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on-stones of their edifice. They are not lined to do this openly—to make it visible, ninent, staring out in the face of man and icaven. This theory, recognized and re?d to practice in society, is an insuperable a yoke that cannot be broken, an iron lotism over the masses of mankind. * * * It may, therefore, be assumed as a fact, >Ivin? a fundamental element in the system he Free-Trade economists, and pervading ■y part of it, that the masses of mankind to be regarded as mere working machines :he benefit of the few, with no other cost i to be kept in the best working order. h an element of public economy, lying at foundation of a system, being as one to e of the capital parts, stops nowhere in its lence and control over the various subdiins and ramifications of that system. The
• tiling that remains the same, is, the posi, the necessity, the hopeless doom of this king machine."
)ne more extract from this chapter:—
No such state of society as that for which .m Smith, Ricardo and Say wrote, is found he United States, and it would not be tole■d here for a moment. It is, indeed, that i state of things that was forsworn in the erican Revolution, and against which the
• government, institutions, and laws, set up hat epoch, and afterward matured and pericntly established, were expressly framed to rd, and guard forever, with jealous care, t they should never obtain footing again on erican soil. This new and reformed stato society, commonly and not inaptly called ublicanism, rejects with indignation and rn the idea of those relations which consti; the basis of the system of Smith, Ricardo, r, M'Culloch, and others of that school. It < natural enough, it may be said it was neaary, at least apparently unavoidable, that y should take such premises as they were lushed with, on which to erect their edifice.
• evident what those premises were, because y are distinctly laid down; and it is also lent that a system built upon such premises, st correspond with them. But the American tern is directly the opposite of this. There >o resemblance in the premises, and none in
structure raised upon them, if it be properly It."
In the chapters on "Education as an ment of public economy in the United Mes," the seventh head as enumerated us, is opened another rich field of arment, where our author is not less at 'ine than elsewhere. We present the llowing extracts:—
u It need not be said, that the intelligence
and virtue of the people depend upon education. It remains to show, in what respects, and how far, education becomes an element of public economy in the United States. We are not prescribing rules for European or other foreign nations. The withholding or lack of popular education among them—for it is the education of the people generally of which we speak—may be as necessary to their theory of society, as the enjoyment of it is to ours. It has already and frequently been stated, and should be constantly borne in mind, that Adam Smith and his school have adapted their system of public economy to the state of society with which they were surrounded, and not to that which exists among us. It is impossible, under their system, that general education should prevail—as much so as that it should prevail among slaves. There is no provision for it. It is the bare subsistence only of those who do the labor of society which they have provided for. In the first place, they have not a democratic state of society; next, they do not propose to have it; thirdly, they make no calculation for it; and lastly, as the working classes, under their system, have little or nothing to do with government, their education is not deemed important. On the contrary it is systematically suppressed, because it is reckoned dangerous. It must be seen, therefore, that the condition of society in the United States, in these particulars, is diametrically opposite.
"The original settlers of this country from Europe—especially those from Great Britain— were men of intelligence and strong virtue. Many of them were persons of as high culture, and of as much chivalry of character, as any that were left behind them. It may be said, that they were men of the strongest character of the times that produced them; and those who followed in their train were men of the same stamp. The motives of emigration then were of a high and social character, and not such as now pour upon this continent the floods of European paupers and culprits. It was mind of the highest order which could not endure the chains of European despotism, and which came here for freedom. Th> object of their coming, and the qualifications which fitted them for the enterprise, are directly in point of the argument in which we are now engaged. It was their high culture and eminent virtues which enabled them to lay the foundation of that stupendous system of political society and of public economy, which has subsequently and gradually grown up on their endeavors and their plan. Freedom was their end, and the means which they ordained to secure it, were schools and religion, education and the virtues of Christianity. The history of the colonies, from the earliest settlements, down to the Revolution and establishment of American independence, is replete with proof of this assertion. There arose, therefore, from the first, a state of society not before known in Europe or elsewhere—a republican or democratic society, in which there were no uneducated classes, and no laboring classes which did not comprehend the whole community. All went to school, and all worked when old enough; and on no point were the people more thoroughly educated than on the principles of free government. The oppressions of the old world drove out its own sons from its own bosom, and under its own charters, to set up a school, which must necessarily, in a course of time, subvert its authority, and become independent, because the emigrants brought away all that was good, and left behind all that was bad. The elements of this new state of society were all healthy, and full of infant purity. While the old world, from a vitiated and decrepit constitution, tended to decay, the new, purged of parental diseases, sprung up with giant strides, to giant vigor. Instead of the old leaven of European economists, that intellectual and moral culture belongs only to the higher classes, and that the working classes require nothing but bare subsistence like cattle, schools were provided for all—all were educated—trained to knowledge and virtue as a preparation for the working time of life. It was a republican or democratic state of society from the first, and continued to be such, till the struggle arose between the colonies and the mother-country, which resulted in American independence.
"The system of common schools, early set np in this country, coeval indeed with American civilization, handed down from generation to generation, provided for as the first care of the state, watched over with paternal solicitude, nurtured, endowed, edified, and never suffered to decline, but always put forward with vigor and efficiency, is the cradle of those chances of which we speak. On this broad foundation, common to all, has been erected a system of select and higher schools, up to the college and university, which are also within the reach of all, by reason of a system of public economy, which it is our special purpose in this chapter to notice; not, indeed, so much within the reach of all, as the common schools, but yet not excluding any, norpresenting insuperable obstacles to any. The poorest and meanest born of the land, prompted by innate ambition, and developing hopeful talent, can, and do often, pass through all the stages of education, from the common school till they have graduated with honor at the highest seminaries, and entered upon the graver responsibilities of life, to contend in open and fair field, with the best born, for the highest prizes of the social state, whether of wealth or of influence. And it is an attribute of American society and institutions, to favor and help forward merit that emerges from obscurity, and strives to rise.
The common school is the basis of all: bi genius of the government is the parent d t and the joint operation of the two crontiL
Passing for the present our ajiti enumeration of new points, relative to o=ney, we hasten to dispose of several for lowing that, which, though emkfv„' interesting and instructive for the noicn, and practical character of the news fw sented, we have space only to notice *tt a few brief remarks. The chapter sea the head of a definition of freedom, a "consisting in the enjoyment of oaae» cial rights, and in the independent caaaJ of commercial values fairly acqni'n. exhibits what we will venture to Bt H be regarded as an entirely new elem«t<l public economy, if it is to be received id the list; and our author makes it at l*j one of the foundation stones of an Asffl can system. It is an argument of J» found interest, and must be read entnt* be appreciated.
Of a near affinity to this, and gro*«| out of it, are several points which w« brf specified in our enumeration, which, r doubt not, will receive attention sf: awaken sympathy, as exhibiting views hi striking light, and which, though not brf* reduced to form, are common to v4 minds, such as, protection the cause of tfcd the American revolution; protection li( ground of all the struggles for freedc* in past ages, down to this time; then" use of freedom in American independea* as founded in a protective system; then* and progress of the free trade, hypotbeas; American instincts as they bear on ui question ; the fact and reason of th* & ferent cost of money and labor, berew elsewhere; the destiny of freedom hot* perfectly achieved, being only in tfce b<ginning of its career, and its depend*** on a protective system; free trade alk<«« for depredation on the rights of others,* its identity with the principle of anarclj; <fcc, &c. All these are great topics. «•* are elaborately treated in this work; &* in our condensed notice it is impossible » do justice to them by an attemptedanahtical review.
We return to the subject of money, <sl?> however, for the purpose of noticisi;^ new points, one of which is the annwro*ment and specification of the foundation" the value of money; another, the distinct*'■'■> reen money as a subject and as the ument of trade; a third, money as the >ls of trade;" and a fourth, the func> of money. The author allows that r economists have approximated these ts, and cites them enough to show they had glimpses, but not clear views icm; and that for want of clear views, t mistakes and some fatal errors have i committed—errors still current with heir mischievous influences. The folng are a few brief citations, made very h at random, here and there, from the iters on money—there are four of 1—which may serve, in some measure, iow their character and drift:
n process of time, of which the memory of and history give no advice, certain metals, nonly called gold and silver, having been >vered and found to possess excellent and ■ailed qualities for certain uses, and for nent, became 'precious.' This may be osed to be the origin of the name, 'pre■■ metals.' For certain purposes of use ornament, other things nave been held i more valuable even than gold and silver, For which ten, twenty, a hundred, and even iimnd to one, in weight, of the 'precious Is' have been and are given, as an ralent. Nevertheless, partly on account of scarcity, and especially on account of adaptation to so many useful and ornaal purposes, no other Bubstances, original, iwever formed, have ever acquired the pni of being held so universally 'precious,' ild and silver.
\nd it is to be observed, that this view not bring us to their position and use as ?y. Gold and silver are not valuable, ly because they are money. This was not '"final ground of their being held in such estenm; but they have been adopted, and obtained universal consent, to be used as ?y, or a common medium of exchange, use of their value for other uses, and use they are always in demand for such a variety of appropriations, other than py. Money is but one of their uses, later ie order of things; and it is only a fraction fir value that is created by their use Hs sy, in the same manner as anything else enlaced in value, in proportion as its uses rmltiplied. The real foundation of the value t)ld and silver may be said to be, was in prior to their having been viewed in the of money, and appropriated to thaj use; the cause of their being thus appropriated, doubtless the discovery, by experience and rvation, of their unrivalled qualities for r u?es and in other applications. Time immemorial usage, therefore, have assigned
to them the functions of money, apparently for ever, without the remotest probability of change. Nevertheless, this was not an accident, was not arbitrary; but there were substantial, fundamental reasons, of the nature of value, lying somewhere back, beyond. Gold and silver could not even now retain their value as money, but for the foundation on which they fall back and rest, as being greatly valuable for an almost infinite variety of other purposes, which are always ready to take up and absorb them, whenever they can be spared from trade, and which, as a part of trade, is constantly being done; and as a part of trade also, they are as constantly going hack into the forms or into the uses of money, though not in so great amount. The natural current from the bowels of the earth, is to the other uses of gold and silver ; and only so much of them is arrested, on the passage, for money, as the necessities of trade require. It is only in distress, that people will surrender their plate, trinkets, or any other' precious' things, composed of gold or silver, for money.
♦ » * * *
"Assuming that nothing is money but gold and silver, or that which will command them at the will of the holder, it may be remarked, that the universal credit of these substances, when used as money, must have a foundation. That foundation is usually called intrinsic value. But a little reflection will show that the value thus asserted, lies farther back than the use of these metals as money, not denying that this use is a fraction of their value. But how came they to be used as money? Davanzati, an Italian economist of high repute, says: 'Gold and silver, being found to be of no use in supporting human life, have been adopted,' &c, that is, appropriated to the use of money. This, we should think too puerile to be noticed, except for the gravity with which it has been cited by others. M. Turgot answers this question: 'By the nature and force of things.' But this answer, as must be seen, has no more point in it than the surface and materials of creation, inasmuch as it has all this range. Others answer: By reason of their qualities. This is not denied, so far as those qualities determine their intrinsic value, which brings us back to where we started from. But it is said, they mean the adaptation of their qualities to this specific use; which has some reason in it, but more against it. The very authorities who give this reason, because forsooth they must give some reason, such as M'Culloch, overturn it by starting objections and proving the great inconvenience and expense of these qualities in such an appropriation of these substances.
"The truth is, gold and silver were proved to be valuable, highly so, and always in demand, before they were used as money. They were found to be remarkable for their beauty and utility, and to excel all other substances for the number of uses in which they were held in high esteem, no matter whether for utility or fancy, as both those.1 ends impart value or command price; and the longer and better that they have been known, tried, and compared, so much more Etern and abiding has been the proof of their excellence, and so much greater the number of uses to which they have been appropriated and for which they have been in request. These are facts which run back through all history, and are without contradiction; and the growth of history on this point, as to both materials and time, only tends to verify them. Gradually in the course of time and by the exigencies of society, they came to be appropriated by general consent to the uses of money, till at last that consent became universal in the civilized world. This appropriation, therefore, was ulterior and consequent to the ascertainment of tho many useful and admirable qualities of these metals for other purposes, without which there is no probability that they would have been employed as money.
* * * "The inconveniences of gold and silver, as a currency, are increased by time, as civilization advances, as commerce is extended and increased, and as, by this means, the necessity of effecting commercial exchanges with the greatest possible expedition, and in great amounts, is augmented. For this and other reasons, many eminent economists and statesmen have exhausted their wits to find a substitute. Even Ricardo appears seriously to have believed that the British government might found a currency on its credit! He advocated it, if we are rightly informed, in the very face of the depreciation of the Bank of England paper, during its suspension of cash payments from 1797 to 1823. He appears to have based his theory on the fact that the depreciation was no more, whereas we think he should have come to the opposite conclusion, from the fact that it depreciated so much. That credit is itself a currency in one sense and to a great extent, is undoubtedly true, but it must have a foundation. It is this very foundation which we are now inquiring for, to wit, the foundation of the value or credit of gold and silver as money, as the medium of trade. All seem to admit that it is not in its character as money; for who of the economists, it may be asked, has ever yet got farther than Turgot in this investigation, who laid this foundation 'in the nature and force of things V Clearly that cannot be satisfactory.
"And yet a knowledge of the foundation of the value of money is not less important for an intelligent view of the whole subject, than is a knowledge of the foundation of anything else that can be named, to a right view of it. Branches of truth on such a practical matter may doubtless be seen and correctly stated without this knowledge, but no philosopher should be satisfied till he has got to the bottom
of his subject, and he is liable to error, if ■ does not find it.
* * * * • »
"M. Say observes truly: 'To enable I (money) to execute its functions, it musto'f cessity be possessed of inherent and pwi* value.' But surely its value most be xa where else than in its character as moor) < in other words, something else most have zid this gold eagle and this silver dollar vi'oi* Time was when they were not money; ss they are. There must have been son* cue reason for their adoption than that moorv« wanted. Say these metals are scarce; da are many things more so. Say they u» as venient for this use on account of their ^ai ties; there are other substances not C a some much better adapted in these ittritai for such an appropriation; and allow.-; Si these useful qualities, added to their scaws impart a substantial value to gold and Sejsi money, which is not denied; still tbs wi for which they are credited, relative to tint < other commodities most necessary to tain.*) great, prodigious disproportion, indepreci-1 other considerations. Say that this disfr^ tion is convenient to all parties—to u I world. That may be, doubtless is trae.!' then an arbitrary value—a fraud! The *■< has cheated itself, and reckons it a goo: i* gain!
"It is evident, self-evident, that gtU* silver, as money, must have had a value I a with, and as a reason for being able to s»J This is the point, and all that is cUun>ei' suppose that the world has been awiato' swindled itself into the belief that moner w value which after all is factitious, and ua should be satisfied with this persuasion o» •( principle that it is a convenient delusion, a' more absurd titan contrary to M. Say • <■ doctrine, when he says, 'a system of sw:a& can never be long-lived, and must infcbi i J the end produce much more loss than jfa It is not easy to believe that the world h»> ** thus cheated, and that the credit of its circd ting medium does not rest on a basis entires irt pendent of itself. It is the very nature ts cm to have a basis. To say that intrinsic n-*' the basis is precisely what we maiutaia. k trinsic value for what T It is not the *i*c function of money that constitutes irtr^* value, but it is that which qualifies for tiefal tion; and the qualifying power lies t»c; * money itself, is underneath it, is its foani-** But why adopt an absurdity without »'■* Why hold debate here when the uumejt*-',: important values of gold and silver for oca uses are so palpable, quite enough ts W mend them for the offices of raonev, and <j J sufficient to sustain them in the distfaT these functions? In this light, society »■" and the good sense of mankind is ruiia^ in adopting the precious metals as a Cog** ency. It would be most unpleasant to be
red to believe that money is a fraud, or even
the use of it is a self-imposed deception. • •••••
Without doubt, gold and silver employed as ey constitute one of the values of these lis, and that not unimportant; but the foun>n on which they started as money, the ies which summoned them to this position, lese important functions of society and of commercial world, will be found only in :es of an older date; and the causes which sustain their credit as money will also be id in the same old values, and in a multitude thers since added and continually augmentas the uses to which these metals are api, other than that of money, are multiplied fie progress of time and in the advances of iizalion. It was never an accident, nor a i or concatenation of accidents ; it was never irbitrary fit nor an arbitrary law of society lifted gold and silver into the position, and ailed them into the functions of money; it ; not custom; it was not even the necessity i common medium of trade that selected n for this duty, though that necessity was ent; but it was a substantial value imparted hem by time and events, destined never to liminished, but always to increase. It was i nature and force,' not 'of things' in geneas Turgot taught, but of these very things articular; it was their own position, their i force and nature, their own value, indepent of and prior to that of money, that made •a money. As a law of society which grew with society, it could no more be resisted Q a law of nature. It was not a choice ch men made, but a necessity into which y were forced; and not a necessity to have i or an alternative at their own will, but to e this and nothing else. There was no more ertainty hanging over the predestined use of i and silver as money, than over the course he heavenly bodies. The law in one case is 'orcible as that in the other, and both are astainable and definite. One is the attraction rravitation, the other the intrinsic value of d and silver for other uses. * * * We define money as the common medium rack, and find in it two simple but important ctions, one to express values, and the other onsummate commercial exchanges, by being en on one side and accepted on the other, as consideration thus agreed upon. It is a mem as the instrument, it is common because world has so ordained."
n»e second chapter on money is devoted >'fly to the difference between money as ubject and as the instrument of trade, 1 to price as an attribute of money and things purchased by it. The following : extracts on these two points:—
"The Free Trade economists, Adam Smith and his school, say that money is a commodity, and that it occupies the same position in trade as other commodities. We grant that it is a commodity.and that as a subject of trade,it occupies, as they say, the same position as other commodities. But we deny that it discharges the functions of money, and hold that it is merely passive, when it is the subject of trade. Gold and silver, in passing from the mines to market, bullion in the market, and all manufactured articles which are composed in whole or in part of the precious metals, are subjects of trade. The same may be said of coin, bank notes, and negotiable paper of every kind, when bought and sold. Bankers and money-brokers trado exclusively in money, and money in their hands and in whatever form, coming or going, is always a subject of trade. The precious metals, in bullion or in coin, passing through the hands of brokers from one country to another, are subjects of trade while in the hands of those dealers, though they may be at the same time discharging the functions of money between debtor and creditor, who employ bankers and brokers as agents cf remittance. All notes discounted at bank are subjects of trade in the transaction, both to the lender and to the borrower. Bills of exchange, bonds and mortgages transferred, and many other descriptions of credit for which a consideration is paid, are subjects of trade. All who borrow credit for a consideration, buy it. It is a subject of trade in the transaction. Gold and silver, in all other forms than that of money, are subjects of trade. So far as these and many other forms and conditions of money and of credit go, and so far as the precious metals are devoted to other objects than money as subjects of trade, we agree with the Free Trade economists that they occupy the same position as other and all other commodities exchanged in trade.
"But it must be observed that money, in its own proper functions as such, has had nothing to do with all this except so far as the considerations rendered in these transactions are concerned, as, for example, the discount and interest of a note. They are merely the preparatory stages through which money passes, the platform on which it is tossed about in a merely passive state as the subject of trade, till it reaches the great field of the commercial world where it is destined and designed actively to discharge the appropriate functions of money. This is a field before which the Free Trade economists have held up a screen. Let us go behind it and see how money operates there in distinction from the manner in which it is operated upon as a subject of trade before it gets there.
"A consideration of the difference of destination of money, and of the things for which it is exchanged,as the medium of trade in this field, will cast light on this point. The destination of money here is for an endless round of duty