Page:Inquiry into the Principles and Policy of the Government of the United States.djvu/394

384 This incessant fluctuation, in the intrinsick value of bank curreney, is at least more likely to favour cunning, knavish, calculating speculation, than simple, honest, thoughtless industry. Those who settle the carat of this currency, are buyers; upon what principle to be found in human nature by the grossest credulity, can they be possibly induced to use this power, for the purpose of enhancing the value of the commodities they buy?

If the government of the fluctuation or carat of bank currency, was in the hands of a native mercantile interest, such an interest would undoubtedly endeavour to gratify the love of gain, by using it to buy as cheap, and to sell as dear as it could and it would be to a considerable extent successful; but although it would appropriate to its own use, the whole mass of gain transferred by this fluctuation from the other interests of society, yet the nation would possess the consolation of reflecting, that its loss remained at home, and would return to it. the species of retribution, arising from individual splendour, munificence and luxury. But if a foreign capital should acquire an influence over the quantity, fluctuation or carat of bank paper, the wealth collected by it will be drawn to a foreign country. This is not all the calamity. If such a foreign capital or interest, should be the buyer of our exports, a power over the quantity or carat of bank paper, will enable it to diminish the exportation price, for the benefit of itself, and its own country. The degree of influence held by British capital over American banks, cannot be estimated. Whatever it is, a correspondent degree of effect must follow. It can diminish the prices of our exports both here and in Britain, and increase the English profit on re-exportation. The whole diminution it can cause, in the price of any article, is its gain and our loss. If in the article of tobacco, for instance, this gain is made on re-exportation to other countries; if on that of cotton, on its return, in a manufactured state, in a large amount, to this.