Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1854-05-12
THE WANT OF MoNEy--ITs EFFECTS
AND REMEDIES.

Concluded Herf sctek.
THE WANT OF MoNEY--ITs EFFECTS
AND REMEDIES.
A great mystery has been made of
one OF the simplest lhingsin the world
OF business. the laws of money, its
natural laws we mean. Nearly all
persons are searching for the mystery
Of money at the bottom Of the well
when It's on the surface visible to all
eyes. There are three very different
elements constantly jumbled up by
nearly all who speak on the subj OF,
and yet are wholly different and
opposite in their qualities. These are
capital. money and junction Of money.
They can all be illustrated in the case
of a single individual. Suppose Peter
Simpson, man worth hundred
thousand dollars, in lands and houses;
has a thousand dollars tax to pay, but
has 40 money, a case which has often
happened,) it is plain that Peter must
fail TO pay If he does not borrow it,
Now here is copifot without money.
Now, suppose Peter Simpson has
hundred dollars to pay each day to A.
who is to pay B, who is to pay c, who
is 10 pay d, and so on to W, who is to
pay Peter Simpson hundred dollars
each day. Now Peter has a hundred
dollars TO begin with, but A. B. @, etc.
have none. Peter Simpson pays A
his hundred dollars. Now, it is very
obvious. that whether Peter Simpson
is able to pay A the second hundred
dollars will depend altogether on the
question whether the first hundred
dollars has circulated through the
hands OF A, b, 9, d, ETC., till Il came
back 10 Peter Simspson in time for his
second payment This circulating Of
money is It's peculiar function as a
medium of exchange. In this example
we see that money may be scarce from
any Of these causes. list. ii may be
scarce from the want of capital to
command it; or Cd, it may be scarce
from the want OF currency, money
proper; or Sd, it may be scarce from
the want Of circulation, or rather
deficiency OF exchange or rather the
multiplication Of erchangs. which re-
suits in the insuliciency of a certain
sum of money 70 perform the requi-
red work. This. it is plain may
rise from excess Of business. as is un-
questionably the present case of this
country.
Supposing. for example. A, mer-
chant of New York. TO be engaged in
the importing business. he has a
large capital. but he buys one hundred
Thousand dollars more goods than he
has the actual money for. in expecta-
ton of selling them in time TO meet
his six months bills. He does sell
them to X, Y, z, and w, in Cincinnati,
at six months time. they not having
quite money enough. X, W., and
w. sell them to NJ, Il, P, r, etc.,
country retailers. These country re-
tailers sell them to a thousand indi-
viduals, and these individuals are de-
pending on selling wheat, cattle, and
hogs. and on the purchases of great
number of railroad hands engaged in
the construction of the Tombigbee
railway. Now suppose the railway
fails to sell its bonds, the individuals
miss their calculation, and fail to pay
NJ, n, L., etc., retailers, in time, the
retailers fail to pay Messls. X. Y. d
2, and they fail to pay Mr.. A, the inn
norter. Mr.. A, as remarked, Is a
man of capital and raises the money
by loan, at high rate of interest
Money becomes scarce in New York,
and every body asks what is the mat
ter? What makes money SO scarce?
Why. it is simply too great an extension
Of business, commonly called over
trading. But that is not all, if this
overirading should happen to be with
a Foreign country, there is balance
TO be paid in coin, the expectation OF
which however rich country. is. al
sCays causes a contraction Of credit
For example, since the lst of January
we have exported sixteen millions OF
dollars in specie to Europe, much more
than We have done in either Of The las!
fwo years for the same time. This
is unquestIonably due to overtra-
ding.
The cause of the scarcity of money
at present, is not the European War
at all. as will be palpable from the
consideration of the following facts,
viz:
/. The capital of the country has
accumulated with immense rapidity
the last ten years, more rapidly than
ever the last three. Capital, thefore
is not deficient. If there are many
railways making, soalso the making OF
the railways has increased the value of
property three times their cost. 1t is
not that.
2. The currency and coin of the coun-
try. never were SO great. relatively, or
absolutely at any period of our histo-
ry. The currency has been increased
in 1853, full fifty millions of dollars,
and now amounts to fourteen dollars
to each individual. The currency is
therefore, not deficient.
s. The deficiency is really in the
functional part of the currency. and
this. again. has three or four different