The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1856-09-17
.zuE TEN CENT cALUMrY.
BucHANAs's SPEECH.

That no man who desires information may
be- deceived, we publish below an extract
from The able and mastery arsnmeni Of
james, Buchanan upon the independent Trea-
su.y bill, delivered in the United States SEN
ate in is40. Any one who reads the speech
entire, or the following extract, and Jhen fe-
peats The stale SANDER that Mr,>4Buchanan
was or is The enem OF he laSsring classes,
or that he would advocate sshy policy preju-
dicial 10 their interests, has anblushing ell
frontery and braken ,@hardihood enough for
regiment of ordinarily unscruDuous people
'FOn Friday last, wten very unexpected
ty addressed The Senate, l stated a psinciple
Of political economy which now shall read
from the book. IL is this: that if you
double The amount OF the necessary circuia.
tt-hng medium in any country, you thereby
double The nominal price Of every article
! If, when the circulating medium is fifty mil
lions, an article should cost one dollar, ii
would cost two If, withou, any increase oil
the uses of a circulating medium, the quan
.lty should be increased 10 one bundled mil
Ions The same effect would be produced,
whether the circulating medium were specie,
or convertible bank paper mingled with
snecie. II is the increased quantity of the
medium, not lis character, which produces
this effect. OF course leave out Of view ir.
redeemable bank paper
81 do not pretend that, on questions ot po-
lilical economy, you can sttain mathematical
certainly. All you can accomplish is to ap-
proach il as near as possible. The principle
which have stated is sufficiently near the
truth 10 answer my present purpose. From
this principle, drew an Inference that the
extravasanl amount OF our circulating me.
dium, consisting, in great degree, OF the
notes thrown out upon The community by
eight hundred banks, was injurious 10 our
domestic mann facures. In other words, that
extravasant banking and domestic manufac-
lures are dieclly hostile to each other.
"a did not understand that the Senator from
Massachusetts Mr.. Davis contested the
general proposition that an increase in the
currency of any country, without an increase
of the uses of a circulating medium, would,
in the same proportion, enhance the price Of
all The productions of that country whose
value was not regulated by foreign de-
mand. He could not have contested this
principle. If he had. all history and all ex-
pc eriencs would have been arsyed against
him.
The discovery Of the mines OF South
and the ast Incraasa
of the precious metals put into circulation in
the form Of money, have greatly enhanced
the nominal prices OF all properly throughout
The world. Indeed it is row matter of
curious amusement, 10 contrast the low prices
of all articles three centuries ago, with their
! presen. greatly advanced rates. The Bank OF
England recognizes, and constantly acts up
on this principle, though often without sue.
cess When prices become so high, in con.
sequence Ct redundancy of paper currency
aud tank credits, that il is more profitable to
export the precious metals from The kingdom
than its manufactures, this bank constantly
dimnishes its loans, raises the rate of inter.
est, and reduces its circulation, with the
avowed object Of reducing prices 10 such
standard as will render it mole profitable 10
export merchandise than bullion. II is in
this manner that lha Bank seeks 10 regulate
the foreign exchanges.
But why need we resort TO foreign ma
tions for illustrations Of truth of this position
when ii has ben brought home 10 the actual
knowledge Of every man within this coun'
try! Have We not all learned by bitter ex-
penence, that when OUT periodical expan-
I sione commence, the price of all properly
begins 10 fiset 1t goes OH increasing with
the increasing expansion, until the bubbls
bursts and then bank accommodations and
bank issues are contracted, the amount of the
currency is reduced, and prices fall 10 theil
former level. This is the history Of our own
country, and we all know il. A certain
amount of currency is. s.necessary TO represent
the entire exchangeable property of the
county; and il this amount should be great.
ly increased, without corresponding in.
crease in The exchangeable productions oil
the country, the only consequences would be a
great enhancement in nominal prices. say
nominal; because This increased price will
moi enable the man who receives il 10 pur.
chase more real property or more Of the me-
cessaries and luxusiss Of life than he could
have done before. slns a- ~
"Le, me now fecur TO the propositions, with
which commencedi and repeat that do
not pretend TO mathematical accuracy in the
illustration which i shall present. The Uni
ted States carry on trade with Germeny and
France; the former hard-money country,
and the latter approaching il SO nearly as te
have no bank notes in circulation under the
denomination of five hundred francs ofneaf
ly one hundred dollars, On the contrary
the TEiied States is shpha,iGslIy apaper
money country. having eight hundred banks
ofissus all ofsthem emiuing notes Of q de
nomination as low as Eve dollars, and mos
: of them one, two, and thfee.dollar noies.-'
For every dollar Of gold and silver in th'
! yanlts of these banks, they Issue three, four
ave, and some of them as high as len, an
even fifteen dollars of papet. This pfodncs
. aysst but ever changing expansion Of th'
currency; and a consequent increase Of th
prices Of all articles, the value Of which !