The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1861-11-12
Lamar.in.'s Theory abau. Currency.

AdE6rs Utspatch; Inc DtsrGtch, OF the l2fh
ult., contained an editorial embracing the
opinion OF Lamartine upon paper currency,
which l am constrained to notice. This
branch OF political economy has, for seven
years past, engaged much of my time and re-
f1ection. / have elsewhere elaborated the
subject. designing to publish i; in pamphle let
form, but have been prevented by the present
difficulties in having 1T done at this time
Circumstances may develop, making sitam-
perative on the Government to issue a paper
medium of exchange. That case is with us
now; but the Government should guard every
point, Indeed, use the EXTREMIST caution, in
such an act
We will assume that our Government is too
wise TO issue any more than is absolutely ne
cassary. Next TO the folly of issuing IL re-
dundance, is the danger OF counterfelting -
The Bank of England, aware OF this risk,
does not permit a note to pass out of the Bank
the second time it is carefully preserved in
wire-netting, and at stated periods they are
destroy ed. in former times rEey were burned,
and to be doubiy sure, in latter years they
grind them up.
Ii a Government has sources of wealth !;
in short, if the people who live under it are
wealthy, and the commerce of that Govern
ment be interrupted, so that the usual amount
of specie is not received by it; at the same
time, If there he strong probability of a
r. Oration of commercial prosperity, il is the
positive duty Of that Government to create a
substitute for money. Our Government may
issue any amount it may require, simply Y
guarding against counter feiting as the Bank
of England does, with every assurance of
success. There are few men in the (onfede-
racy who would not crestit such an issue, es-
peciaily il the note presented an honest face.
Confidence would he enhanced by condi-
tional promise emptiOn. For Instance,
at stipulated time after the blockade was
raised, they might promise to redeem a por-
tion, or the whole, as the case might be and
further, they might promise that if the re-
sources Of the Government frem impoI t., du-
ties c., should not be adeq 1a te, direct ta xa.
finp rQSnTtQd q
through their representatives in Congress,
should postpone it.
These not-s would not resemble the ordi-
nary bank issues in the least, secured as they
would be by the wealth of the whole Con
federacy. The bank note is only worth thirty
three cents in the dollar, and has no other
value or Importance, until the bank gets the
note of the individual property holder. 1t is
the man who boTrOws the money from the
bank who gives 1t its credit, and causes it
circulation. Even then The bank promises
TO do an impossibiiity, and states an untruth.
Hence the money panics and distress which
at various periods have afflicted the country
The issue OF paper as a substitute for money
by the Government, in an emergency like
the present, every thinking man knows is alb
solutely necessary. He knows, further, that
such an issue by a Republican Government
is nothing more nor less than promissory
note Of the people, given as is dons every day
in individual transactions, in anticipation
of a crop, or Of some individual enter prise
All, then, that the peouie want, is to know
that it is Temporary thing, and that it Will
not exist any longer than the necessity &c
mands. We are hot In fact anticip ting our
crops That risk is over The crops are ac-
all know that after we have exchanged for as
many goods as we want, there will be large
balance coming to Us. which will be paid
with gold and silver. This assertion could
be demonstrated had I the space.
Lamartne, who knows more of poetry than
Of political economy, in common with many
other wria rs, magtnes that money exists by
the authority OF Government, and is merely
the representative OF value. i II this error
could be- discarded, much Of the mist which
has, in all ages, enveloped this branch Of po-
litical economy would be d ssipated.
In every lpsIance in the world, where Gov
ernment has undertaken TO make money out
or valuelsss thing, lresting exclusively on
its autEority.)i IL has failed.
Money must have q value in common with
everything else derived from labor
do<s not reveal any law more distinctly than
that-gold and silver were designed tor
money !; they are found in the world in
quantities, making their production ccmpen-
labor Is compensated in the production Of all
other values.
Ages before it was ever coined, 1t was used
as money with the scales. 1t cannot be coun.
tests which VIII d. eide whether God or man
made 1t. It's the very essence Of value. and
not the representative OF 1t. Neither Il it the
measure Of value, rs some writer's say; but
1t 10 medium OF exchange for the whole
world whereby man Is enabled to denomil ate
The limits Of a Newspaper article forbids
the discussion Of this subject az wouid like.
bullet me aak those who hold to the doc
trine OF LamaTtine, il the fact which he as
serts lvix, that In revolutionary times gold
and silver disappear, j IL not positive procf al
their Renuineuts., aud U the other hand. did