Nashville daily patriot. [volume] (Nashville, Tenn.) 1855-1857, 1856-07-25

veniance. This is the relation which it bears to
business, and other; and while admit its great
Importance, l deny that it lies at the foundation,
and is the great regulator of the affairs OF men, as
seems here to be supposed. The friends OF this
bill, know, assume that we have Imitation, and
that money rules, guides, and regulates business;
when, in truth, the inquiries ought to be, FIRST how
much is necessary circulating medium, that we
may know whether there is an excess; and, second,
does paper necessarily create expansion, or un-
necessary enlargement of the currency, that We
may Judge whether it ought 10 be abandoned.
These matters, which are assumed, are pi ecisely
what ought TO be proved. The Senators assume,
as evident truth, what is not apparent They affirm
that paper becomes redundant, excessive and inta
ted. But they do not establish the fact be any
proof; since the first OF January 1888, our circula
ton has not exceeded one hundred millions; it may,
at some periods. have reached oae hundred aud
twenty inclusive OF metal aud paper. Is this ex>
cessve? Has it reached point above the urgent
necessities of business for two years past7 Ii 1t
has, how much is enough? Some days ago put
this inquiry distinctly TO the Senate and it remains,
and will remain unanswered. Ii 1t can be proved
hatwe have much, it is not difficult to ascertain,
with sufficient exactness, what amount is necessary
| desire Senators TO make known the process by
which they arrive at their conclusions in so vitality
an important matter. They seem TO take 1t for
granted that there is evil but expansion to fear,
while nothing is more certain than that too small
circulating medium works out great, If not great
er injuries, than one too large.
We have heard much defamation about bloated
credit, gambling and speculation, but If the exist
ence of ali these were established at this moment
by unquestionable proof, it would have little tens
dency to establish the fact Of excessive circulation,
for they have no necessary connection, but each
may exist independent of the other.
Will the Senator maintain the proposition that
paper cannot and has not circulated without infa
ton excessive credits in trade generally? l go
further and ask him if excess is anything more
than occasional occurrence, growing out OF markets
quickened into activity by events rather casual than
permanent? Is there any excess of paper in the
casual course of business from sound Banks who
redeem and are able TO redeem their paper at
sight dollar for dollar, in metaG 1t is not easy to
see how excess ever exists under such circumstan-
ces | can go to-day into any Bank in Boston or
New York and draw out a dollar with the same
amount OF paper, and that dollar is as good, and
will buy as much, in France or Germany, as any
dollar there. The paper, then, is clearly worth as
much as the silver for it buys it. If the paper of
banks is maintained at this value, and so redeemed
at all times, it is not easy to comprehend how it is
inflated or that more is in circulation than is need
ed for use. The idea of initiation presupposes
some unsOundness All money, metallic as well as
paper, does, and will huctuate in value, and, if
this be imitation, then gold and silver is more
empt from it than paper. 1t is by no means easy
to determine which huctuates often"times, money
or property. Cotton is forty dollars bale tO~day
Tomorrow it is thirty-fve, and next day forty fve
il does not follow that the cotton alone has 1uctu
ated or that it has fuctuated at all; for gold and
silver may be so abundant as to depress the value
OF property or as to raise it. II is every
days occurrence to fud gold and silver fuctuate in
all lin at
then none, nay, under some circumstances, falling
below good paper. No matter what we have for
currency, there will be fluctuations in its value
greatly affecting trade, as circulation medium Of
uniform amount cannot be maintained any more
than you can limit business TO an exact amount.
This all proves what seems not to be well under
stood, or Senators would reason ditferently-that
there is but one way to determine how much cir
culaton is necessary. II s impossible to ascertain
how much money may be necessary for each mem
Der of the Senate for the current year; and 1t is
equally impossible TO anticipate The wants OF the
great public. The question is left, therefore to be
settled by the laws of trade, as all other matters
Of business. We learn how much -four and corn
are required annually, by the demand for them
just we learn how much money is quiredto carry
forward business, by the ability OF men to buy 1t.
SO much is necessary, be the amount great or
small, and in a growing country it would be just
wise TO limit the amount OF produce a. the
amount Of monetary capital. Surely nothing can
be more absurd than to attempt TO determine the
amount without reference to the exigeIcies of the
country; to any that so, 600 600 any other arb-
trary amount, is enough. There is no advantage
to be gained by lowering the value of property,
unless the same amount Of labor, or the same
amount of property, enables US to obtain more OF
the necessares of life This fact should therefore,
be first clearly established for the process is
essarily attended with great sacrifices The Sena'
tor from PenrtSylVdnid seems to understand that
reducing the circulation will reduce the property
and wages in the same ratio. If it does, IN what
is our condition bettered even If we could recog-
nize debtors to it, who would be ruined? He seems
20 believe that relations in foreign trade will
be improved, but shall show him his error, and
that be ought TO arrive at exactly the opposite
clusiOn for bis theory, if carried into execution,
would infict upon the iabOrer we'll as the owner
Of property the most injurious and oppressive con
sequences. He sOlemnly aifirms, aud / give him
all the credit for sincerity that be beieves'a reduc
ton in wages and property would be beneficial.
Let Us see.
Suppose that wages and property will be reduced
one half by the bill-that is, if wages are now a
dollar day, they will be half a dollar; and if beet
and mutton are now eight cent pound, they will
be four; and so of all the productions Of the United
lhis-sate OF facts, as things are, the abOrer would
have, at the expiration OF twenty days labor,
twenty dollars to provide supplies for his family
AS they will be, he win have ten dollars. Now,
sir, be il remembered that can buy and sell in
foreign markets by their standard of currency, and
that lowering wages and property here is to have
no effect there according to the reasoning OF the
Senator, their currency must regulate the price
OF their wages and products; but cotton ia to sell,
and goods to be bought as if no change had
taken nlace Goods, therefore, will come into this
country no cheaper. IT. then, the laborer goes into
the market with bis money, his wages are, be
will have twenty dollars 10 eXpend in tea, coffee
sugar and the thousand necessares, which come
from foreign countries but If he goes into it they
will be-ten dollars, under the operations OF the
new theory-it is plain, therefore, that with the
same amount OF labor be can purchase but halt a;
much foreign merchandise; in other words, it will
in effect be doubled in prices while it is apparently
the same.
But the Senator did not stop here, for he al
! legged that, while the laborer would be in a better
condition, the exporter OF produce-thst is, cotton
| &c-would derive a greater profit, the o
/ which would be the amount OF reduction of wages
and Of property, and he would thus be able tC
! produce so much cheaper To make myself un
| derstood will proceed with the same sGppositioI
| that wages and property are to be reduced one
half Then his theory is, that the cotton planter
for example, would produce his crop at half tn,
present cost, by the saving in labor and the sup
port Of it, and consequently derive double profit
That he would produce cheaper is undeniably true
aud il he should sell for the same price be nov
does, aud bring home specie, be would realiz
double profits, provided his lshorers are supported
wholly on the products Of the United States. This
however, is not the course Of trade OF business
But from whence would the profits comi No
from foreign countries. Tor no change is 70 oecu