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I
SAVANNAH OJSPURUCAN
FREDERICK >3. FELL,
CITY FnrvrfK.
uarpuw. gsiour—coririr, trx, mu>
«r4Ui tit ADVjtnet.
Jjut *m in n« umninun ununi
«*tb rum -am at»r* mr onu, •n.r^fX
/Vj* ;»• .V.i.7,11/ Jiirfigenett, 3d (n*
XXrOBTjtTIOV or DOMESTTC emrs
rinnosrasroyikt vr.rnrrr.
1ST CT.VATR—»i*r**T 2*, 1*1*.
Th* Ci*?rt»free «n Kosnee. »« whom »>' v»-
T-fr-fl 11 rev>*uti'H» to inquire into tht ev? efl"»ei''v
of -roV.ihUm— hr Uv, th* •*poY»»’i-n of *>’-
r^M. *»4 copper corn* 4f the t'u.cfi
j!>h«-n?«t!
ThrtO** ntuntf estitmipta'd hi «h- irwhi-
lion. intiTn>te*Teotiop ItvHf »hh th'
timew« ’f rlie oitinn the ewn«i*tee. thr-nt-ti
their chairman aiMvr»»ril nnnteYn the «er»rtsrv
nf the t»-mnrv. t*<pie»tin|rhieorii''ion of the prn-
•prirtv of eiiontmif measure' foe the etuinteert of
’th* ohtost In <*nte«rot»Yion, from nSi*?*!? th»v r*
eefeed in rente « eontmtoientioo, nOiieh »«-—*.
Usm-* tht* report, »ith the sreurarn's *u4 onin.
ion* eeprraaed in wKieh. there of veer cnnou it'e •
•UhttaotiaTlr rnr-Mj>r.nfl.
Of the htHBone*. if not rn r ire it»P«te»er of I*
. Ifi-lttite pro-irons. fn prtver* (he tifiv . f ,h«
;-T-r’.-ull metalibevond the temitofial - f V*
pnrerntffont. the hRtnrV of r1l e-inntrir* in which
the pontr ttf lrfi'Vjtion *i*» Vfn tl.qt exei-eivd.
beer Wittiere AnA if Sll'tle iffb-rs of arbitrary
pnsr—. n* deep olio (tn*erntn*ntt - if r'-uia'i'"i,.,
dlrt***fl1>v thr tout em'ion« and jealous poiiev,
/.isvj-d he pvnrtliev and pitn’d'T-n-.-t, the mitt
end t**s tf.'.[o|innrr. end rid-md iri-h a r’.i-o:
■ubie-'i hn -<« ni Tn'ipati' n h«v- been in Yan—
-what hope e»nti* induhred that n pnremn»*iit
■like r ica, the prni ta and rpirit of r’h'ch btaathe.
aiiMisess and mn I rati 'n—a e ■ti’tn*. in w* irl
•emel end anueiial niniahmenii’areu-iVtinwn ornM
find lilt meant nf nhtii"h>j». hr »!>*« rnil.l niirit n r
legislation, this desirsMr en<D Indeed. -u error
aeeme more'nfi’r!*'rnoon-reil and orpin led if
net bv the nr*et : re of nil nalirnt. at Ic.-.t in thr
disqai.&Mis of nnlitieal eennnrniitv, than that.
ta*iich «npon«r i thnt an a*e*ienn1at'cn rf the one.
cione metalae-oW be omdnerd in the dontinjnne
of ore eoYoeeim, bv rssrulations pmVhiff'ur tl,e=r
exnnrta'inn to thoae of any other The evilr m.
aul' "? to the oren-n«nitv fr-m a scarcity, or t.m
amall a portion nfthe nr-*inns mettle, teem to
jdOr-enmmVter to be too deeply rented, to v.-H
<«»nf rriredie* mi'hin the competenevof 1*ei«l»-
tion ♦" afford f* la a maiad'* svhxli admits of no
cute hot that of time, patient industry, and pee.
gey, rinjf economy. Ae lonr »»the balance of
’trade ia apainat tia, so |on(f will a eonetant cH**»
of the pef'ienia meiate be required for the dis-
chares* of stmt) balance
•’From this win in r<wutn<.r c ? the enrreetnere
nl which, it i« beliryed, nea*m* was qr.es'ioned. it
jolloara—that it retrains with the people them
selves to adjust th-s halanee, and to prndnee a
pr?annd.-*anne in farnr of our own country.—
• TfieWf favored as th»v art b- thr h-nn'y of l*ro.
ridhnee—h’.eianl wi*b a minify of unparaMi led
fertilitr-trit'i a*'!, climate ami «ititation, nlmo t
icfinife'y diyerndcd—with eapacltiea of rivaling
s-rcrv quarter of fh« plobe in the iftri'ul'ura! pro-
diiftiona. a« we'l a*> in the nrrfeo*i<’n oftheirm-.n-
ttfattutea. raw nrHoriala, foe wh rh »r* to ahun.
dantlv fnrnithed them within the botom nf their
ass country—aid d by a moderate and trite ee-p.
omy, in a limited enjoyment, nl foreign i-ivti—et;
nriih these advantage*, duly appree’ated. and fnt
ly Improred, to aa*iat eUvated eoadition. in their
intereoorae with forefen nations may they not at
pi ref To th>* protection of our dometti* minn.
•fnCturea, bv the impotition of du'iea oo fore : epi
importations, the rational government teemed tn
have g me IS far at sound folier would trarrahf
atneemi*. yrgsfnt lariff hsring been framed
*«itVa view as well of raising the requisite snp-
vily nf Bovenueforthe support rf government, as,
lip (he amount of the duties impos'd • on htrrign
articles of manufacture to enable onr own msnu
■fieturer of airaibr artielea, to meet the importer
<tf eueli foreign maiuTfaotnrea in one own market,
■on tenr.« of fair and equal eomprtion.
Furihertliasirtiia.H- wonid serm to.your com
enittee, the eongresa* of^bj-jpnited States ought
•not to go. To c'oiurtjl^* fa erprizr, to the aa
tbe^babaecdo (hainMwrdhenteresttrt&gi t»
aaoualiy payable ia the creditor.
But it may poaaibiy be conteudid, that bow
ever ineiRoieot the mjamre may gt.ua peru-
Bent regulation., jret there are e inj oictsuns tn
tbe afTun of every state which aot only justify,
but impcnooily require* iu temporary «dop
apeitv of this clast of ^pNMbmunity, sharpened
5y the knen sense nf U#mf}r and enlightened by
tong experience, it should be left, to explode the
olj—or, seeking new channels of commeree. find
out thesoost profitable markets for the produc
tion of our native and doraeatid industry, and to
bring us in ‘exchange such of tbe productions or
fores'll climates, and of foreign labor, aa our eiti-
gens -are wJling to purchase. In short, it is thr
opinion of™ Br committee, that commerce ia al
ways devtmed to flourish most where it is permit-
-ted to pursue ita uwn paths, marked out hy itself,
embarrassed as little as possible by bgislstire re
gulations or reatrictiona.
■ Prf.m these consiutrstions. your committee are
induced to reeommtnd the adoption of the fol
lowing reaslutionc
A'ao.Vnf, That it ia not expedient fur congress
to adopt any regulations for preven'ing 11k expor.
nation of the gold, silver, or copper coins of the
Visaed States.
TaxtatJBT TlariarmtxT, >
December 29. 1«19. J
. ba -Tn reply to your letter, enclosing the reao.
lution of the senate, of the 2d iuat. instructing the
tsemmittee of finance •‘to inquire into the exprdi-
. eney of prohibiting the exporlstinr of the gold,
adver, aui copjier coins of the United States," 1
bare the honor t# state, that, from the best consi-
deratiqe which 1 have been able to bestow upon
tbe subject, it would be inexpedient to adopt the
measure at this trine: 1st. because it cannot be ren
diced effectual, ar.d 3d. that, so far aa it may be
rendrnd cTccla.-d, it will operate in favor of the
corrupt part of the community, and injuriously lo
tite Ci'r urd coascieuiiout mercliant. The litter
position It so manifestly true, tl*t no argument
' will be offered in its tavor.
In anpport of the first position, the experience
of other state*, fenuabea tbe most irrefutaHe
evidence, lacring the dark agea, and tho»e which
iauncdixtely followed the revival of letters, arts
and commerce in Europe, the exportation, not
only of the current coin of the respcidivi staves,
bat of the preeotu mauls generally, was prohib
ited. under the moat Sanguinary penalties. This
general prohibition, yielding to the progress of
reason, and to the tdrancement made in the
science of political economy, during the seven
teenth and eighteenth centuries, hat been grado
ally reduced in most of the states of modem
Europe, to the gold and silver coins of the re
•pectirc state's According to the testimony ol
tbe moat enlightened men of every state, for iht
list certify, the absolute inefficaey of this modifi
ed prohibition, n< a permanent measure, has been
«itixfactnriiy established.
tty the imam a&le lass of commerce, the ex
portation nf the precious metal* mu* oeeeasari-
Jr depend upon tne general balance Clf trade, ia
despite of a-iy mun emal regular.on, which human
ingenuity can di vise, or human power caecuae.
ah art of wresting from individuals tbe possession
ot it. ’ As a general principle, at may b* safe h
•Uxscrted. that the state which import? ir.erciian-
' jJ;re to a g^eatar amount than ia.es,•'fried, muJ
pay the b*.>i*ee in the preeiotM mf-sl'. I« fr e
Stiart. whrr.- .olblic credit is firmly s -'aWisiicd.
and m mied imtitu'inna founded u,u". just pr.n-
eipies. and wie-ly »d nutered. ♦: is ad-mud
enat balance- msjr be for some time adjusted tf ' c a '
wrihbut the aid at specie, hi trs uferr.ng to the) ,| - > , c -
cri iit.e interest beari.gstetintee. >« it k s fonde i
dent sod bank stock It nce.f, boweyrr. no effort
gf evafsn ter dc'ermioe that rhm m- ai? of ^-adjust-
urn bslancea, asuat not on!, b- "usited in i s cx-
ieJi.bat iqjation' tothe psrtvwh>ck resorts to it,
uniformly uud* to ihersaueMdperpetuate
, J: cannct be denied that tbe hist try nt our own
government strongly countenances this dirt,no
tion During the embargo of 1807—b, and that if
mu, the exportation ot rpecie of every descrip
tion saj rigidly prohibited by law. Admitting,
for the purposes of this enquiry, the correctness
of this decuioo, it may be proper tn determine
whether the political or commercial trillions
sfcri foreign states, or our internal atfurs present
a case, which calls fur the temporary adoption
nt’ tlic measure. According to general appear
ances, it is bdievcu that cur relations with jo-
iiign states have at no period of our national
cxir.ence furnished less cause of inquietude.
I he wexs'ioua to which our commerce ura«
subjected by the principal belligerent nations,
pr.ur to tbe commencement of Uic la'e war, its
.Itr.ost te'al suspension during tlse war, andyhe
irregularities and victsaiuidei incident to it? rc-
. suxpuoe, on th. return of peace, have doubtless
produced (lie most serious embarrassments and
loasca. At tins tune, however, there is just reason
to believe that these ivrqgulanties have ceased:
that commerce has resumed its customary clian-
nel| and that tbe cnlerpnsmg und prudent mer
chant will hereafter enjoy fair and reasonable pro-
fi'a. The rate of exchange between this country
and th commercial states ol Europe, ia aautfici-
*r.l eecjinty against the exportation of the gold
and silver c,uu of ite linited States to tnose
sta'ea. 'iiie exportation of specie to tlie Eas:-
indicsis the only crcumsta.ice connected witn
i or commercial intercourse -with other states,
wmcli emi he supposed tv require the temporary
prohibition of :r.c exportation of the current coin
• .! the Ur.utd States It is believed t .at tins traue
lias been prosecuted more extensively by the
nivrciiants c; die United Slate*, since the late war,
than anterior lo that period. The eatent to
.loch it will be pri'-ecuted i ■ SJCCttdo.g yey*.
will depend upon the the extent to which sales
can be profitably made of the articles imported,
and liie practicability of obtaining the necessary
amount of specie lor its prosecution. Should ibt
civd war which has lor some titoc eaistedbetwieu
apain and the independent governments in the
hpamsb American provinces, be prosecuted f i
any considerable lime longer, it it propabh that
litre wdi he a general appreciation ot th* pre
emus metals m die civiliced world, and that tile
drain of the East Indies may not only* he greatly
dmimithen, but that th-.y may be imported from
dienes into Europe, anu the United States. Uti
•hire is no rational probability that in either event,
the pressure upon the communiiy which has pro
duced tins enquiry, will be temporary m its »a
lure, or that it will yield to any temporary legis
lative exped’eat. It will be removeu only - hen
cur impor ations shall be reduced below our ex
portations of merchandise to a greattflkxtent than
the amount of specie exported u* the East Indus.
Until this should be Uie ease, the pressure will
continue, ev.n should the quantity ut the prec*
uus met* Is m general circulation be greatly in
c" ased. Whether the quantity be great or emit
no part of it will permanently remain m a state
against which there in an annua! balance of trade,
unless the eoin of sueb state should be so adul
terated as to destroy its currency. U these views
be correct, we must look to tbe state of our in
ternal affairs for circumstance* which may justify
a temporary prohibition of the exportation of UK
gold and silver coin cl the United States. 1 list
he currency is disordered, and that much cm-
carraismeut i- felt in he fiscal imr.sactious of Hit
government, has been stated in the annual report
u. the treasury. In the apring ol ldt?, the pun
cipal banks in the commercial cities, in cunjur.c
*.cnn witn toe bank of the United Slates, resumed
-pecie pay ment. Their example w as ostensibly
followed by the immir-e number of local banks
establish! d in tbe interior of the Attain ic states
in liie western states, specie psyments were also
resumed by the banks established belt-re the ref u
sal to pay specie, in 1814-
In iWmg the effort to restore theeuTency to
an tquabty with gold aiid silver, the banks were
secunued by the community, which manilestcd
a laudable iorbearance to demand specie for tbe
bank notes which formed Che general circulation
1 hit forbearance, however, could not be expect
ed to continue after the banks hid had time to
regulate their paper in circulation, according to
the quantity of specie in tlieir vaults. In the mean
time, the bank ut die United Staten, and some nf
liie date Hacks, made const erable efforts to im
port specie. Tbe exportation ot it, during this
same prnod, has, it is believed, been equal, it not
greatrr than the importation by the bauKs anU by
individual*. It is presumed that the banks will
not continue their exertions to impou specie, but
h ate that to be effected by Ch« commercial inter
est, which alone can bear the expense: but winch
will cer-.ainly not do it, so long as it shall be
•lone by the banks. When the banks erase 1*
import they must withdraw- their paper from cir
culation to a very great extent, or stop payment.
The demand for acirculiting currency must lie
nude imperious before i* , i . he imported to any
considriuble extent by *’ c .nsicrcial interest.—
li is only when gold and silver sbsll form a large
proportion of tbe circulating medium of the na
tion that the currency can be said to be sound.
Since tbe resumption of specie payments, m the
spring of 1817, this has not been the case. Wliat
specie there was in the country, lias remained in.
tne vaults ot the banks until it has been drawn by
lot- broker*, to be sold to the exporting mercliant.
I. lias not entered into the general circulation,
and there is just reason to tear that much lime
unil elapse belore it dors. It bat was the result
.f forbearance in the first instance has been ef
fected since by the operations of interest or ot
tear If specie could be freely drawn by the ex
porting merchant from the vault* of tbe banks,
at par, be would no* pay the brokers 8 or 1U per
cent, premium.
Hank stock, especially in theeastem, middle, and
some of tbe western slates, forms so great a por-
non of ibe property of the wealyhy and influen
tial classes of society, that the interest of the banks
m Ctiat ol the w hole community. The exporter ol
specie lias, therefore, to choose between the hos
tility of the community, and the payment of a
premium upon tht specie which be exports.—
There-1* even just reason to apprehend, that whei e
banks shall stop payment, they may be permitted,
by public opinion, in some part* of the union, to
continue to circulate tlltir notes- Should this ap
prehension be realized, and the evil should be ex
tended to different sections of the country, the
currency could not tail to be vitiated in an ex
treme degree, unless the national or state govern,
inents should adopt mea‘u r es m-essary to repress
it Against evil, of this nature, tbe prohibition
uf liie ,e partition of the gold and diver coins ol
the United Sutcs would furnish no relief Nor
is >t conceived that this measure can, in any de
gree, repress or alleviate the sufferings of tht
community, resulting from the excessive snultipli
cation of banks and consequent inoculation • I
bank paper which it was manifest could not bt
converted into specie at the w ill of the holder.—
It the banks .ball be constrained by law, by pub
lie opinion, or oy a correct know ledge of their ri-
ttse«:. to stop their discounts when they cease ti
discharge til-ir notes in specie when demanded,
and i online Uie,r exertions exclusively to the col-
lecuoi. and payment of tb-ir debit, the evils which
a„w oppress society will be gradually diminished,
and ibe currency every where wid become equal
f„ a- riu and silver. Hut, during this proce«s, and
after a Hull be terminated property ol every de-
scrip-ir- will be greaily diminohied in r-luei and
c*jH.iiad> that which is fixed and permane.1i in
• S lav-.re Jo die uquidarionof the exi-.mg debts,
the rx l.i..in * debtor and creditor will be sensi-
m tavor of the latter, who will be
paid in m n.yof greater lntri cc value than was
ocov.-i by t.ic former Hut Una is an evd which
iicecs-anly'results from fluctuations in thecurren*
cy .4 every siau, and ca.uiot be charged .upon the
government, which, in tbe presen: case, wijj be
must s, riously affected.
It is, however, ewee*r*. tel * vaperwren-
cy, Minded upon » metallic ba-n, a more liable
to aiuklen amt vtoT-nt tiuetesrions than one w/tich
it purely metallic. In the present *Ute of the
precious metals, in general erre * tion, a metallic
currency-, it is eonfi-len ly bfliexod could no! he
,:m-d!?r.:cux|y resumed by the different state* ct
the civilized wo;i 1. We ate then eompelttd, un
der existing circumstances, to continue a paper
currency, founded upon a octal! ni -ms, with all
its liability toaudden and violent (ructuitiun*. ag
gravated by the circumstance that more than
twenty diffeter.t koierrignties clum and exercise
the right o< increasing, ad libitum. Hut currency,
through the mstrumentiiily of banking ins'.itu
lions. Tue«e tircumstmces. together with tiv-
drain of *;h:cic produced hv 'die E .st India trade,
presi-u*. lie o-ut serioua obstaclt* to the preser-
la ion iff the currency at on equal vx ue n, guld
and silver. These okxtacle* now exist tn, ptr-
hcp*. iheir grertett foice. The practicability of
preserrinj the convenin lity 'of bank notes mtn
current specie, nn-kr circumstances so extreme-
ly advirse, is in a lair course of ex;reriment —
Whatever may be Hie result of this experiment,
until it is obtained, no legislative interference is
conceived to be necessary, except f..r the enforce
ment of tbe obligation o.t Hie part of the banks
to disci,arge their note* in specie, when demand
ed. This can te must certainl. effected by con
side-ring and punishing, as an act of bankruptcy,
any attempt on the part of a bank to circulate its
notes whilst it refuse* to liircha ge item is specie,
or the notes of other banks in t-.e same aitu-.i -on.
I have the honor to be, sir, very respectful"',
your most cbedient servant,
Wm H. Csawroso.
Ti- hen. J. JV. Eppft ehuirmsn of t.\e cemetiuee
sff.no> ? •
(The above report has been rgreed to by the
senate.]
IMPORTANT REPORT.
OvY THE nEOUr.JTIO.yOF C0IX8.
HOUSE OF REPRESENTATIVES.
January 2G.
Mr. Lowndes, from the committee ap
pointed to enquire whether it he expedient
to make any amendment in the laws which
regulate the coins of the United States,
and foreign coins, made the following re-
|inrt:
Tint the law* id the United State* make,
ali gold and silver ruin* issued from th<*ir
mint? and Spanish dollar*, and the parts
I such dollars, a legal tender for the pay
ment of debts. The gold coin of Great-
riritain, Ptirlugal, Krance, Spain, and the
dominion* of Spain, and the ernwn* and
live franc piece? nf France, are also declar
ed to be a tender, bv an act passed on the
29th of April, 1816. These coin*, ex
cepting the five franc pieces, had been
made legil by two earlier acts, which had
been allowed to expire, snd their renewal,
with slight modifications, must be attribut
ed, not to a disregard of the inconvenien-
cies which the use of coin* »o various and
unequal in theit purity must produce, but
to the exigencies of a country endeavoring
suddenly to recover a specie circulation.
The act'of 1816 was accordingly passrd
but for three years, and will expire on the
29'h of April, 1819, after which no foreign
coin bur the Spanish dollar will, under our
present laws, pass current as money with
in the United States. The act for estab
lishing a iniut was passetLin April, 1792.
and it was then expected that foreign
coins, including the Spanish dollar, might
he disused after three years. }luf, nrith
er an examination of the laws «hi. h regu
late the currency of American and foreign
coin*, nor the observations of the effects
which they have a* yet produced, will jus
tify us in expecling that a continued reli
ance upon them will enable us to dispense
at any time with foreign coins.
T* gold or silvrr bullion carried to the
mint by individuals is coined, if it be of
standard fineness, without charge nr seig
neurage; and if it be below the standard,
the expense of r fining it only is paid by
them. AH foreign gold and silver coins
received i;y the treasury, most be. “coined
anew, previously to their being issued in
circulation."’ These are the only provis-
ons which the I.*v has made for supplying
the mint with gnitl atttl silver; and the hist
■revision is without effect, since b.-io':?
tave become the only depositories of pub
lic money.
The silver which i*> most frequently
brought into the L’nited States, in the
common course of commercial business, ia
the Spanish dollar. But individuals have
no inducement nf interest to send this coin
tothe mint. Within the United States
it has an equal value with the American
lollar, and in many foreign countries a
much higher value. tTh'j mint, however,
lias been employed in converting Spanish
into American dollars; but it ha* been em
ployed by banks, not individuals. Th*
Vtnerican dollarand half dollar, howeyjr,
have been found not unlit lor exportation,
m;l the Bank of the United States ha»
ade farge importations of the five franc
ptescs of France, which it prefers, because
it supposes them less likely to be exportau
than other coin*
The legal value of the American and
foreign coins which are current in tin
United State*, is so nearly proportioned
in each to the pure metal which it contains,
that, where a remittance is to be made iu
specie, the foreign ai.d national coin will
be sent to many countries almost indiffer
ently, except that coin of the nation to
which the remittance is to be made, will
be preferred, whenever it can be procured
<)n the other hand, if a remittance in spe
cie is to be made to the United States, the
coins nf half ol Europe serve the purposes
of money here as well as our own. lhts
variety of current coin, results indeed
from a temporary law; but, while the
dollaruf Spain, and that of the United
• tales, are of exactly the same value With
in the United States, atid of neatly th>-
same value in many of the foreign coun
tries to which our remittances of spec"-
take place, it would be unreasonable to ex
pect tnat the merchant should not of-e
•n.ike them indifferently the subject* ot • x
porta tion.
It is. however, true, that in Canton, and
many parts of Hie East-Indi- a, the Spani.-m
d"llar i« valued much higher thin tiial •>(
the United States, or than any other coin,
in proportion to the quantity m pure sti
ver wind) it contain*. In many parts ot
the East Inlies, indeed, no other cuta i*
current. Bur, m »ucb a* have mint* nl
their own, as in the British possessions,
our coins are estimated at their real taiue,
•rneirly so. The annual eaporUdKn of
siiser from Canton to British India, is
known to be very large, and this circum
stance can hardly fail tu raise tee price of
American silver, even iu Canton, slowly as
custom*and opinions change taertq at any
rate, we cannot calculate on the preference
ol Spanish dollar* leading exclusively to
tn tr exportation; while of the article*
which we imphit rroui the Cast Indies, in
cluding Chia, nearly one half r* draw
fro.n countries in which our court are ail
va'ued nearly tn tire just proportion to then
pu rtyoud weight;and such woe tl-e pro
portion iu our i-upurUtiona, at least tlur
mg the year 1817.
lire equal pi ■•portion between the legal
and intrinsic value ui American and fo
reign coins, which tend* tu produce then
iiiuiscriminate exportation, has also an uu
lavorjtne effect upon their use in uiauu
tact-are*. Uie difference Detween the
tjii.niiily of pure silver iu th*' American
and apamsii dollar, is not such as to form
any oostade to toe employment of the
toi mer, ny the maoulacturer of plate —
Fortunately, however, an objection to it i?
Iieqoet.tiy round in inequality ultiie alloy,
e. lricii iiiaK.es it inoie Hithcuil to oe work
ed. As iu our gold coin*, th y are em
ployed with a* -. uch advantage hy tin
manufacturer a* any lurv^n cum?, an*
with inure advantage t.ian suiuc ol itius-
uhi-.li are made current by law. .Nor t>
the quantity of gold and silver annually
employed in loC manuloctuirs ol toe Unit
ed States, now au inconsiderable un
to preserve the cum* which are issued
from Lite mint fruin being incited and ex
ported, the laws must give them some ad
v autages iu internal commerce over foreign
coins ol equal parity and weight. In re
spect to the gold coinage ol Uie United
Slates, the mint depend* lor its supply ol
bullion upon banks or individuals, a* it
doc* in the coinage of silver, llat there
i« a difficulty in the operation* of cite mint,
which t* peculiar to tne coinage ui gold.—
Ihc relative value of gold to stiver is ti-cc
oy our law at l to 15, which i* much be
low the relative value which is assigned to
itina.ll those countries from winch tu
might have expected to procure iy I..
Spain and Portugal, the legal vjpie of
gold tv to that iff silver as I to 16; sod in
that colony of Spain with which our luter-
courseismokfficquentanit valuable (Uubi;
it, price iu commerce is at least 171 r one.
Hence we are not only precluded in the
common course of trade fintu obtaining
gold from the?e rich source* ot supply, but
the little w hich finds its way into 111? coun
try from oth“r quarters, u drawn from u,
by the highet g nate which is there plac
ed upon it. 1.. France, the legal value nf
gold is to that of silver nearly as 1 to 15 4.
In most parts of Italy it is somewhat lr.g -er.
In England, silver coin is only curru.i in
small sums; but it a specie circulation shall
tie restored irt that country on ill?* basis
of it* present mint regulations, the rela
tive value of gold to stiver will be ab-mt I
farl5 1-5. The exaction of a seigneurage
nn its silver coins make* the comparison
less easv; but the*merchant who shall car
ry bullion lo the English mint, will obtain
very nearly the same amount of current
money for one ounce of pure gold or
15 1-5 of pure silver. In Holland, liie re
lative value of gold to silver is estimated
(if there tuve been no recent chainge* in
respect to it) at 1 to about 14 3-4. in
Germany, and the north of Europe, the
value ruj be (fated a* rather betow an
average of 1 to 15. The West Indies,
which arc probably our most considerable
bullion market, estimate gold iu pro-
I'O-tion to silver very little, it at all, below
an average nf 1 to 1G. And tliifc is
done, although soma of the most con
siderable rolonics belong to- powers
whose laws assign to gold a tower relative
value in tbvir European dominions, l'liis
estimate, which was forced upon many of
the colonies by the necessity of eiaitig for
gohi tbe price which it cummande™in their
neighborhood, and particularly in the
countries which: formed the great sources
of their supply, seems to indicate the fair
proportion between the inetals in the
West Indies, since it is believed to have
been, in most instances, confirmed by the
colonial laws rather than introduced by
mem. The difference established by cus-
rom in the United Staten, between coined
gold and silver, belore the establishment
..f the present government, seems to have
been nearly as 1 to 15 6-10. Tlie differ
ence proposed by congress, in their reso
lution of the 8th of August, 1786, was
nearly 1 tu 15 1-4, and the reduction in
the valuation of goltl by the act of Aprii
12th, 1792, to the proportion at 1 to 15,
may be attributed tu me belief, which was
expressed in the report on which (that act
was fuucdeu, -that the highest actual pro
portion it, any part of Europe, very little,
if at ali, exceeded 1 to 15; and tnat Hie
average proportion was probably nut mure
th»n 1 to 14 8 10.” The difficulty ol ob
taining correct information upon points ot
this kind, makes it not improbable, that
there may have been some export* to the
state of the miut regulation* of Europe
at lh - period of the report. Hot, be this
a- it uiay, tne principle which seems to be
..(•.i.'ined in it, Ui.tt the valuation of gold
111 this country snouM be higher than In
Europe, would lead to the cooc'uxioo, that
tile present valuation of 1 to 15 is too low.
iht? couciu?.o:i is confirmed by the ctr-
csurot.uce i.ftue contract made not long
since, tu tw - en tne bank of the United
State*and Ale»»r» Bating ana Held, lor
late sop; !y ofNjo-eii. Uroier this contract
grid ami ?ilver were to be lurnivtied, if it
»cic practical) v, iu equal amount*, accor-
[ing to the A. 11 vilean relative valuation of
I 10 15. Upw-.rU, of two nn.lions 01 Uol-
.ar. of silver have been accoruiugty .-up.
pil' d, but no. an ounce ot «o d.
A* the committee entertained 1.0 doubt
that goal s estimated be:ow its fair rela
iive vaiue, 111 cumpui'sOu 10 silver, by the
present regulation* ef liie mint; and a* it
can scarcely b.-considered as having form
ed 4 material pan ol our money circula-
tio.. fo tne la»t 26 years, they have no
Hesitation to recommending, that iu valu
ation than %e viis«£,4o as to mike ttlfir
a j u*ter proportion to ilk price in the com
mercial world. But tfiv amsllrst change
which i* likely to secure tht* object, (*
just proportion . f gold coins in oar circo-
lation) is that which the committee prefer
and they bch, vi: it sufficient to restore
jold to Us original valuation itt this couo«
try, of 1 to 15 6-10.
B*t, although the mint regulations oisy
affect the proportion cf American a id
loreign, or o£gcLd and silver entn, in tbo
coentry, it seems difficult to suppose that
they can reduce the general amount of
specie below the quantity which our bust.
nes» really requires. And yet, there .is
nu cnsiplaint rao e generally made, than
that cf a w ant of specie, <n any *hape.
hat then, are the circumstances,
which pro-luce this acknowledged difficul
ty of retaining ^old and silver coin ia
utt* country? V\ c are told of the im
mense amount 1 f o <r ioreigti importations,
and it is plain enough, that if we did not
imp'irt from other cquntries, we should
not export aiiver or any thing clue. But
we retain, and employ in our service, a-
numg all the articles which we produce,
•nu stt we u-ffic in, whatever suits our
aants, convenience, or taste. Ware-
nouse* enlarge,and shop* multiply, to the
ncasureof u.e augnuuted demand; and
even guld aud silver, in eveiy shape but
1I1..tot tuv.uey, are iruputUd Iroui al-oard,
or manufactured at home,and lose their
mtgratoiy charade; whenever they bjl
c-.uie plate, aud caiinol.be expoited with
out lus*. the want ot gold and silver
coin cannot, tUer.fer. , pr- cced iiO’n kn
inability on our purl tu uuy, or in otocr
cuuntite* to supply our wants.
There is, however,Rue branch’id com
merce which seeuis obvrou-ij connected
wt(h the uiSippcsiai.ee of »pccte, and
winch must be auulittcd to,-.seif a strong
disturbing poWci mi th whole »j?tem of
nur cutr?my. The trade of the East in-
• ie« has, in ali age», carried to muse cou/t-
ti',c* the s.iver ■( tVciy part ot the World
which cOu.'Utiieii lueii p.Qauce, aud the
tinned oUie* uave a very large .'here of
Hits Italic* Thr u .ole aiu'jumjal Our cur-
t com i> itnipiuoaOiy mate "Ulan double
that wincu na* b- cn cKpurtud 111 a studio
year tu India, lucludtug Ltnna t’l tliegctt-
t-u. lei hi. i\ hi i.-.ian expuilatioii asg'Ffit
i*t .i*,gofar to accouiit tor liie deficient/
f ailvei iu oui iiicuiaim:.? And yet, a
tirect trade wiui Indpi, i< it ncutKogc a
ower coiisuuipUu'i id li. r produce, givea
.8 mat produce alun.u.u tower rat., 1 if
t carry IVo'f. 'hi couuiiy a great auio.nt
ol specie, piobaoiy niu* oy an equal sans
tu our sales in foreign market*, rfic an
nual export* 11, American vessels from the
Unit'd outes, and all other i>laiu?,’to
china ami the Ezat lniUtu, can usidly fie
estimated aturoru than Ifl uuUluu* ut dbl-
rars, ami it caniiut be doubted that our
sale* of East Indian article* 10 Europe*
.seem! that ainuunt. The value of mer
chandise liom China and iodia, anuutfly
consumed in the United States, is prob’s-
y equal to a millions of dollar*; add if
.1, be *u, the consumption ol East Indian
articles by the United States, i*paid for
oy tne mere profits of tin- trade. A Uraaph
of industry 111 wh icli oCuO men (for this is
about tbe uuiuber of seamen tn the India
trade) add £5,000,OU0 to the tunnel pro-
uuce of the country, would be worthy of
protection eveu if it were not connected
with considerations uT naval* defence.—
liiesi: views may make us doubt whether
the Indian trade tends to dimiuisli the
average quantity of silver in the United
6tate*. its effect iu the nstioqs winch
have engagtd in it before ourselves, has
ueeu, generally, to cucrease their speqie
circulation as w ell as their naval strength.
And it seems reasonable that it ahuuld
have done so. No man supposes that
Holland, by supplying the rest of Europe
with si’t.Ss, left her own wants unsuppli-
ed. Nobody apprehends that our market
must be destitute ol teas, because we ex
port million* of pounds annually, aud why
should the dealers iu silver, rather tbau
in spices or teas, make no.proyitioa for
the home demand? When Genoa, Ven
ice, Portugal, Holland, carried on au ex
tensive trade in East Indian articles, and
had no paper circulation, they wtre tha
depositories of the silver of Europtf.—
When the states of America bad no trade
do the East ladies, but s full paper circu
lation. they were destitute of silver.-*
Whenever the trade lus existed without
the paper, specie has been abundant, and
scarce always where the paper has exist
ed, either with or without Hie trade. We
must conclude that when precious metals
bec ome scarce, while Hie price of foreign
and domestic productinns continues high,
their scarcity results qptlrum the country
being unable to procure or retain-(hem,
out from its choosing to employ a substi
tute for their use.
While, however, the Indian trade has
probably uo tendency in itself to lessen
theamountof specie employed in thecoan-
try, it produces, under toe present mint
anti bank system of the United States, tbe
most inconvenient effect oil the currency,
fhe general demand of the commercial
world lor the material of wnich we make
our money, is useful by giving stability |p
its value. But if a state ol things be sup
posed in which one coai.try has a constant
demand for this money, taking from us
nothing else, while we are obliged to keep
up our quantity ot importations from
otner state?, it is obvious that m demand
and supply like this, instead of making
oar circulation equable, or proportioned
tu out want-, must produce that very insta
bility in the value of money Which the
precious metals are employed to remove.
Undoubtedly a nation, like an individual,
if we owe a debt must pay it; and if it
have no otnermeati*ul payment, must even
xp.irt its emu for lire purpose. But al
though this export.i iron cannot be preven
ted, when a general balance ex.st against
Hie nation, it i? still liu>, that the cmn nr
money of the country, shunfo not be t ie <
object of regular remittance in any foreign <
trade. Nor is it so with any lommercbd
nation bat the butted Status.