ever, be rendered constant, both positively and relatively, by deriving it wholly from persons,—that is, by giving it an invariable quantitative relation to the population: a rule that is both simple and easy of practice, because value is already nominated and numerated, and the population is already sufficiently well known. The divisions of the currency should be the simplest possible, that is, binary, and the definitions of the parts should be as simple as those of coins.
With regard to the legal-tender currency, so called, it serves well for temporary use,—much better, indeed, than any of its predecessors; and as long as its promises are ignored, and as long as its quantity is not increased faster than the increase of the population, it is practically a value-currency, resting on its own inherent right of use, with the exception of the limitation defined by the law of legal tender.
One of the duties of the National Government is to supply the people with a currency. That this is to be used is sufficiently obvious; and that, being intended for use, and authorized by law, it has the right of use, is equally obvious; there is, therefore, little need of a law of legal tender to give it that right. Accordingly, however affirmative such laws may be in form, their intention is not so much to bestow as to withhold.
That the currencies of the world have great defects is so well known that the statement of the fact would be superfluous, except as introductory to an attempt to ascertain the nature of those defects, and to propose an adequate remedy,—an attempt suggested by the rapidity with which the people, profiting by their present tuition, are learning wisdom by the things which they suffer in the defence and enforcement of right.
Of a specie-currency the defect is want of constancy. This defect, derived from its material element, has a particular and a general aspect. The particular is the reduction of the quantity of metal in coins. The Roman money-unit—the as—consisted originally of a pound of bronze; that of England—the pound sterling—and that of France—the livre—consisted each of a pound of silver. The first Punic war caused the pound of bronze to be reduced to two ounces; the second caused its further reduction to half an ounce; and what now is the weight of the pound sterling? where now is the livre? and what of coins generally? Like these individuals, types of the class, they depreciate. The general aspect is, the occasional reduction of the quantity of coin in circulation. The merchant, believing it to be more immediately profitable, exports the coin,—that is, finding the currency to consist of an article of merchandise that suits his immediate purpose, he treats it accordingly,—though by so doing he causes a rise of prices where he buys and a fall where he sells, and to that extent nullifies his own business-intentions, and deranges those of others. If this derangement be sufficient, hoarding commences; and as this action multiplies itself, the currency is soon reduced to its minimum quantity, and business of every kind with it, until the industry of the country is reduced to a state of atrophy, until a mere commercial derangement is converted into an immense loss; because the rise in the value of the currency, due to its scarcity, causes a corresponding fall in the value of all the wealth of the country, and thus checks industry and stays production.
These defects are not pointed out for the purpose of preventing the adoption of a specie-currency. There is no probability of such a currency ever prevailing in this country, except in the neighborhood of the mines, and there only for a time. Much is said about it, as is usually the case with subjects that are little understood; but the driblets of specie that may be seen occasionally are not a currency; neither are those larger quantities held by banks and brokers. Indeed, a specie-currency in the presence of bank-notes is an impossibility, because the notes proclaim their own inferiority; consequently, the specie is retained and the notes circulated. Yet, the opera-
