The Nevada Democrat., 1858-10-20
A Lecture orr Finance.

The money article writer of the Philadelphla
Ledger is one OF the soundtst political econo-
mists in the United States, judging him by his
opinions in print, and from our point of view.
In late number of the ledger he gave the fol-
lowing views OF money with which our opinions
heartily accord. The student OF political econo-
my will be well rewai ded in their perusal aud
study:
Tue science of finance is very much obscured
by false and vague terms among which the
"prlce OF money" is conspicuous Money can
not have pT1ce because it constitutes the price
of every other exchangeable thing-it is not,
and cannot be, price To itself. Ii bushel of
wheat were loaned for year, to be returned
with the addition of one tenth OF a bushel for
the privilege of the loan, we should consider it
very absurd to cay that ten per cent is the price
of wheat II is the rate of interest or rent of
capital, and why not uso the terms that express
the ideaG When money is loaned on notes, or
on other security, it is not sold IL is to be re-
turned either by the borrower or his securities
and the rent or interest is paid, either in ad-
vance, or at the maturity of the contract liza
house worth $4,000 is rented for 5000 per an
mum, per cent. is its rent, not its price. The
question is vastly more important than at casu-
al glance il may appear 10 he. If the people
understood thoroughly that money has paiue but
no price-tbat the less money we have in rela-
tion to commodit tiles. the greater will be its val
ue-thai the lower price of commodities yield
the same udlue in money as the hgher--secure
their sale aud bring good gold in return they
would not consent TO the creation Of fictitious
dollars. nor suffer those now used 10 remain in
eXiste nee. They would soon be sellers OF oil
the commodities they could produce, and buy
ers of money aud debt would vanish before this
policy like dew before the sun. What we want
is TO get rid Of the fictitious dollars; we want
rs cents to buy as much here as 81 elsewhere
This would be the result if we had but three
fourths of the money. in relation to commodi-
ties Of other communities We cannot have too
many commodities, If We have smaller pro-
portion of money. Thus. il our limited curren-
cy, or plentiful supply Of commodities, should
retder $3.50 Of money here as valuable as SC
i'll Liverpool, we need not desire any better
business. SO long as this state Of things contin
ued. we should take money from Liverpool. aud
sell commodities to that city without stint What
folly it is then to swell the currency with dollars
Of moonshine, that entangle people in debt, de-
grade the value OF money, and compel us to sell
the real, and keep the false, by raising the price
of commodities and preventing the supply Of
real money The rdhe Of money is TO be found
in the property for which il is exchanged, and
not in the rate of interest-money is the most
valuebe when or where the least Of it will buy
the most of commodities. Unfortunately iuter-
est is dear where money is cheap, aud gold runs
away from places where interest is high TO pla
ces where interest is low, all the world over
Debt creates the most pressing demand for mo-
ney and where that is the most substituted for
money prices are the highest. 1t cheapens mo-
ncy and raises the rate Of interest. California.
though 70 wing no bank notes in circulation.
uses bankers credits largely, which amount to
the same thing, being issued upon the kiting
principle-debt for debt-witheut con: in hand
They are used for purchases in competition with
cein, and are called "dcposits," the same as
here, but they are not deposits either here or
there. They are merely reciprocal arrange
ment Of debt between the bankers and their
customers degrading the value of money and
helping to cxpel the gold, which, from its natur-
al increase and cheApnesst there, would run away
fast enough by the natural law Of value if left
to itself.