Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1857-10-17
BznSe.

bankers credifs, called - deposits" and useo
as money, is that there is a great addition to
he currency and TO the facilities OF business
Ia these fictitious dollars. It IL not 30. II,
however, It were true that money is perma-
neutly increased thereby, Il would be precisely
the reverse OF the true policy, for The less the
volume OF tue currency, thr greater viii be the
value Of the dollar, the lower viii be the prices
Of commodities, the greater will be The exports,
and the consequent employment Of navigation,
he more the employment Of the people m the
production Of property, and IA foe, the greater
vii be the prosperity aud wealth OF the nation
The wealth is 10 the commodities and property,
not in The money which determines the prise.
Their vGiue is quite independent OF their price,
aud would be precisely the same with one
tenth Of the currency we now employ In their
exchange, as with the whole of It, only al one
tenth OF the name IN money which would be
an advantage, inasmuch as the bulk Of the pre-
cious metals would be less cumbrous, Il
would save nine-tenths Of the trouble and ex-
pense Of their transportation FOR the settlement
Of balances. The world gains nothing BY the
Increase OF gold, but tie trouble Of handling
more OF IL for ine transaction of business Al
igher prices, except in plate and triukets.
Money, it SHOULD be remembered, is not the
leader II eommerce, but the follower. 1t
comes, legiumAieiy. only to he Individual o.
o the community as The result of Industry an
Il nk&a AAAANA "AlAH AAINNA 1N1 H1IA 8SaAA ~
mput DO M, rssuly from the possession of money.
The fact Of paramount imp Jrianee relating
o this subj c.. Of which even our merchants
aud bankers seem to be almost profoundly ig-
l0rsnt, is istinetly stated, and clearly demon
~strated, by Adam Smith, that " The whole pa
per money Of every kind, which can easily cir
culats Ia any country, never can exceed tn
value Of the gold aud silver OF which It sup
lilies the place, or which-the commerce being
supposed he same-would circulate there, il
there was no paper money I"
He appears 10 have been the discoverer Of
his important truth, and the following is his
Illustration:
Let Us suppose that the whole circulating
money Of some particular country amounted
Il a particular time, to one million sterling,
hat sum being then sufficient for circulating
he whole annual produce Of their land snd
labor. Let US suppose, too, that some time
hereafter df rent banks and bankers issued
promissOry notes, payable TO the bearer, to the
extent ct one million, ressrving in their differ
NJ Golfers two hundred thousand pounds for
answering occasional demands. There woula
remain, therefore, IN circulation, eight huR-
lred thousand pounds in gold and silver, and q
million Of hank notes, or eighteen hundred
thousand pounds Of paper ard money together.
But the annual produce OF the land aud labor
f the country had before required only one
million b circulate and distribute il 10 lis pro
teT consumers, aud the annual produce cannot
e INN -diately augmented by those operations
Z banking. 0ne million, Their fore, viii b.
g. ficieut TO circulate il after them. The goods
% be bought and sold being precisely the same
= before, the same quantity Of money will be
sufficient for buy ing and selling item. The
hannel of circulation, if-I may be allowed
zach an exp e%ssion, will remain precisely tn
ssms as before. Une million We have supposed
-u%Hicifut to oil that ehann=L. Whatever.
l~-rsfyre, is poured into Il bevond this sun
,snnot run IN II, but must owe dow. De mil
on right hundred thousand pounds are poured
Ito It. Eight hundred thous 4nd pounds, here
ore. mus; Ovr rlow, that sum bai1g over and
-hnve Wb- ran be employed in the rircu'a iJL
of the country.
seas tne paper csnDo- go abroad; because at a
same fro % the banks which issue q. ant
rom the country in which pay msut of it can
3D. excited bV law, il viii Tot lie rsceived 10
ommo payments. Gold snd %sil.er, therefore.
20 he an luRt Of eight hundred thou a q
out de, wilt be ss I abroad, and the charne
d home circulation will remain & ied vi d a
9iiiiOu Of paper, instead cf a million OF hos
letals which filled It before"
Ihis Is plain sni Easy reading, and the doc
rine incuirated, undsniably true. | commsud
&c 10 the careful attention Of he reader; Tor
NJ paper money system as ! have already
taEg=stei, rests upon, and is wholly susaiHei
y, the ides-he d~elusiOn, IN fact-thst the
wants Of trade require mere money than can
- supplied in guld and silye and that this
add tlanal SUI ply Is obtained By The fabrica-
ton Of paper money.
buithe EIh, which escapes public attention,
q tbatt ne real wants under such circumstances
are lower prices Of property, and a consequent
nigher value 70 money. The want Of money
among an intelligent, enterprising, aud a labo-
1ors people, euitivsting The arts of peace, if
left to It's natural remedy, will supply itself al
he cost Of other communities, less productive.
or burthened with more oppressive eousunp-
ION, with the absolute Certainty Of the law Of
TaVitation. Whst better busines 81 can we des re
than selling goods for money, when money is
worth more than merchandise? This we do When
Seinp0rt specie IN exchange for merchandise
and ms We shout be sure to 90, bY giving UTILITY
70 the precious metals in the currency, until
the Withdrawal Of the whole sum of tue feti-
nous money, nos usurping their Office. Tie
common notion Of the want OF money, or bank
capital, or of the true method Of supplying il.
- a mere ehimera-a must p~roftless and alb
surd concert TINS country needs no law but
ne natural law OF distribution left to its-lf to
-scure an abundant supply Of real money.
Ia the case supposed By Adam smith, the
coin, IN the particular country, amounted 10
'ne million pounds originally. OHe million OF
laper being added, eight hundred thoussD nd
49, A 1AANNA nAE MAHIlNGFQ nEl
cent abrCad. There appears then TO be twelve
hundred thousand pounds left in The currency
but II Il not 70. The notes to tbat amount ar
virtually eerthcates of deposit, as ali psper
money ought to be. b. b coin aud paper can
it oe kspt AZ eirc Ia ion for the Aaule none,
A. the saGe time. ge mus, th=Fefora, deduc'
De reserve OF tso huadred 'h0us4Gd from ID
before.
Thus it is that every paper rote. put IN cir
~cuiatIon. Is a I'll eket Of leaven 10 one Of sp.-
ce ior the same amount, which mus either 90
ut Of the eoun Try, or be AFFORDED IN the hank
h0ards 10 me- { tie returning notes. and thu
Sane effect 10 produced ny the ~inseripti me of
oahk credit Not a farthing is added to the
currency, eK sept temporarily. The d4preeia-
ion II the ' alue Of money is soon felt m he
1se of price ., which stops The sale Of EXPORT
loie msrchi iudise, beings in foreign commodi
les, ana Eeeps of The gold and silver.
iothis the Director will probably say that a
cohsequei L increase of business will employ
ne paper addition to the currency. How will
ms De JrOught about Let us inquire. He
may NJ Yer have reflected upon the great dis
! ropoi ton OF other property to money in eH-
cry country, which may be perhaps % 10 / ;
herefoTe property AID business must inereasS
twenty-five fold over the whole woi Id, to EN-
ploy each additional dollar, without reducing
be value of money.
The first operation Of the bank, on the credi
system, Il to discount a note, We viii suppose
Tor Mr.. Needy, Obtained for -four, wbtch-tbe
urrenev having been before sufficient to eircu-
ate and Distribute the products at tue then
7uling Prlces-he has sold AZ a re numerating
edVauce on time. The net amount of the dis
soEnt is entered to the credit OF NeeSv. and
hus becomes a substitute for 10 onsv. H goes
30 The market for the put 1hase OF wheat.
s1th this substitute, Ia CON petrion with hi
n-EhbOr, who has gold in 'nsnd for the satos
pIrpz ~ the seller hHdiHg. b. has two eus.o
aisEs Instead Of one to pay pon. puts IN Tic
rice. In short, NesAE, ard Hopeful. ana
Fuller, AID a hundred o,hers-auyiug and sell
ns COOS, and opera J6ngf the same Eas vi b
bark meney, ~ g "a "a eold, seeo ding to II
beory q our sys .e1. b-csns- promised to o.
paid IN gold on ssuspd-bv b ir compstition
. So m'fk-i RAISE PTicss ali rau d, exaorts
pie AMI imp efief commodities beng ar ctea
TX, a"a Shst f7il5Ns? Wlg, the comm
ty " ,ating oar connOduI-s, Whe her IA
* SyR, Q Stst-, IT foreign nation, W II moi
HN heu Of ns II he S imed-serp ion Il aTti-
- can be obtaiuej a specie prices els=Whsrf
hey vii take our gold asd silver, aud se
t-ii Tor he Bsi1ic, or Black Sea, or Whit
-, or some o her sea, where no sieh follY.o
r. OF il, enters INTO he money HSsie1 AID
iieTe, where gold ard silver nave more u'iiit,
ald consequent value, they III exchange theu
CT The wheat, or BEEF, or pork, or ashes. elc.-
1'hsch their wants require. at the lover prices
q stronger AID better currency.
Is his al Increase OF business? No. it is
1 Tsctly the reverse. The producer, and the
> Otuce dealer, aud The piow maker and The
o irness maker, and he merch tut's ships. the
-rpenter. Tieger, and sail-msker, and all men
I'd things through all the Tamihcstions Of
ianmeIce, depending upon the export trair
are shom Of their employment, and the prof
- be derived from it, o the extent Of this ua-
secessaTy export OF gold aud silver, and there
S 30 much less capital in the country than
here would have been, If q tinkering the cur
rebcy7' had not lessened the utility ard conse
q1sBt value Of gold.
We cheat ourselves transparently in this
nattrr. What we fancy to be a rise IN pslus
Of or products, is merely an alteration OF tue