The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1858-01-21

change and standard Of value, which in truth
aud fact is not the medium of exchange and
standard of value, as palpable violation OF
a great law Of commerce and exchange, aud
consequently rs the immediate and effective
cause of the great modern revulsions and
commissions in trade.
Deeply convinced thu, credit money is the
parent Of commercial rcvusions and all their
attendant wees tina, It's supposed benefits
are all imaginary, and its manifold evils alone
real, we earnestly urged that the axe should
be laid at the roots Of this grca, Upas tree.
whose banefu shadow overcasts the land.
and that the whole system should be u, once
and forever eNtirpated We are perfectly
aware of the amount and character of the
prejudice which our views must encounter ;
nevertheless perfectly confident in their truth
and soundncss, we shall not shrink from
urging them.
We advocate distinctly the entire abroga.
tion OF all paper currency, or credit money !;
of every kind Of money, eAcep, real money.
We urge the disusc of everything us the
medium Of exchange, or standard Of value,
excep, that which, in truth aud in law is
the medium OF exchange and standard Of
value. In word, We set our face and our
teeth against Moms and hes in commerce
and trade as well as in everything else. -
Tho whole paper money system Is sham
and lie from beginning TO end. II is basel
upon fic,ions and built up of ilctons, 1t
calls and circula,es that US money which is
only an evidence of debt. by it capital is
composed of and represented by debts debts
are paid with debts exchange is made with
debts and value is measured by debts
The more debts, the more money. The cir
cula,ing medium expands and the debts in
crease, until the whole country becomes rich
in debts. Magnificent palaces arc reared,
furnished, and maintained in dazzling spcn-
dor, with debts. Spacious cities are laid
out, in Western wlds. without solitary
denizen, and lots bought and sold nj iabu-
lous prices, with debts Al sorts of grand
enterprises are initiated aud carried forward
or rather, rushed forward, with debts. Nv
crybody has command of ample mcans-in
debts and people literally live on debts.
But pay dag always comes" 1t may
be postponed again and again, but finally
come it will sooner or later to all This is
AN inexorabc necessity of trade and ex-
change. All debts have to be llquidated at
some time. Under the credit money sys-
tenn when the liquidation commences, the
contraction Of the currency necessarily be
gins As the increase Of debts went on
with the expansion OF the currency SO the
contraction Of the currency commences and
proceeds with the liquidation oI the debts.
This is IA necessity Of the system When
our need Of money becomes most urgent
we suddenly find there is leas, to be had
dur cherished system fails Us Just when and
where IL aid becomes most requisite. Il,
tak,s rs up into "a hi {h mountain, aud iu., as
We begin 10 survey the vast possessions unto
which we imagine We have attained, il rude
it, t.lu mt a.
depths below Alternate expansion and
contraction Is the law of crcdi. money. aud
periodical commercial rcyulsIpus the necta-
sary effect OF tho operation Of that Law ---
The severity Of the contraction. and conse-
queutly the magnitude Of the rcvulsion, will
bc in exact inverse ratio to the extent Of
the prcYious cNlansion. In proportion TO
the elevation Of the artificial property,
which prcosles The crisis, will b. the deprcs-
sion 81 real ruin which follows.
II the penalties Of the system were visited
only upon IL promoters and abetlors, We
could veil BIZ content 10 leave its evils To
work their own cure. but. unfortunately,
these penalties fall upon the innocent rs well
a. the guilty; nay, the inDocen, sufferers are
the chief sufferers always. As We have al
ready stated, the whole system IS a delasion
and cheat /, dclnbes the mna who may
be really worth $4,000 into the notion tina;
be il worth 10000. and at length cheats
him out Of that which be really had II de-
ludes the capitalist with high rates Of inter
est; the stockhol,lf with large dividends
the Manufacture with increasing demands
for his fabrcs the merchant and tradCsman
with large profts the agricuturist with
high price, and the laborcr with high
wages. II A. has 10000 worth Of pro
Isrty, measured according 10 an actual gold
and silver standard Of value, in what IL he
sdvAntsged by having the valuation Of BIZ
property sr,i6cislly increased 10 5000