or equipage without increasing
any one convenience of life. If mar
borrow money to build house. he ther
carries home greater load; because tn,
stone, timber, lead. glass, &c., with the la
Dor Of the masons and carpenters, ar
represented by greater quantity of golt
and silver"
ADAM SMITH, after going on to explain
what every man, who has studied the sub
ject well knows, that the abundance ant
cheapness of the precious metals are ad
vantageous to those who use them in th'
form OF spoons, dishes, cups, urns and 9th
er domestic utensils, and that service o
plate can now be purchased for a third par
of the corn or labor, which it would hav,
cost before the discovery of the American
mines, proceeds thus:
"The cheapness of gold and silver rem
, ders those metals rather less fit for th
r purposes Of money than they were before
) In order to make the same purchases W
must load ourselves with greater quaint