The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-10-04
The Eject of the Mexican War ON the
Currency Of the World.
TO THE EDITOR OF THE HERALD.

The Mexican war; in effect, is creating revolutions not
yet realized The discovery Of gold the western slope
OF the mountains, in quantities such induce emil
grants from the Atlantic States and Europe their
homes for the gold fields of California is an event in the
history OF the world that will be referred to in all time to
1t will be the starting point for the statesman the
warrior and the philanthropist From it may we date
the rising of God peculiar people The striking Of their
tents in the Old World, following the twilight of the set
ting SUM- Gold going East and the Jews to the West.
The production of gold is unsetng the finances OF the
world m its effect upon the of price II is long
established theory that the circulating medium or mea
sure of value represents the property the basis OF all
transactions between and man; so much money for
land so many bushels of wheat the rent of house the
price Of horse bill of exchange bushe of po,a-
toes without measure OF price We should fall back
primitive days, and barter with the other pair OF
shoes for a hat; day labor for bushel OF wheat;
string OF fish for basket Of camseach article measured
by the time consumed in its production.
Money is a labor saving machine. II will buy the ne
cesarcs of life and the necessares of life will buy money
II man mas no money he must produce by his labor that
which will command money. II is not necessary to have
as much money in the world property because the pro-
perry is local and money universal man NAV possess
one million in property and at the time have no
money, and yet be a millionaire.
What the requisite proportion of money to property is
question not yet decided We know that contraction
OF twenty per cent in the circulating medium country
where business is done upon credit affects the value Of
Is
expanded greater sum - required to secure the
same amount Of property when in fact an increase in
the currency without corresponding increase in proper
~ And again, if contract the currency in 1857
without corresponding reduction in the production,
we obtain more property for specified sum,
and we say prices have fallen whereas it Is sim
ply reduction in the amount Of currency. We
see the effects at home, but when apply the
system to dealings with foreign countries it is more
prominent in its effects II we contract the currency
the measure OF price goods made cheap, and small
sum will 60 good way in buying the of life
al nm in n1,rD
ing to American labor the home market for articles which
climate, soil and the habits of the people pro-
dnce TO advantage. BY contracting the currency
we reduce the cost Of production, cprta importa
tons by low prices and increase exports We care not
how much we import, provided we pay in exchange the
product Of American labor We have land abundant and
cheap. We produce wheat and in great abnn-
dance, supply the wants Of country, have
large surplus left We ought to be able to sell Eu
rope. We produce cotton, have the machinery to spin
weave, and should compete with the world We are
quarreng among ourselves about protection agree as TO
its necessity and yet dispute about the remedy One
portion call for free trade, and another tariff neither of
which It is believed will give the required relief We
have INDUCED in low tariff and then in high one
Neither the other has effected the object intended
We have gone on increasing debt abroad scrapng up
all the specie we can gather, yet have been unable to
settle up the end of the year without giving our note
We sell to Europe for cash. and buy from her credit
mortgage our crop IN advance increase our debt and
the odd by renewing the note We the tariff
and thereby enrich certain branches of trade the ex
pense of the great mass and at the time increase
the currency until the cost OF production home over
rides the tariff, when foreign merchandise in as
before when the difference the of production in
Europe and America must be equal to the tariff transpor
taon and profit otherwise imporations cease this
OF itself cuts OIL our exports and gives TO Europe home
market compelling to specie instead of the pro
ducts OF labor At the present time send them all the
cotton we can spare all the gold received from California
and yet are laborng under heavy indebtedness Goods
come for the reason Il is the highest market
and we are overloaded with more than car
be sold yet the difference in the production which
the difference IN the great that thew can
sell them to us, after paying duty, freight insurance
commission ana other expenses at price below what il
cost here to produce afordng large profit to the import
er II any one doubts the truth Of this assertion lei him
refer back to the year 1857 when bankruptcy overlook so
many mercantile firms in this city, and see how small a
portion of the whole number were foreign proyng
most conclnsvey that the foreign trade had been prota
bic, while me domestic was disastrous We may protect
American labor by restricting the currency We may do
it in connection with arn but cannot accomplish it
with tari alone The higher the the greater will
DC me difference between the cost OF produconthat
difference, with a mixed currency of paper and specie,
ocIaes as TAX upon American labor, and not upon the
labor of Europe
0ur mistake is in the currency We make it too cheap
by Inc infusion Of credit. We can, under system,
make revenue tariff but in sense can be protective
while the currency is created without limit prices will Of
necessity override the tariff and mporations come in
before.
In these days, when gold pors in upon a mighty
river should establish system whereby could
retain our portion of the precious metals.
We know that politicians of certain sect cry ont tariff
as remedy for every pain in The body, and another
hold up free trade the great deyerer the oppressed
We cannot agree with either. While we advocate tariff
for contend for restriction in the currency
for protection. We have desire to burn down The
temple OF equal rights in order 10 drive out the ycrmn
when undermine It's foundation but object simply
to drive them out and save the building We must follow
the Oh World IN their policy OF protecting Labor We
must have wise laws just in their conceptions comforting
blessings Ike the dew OF Heaven upon ALL This cannot
be done by laying duties with the duties we Inv
labor ana not capital Labor is best rewarded under ov
price," ern'e II enables us 10 compete In tho home mar
N.s 10" P}t'a op'A IT. osau'' tac Spectator, bQt