, 1861-11-20
THE CONTENTION AND THE CUR
EEECY,

In our last article under this head We |
showed that, money being the measure OF
values, al Increase ii the amount Of money |
i'll nation or in the world, other things |
being equal, causes al increase in the
prices Of labor, and all articles of barter
anG sale, while diminution Of the volume
o1 money brings about corresponding
decrease in those prices. Its by all means
desirable that stability should characterize
tic business Of q co1ntry-that the prices
Ct labor, merchandise, hreadstuf1=, houses
and lands, should be fixed and permanent
AID not liable to sudden and great anctu-
a1ioEs, so that men may make calculations
;Id plans for the future with some degree
ef certainty. There will Of course be tluc-
1Iaticrs III the prices Of particular things
caused 1y differences in supply and de-
n.aI3. IAese it is impossible to guard
aea;1st, but it rarely happens that such
fluctuations affect the nation a: large, or
indeed tue mass Of people in any particu-
Jar section. II foreign adyices raise the
l'rice Of wheat, the consumer Of wheat at
lon'e suffers in that degree, but his neigh
Dor tie producer gains. Il tho foreign
usarket is reported dull and declining, the
producer loses, but his neighbor the con
suner gains. No1so with the fluctuations
caused by the rising and falling Of the
wave Of money, When the banks issue
largely and swell the volume Of the circu-
lat;ng medium, all prices 60 up, and people
fancy they are worth a great deal more
than they really are, and when the banks
upon any sudden alarm, draw their vol
umes Ct currency back from business
chanIels, all prices come down again with
thump. Then VIC have what we call q
panic. Those who owe considerable sums
debts contracted on the hypothesis that
Prices are to remain stationary-faiI, as q
matter of course. Their liabilities were in,
CURED at time when q yard Of broad
cloth, or q barrel of flour, represented tiv.
dollars. How can they pay when the yart
Of clolh, OF the barrel Of flour, represen
only four dollars? When they fail, til,
chances are that their creditors fail too
and there is failing all around. Then ricl
people become poor, and poor people ar
thrown cut Of employment, and are uuabl
to get bread. The faster the failures arc re
ported the tighter the banks contract, aIt
the tighter the banks contract the scarce
money becomes, and the faster the failure
occur. Action and reaction are equal
The banker and the producer eat eacj
o;her up like Kilkenny cats. The bank
curta1 and break the merchants; the mel
chants fail and break the banks; the bank
suspend and impoveriah everybody.
HI. Memminger, the rebel Secretary c
Treasury, had the right view Of the sui
jet when he penned lis late circular t
the cotton planters. The planters ha
petidoned Mr. Memmiager ind his col
leagues for an advance Of a hundred mil
lions Of treasury notes on the security c
lheir c1eps. Mr. N, replied:
ut must be observed that treasury notes hav
now BECOME the currency OF the county The
a1e, therefore. the measures OF value: In tn
istue, Is far aa practicable, to that amount whic
ouairted with this branch of political science
aware That, II the currency passes this pot9a
the just relations Of society, precisely as thoug
on arbitrary 0uLdo4ify slzdHld ctdng6 q
2cdghts and measures Of q country. II u
c11feIcy OF country should he suddenly extaode
dollarT, thst which Ii measured by one dollar
low metEuIed by two, End every atticle must