The progress of experimental science, the free intercourse of nation with nation, the unrestricted influx of commodities from countries where they are cheap, and the unrestricted influx of labor towards countries where it is dear, and the ever free association of men with men, are the active elements at work in this general revolution of the nations.

CHAPTER XII.

WHAT TRADE HAS YET TO DO.

Still vigorously presses on the genius of trade. Its miraculous proceedings, its successful accomplishments, are of small account, in view of the vast labors yet to be performed. Upon the broad map of the world are portions of continents lying in the gloom of barbarism, and islands scarcely yet discovered. On the chart unknown lands are faintly shadowed at their shores, and unknown seas left blank. Nations are hedged in by their isolated exclusiveness and men are starving in the midst of plenty. But such a firm hold has been taken that now it may be considered that progress is sure.

In our own country a railroad will, before many years, stretch westward from the Atlantic to the Pacific ocean. Two thousand miles of a virgin soil upon this great highway of the nations will be thrown open to the impoverished of the world. Towns, villages, cities, states, will spring up in this vast wilderness. Tadmor the ancient in the desert, with all its grandeur, shall be as a faint type of what can be reared upon the broad prairies of the West, by the wealth and enterprise of the New World. The slow-moving caravan, upon the parched sands and amid the simooms, occasionally appearing and disappearing in this city, made it the wonder of the world! What may we not expect, when one continuous train of gold, provisions, and manufactures, shall fly with the speed of the wind, and be scattered along this general highway of the nations?

The empire of Japan has heretofore been of too little importance for a passing thought. It is now in the direct route from our country to the East, or rather to the West by the shorter way. A friendly intercouse must be had with its people, for the benefit of the whalemen and the merchant ships. An exhibition of our national power, a sample of our industry, and an offer of friendly intercourse, will doubtless open the ports of a people who have heretofore been as little known as if they had occupied a part of the moon.

Are there any adjacent lands whose policies interfere with the free course of trade, Commerce will annex them to our own government-not with the implements of war in fierce strife, but by the peaceful payment of dollars and cents.

Is a passage to be discovered in the regions of the Pole, or has a distinguished adventurer lost his way, there are merchant-ships tendered for his rescue, and merchants' money furnished to find and sail them.

Consider the daring deeds of Commerce by England. What a world of wealth has been opened in the East! Tribes of nations ever at war with each other had covered the land with carnage. Now behold the same tribes settled down to peaceful industry, having literally beat their weapons of war into implements of agriculture. The suppression of the slave-trade is the wish of Commerce; and the time will soon come when no slaveship can trust itself at sea.

How little has heretofore been known of many countries. Take even South America. There is the large empire of Brazil. "The Amazon, with

its tributaries," says Maury, "is said to afford an inland navigation, up and down, of not less than seventy thousand miles. The country drained by that river, and the water-courses connected with it, is more than half as large as Europe, and is thought to contain as much arable land within it as is to be found in that country. It has resources enough to maintain a population of hundreds of millions of souls." Only consider this valley of the Amazon. Here we have the grandest river in the world, a river to which the Mississippi cannot compare, stretching directly under the Equator, and as productive as we imagine it could be from a union between the noonday sun and the boundless amount of the fertilizing waters. Here are six times the area of France, occupied by the most valuable dyewoods. The banana itself is an invaluable product. Its yield when compared with other plants is prodigious, being to wheat as one hundred and thirty-three to one, and to potatoes as forty-four to one. Para is the rich province of Brazil. A Brazilian said to Kidder, an agent for a Bible Society, and the author of "Sketches of Brazil," "Ah! what would not Para be if it were in the hands of those North Americans."

It matters little in whose hands is Para, or any other fertile portion of the earth, for it will be reached by Commerce, and its wealth distributed to the world.

As wonderfully fertile as the country of the Amazon is said to be, it is probably equaled by parts of Africa and Hindostan, that are now unknown. These discoveries are to be the work of Commerce.

Some years since a New Bedford whaleman put in to an island in the Northern Pacific for water, and we can imagine the astonishment of he crew in discovering thereon, the ruins of a vast city of most elaborate architecture. When and by whom those labors were performed no one can tell, but the chance discovery was made by Commerce.

The insinuations of trade are shaking and undermining the time-honored hoary political evils of the old world. The voice of the people, whose interests have been wrongfully withheld from them, will be eventually heard? There is a going forth and a returning with new light and life. When men traveled by the old slow modes of conveyance, they were subjected to hindrance and aggravation by the restrictions imposed upon them. Railroads have rendered passports of about as much value as so much waste paper.

Over the lands of Italy towards Rome, where centuries ago Emperors led forth their armed hosts to conquest, and where enslaved nations followed them in their return, in the midst of scenes glowing with classical associa tions, are now placed the iron roads over which rush the locomotives of traffic. The shrill whistle shall startle the unclean animals which burrow in the gigantic ruins of the past, and the thundering cars shall shake these ruins to the earth. This innovation disturbs the sacred grandeur in which the land is wrapt; and it is well, for the dead past has too long been idolized. It is now time to look forward. Thus would Commerce annihilate the traces of tyranny and servitude, and introduce its own invaluable fruits.

The world is filled with enterprise and adventure. Fleets of ships and steamers scour the seas, and penetrate unknown regions in search of new lands. Thus is the genius of trade destined to move onward ever; clearing away the clouds and darkness of barbarism, overturning the barriers of political wrongs-renovating the earth. Thus shall it proceed until all the nations of the world shall be bound by interest and friendship, in one vast bond of universal brotherhood.

Art. V.-MONEY AND THE MEASURE OF VALUE.

To FREEMAN HUNT, Editor of the Merchants' Magazine.

SIR-MUCH has been said upon this point of political economy of late, both by professors of the science and others, and yet without coming to any satisfactory conclusion.

Much diversity of opinion exists, so that few writers hold any two propositions in common with each other; except, probably, that most of them agree that the present system is a great and increasing evil. Some are so wedded to the present system, however, that they have considered currency and banking indissolubly bound to each other, and have written with the hope of continuing and perfecting the present system. Others, of acknowledged ability and talent, have extended their views beyond the present system, and have entered upon almost forbidden ground, having gone so far as to recommend an inconvertible paper currency as a vast improvement upon the present. It is singular, however, that after so much writing upon the subject, so little progress has been made. Nevertheless, one thing we may consider settled--that if money be increased beyond the effectual demand, like grain or any other commodity, it will depreciate in price. When we look at the varied experience of the world, this holds true, whether we take into consideration the inconvertible issues of governments, the more recent issues of joint stock banks, or even the influx of the precious metals from California and Australia. Many writers still appear to treat money exclusively as capital, instead of admitting it to be, to a great extent, the mere measure of value, by which all commodities pass from the hand of the producer to that of the consumer. Some have made the mistake of supposing that it is only the representative of value, or that the measure of value and the mere representative could possibly be one and the same thing. But that is not the case. If a commodity be of such universal estimation, that it will pass from hand to hand in liquidation of debt, from one end of the world to the other, without recourse upon future contingencies, it must also be an equivalent, whether it be a yoke of oxen or a piece of silver. But, no doubt, the relative value of this commodity would be materially changed by its being made the universal medium or measure of value. There would be an increased and steady demand for it under all circumstances, and a consequent increase in its value to some extent, notwithstanding, after its circulation had become general, this principle would again be neutralized, on account of the slowness of its consumption, and it would be more liable to depreciate than otherwise.

But hitherto I have only alluded to the precious metals, as though they had been left untrammeled to find their relative value among other commodities; but the case has been widely different. The public have been put to great expense and inconvenience by the efforts of governments to regulate their value, and the majority no doubt have been constantly defrauded by these efforts. Although all governments have ceased long since to attempt to fix the price of any other commodity as being perfectly futile, they still continue to regulate the price of the precious metals. Thus at a time like the present, when we have such a large and continuous increase of those commodities, all debts, all contracts, and all labor, must be paid for at the government price, however the value of the precious metals may

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have changed in relation to other things since those debts, contracts, and agreements had been made.

But, it will be asked, Where is the remedy? Let the governments of the day begin earnestly to mind their own business, and to let that of the people alone. It is their business to see that the people are not defrauded, and have not the means of legally defrauding each other. Let the governments still assay the precious metals, but let them stamp them according to weight, affixing no price upon them, but leaving them free to find their relative value among other commodities, according to the principle of supply and demand. There would then be no material fluctuation in prices-all commodities would be on the same footing, the producers having no advantage over each other, and prices never increasing except in cases where the facilities of production were decreased. The dollar might still be the nominal sum or unit, by which the relative value of all commodities could be measured, and when the precious metals were required, they would be paid and received at the market price. Very little inconvenience would arise from this, as it would soon be understood by all classes; and all payments would be made according to the last rate of exchange. This is continually practiced in Switzerland and some of the small States of Germany, who have no large coins of their own; the money of other States pass current at the last Frankfort rate, measured, of course, by their unit, or nominal sum, the guilder, or florin, as the case may be.

To admit of this, the whole monetary system must be altered and revised -but then something must shortly be done, if gold continues to increase at the present rate; and we had better make a perfect and radical change at once, than to be continually under the necessity of changing; than which nothing can be worse in a commercial point of view. A subsidiary currency would be necessary, the payments of which should be limited to small sums. The Federal Government should issue the paper required, in notes not less than twenty-five dollars, the plates for which should be executed in the most superior manner-full of the most exquisite workmanship, and printed upon a peculiar kind of paper made for the purpose. This, at least to a great extent, would prevent forgeries; and if it were made a legal tender for debts and taxes, it would circulate throughout the country without discount, which would be a great saving and convenience.

No doubt this will be objected to, both by interested parties and parties. always jealous of centralizing power. To the first it may be said, that according to the Constitution, the money making power resides exclusively in the Federal Government, and ought never to have been exercised by any other authority. The present system is a gross monopoly in the hands of a few interested parties, the profits of which belong to the whole people, and would not be submitted to, if they really understood their own interests. Every note issued by a banker that is not represented by the amount in specie, is so much taken out of the pockets of the people. And yet it is often said that the banker cannot get any profit if he is obliged to keep a large amount of specie by him, as though they had a right to a double profit, when other people are obliged to be content with a single one. If bankers must lend money, let them lend their own and not that of the people, taken out of their pockets without their knowledge by ignorant legisla

tion.

The present is a gross system of taxation for the benefit of a few, and therefore ought not to be submitted to. If it were abolished and a Federal

currency instituted, such as has been indicated, the money at present in the hands of the bankers, would be collected into the treasury to pay the debts and bear the expenses of the nation. This proposition will also be received with distrust by parties not otherwise interested than in the general welfare. The frauds of the despotic governments of Europe, as well as the fate of our own continental money, is not quite forgotten. But surely public faith and public credit have somewhat improved within the last half century, in spite of a few individual repudiations? If the Federal Government, at the present enlightened era, cannot be trusted with the most vital interests of the people, we must proclaim our Republic a sham. It is true, that most of the irresponsible governments of Europe have betrayed the interests of the people by means of inconvertible paper money; but our case is so obviously different, that such fears and objections can have no weight. We therefore dismiss them at once with the unhesitating assertion, that in future no responsible government will ever commit so flagrant a breach of faith, as well as so consummate a folly, as the fraudulent issue of inconvertible paper.

With regard to the present system of currency, many of its evils are of such a nature that they can hardly escape the observation of the most inattentive; the great and increasing number of banks, the infinite variety of plates, the lack of any peculiarity in the paper, or of any rule by which forgeries can be detected, and many other circumstances, entail great loss upon the public. These evils are great, especially in the Western States, and their pressure is without intermission. The moment an individual presents a bank-note at the counter of a ret til dealer, he is off to the desk to obtain the detector, and from five to ten minutes may be consumed in deciding whether the note be good or bad; and then he may decide wrong, and too often he loses the whole of his labor, because his customer has no other money. Thus half the time of the merchant may be taken up about that which would cost next to nothing with a good currency.

But there are other evils belonging to the present system almost too notorious to require even a statement. The great losses and frauds occasioned by the reckless over issues of the banks, for their own interests alone, regardless of that of the public-directors withdrawing the capital they had advanced as a pledge for the security of their issues, and the periodic panics which have hitherto appeared more or less inseparable from the system from its first institution,-these are acknowledged evils. It is to destroy these evils that most writers, of late, have directed their efforts, and they must also be the apology for the presentation of my humble opinions.

There are, no doubt, many honorable men, and men of large capital, engaged in the business of banking; but there are also many men of small capital, mere speculators, who enter the business with the intention of taking all advantages to make money.

But I must turn to another part of the subject. Many writers who have put forth their opinions, and to some extent taken the same ground as myself, have, in support of these opinions, put forth the greatest fallacies. Some who have advocated the issue of inconvertible paper money, have thought it necessary to require some specific guaranty for its redemption, as the mortgage of land or the pledge of State s.ocks, leaving it open for every individual to demand as much of this money as he could give security for -forgetting, apparently, that in times of scarcity every new emission would but increase the evil. Another gentleman who advocates the same system,