Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-02-24
THURSDAY MORNING, FEB. "a, 1850.



The Practical Operations of Trade.
Upon Allqueslions concerning the material inter
ests Of country, there 10 arguments SO eonclu-
siVe as the practical operstions of trade. Theory,
however plausible, often fails The plain teach
iDgs Of experience never fail.
One of the fimsiest, and yet most plausible argu-
msnts, in favor of paper currency is the scarcity
Of the precious metals and the want of suficiency
Of it to answer the purposes Of exchange; and thst
to restrain the paper system will lessen the currency
Of the country, and thereby depreeate the price Of
property. This character of argument is generally
addressed 10 that class Of men-farmers and mechan-
ics-WhO are supposed, from taer pursuits, not to
be informed in the details Of commercial and fnan-
oial matters; men who supposed TO be ignorant
that this very scarcity of the precious metals is not
necessary scarcity, bat The natural result aud e-
gitimaGe fruit Of paper money currency, based
almost entirely on credit. Such arguments are
made to men who supposed to be ignorant
Of the fact that We are now q gold producing
nation, just as We corn and cotton producing
nation, throwing into the markets of the world more
than sufficient to answer the purposes of two such
nations; and that the reason why it docs not re-
msin with &c perform the Offices Of money is that
We have adopted sham money in its stead, based
upon bank credits which being SO easily made is
che per and forces gold and silver to seek countries
where there is more demand for them and where
they viii command better value.
Now Cor the facts: Every one comedies that in
1876, the year preceding cur recent monetary trou
blSs the circulating medium Of the country was not
only amply large, but Iuinousy SO, considering that
it was almost exclusively credit currency At
that time as shown by statistics known and admitted
to be Correct the bank note circulation Of all the
banks in the Union amounted to tDo hundred and
fourteen millions, while the amount Of gold that was
actually produced in Caiforni2 alOnefOr the seven
years, commencing with 1851 and ending with 1857,
amounted to within fraction Of three huadred and
thirty nine millions; or hundred and treHy-fve
assons MORE than the entire bank note circulation
at the inflated period of 1856. And yet the argus
ment is made to those who are supposed to know
no better, that, in the absence Of the sham money
system, there would not be enough of the conslitu
tionl curreBeyt to take its place aud answer the
purposes of exchange The simple fact we have
stated e1plodes the whole sophistry and leaves no
ground for argument
Perhaps some Of our readers may he curious 10
know what becomes Of all this three hun ired and
thirty nine millions, aud the millions mere that are
being annually dug from our mines. This every
intelligent man readily answer for himself upon
the simple suggestion that gold and silver arti-
Giles of real value and like other articles Of value
wheat and CORE for instance, they seek the markets
where there is the most demand for them aud there
being less demand for them here, than in any other
civilized country the globe, by reason Of
parelled paper money system, but A small proper
1ion Of them remain in the United States. They 90
to countries where sham money is less in use, and
where real money is ale to constitute the princir
pal currency, and by reason Of which dollar is
worth more than with Us
But for further solution Of this question: let the
reader obtain & statement of the annual exports
from our seaport cities to the different foreign ports
We have not them all before US, but taking New
York and Boston illustration, will suffice our
present purpose. From the annual tabular slate
ment of the commerce of New York, given BY the
Journal Of Commerce of that city, we learn that
the export of specie from New York and Boston
alone for the yesr 1857, was, S54, O72, 933. This
was during the full tide of our paper credit system,
st the close Of which year the bubble burst and
the banks throughout the country had to suspend
This periodical explosion Of the paper money bub-
bic created vacuum for real money, and what was
the result? The great bulk ofspcce over and above
the amount necessary fer settlement the foreign
debt agsins; u.s. renamed at home. Hence we find by
thesame commercial authority previously referredo
that for the next year, 1858, the amount Of specie
exported from New York and Boston to foreign
ports, only amounted to SOS, 7O9, 7s4 or but little
over oae-kalf Of the amount exported in 1857.
AZ, ~, IL.
retormstOry legislation that Was had in the differ
snt States the subject Of currency had effected |
much good by creating demand for the precious /
metals. Thebanks have been forced to keep more
abundant supply of it hand, and gradually it is
finding its way among the people. But whether
real money shall continue to increase among US,
and sham money gradually disappear, will depend
upon future legislation. If the people will do
more Of their own thinking and rely less upon
interested parties to think for them, we hope TO live
TO see the day when there will be bark in The
country, except for purposes of exchange, deposit
and discount. But if spectators and bankers are
permitted to determine the question: it win not be
long until all the gold sgain out of the couns
try by paper issues, end We will find ourselves on
the rapid road to another snd far more disastrous
financial revulsiOn and bankruptcy, than the one
from which we are recovering.
The Massachusetts House Of Representatives have
adopted the Amendment To the State C,pstituticD |