Page:The Real Cause of the High Price of Gold Bullion.djvu/46

 made, by introducing a system of force, contrary to the nature of things.—But what has it to do with the necessity of furnishing a circulating medium adequate to the demands of the whole amount of the income and transactions of a great community? What connexion is there between the two propositions above stated? How does this demonstration refute the absurdity of measuring the quality of a circulating medium necessary for the richest and most active community in the universe, by the necessity of reducing the Market price of Bullion to the Mint price of Coin. What relation is there in nature between the two propositions?

What then, it is asked, is to be done?—It is submitted, that the best way to obtain truth is first to discard what is evidently false. Quit an arbitrary and inapplicable measure, and embrace a system dictated by existing circumstances and natural reason.

It is plain, that to form our whole circulation exclusively of the precious metals, is impossible, and that some system, not of mere intrinsic value, but of confidence, is to be resorted to.

It is plain, that to circumscribe a circulation by this identity of price between Bullion, Coin, and Bank Notes, is absurd; since there can be no connexion between things limited and things unlimited in value. The principle has no analogy to a currency. The very apprehension of its adoption has produced great embarrassment, and the enacting it might involve us in distress.

As many persons, however, express alarm at having no basis to our currency of intrinsic value, but the funds of the Bank, (which are not all convertible into cash on demand) and Government securities, (which are in the same situation) though both ultimately adequate to all outstanding issues of Bank Notes, some new