The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1875-12-18
How Can Paper Money Increase the
Wealth of a Nation7


! can promote the prosperity of a nation, ol
increase its wealth. But ii the prosperity
Of country be promoted by the facllit,
afforded to its inhabitants to exchange
what each possesses for what he requires, a
medium of exchange inexpensive Ia itself
and capable of expansion with the wants OF
the county, and with its increase in popu
latlon, must be highly beneficial. The
Question proposed shall not, however at
present be answered by explaining the true
theory Of money, but by an appeal to
tdcts Land and labour being admitted to
be the primary sources Of a nation's wealth,
let tacts show how Paper Money assists
land and labour to create wealth
Look, first ut the great fact of the pros
perIty ana wealth Of the United States Of
America. AS testimony to their growing
prosperity, let us take short extract from
a speech Of EDMUND BURKE. on American
raqation, delivered IN the House Of Com
mons 40 far back as the l4th of April, IVA,
Alludng to the Americans, he says -
Nothing, iii the history Of mankind is
like their progress For my part, never
c,st my eve on their commerce, and their
cultivated and commodIous life, but t"ey
seem 70 me rather nations grown To perfec-
ton through long series Of fortunate
events. and train Of successful industry
accumulatiug wealth in many centuries,
than the colonies of yesterday than set
Of miserable outcasts, a few years ago, not
50 much sent as thrown on the bleak and
barren shore 0f a desolate wilderness
/ three Thousand miles from all civilized in
| Uercourse.'
| Such Is the recorded opinion Of this dis
| tlugulshed statesman.
/ Aud how was this miracle affected
! DAVID HUME. the Historian shall answer
that question Here is an extract from lis
correspondence with the Abbe MoREL-
LET :-
In our colony Of Pennsylvania, the land
tSef which is the chief commodity, IS
coined. and passed into circulation. A plan
ter, Immediately he purchases any land,
can 90 to a public office and receive notes
To the amount of half the value Of his land,
which notes he employs in all payments.
and they circulate through the colony by
convention. To prevent the public being
uv rwhelmed by this representative money
there are two meaps employed hrst, the
notes issued to any one planter must not
exceed certain SUN, whatever may he the
value Of the land secondly every planter
Is obliged To pay back into the public office
every year, one tenth Of his notes. The
whole is Of course annihilated in ten years,
after which it is again allowed him to take
out new notes. to half the value Of his
land
This vas the Monetary Syatem under
which the American colonists prospered to
auch a. extent, that Burke said Of them
''nrtling in the history Of the world Is like
their progress 1t was a wise and bene-
fetal system, and its effects we're most con
duclve tO the happiness Of the people. Take
the case If family industrious and enter
prlsng, driven by persecution or mlsfor
tune to seek refuge in the wlds Of the
new world With their scantv means they
purchased a tract Of land. Many years OF
hard labour, privatlon and anxiety, would
nave been necessary to bring that family
into state of decent competency, had they
been required to purchase gold and silver
bY labour aud by the produce of lahour,
before they could effect other improve
ments Of their property. But half the
value of his land was advanced to the head
OF the family IN notes, which circulated as
money. With these notes he could hire
labor, and purchase implements Of hus-
bandry, and cattle; and thus where with
out these notes one acre could be cleared,
cultivated, and stocked in a year, ten
would, by the assistance Of the paper
money advanced, be reclaimed from the
forest and rendered productive. Thus
hope entered the dwelling of the poor EN-
igrant. Ten years found him, with the
whole Of his debt to the Government dis
charged, the proprietor of a happy home
Il, l.. s II
meut was stretched out still, to advance to
MN again one-half Of the increased value
, Of his land, and thus enable him to clear
more of the forest, and to settle MS Children
in new homes. Such was the system by
which. "a set of miserable outcasts we're
converted in a short space OF ii ne, into hap
py, contented, and prosperous cOlonlsts.
And observe here how completely the
| Currency Question embraces the interests
Of productive industry, whether manufac-
turing or agricultural. Paper Currency,
OF representative money!" as David
| Hume here calls it, would enable the Eng
ish farmer to drain his land, to improve It's
cultivation, and to employ more labor, just
AS II enabled the American cul l1nist to CON
vert barren wilderness Into fruitful fields.
| The means adopted for issuing a Paper
Currency, VIZ. through pubic office Of
government, was suitable to a colony IN its
infant state. In such a state there would
be no body Of men Of suffi clent wealth and
respousI Dlhty to act as Bankers In an
old country, like our own, where capital
has long been accumulatlng, Bankers dis
charge the function, which the govern
ment Of the American colonies assumed, Of
issuing commercial money. more useful
body of men Jes not exist. No govern
ment machinery could provide agents so
well adapted for furnishing the money Of
commerce AS the wants Of the people re-
uure 1t, as are the bankers of this country
AS men Of education and problty, resident
III every district, &c III i tied with the char
acter, resources, and peculiar circumstances
of each individual, and generally disposed
to assist industrious, honest, and capable
persons, Bankers occupy an honorable and
! important position, and exercise a most
beneficial influence, morally and politically
on the community. Their interests, rightly
understood, and the interests Of the agri-
cultural and commercial bodies. are iden-
tical In promoting the general prosperity
of the country they secure their own.
But we proceed to adduce another
authority as to the advantage resulting
from Paper Currency. viz DIR BhNJA
, MIN FRANKLIN. In 1764, before the StamI
, Act was proposed in Parliament, (Which
, was passed the next year, and repealed the
year foIlowmg,) DIR Franklin, writing in
England in defence of the Paper Money OF
the Colonies, says:-"On the whole. nc
method has hitherto been framed to cstSb
lish medium of trade in lieu Of money
equal in all its advantages to bills Of credit,
founded on sufficient taxes for dlscharglne
, them, or land securities Of double the value
for repaying them at the end of the term
and in the mean time made a GENERAL
, LEGAL TENDER. The experience Of nov
,,.-a,lxv ho " a centurv in the middle oolon