Daily American organ. [volume] (Washington, D.C.) 1854-1856, 1856-09-24

by the value Of gold and silver. A convert
BILE bank note represents the amount of gold
or silver named on its face, which lies in the
vault Of the bank subject to the holders call.
When it ceases to be convertible into gold
or silver, nominal value only can be given it
but that gerry moment it ceases to be cur
rency, and neither property nor labor is es-
timated by it. If we have paper currency
not convertible at will into specie, but made
the medium Of exchange without convertible
ty, Mr.. Buchanan might be set down as po-
litical economist But there is no difference
in value, between convertible bank-note and
the amount Of specie called for on its face.
Mr.. Buchanan informs us that "the foreign
manufacturer will take nothing home except
gold or silver, or BILLS OF EXCHANGE, WHICH
ARE EQUIVALENT" "Bills of exchange" eh ?
What? paper creditss A bill of exchange is
simply an order from A upon b, to pay a
sum designated; if B refuses to accept and
pay the bill, and A fails, hon is the bill OF
exchange an equivalent2"
A bill of exchange is no more an "equiva-
lent for specie, than bank note, and the for
mer is quite as likely to be dishonored as the
latter Both represent specie deposited with
the maker of the bill or note, where business
is tairly conducted, and where it is not, the
bill of exchange is no more the equivalent
of specie, than the bank note. And pray hoo,
in ordinary transactions, is the bill of exchange
obtained by the foreign manufacturer from the
purchaser of his fabrics? The merchant who
buys the goods from the foreign manufacturer
gives him his check for the amount on some
bank, the manufacturer presents the check
and receives bank notes therefor, and he then
purchases bill Of exchange from some broker
in the United States, upon some other broker
in Europe, and not one dollar in gold or silver
is handled here by either party to the trans
action! The whole transaction is completed
on credit,-and yet the check, bank notes, and
bill of exchange each and all represent gold
and silver, and Mr. Buchanan's own statement
negatives the idea of any difference IN ralue
between this convertible paper and that metal
lie currency about which he prated.
But we proposcAfo let "honest John Davis y
answer Mr.. Buchanans arguments on the poll
CIV and effect of q reduction of "labor to the
" standard Of. Continental Europe" simply re-
marking for ourself, that the reason aohy labor
in Europe is so much cheaper than here, is,
because the supply exceeds the demand there,
and the demand exceeds the supply here II
is precisely on this principle, that land is Sc
much cheaper here than in Europe
Mr.. Davis thus states the positions assumed
by Mr.. Buchanan:
"The Senator from Mississippi, Mr. Walker, !
with his usual acknowledged ability, and the dis.
tinguished Senator from Pennsylvania, Mr. Bu-
chanan, following in his track, have advanced the
proposition that the endorsements and distress
with which the country has been grievousy affiict-
ed for several years past, and which now paralyze
all its energies imputabe to the pernicious in
huence of bank paper; that this bill contains the
necessary corrective, it will check mportations
of foreign goods, suppress mhat they call the credit
system, and, By restoring specie currency, RE-
DUcE THE WAGES OF THE LABoRER AND THE VALUE
OF PROPERTY
Mr. Davis continued thus
"The Senator Mr. Buchanan commended, by an
ingenious argument, that a reduction of wages
would be beneficial to the aborer because property
would necessarily fall in the ratio and in the
fervor of debate, addressing New England through
me- he appeals to her to embrace this alternative
as resource to rescue her manufacturers from the
ruin which lays in prospect. Embrace what, Mr..
President? How win a corresponding fall of wages
and property aid the laborerp How Is his condi-
ton to be improved by itS The most that can be
said is that his relative condition is unchanged.
Dat he fhn Of ~,
far the larger class of laborers in England and Ire
land where the almshouses are filed with paupers,
and those who support themselves struggle for
life? Can he descend a grade lower, to hard
money Italy, where, as the authority read by the
Senator from Maryland Mr.. Merrickl will prove,
but / will not stop to read il, wages are three
pence a day? Is it an invitation to abandon
the physical, moral and intellectual comforts and
enioyments which surround the industrious man
here, and descend to the deplorable condition OF
those who fly from their country to this as place
of refuge for the poor the naked and the hungry ?
off such are the advantages of other countries,
why do the poor emig-ate hither, and why do not
our citizens emigrant thitherS"
"The Senator from Pennsylvania seems to I'M
derstand that reducing the circulation will reduce
property and acages in the same ratio. II it does,
in what is our condition bettercd even IL we could
reconcile debtors to it, who would be ruined He
seems to believe that relations in foreign trade
will be improved, but | shall show him his error,
and that he ought to arrive at exactly the opposite
conclusion; for his theory, If carried into execu-
ton, would infict upon the laborer as well as the
owner of property the most injurious and oppres.
sive consequences. lie solenanly a6frms, and
give him all credit for sincerity that he believes
reduction in aOdges and property mould be 6enef.
cidl Let US see. -
Suppose that Wages and property will be re-
duced, one-half by the bill-that is, if wages are
now dollar a day, they will be half dollar; and
if beef and mutton are now eight cents pound,
they will be four; and so of all the productions of
the United States, and of all property created here
Upon this state of facts as things are, the laborer