Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1859-10-31
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Making an aggregate Of

lead, salt tobacco, glaS, and koolne for China, an,
earthenware for the whole Union. Louisiana, florii
and Texas ought to produce the sugar, molsSscs ans
rum and other States should produce the wiue, brandy
distilled spirits. hnseed, and many other articles now i'm
ported, in quantities sufficient for the consumption of ou
population. And yet, with n climate and soil adapted t
the growth of all that we need, except tea, coffee ant
spice with mountains aud valleys hlled with iron, snG
coal and salt, and copper, and lead, aud gypsum w,
leave them all but partially developed. aud draw our sup
plies from foreign countriesl
An apt Illustration OF Virgins policy il to be found IL
an incident, which will probably be remembered by
many of the inhabitants of this city, as IL occurred with
in a short distance of the spot on which I now stand.
About twenty years sgo, it became necessary to erect
a banking house in Richmond for the use ofthe Exchange
Bank, then recently Incorporated and although the struc-
ture il probably erected on a stratum OF granite, aud Ger
tanly stands within a mile of the finest granite quauics
in the Union. the granite OF which il is constructed was
imported from Quincy, in the State of Massachusetts
II the articles which | have enumerated among the im.
ports were, as they should be. produced in the United
Siates-if the hborers necessary TO produce them were
consumers instead of producers of provisions, il il easy
to perceive what an increased demand would be created
for the breadstuhs, live stock and other products of our
farms An ample and n steady market would spring
up at our own doors, for everything we have for sale,
and prosperity and comfort would spread through all our
borders.
But this view of the interest Of the farmer in the
growth of domestic manufactures, and in the home mar.
ket which they supply, would be very imperfect without a
reference to other aspects OF the subject.
The prices of all commodities are regulated, not only
BY the laws of supply ard demand, but, also, by the con.
dition Of the currency. Gold and silver are, by our Con.
NNAAAANeA SAA eaHTN A1 vi NAlAt. u u q LuN
highest importance that this standard, by which the value
of other commodities Is estimated, should, itself be sta
BILE and uniform. Every one would understand, al a
glance, the evils that would result from having a huctua.
ting standard Of weights and measures, and the Injustice
of allowing parties TO contract according to one stand.
ard, and to falfll the contract by another. The injustice,
IN this case, strikes the mind, because the standardS-ihe
yard-stick, the pound weight. and the bushel,-and the
subjects TO which they are applied, are material and tan.
gible. But the fluctuations in the measure of ralus,
though less apparent, are not less real nor less injurious,
than fluctuations in the measure of quantity. liza marty
we're to contract To deliver, At a future day, a hundred
bushels OF wheat, which, according 70 ghe present stand.
ard would mean a quantity sufficient 10 weigh 60 hun.
bred pounds, it would be iniguitons TO allow the seller,
when the day for the delivery arrived, to discharge his
obligation by rendering a quantity that would weigh only
IN hundred; or, to compel him to deliver a quantity that
would weigh 81 hundred, in payment. This would be pal.
pable to the meanest capacity. Yet, how few realize the
tact, that equal injustice Is constantly being prActised, ia
consequence OF changes in the measure OF value. la
times of prosperity, when the balance Of trade is in favor
of the United State, gold and silver are accumulated in
the country. Like every other article ut commerce,
their value l. affected, to a great extent, by the ratio be
tween the supply and the demand. When the SUNNY i.
increased, the demand remaining the same, the value is
diminished, and on the other hand, as the supply is d-
Unfinished, the value is increased.
Let Us nov look at some of the practical effects Of these
fluctuations in the supply aud value of the precious met.
ais, on the contracts OF men. Ii 4 farmer contract a debt
of y, 1000 to-day, when wheat is worth 81 per bushel. he
can discharge his debt by transferring TO his creditor l.
vch bushels Of wheat, or the price for which he can sell
it. But,suppoSc he contracts a debt of that amount, pay
AuiCl IN olc or Two wears, ana IN the meantime the bal
ance OF trade has turned against the L. Sr-a rapid eN-
portation Of specie has taken place, and the quantity in
the country Il reduced one-half Ii Is plain, that the val
tie Of gold will have appreciated, nearly in an inverse IA.
ito TO the quantity left The measure of value will have
changed; one dollar viii nov buy what it would have
required two dollars TO buy, the wear before; and the far
meg will now have TO give two thousand bushels Of wheat
or rs puce, 10 pay the debt, which one thousand bushels
would have paid, at the date of the contract. Thus, bv
. change in the condition OF the currency, his debt Is
substantially doubled, because 1t requires double the a
mount OF property TO pay It.
We had many striking Illustrations of this proposition
during the commercial reyGllon OF 1887. In tia, year.
our imports greatly exceeded our exports, and it became
necessary TO send abroad 4 large portion Of the coin OF
our country, 10 paw our fo7eiga Indebtedness. Heavy
drafts were, accordingly, made on the specie, in general
circulation, and on the reserved stocks in the banks
Ihrsc drafts were, for a time, promptly met but AZ length
they became so onerous. that the banks were compelled
10 suspcud specie payments. 4 panic soon iolOwsd,cre-
dit was Frustrated, those who had money boarded it, aud
[ debtors found il almost Impossible to obtain coin, 10 de
charge their obligations. Gold vas nearly doubled IN
value, and those who were fortunate enough 20 have IL
were enabled TO buy Virginia State bonds at 80 per
share Of SlJp, snd al other property at similar rates Of
Expectation. The debtor, therefore, who relied on the
sale Of Virginia stocks, or other property, 10 meet his OBJ
,gstious, found himself under the necessity OF selling
'Ei'c ine quantity h. had anticipated, to pay bis debt
And the mischief was aggravated. by she fast that The
loss, 10 al such eases, tell on those least able to bea. L..
and the proht accrued 10 the capitalist and tie specuh
tor.
These rcvulsions in orr monetary system have been
VI such frequent occurrence, and have been attended
with auah wide-prcad ruin, that it j. time public atteu-
uon should be directed u the discovery OF tue appropri.
ate remedy. Ia uy judgment, they can oGly 30 awaited By
making more at home, aud buying less abroad. We should
incur no foreign debt which the export OF our own produc-
tons will not pay. We should keep our gold and slvcrat
home, and thereby maintain the stability of the standard
OF value. II IL l. 10 huctulte at all, il is better that the
fuctuotion should he in favor Of the debtor. than the
rredtOr-hy q depreciation in value, caused by too large
a supply Of gold and silver, than 10y a rise, in consequence
OF scarcity. TINS policy c%ommends itself, especially, to
lie favor % those WLc az !n.miCal 10 the extrayagant
system Of creqIts, which has preFaled IN cur county
II will certainly tend 70 impose wholesome restraints on
10, by giving the creditor 70 understand that deferred
obligations will probably be discharged 10 deprecated
currency.
An abundant supply Of gold viii also serve to develope
new sources Of wealth. and to stimulate industry and en-.
terprze in every department of business.
ILe ErSssnt l. an ]auspicious time for the investigation
Of the sutjsct, IN al 10 -. .iors and bearings. We are
just recovering from the effects OF one lonmets.Al crisis,
and unless al the signs Of the times are iallacious, We are
fast drifting on 70 another. The lmpOrtadons Of the
present year promise 70 Outstrp in amount those ofis56-
Z. Already the clouds that indicate the approaching
storm are visible in the horizon. Heavy Indebtedness has
been incurred, aud there is no foreign demand for our
breadstuiis. Cotton will go far In liquidation, but IL will
not suffice 70 discharge H.. Larger shipments Of specie
have commenced. The measure Of value il being rapidly
contracted. and prices have fallen, and will continue 70
fl, until they sink below the European level The gold
and silver which should he employed AZ home. l. going
abroad, to ny ior aficls which ought o. have been
manufactured q our OWn doors.
let W. refer for a moment. 70 the STATISTICS Of the i'm
PpIt tAPoft OF the precious metals The export OF
specie from New York and Boston alone, In the first eight
months Of the present year. Amounted, 90 round mum
bers. TO fftyseven millions Of dollars. The receipts
from California, aud AL other sources. Tor the same D.
rod, we're about twenty-eight millions. The difference.
tgenty-nine millions, has therefore been drawn from tie
banks and Pep E1nernl circulation Of the country.
On The lat OF January lost thH Lanks of New YORK
held about tventy-nine millions of spelie. and At the
cl4-r Of August they held twenty one And = half mil
lions. Thsg ip5i, therefore, r the period referred TO-.
but seven 1ud q bait mili0Es. and thD difference be.
tEeen seven and q half and twenty-nine millions. equal
90 twenty one and a bali millions, must have been drawn
irom the general circulation, Or, 10 other words, from the
pockets ol tht people.
The iarmora, iu common with ~ other casaes Of soci.
ctv, bm 90 "a greater extent than any other src noa feel
ing the effects Of this drain Of the circulating medium
ffom the country. The drafts are made. primarily, on
che commercial cities. They, in turn. draw on their
debtor Do tba interior. A. long as the supply from thi-
source c%Ont4lc1, be comMor1.al centres can maintfu
their standing. but when 10 i5 crhabsied. SUSPENSION AID
bankruptcy, add al the evils which follow To- their train.
arc inevitable.
The whole supply u coin In the United States was e.
timated, by The Secretary Of the Treasury, tMr. Guthrie j
Boz bic report % Congress on the finances, in 1867, NJ
from re- ZI1,NnoioOnJ too hundred millions Of dollars "a
f4sp,fon,OD0l two hundred and fly millions. n t,e
export shall continue 10 exceed the u4pOn. A. 10 bss done
in che last twelve mouths. 30 j. plain that q u!l nat re-
guire many years 20 exhaust The stock On baod. Need