, 1862-01-08

he tcccl.cs under The head Of Restraint
Epon 11npor;ation;" book 4, chapter2 This
lows clearly the inutility Of the intcrfe1- :
'ncc Of legislation with the natural laws Of
production and distribution, and is totally
At variance with his own theory Of Paper
Money for nothing is gained by the COM
nunity except By labor and the increase Of:
t:ipital. Debt must find capital 10 borrow;
]; is capital only that employs labor.
We point out these chapters as absolute.
II or peculiarly necessary to be examined
By the members Of the Convention who
desire to understand what they arc about
in treating the subject Of Money and Bank
ing: but the Wealth Of Nations is full Of
thought upon every thing connected With
lie duties Of statesmen: and, although it
contains some large and tedious digres-
sions, not chapter can be named that can
be proftably passed over by the Legislator
or economist who would be true to society
md h;p,ee1t in the exercise of his f1nc
tons. ..... .. ..
We desire, however, to present pronal-
pently to the Convention Adam Smiths /
! great error, to which, false as it is in prin-
ciple, and disastrous in effect, he has given |
the authority Of science, which needs COZ
rcction at their hands in establishing prin- !;
cjp1es for the legislation Of Illinois. In
his zeal to disposzess money, or the
precious metals of their royalty as wealth
in public estimation, he falls into the oppo-
site error Of considering them as the
most profitable part Of wealth; aHd
| his principle, carried out to its ulti-
mate conclusion, would make them no
| wealth at all; because he would substitute
| a piece Of paper-a mere memorandum OF
| an 1Ifulflled contraction gold or silver,
! ind consider the community not merely
| as rich as before, but absolutely richer, by
| the amount Of imported merchandise re
turned for the precious metals exported;
the paper money! in his language, not
ours, performing every function OF money,
and therefore the imported merchandise
being an absolute gain Of capital; repe-
tition of the trite saying, that you can eat
tour cake and hare it too. fThis is lis
famous discovery Of the economy Of the
precious metals, The wagon way through
The air, enabling the country to convert, as it
were, a great part Of its highways into good
pastures and cornhelds, and thereby to
increase very considerably the annual pro-
duee Of its land and labor" and various
other tropes and figures to illustrate what
is totally impossible and absurd It is bal
/ looming with vengeance, all gas and no
, ballast, through q wagon way in the air !
indeed, leading nobody knows where; and
i after getting fairly ahoat, the only way We
j. come to the ground again is by grane
f. burst, and a fall without a parachute
q Every man, we suppose, has some kink II
= lis brain, but does not know it and this
= we think, was the peculiar kink in tn
# brain Of Adam Smith. See (chapter OF
If Money, book 2, chapter 2d)
1t it has been discovered in this countr..
l. that the exact reverse of Adam Smith
Sc on1y Of the precious metals They cannc
or lie displaced By paper, or by aebt-cuneenc|
lg including fictitious deposits, without bcin
se first deprecated in value to the precise c.
cd tent of the debt converted into currenc:
NJ and thereby lost, as a merchant loses by
TT, fall in the value Of his goods. The indatic
is Of price, consequent upon the local depr
of ciation Of money, falls upon the consum
rs, here Of imported goods, being the same
be effect to him as reduction IN his wages
&c income; while exportable products mu
,ur either be held unsold at the advanced prit
On, or sold at the exporters limits, which a
nd determined 1y the currency and value
,er- money abroad It is obvious, thereto
I'D that the imitation here is a total loss Of CT
not ital to lie, and an equal gain TO other I
ing tions. This is American science-Ame
the can political cconomy-and VIC wish to
ned it firmly established in the Constitution q
MA laws of Illinois
ne Moreover, il is discovered hero that
le a obligations measured or contracted
aste the fictitious price thus created, can O
lie met while the volume Of debt curre1
upon which it rests is fully naintain
AM The moment any portion Of this currel
4,, is curtaiIed by setroT in the CONTRACT
,7iti~ Of bank loans, all the Obligations, or
hicb due proportion Of obligations, running
! in maturity, and depending upon such |
cen- ton Of the currency, will, by the ineyits
,no- fall of price, be sunk somewhere in ba
~ ruptcy..
o This is the explanation Of the crisc
IT 1919, '37, 81, and Of all other financial
the ses in Europe and America. There is
III Is such thing as ovcrtrading, to which Il
lyze revulsiops are attributed, because the1
ateh no such thing as orerproduc'ion- E
[hclr new production forms the capital
rokc ,not,,er and the means of huyine 81
lsted thing offered for sale. Commodity
NOUS for commodity, whether through the 4
LARGO um Of money or debt, One may produ
the buy the wrong thing, but he will not
IS OF twice the error corrects itself; and
Peaf1t is no Limit to demand but in capital
have means for buying, Until every begE
/ any provided with coach and six. thert
ahsca he no such thing as oyerproduction
'e oo~ any such thing as oycrtrading; and
L. one want will create another, and one 81
gland will become the means of another su
l With to the end Of time. We shall never 6
oe, tho of business in this world We cannot
nd IN ocertrading, but while we maintai
OF the present system Of doing business by
rehen~ ing currency Of debt-promiscs t.
rtance value never created-we shall be pc
. con- -, mined hy ocerbankiAg. bccaus'
gwen ";>.Hcnces with the first dollar Of
!, equal cu@e.ry and ends only with its au1
, after ton.
"4A FNrnsxor ort1a.s Regiment.
sAc We arc requested by the officers Of
pa Farnsworths regiment to state, for tic
,-notcs, nation Of those whom it may concern, I
credit, letters and packages intended for the $
t any and officers of that regiment should
u maid rectcd hereafter to Alexandria, Va, ins1
-o.,,oa. Washington, D. c. Care should be II
direct 10 the Sth Illinois Cavalry, Is
numbers Of letters and packages intcnt
" 'lAe Farnsworth's men go to the Stl Ncv
me mas Cavalry and the Sth Pennsylvania c
the ar The, letter Of the company should
and the stated on the address. Letters dirccte
values will be sure to go to their destination !:
words, 'John p. Thompson, Company c, sth
session Cavalry, Alexandria, Ta.''
@..~- IT,. 49,