The Washington union., 1857-06-13
MONEY, PRICES, AND LAND sPEoULATJoy

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Congress- has the exclusive right to coin N
and regulate the value of foreign coin, Gold an
yer have been selected for coins because of III. j
value attached to a small quantity, their Dt
value for manufacturing purposes, and the pa,
regularity Of supply. Money is the STANDARD
which the value of the commodities of the woJ
measured. The quantity in the shape of coinage \
as such measure, though increasing, is subject ;,
tie fiuctuation. 1t may change hands, or fall iuo
ferent positions but this does not affect the ana,
in existence. Whether it crosses the ocean
into the vaults of banks, or is in the pocket, #
people, does not affect the total amount Ifth
circulating medium consisted of coins few mon,
commissions could occur.
Notwithstanding. the constitution prohiE,.
States from .'emitting bills of credit, " or nal
anything but gold and silver tender in payne
debts still the States have created multitude of
porations, who emit bills which form the comma
culaton in most parts of the Union. The charters
those who contrive and control them A usual n
acterstic is, that they may Issue bills to twice
amount Of their capital and, in practice they \
from three to twenty times as many as they have
wherewith to redeem. AS they receive intere,
notes and securities which they discount and
none on the bills they issue, it is manifest tha
temptation to issue beyond their ability to reid
is very strong, and it is not surprising that it 50
times ends in utter bankruptcy and total failut|
provide for their circulation. AS banks liner,
their issues, prices rise; and as they diminish 4,
they fall.
1t is known that the commercial business in |
country, and in much of the civilized world is \
ried on through credit. Goods from Europe
bought upon credit; are resold in commercial id
in the same way, and retailed upon trust in the
try, to be paid for mainly through the producu
the soil. While all is conducted with prudence !
good faith, and expectations are realized, everya
goes on prosporously. But when, from overtra
extravaganza, bad faith, or failure Of crops, disapp
ment occurs, everything becomes deranged; # |
agricultTist fails to pay the country dealer |
latter must disappoint the city merchant, and h y
importer or manufacturer. Slight causes occas
panic, and then, when bank facilities are most
ed, the depositor demands his deposite, and the !
holder calls for specie for safety or to hoard, and
bank, under pressure, instead of helping their
customers, requires payment from them and c
sacrifices to protect itself Ruin to thousands fol
History proves that banks issue most freely
money is plenty, and there is no alarm, and dra |
their circulation when it is scarce, at the very
when their facilities are most needed. If M
lenders used real money instead of its Represents
the supply would always be substantially the 4
and it would promote their own interest to kc l.
the hands of their customers their whole capita
gardless of all pressures upon the money ma
Men contract debts freely when money is eaSil |
tanned, and usually pay when tits scarce ThiSaft
an opportunity for those having large cash mean
obtain at low prices the property of those whose
debtedness forces them to sell at sacrifice. u
ly these expansions and contractions result from /
aggregate errors in business Of the masses, tho |
occasionally from design on the part Of money on
of the Bank of the United States from 1882 to !
which We're wantonly produced for political Of
One day expectations were excited by profusiond
counts, and the next depressed, with no hopes d
vorable change, except in sustaining the party /
voted to its recharter. The deposte banks were
suspectingly drawn into the vortex, and made
upon government deposites. AS they recd
money it was loaned to spectators to buy pa
lands; and when paid back to them as depOsa
for land sold, it was reloaned, and so on, from
to day, until millions of acres of the governmei |
main passed, not to the settlers, but to those
hoped to make q profit by reselling to them
receipts at the custom-houses were borrowed
vest in public lands, and were returned to tho
in paper. General Jackson's specie circular l'H
some half a dozen exceptions, every bank
Union failed and refused to payits debts III /
money, and men whose necessities compelled
to procure coin were forced to pay some l'A /
cent. to obtain it. This suspension alone,
estimated, occasioned loss to the people
least twenty millions of dollars In some
the banks were so strong, and exercised III
influence, that they secured laws which, In
protected them from suits while they aV
ed among the people. Extravaganza perVao'
classes, and men grasped for lands as if the
ply was about to be exhausted, II required
years and much suffering to recover from the
of these things.
The ub-treasury has done much to mitg'T
evils resulting from overtrading and wild SF0
tons in the public lands by requiring payment
custom-houses and land Offices in gold and
thus diminishing the means and inducements /