The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1874-05-07
Adam Smith ON Geld.


The greatest of all modern writers on
political economy, beyond all doubt, is
Adam Smith, the author of "The Wealth
of Nations" written about a hundred
wears ago. In that remarkable work
he says, IN the first book and fifth chap
ter:
"Gold and silver, like every other COM
modify, vary IN their value, are sometimes
cheaper, sometimes dearer, sometimes cas-
Ter and sometimes more difficult to pur-
chase. The quantity Of labor which any
particular Quantity of them can purchase
or command, or the quantity of other
goods it will exchange for depends always
upon the fertility or b~arrenness OF the
mines which happen to be known about
the time when such exchanges are made.
The discovery of the abundant mines Of
| Africa reduced, in the sixteenth century,
the value o. gold and silver in Europe TO
about a third of what it. had previously
been. As it cost less labor to bring those
precious metals to market, so when they
were brought they would purchase or COM
mand less labor; and this reduction in
their value, though perhaps the great
est is by no means, the only IL Of
which history gives any account. But
as a measure Of quantity, such as the
foot, fathom, or handful, which Is
continually varying IN its own quantity,
can never be an accurate measure OF the
value of other commodities, so as c0H7Hl0-
ditV SUhich is itself continually carrying ne
its o0Cn v0kIe, can neUsT be an GccU-
rate measure of The C0kte Of other conf
medities."
In another place Adam Smith says;
"a well regulated paper money Will
supply the place of gold not only without
inconvenience but, in some cases, with
advantage"
Commenting upon these deductions Ar
chibald Allison, the historian says;
mo currency which is based exclusiv-
ely upon the precious metals, OF consists
of them, can possibly be ezem 30 fIom
such fluctuations, because being valuable
all over the world, they are alw. liable
to be drained away at particular times by
the mutations of commerce or necessities
of war in q neighborirg State. A wal be-
tween France and Austria, ccc1siuning q
great demand for gold on the Continent
a bad harvest int England, rendering nee
essary a great expectation OF It 20 bring
grain from Poland or America, q rsy5iu
ton in France, two weeks rain IN August
in England, events, ~unhappliy, nearly
cQudlly p~IOD6Oloi may dt any 'IHSJ lAeHOr
the calamity. True; the precious metals
will always. in the end, be attracted to
the center of wealth and commerce, but
before they come back halfthe traders aud
manufacturer in the country may be reH.
deTed bankrupts."
All history, and English history espeo,-
ally, shows the %luctuationi ruin and de-
vastation that follows in the wake Of IN
irredeemable paper currency. The hrst
Napoleon restored the currency Of France
to a specie basis, while England was run
ming on the era of imitation, and in a
comparatively brief time the specie Of
England was mostly gone, and France
was abundantly supplied. What right
has government to expand or contract
the currency of the country SO as to affect
values, making some rich and others poor?
Our Constitution gives no such power to
Congress.