wide creation, to find it as he can. No doubt it is somewhere in this field.

M. Say says: "Money is indebted for its currency, not to the authority of government, but to its being a commodity bearing a peculiar and intrinsic value." The use of the word "peculiar" here, is a sufficient indication that M. Say was not prepared to go any farther; that it was a mere refuge; for, in such a connexion, on such a topic, it is obscure and mysterious, scarcely, if at all, more explicit and definite than Turgot's "nature and force of things." And yet it is a subject, a point, on which we can not afford to be left in the dark. It is the foundation of a monetary system that we are now in search of; which is one of the most important branches of public economy. M. Say also observes: "If they [gold and silver] were never used in plate or jewellery, money would grow cheaper." By "plate and jewellery" here, he evidently intends to comprehend all the uses of these metals, other than that of money; for he adds: "The employment of the precious metals in manufactures, makes them scarcer and dearer as money;" M. Say actually stood here, with his foot on the very foundation of the value of money, recognised it in terms, and yet he did not seem to know he was there. For he does not even raise the question whether, but takes for granted that gold and silver would have been used as money, if they had not been appropriated to these other objects. It is marvellous that he should say, "their employment in manufactures makes them scarcer and dearer as money," when in fact these other uses constitute the only foundation of their value and use as money. It is true, indeed, that these other uses make them "scarcer," and "dearer." But M. Say takes for granted they would have been used as money, independent of these other uses.

M'Culloch says: "The union of the different qualities of the comparative steadiness of value, divisibility, durability, facility of transportation, and perfect sameness, in the precious metals, doubtless formed the irresistible reason that has induced every civilized community to employ them as money." least approximation to the true question, What is required is, to have it solved. value" was a reason, and THE reason. "steadiness of value"? The other four consecutive reasons are comprehended in the first, and compose it, as to the money character of gold and silver. These qualities, however, can be found in

Here, again, is not the except as it is assumed. No doubt "steadiness of But how came it with that

many other things. The qualities of gold and silver, such as they are, are very serious objections to their use as money, so much so that they are kept in deposite, as much as possible, and the great bulk of trade and commerce is carried on by a substitute, to wit, paper. So far from having a "facility of transportation," it is very inconvenient and expensive. M'Culloch himself says, on the third page following the above-cited passage, "it occasions a very heavy expense." Think of the expense of bringing twenty-five millions of dollars of specie from Europe to the United States, in 1846 and 1847, as a balance for breadstuffs required in Europe by famine. The costs of insurance, brokerage, freight, loss of interest in the meantime, &c., could not be covered for less than 31 per cent., which, as will be seen, amounts to $875,000. And as this importation of specie into the United States was forced by an extraordinary and providential event, it is, perhaps, safe to consider it as out of place, and it may have to go back again. A boldness of importation, based on this, will naturally force it back, to cost $875,000 more; or in all, by these two moves, $1,750,000. Such, also, is the effect of removing specie, in large amounts, from one part of the country to another. Any one can see, that paper is a much more convenient, and much less expensive medium, which is always resorted to, when it has specie as a basis; but for want of it, specie itself must travel. The transactions of six of the New York banks, amounting to $60,000,000, in ten days, without employing over $200,000 of specie, noticed in Chapter XVI., show how utterly impossible it would have been to do more than a small fraction of that business, in the same time, with specie. The qualities of gold and silver, therefore, instead of being a reason for their use as money, is one of their greatest objections—certainly a great one, and a very expensive inconvenience. Besides the inconvenience and cost of large transfers of specie, from one nation to another, and from one point of the same country to another, it would be next to impossible to transact the ordinary small trade of a country with specie, between points requiring remittances; and while bank paper is convertible, almost everybody prefers it to specie, and employs it, except for small change. Gold and silver are burdensome in the purse, in the portmanteau, and in the trunk, besides being a subject of anxiety, when one has charge of them, at home, or travelling. It would be absurd to say, that people object to have them, as owners, for they are of recognised value; but most people do not like to have them, as keepers, on account of the inconvenience,

risk, and cost of removal. Their qualities are a serious evil for the purposes of money. How absurd, then, to assume, that they are devoted to this use, on account of their qualities, except so far as they are adapted to other uses, which, as a foundation, constitute their adaptation to this, and thus overcome the objections to their inconvenience. Their adaptation to other uses, and their values in those uses, are undoubtedly the true secret of the foundation of their value as money. They began to be used, and can only continue to be used, as money, on that account. The evils of their qualities as money, could not be tolerated, would cause them to be repudiated, but for this; but on account of this, these evils are submitted to; they are not a recommendation. The recommendation is farther back, lies deeper, and overcomes these objections; and not only overcomes them, but makes them light and preferable. The very name, distinctive, of these metals, "precious," comes not from their use as money; but from their other numerous and important uses, constituting the foundation of their value. This designation of "precious metals," is very significant. It did not come by chance; but is founded on a substantial aggregate value, which never has failed, and never can fail, in any probability; because the uses of gold and silver are constantly multiplying. While one is superseded, many are added. Nobody apprehends the failure of their value. The experience of all nations, in all time, has established their character as "precious," and there never has been manifested a symptom of the giving way of this faith. It is only confirmed by time and events. Notwithstanding, therefore, all the inconveniences of these metals, on account of their qualities, when employed as money, they will no doubt continue to fulfil this destiny, on account of the foundation of their value in other uses. They who possess them, will ever know, can never doubt, that they hold in their hands the best possible pledge of value.

It is proper, here, to remark, that 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 1822. 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"? Clearly that can not 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, in 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 he does not find it.

"The sole reason," says M. Say, "why a man elects to receive the coin, in preference to every other article, is, because he has learnt from experience, that it is preferred by those, whose products he has occasion to purchase. Crown-pieces derive their circulation as money from no other authority than this spontaneous preference. Custom, therefore, [originating in an accident,] designates the specific product that shall pass exclusively as money. The choice of the material is of no great importance, whether it be gold or silver, leather or paper. The value of gold and silver is arbitrary, and is established by a kind of mutual accord in every act of trade." Is not this very astonishing? It will be observed, that we do not arraign the alleged force of custom in the case which is always a blind leader; but the question is, what was the original foundation of this custom? Custom, certainly, is a better reason for an ignorant man, than for a philosopher, who professes to give, not only the reason why money has credit, but why it originally obtained credit, as a common medium, and why it has maintained it, from time immemorial, with all the world, without experiencing the least possible diminution or disturbance? There must have been a time when this use of gold and silver, as

money, had not so much the power of custom; and there never was a time, when, as a mere custom, it would not have been disturbed, if it had not a more substantial basis; if, indeed, it had not a foundation in reason, in philosophy, in every consideration, that would stand the scrutiny of all men and all minds addicted to inquiry, so as to baffle every possible effort to impair that credit. Custom is not, can not be, a reason for such a fact.

There is not, perhaps, a subject within the scope of human investigation, the true basis of which, for the practical purposes of life, is more important to be understood, than that of money, or the knowledge of which is more essential to a true theory of public economy, so far as it relates to the currency. Most truly did M. Say remark: "The first principles of political economy are as yet but little known. Ingenious systems and reasonings have been built upon hollow foundations." Here is not only a Here is not only a "first," but a fundamental "principle," entirely unknown to himself; and his own "ingenious reasoning," on this vital and fundamental question, is not “built upon a hollow foundation;" but it has no foundation at all.

M. Say observes truly: "To enable it [money] to execute its functions, it must, of necessity, be possessed of inherent and positive value." But, surely, its value must lie somewhere else than in its character as money; or, in other words, something else must have made this gold eagle, and this silver dollar valuable. Time was, when they were not money; now they are; there must have been some other reason for their adoption, than that money was wanted. Say, these metals are scarce; there are many things more so. Say, they are convenient for this use, on account of their qualities; there are other substances not ill and some much better adapted, in these attributes, for such an appropriation; and allowing, that these useful qualities, added to their scarcity, impart a substantial value to gold and silver as money; which is not denied ; still the value for which they are credited, relative to that of other commodities most necessary to man, is in great, prodigious disproportion, independent of other considerations. Say, that this disproportion is convenient to all parties, to all the world. That may be, doubtless is, true. It is, then, an arbitrary value-a fraud! The world has cheated itself, and reckons it a good bargain!

It is evident, self-evident, that gold and silver, as money, must have had a value to start with, and as a reason for being able to start. This is the point, and all that is claimed. To suppose that the world has been swindled, or swindled itself, into the belief,