The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-10-21

,x,S,,A otro II, 1873
-. y. 49,, ~, &, Soney.

tDE1GS ISEs SItShDssS1stss
s.ae,n made receivable Tor debts due the
soyernnnent; and that he never proposed
{ fs,st these notes should be forced upon any,
sSo,8y. but desired TO leave all persons free 70
accepss or reject them even Tor debts due
them by she Government. It is easy 70
detach sentences from their connection and
make then, convey TO uniniormed readers
meanings which their author never intended
them to have. Fer instance, the Wig OF
Saturday quotes the following 70 show that
Mr. CALHOUN was In favor Of an irredeem-
able paper.currency::
sIt appears to me after bestowing the
best reflection can give the subject That
no convertible paper--that Is, no paper
whose credit rests upon a proanise TO pay
is suitable for a currency"
In order to show how Numerically Mr..
CALHOUN was opposed to the notions which
the Wkig charges him with entertaining,
and 10 let the Wing seem what connection
the words were used, we quote long ex-
tract from the speech in which those words
occur, including those words themselves.
We ask the reader to study this extract at
tentiyely, and especially the sentences
which we have put in .ftasics:
sit is, then, my impression that in the
present condition OF the world a paper-cur-
rency in some form, IL not necessary, Is
almost indispensable in financial and COM
mercial operations OF civilized and extern.
siYe communities. In many respects 1t has
a vast superiority over metallic currency,
especially In great and extended transac-
tions, by lis greater cheapness, 1ightness,
and the facility OF determining the amount.
The great deSideratum is to ascertain what
description Of paper has the requisite quail
ties OF being free from fiuctuation in value
and liability to abuse in the greatest perfec-
ton. baye shown, trust, that the bank
notes dnnot possess these requisites in de-
gree sufficiently high for this purpose. Ego
further. It appears to me, after bestowing
the best reflection I can give the subject,
that no convertible paper--that is, no paper
whose credit rests upon promise TO pay
is suitable for currency. 1t is the form Of
credit proper in private transactions be-
tween man and man, but not for standard
Of value, to perform exchanges generally,
which constitute the appropriate func.
tions Of money or currency. The meas
ures OF safety in the two cases are
wholly different. A prOmissory note, or
convertible paper, is considered safe so long
as the drawer has ample means to meet his
engagements; and in passing from hand to
hand regard is had only to his ability and
Willingness to pay. Very different is the
case in currency. The aggregate value OF
the currency OF country necessarily bears
small proportion to the aggregate value OF
its property. This proportion is not we'll
ascertained, and is probably subject to con-
siderable variation in different countries
and at different periods In the same country.
It may be assumed coniecturally, in order
to illustrate what say, at to 30.
Assuming this proportion to be correct,
which probably is not very far from the
truth, it follows that in a sound condition
of the country where the currency is metal
lie, the aggregate value OF the coin is not
more than / in 80 OF the aggregate value of
the property. II also .foltops that an In
crease in the amount OF the currency, by the
addition of paper circulation Of no intrin-
sic vdI,le, but increases the nominal Udlise OF
the aggregate property of the country in the
same proportion that the increase bears to
the sckole amount Of currency, so that, If the
cusrsacybe doubted the nominal votue OF The
property ,oiN also be doubled. Hence Is that
when the paper-currency OF country is in
the shape Of promissory notes, there is
constant tendency to excess. We look for
their safety to the ability OF the drawer (and
SO long as his means are ample to meet bis
engagements there is no distrust), without
rejecting that, considered as currency, it
cannot safely exceed in 80 in value COM
pared to property; and the detasion is fur
Their increased by the constant increase in
value of property with the increase OF the
notes in circulation, so as to maintain the
same relative proportion. 1t follows that q
Government may safely contract debt
many times the amount Of itS:aggregate cir
culation; but if 1t aoere to attempt TO put its
promiSSory notes IN circulation IN amounts
equal to its debts, an explosion IN The curren-
GU ,oouid be inevitable. And hence, with
other causes, the constant tendency to an
excessive issue OF bank-notes in prosper.
Gus times, when SO large a portion OF the
community are anxious to obtain accommo-
tiation, and are disappointed when negotia-
bic paper is refused by the banks, not re-
fiecting that it would not be safe to discount
beyond the limits have assigned for a safe
circulation, however good the paper Of
fered.
ssOn what, then, ought paper-currency
to rest9 would say, on demand and sup
pig simply, which regulate the value Of
which the Government has on the commu-
nifty for its necessary supplies. A medium
resting on this demand, achich simply obi
gates the Government 10 receiUe 1t IN GtI Of
its daes, to TIE exclusion of everything elss
except gold and Siluer, and tohich shalt De
optional eoith those ,cho haze demands on
Government to receiUe or not, would, 1t
seems to me. be as stable in its value as
those metals themselves, and be as little liza
BILE to abuse as the power Of coming. It
would contain within itself self-regulating
power. It~coltld only be issued to those
z who had claims on the Government, and to
those only Nth their consent, and, OF
course, only at or aboue par acith gold and
sluer, which would be its habitual state |;
for so far as the Government was. concern
ed, it would be equal in every respect TO
gold and silver, and superior in many, par
ticularly in regulating the distant exchanges
OF the country. Should, however, demand
for gold and silver from abroad, or other ac-
cidental causes, depresS it temporarily as
compared with the precious metals, 1t would
then return to the Treasury, aud as it could
not be paid out during such depression, its
gradual diminution in the market would
so0n restore it to ar equality, when it would
again flow out into the general circulation.
Thus there would be constant alternate
flux and refiux into and from the Treasury,
between it andthe precious metals; but il
at any time a permanent depression in its
value be possible from any cause, the only
effect would be to operate as d reduction Of
taxes on the community, and the. only SUI
ferer would be the Government itself.
Against this lis own interest would be q
i clIffi Giant pilaran fpn ~