Page:Inquiry into the Principles and Policy of the Government of the United States.djvu/367

Rh redundancy, and this utility is destroyed by an unlimited power of multiplying paper currency. Overflowing mines of these precious metals, would destroy their utility as a medium of exchange; and confined to one nation, would diminish rather than increase its happiness. Paper money enables avarice to inflict the misery of this redundancy, whilst not even the refuge of forging it into ploughshares is left to the nation. Corporations are solicited by the most fascinating orator to delugw a nation with a flood of currency, no part of which is subject to be drained off by the ebb natural to specie. Is that commerce free, the currency of which is regulated by a corporation?

It is because no single government h able to regulate universal currency, that it cannot raise the value of exportable by local currency. It is, however, able to diminish the profit of this labour, by quartering upon it the dividends of this local currency, as we have endeavoured to prove. Supposing that it may also produce the effect, insisted on for its defence, namely, that of enhancing local prices or home subsistence; it then combines the two operations, of diminishing the value of exportable labour to the labourer, and of enhancing his expenses.

An effect, extremely similar to this, is produced in England by paper currency and excises. The first keeps down in a degree the prices of exportable labour or manufactures, and the second enhances the expenses of subsistence. A redundancy of bank paper here, which shall enhance expenses, operates as excises do in England, except that the excise there goes to the government, and hereto corporations.

And a consequence of placing the exportable labour of that country, under the regimen of a currency regulated by a corporation, illustrates both the mischief of such a power, and our whole scope of reasoning, by a very striking fact. It is by this means deprived of a share in the government. The manufacturers are subject to capitalists, and regulated for their benefit. We have endeavoured to prove, that