Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1859-01-20

nations made between money and property
"Movesble property" the gentleman re-
marks, sis not the subject CT any regular
and permanent income. Its value ever mus;
be controlled by the law of supply and de,
mand, because it is the product of labor, ant
therefore always liable to the shocks pro.
duced by boundIess competition. But it il
not SO with money, for individuals are not
permitted to have anything to do with iii
creation. II is established solely by Gov
ernment. Individuals can neither increase
nor diminish the qusntity in any country
The, efore it is not q subject Of mercantile
competition" The argument of the gen.
,leman is that property being the product ot
labor, Is controlled by the laws of supply
and demand, but money, not being produc,
of labor, it is not subject to The same laws
1t Is true, in fact, Mr.. Speaker, that individ
usls have nothing to do with the creation o.
money, II the .gsutleman means simply
thst individuals are not Permitted to, coin
money, no Que will dispute the point with
him, but coming money is but very small
part of its creation, as the many thousan nds
who toll in the mines of Mexico, California
and Australia can attest. Producing gold
and silver has always been the result of Ia
Dor. and that, too, b, individuals.
The very fact of it being scarce and oi
its requiring much labor to produce it, is
perhaps the only reason it was ever adopted
as currency; not certainly because it pos
sessed any superior intrinsic value over Other
metals. True. the Government coins money
and puts its official stamp upon It, making
it q lawful tender for the payment of debts
but it lays no claim to the honor OF per form.
ing the bona fde labor necessary to the
production of m 1ney. Government once in
the early history of The country tried to per.
form an act of that kind, but utterly failed
1t put all Its official authority upon it, but
it answered only to deceive the holder. 1,
was q fraud-it was Government money, OIL
what was known better by the veterans o
the revolution, as Continental money.
1t lacked the vitality impaired to real
money by the toll of individuals. "a
1t is true, then, that "individuals can
neither increase or diminish the quantity
of money in any country" that individual
labor has nothing to do with it. Upon the
affirmative of this proposition the gentleman
bases his arguments and draws his conclu-
sions that money and property are not gov
srned by the same laws of supply and de.
mand. If the assumption of the gentleman a
in this proposition be not true, then his con.
clusions are also unfounded.
So far from it being true that individuals
have nothing TO do with increasing or
diminishing the amount of money in any
country, almost the very reverse is the fact
Individual personal labor has nearly every
thing to do with its creation in the FIRST
place. In the second place, private and
public economy, with industry, proper d.
vision of labor, and an enlightened COM
mercial policy, have very much to do with
increasing or diminishing the amoun, ot
money in the country.
If we had any imaginable amount Of
money, and would import each year more ol
money and the productions of the country
than we furnished for export, we would
most certainly exhaust our entire capital in
money. On the other hend, if our exports
should exceed our imports for term o.
years, we should just as certainly increase
our capital in money. Thus it will be seen
that the powe.s OF the general Government
to coin money and regulate the value there
of, have very little to do with the amount
of money in the country; but these results
are produced by entirely different causes
A low rate. of interest, produced BY artihO'e
causes, will tend to diminish the amount ol
money in the country just as a high rate
operates to increase it. But any importan
change in the rate produced by other thai
natural and proper commercial causes, II
illegltimate and hurtful to the best interests
of the people. A low rate of intesest ant
a regular one is much TO be desired, 3u
legislative enactments, regulating G the pric'
of money, can never produce this result.
never has produced it in any state or coun
try, and no power which is incapable o
controlling the elements Of supply and de
mand, can reach and control the subject
am aware, Mr.. Speaker, that some gen
tlemen claim that the financial and com
| mercial revulsions, which occur once o
twice in each twenty years,are produced b
high rate of interest, when in fact everyihin
indicates, nay, may say. demonstrates, th1
such high rate is only one Of the evil re
suits of these revulsions, and in no sens'
whatever, their cause An intense spirit {
speculation which produces overtrad:ng
generally thought to be one OF the prom
nent causes of commercial disaster and n
w sion in money. Does high rate of il
terest encourage a spirit OF speculation an
overtrsding! Most assuredly not. Whe
money is obtained at great expense an
labor, the holder will generally be more col
siderate, slower, and more cautious in i
investment than when it was cheap an
easily obtained. This take to be an irr
J sisGble conclusion.
4 1t is a spirit of speculation which gene
ally produces overtradins, and consequent
J a hirh rate of interest This occurs SOM
} times when the country is supposed TO be
highly Aourishing condition, when q
branches ofbusiness are paying good profit
/ and it hardly ever fails to be attended wi
corresponding advance in the rate OF Il
terest.
: A failure of crops is one OF the natur
! causes which produce financial and con
a mercial disaster. When money has to
exported to pay large balances, it becom
n on account of the aggregate amount
} money in the country being reduced. mo
valuable and interest advance. How c.