The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-10-31
MR.. BUCHANAN ON THE CUR
RENCY.

/
ference of views are already manifested
in the ranks of both the old parties,
which are to be superseded by new politi-
cal organizations. Protection and free
trade will be discussed as the causes Of
our commercial troubles, but the curren-
cy is likely to be the absorbing topic
State Banks, National Bank, and an
exclusive metallic currency has each al
ready its champions. The most surpri-
sing circumstance is the fact that many
who were formerly the most ardent sup
porters of the old Clay and Webster
Wing doctrines, and who have recently
been devoted Republicans, are uniting
with the old Democrats in condemnation
ofour banking system, and in defence Of
hard money currency. The issues will
be made in the discussions of the ap-
preaching session Of Congress, and deep
interest is felt to know what doctrines
are to be supported by the administra-
ton. The speeches of Mr.. Buchanan are
republished to show the ground he has
formerly taken and from which he will
not recede. The following is an extract
from one delivered by him upon the Sub
Treasury Bill, which announces a prin-
ciple which is indsputably correct to
certain extent, but not in the ratio Of in
crease here laid down. The rise in
prices is not in proportion to the increase
of the currency. If such were the fact,
our banks would possess unlimited pow
or over the markets and fortunes of the
country. There are other causes that
control prices besides the contraction
and expansion Of currency. The supply
Of currency has, however, vast influ-
ence upon the nominal values of property,
and the speech contains an important
doctrine which every one should reflect
upon.
On Friday last, when l very Unexpectedly
addressed the Senate, stated principle of
political economy which / shall now read
from the book. 1t is this THAT if you
double the amount of the necessary circula-
ting medium in any country, You thereby
double the nominal price of every article Ii,
when the circulating medium is fifty millions
an article should cost one dollar, it would
cost two, if, without any increase of the uses
of n circulating medium, the quantity should
be increased to one hundred millions"
This same effect would be produced, whether
the circulating medium were specie, or con-
vertible bank paper mingled with specie. 1t
is the increased quantity of the medium, not
its character, which produces this effect.
Of course, L leave out Of view irredeemable
bank paper.
Let me now recur to the proposition with
which commenced and repeat that do
not pretend TO mathematical accuracy in the
illustration which shall present. The Uni
ted States carry on a trade with Germany
and France-the former hard-money coun-
try, and the latter approaching it so nearly
as to have no bank-notes in circulation un-
der the denomination of five hundred dollars
On the contrary, the United States is en-
Phatically a paper- money country, having
eight hundred banks of issue-all Of them
emitting notes of a denomination as low las
five dollars, and most of them one, two, and
three-dollar notes. For every dollar Of gold
and silver in the vaults of these banks, they
issue three, four, FIVE, and some of them as
high as ten, and even fifteen dollars of paper
This produces vast but ever-changing ex-
pansion of the currency, and consequent in
crease of the prices of all articles the value
of which is not regulated by the foreign de-
mand, above the prices of similar articles il
Germany and France.
At particular stages of our expansions, W.
might with justice apply the principle which
j have stated to our trade with these coun
tries, and assert that, from the great redund-
ancy of our currency, articles are manufac
tured in France and Germany for one half o
their actual cost in this country. Let IN,
present an example. In Germany, wher
the currency is purely metallic, and the COS
of everything is reduced to hard-lnone,
standard, piece of broadcloth can be man
ufactured for fifty dollars, the manufactur
of which, in our country from the expan sioi
of our paper currency, would cost one hun
dred dollars. What is the consequence
The foreign French or German manufacture
imports this cloth into our country and sell
it for u hundred dollars. Docs not ever
person perceive that the redundancy of on
currency is equal to a premium of one hun
dred per cent. in favor of the foreign manu-
facturerl No tariff of protection, unless
amounted to prohibition, could counterac
this advantage in favor of foreign manufac
turers. l would to heaven that / coul
arouse the attention of every manufacture
OF the nation to this important subject.
The foreign manufacture will not receiv
our bank-notes in payment. He will TAX
nothing home except gold and silver, or bill
of exchange, which are equivalent. He doe
not expend this money here, where he woul
be compelled to support his family, and
purchase his labor and materials at the sam
rate of prices which he receives for his man
ufactures. On the contrary, he goes hom
purchases his labor, his wool, and all 9th,
articles which enter into his manufacture,
half their cost in this country, and again II
turns to inundate US with foreign woollen
and to ruin our domestic manufactures.
might cite many other examples, but this,
trust, viii be sufficient to draw public after
ton to the subject. This depreciation of OF
currency is, therefore, equivalent to dire
protection granted to the foreign over Il
domestic manufacturer. 1t impossible tn,
our manufacturers should be able to sustai
such unequal competition.
Sir, | solemnly believe that if we could b.
reduce this inflated paper bubble to anythir
like reasonable dimensions, New Englar
would become the most prosperous manufa
turing country that the sun ever shone upo
Why cannot we manufacture goods, and C
pecially cotton goods, which will go into su
cessfGl competition with British manufa
lures in foreign markets! Have we not Il
necessary capitall Have we not the indu
try! Have we not the machinery! An
above all, are not our skill, energy, and Ell