It has happened, since the commencement of the present system, that Gold Bullion has risen in price above the Mint standard, which standard price the Bank Note represents; and till it can be permanently secured that it shall not exceed Mint price, Coin cannot be brought into circulation. How then are the advocates of the old system to proceed?—
In as much as our Coin and Bullion are of the same purity, and as the Coin is limited in circulation to a maximum of price, and Bullion is not limited,—and as Coin, when Bullion exceeds the maximum, will ever be melted, in order to become Bullion, it follows that a principle must be adopted and enforced, of keeping down the price of Bullion to the maximum set upon Coin.
Now a circulation formed upon this principle, is an evident absurdity.
The criterion for the amount of the Currency, is what has been above stated, viz. the quantity necessary to answer all the demands, and circulate all the income of a community; and the deficiency or excess of quantity, is measured by the increase or relaxation of demand.
Whereas the criterion assumed under the system which is to be established, is the quantity of Currency which will keep the Market price and Mint price of Gold at par.
Our present Currency being founded upon a true theory of supplying the wants of a community, admits the regulations which have been stated, for controuling its excess without prejudice to the system; because they are all wisely adjusted to nature of the subject they are intended to controul.
But the arbitrary fixation of a maximum on Coin, and regulating the quantity of a circulating medium,