By William M. Gouge
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Additional resources for A Short History of Paper-Money and Banking in the United States: Including an Account of Provincial and Continental Paper-Money. to Which Is Prefixed, an Inquiry Into the Principles of the System
Culating medium. Men chose gold and silver for the material for money, for reasons similar to those which induced them to choose wool, flax, silk, and cotton, for materials for clothing, and'stone, brick, and timber, for materials for building. They found the precious metals had those specific qualities, which fitted them to be standards and measures of value, and to serve, when in the shape of coin, the purposes of a circulating medium. rro this use they are admirably adapted: 1. * 2. They have a sameness of quality all over the world.
Calamities of an injurious and demoralizing nature, occurring with singular frequency. " The "grave, enlightened, and patriotic Senators," to whom Mr. 'Vhite alludes, are those who, with l\'1r. Smith, of 1\fary]and, at their head, made a report, in the year 1830, in which they represented certain kinds of Bank paper as being as good as gold, and even better. If their opifJion is correct, it ought to be confirmed. If it is not correct, its erroneousness ought to be exposed; for error in such a subject as this, may be productIve of incalculable mischief.
But the two things are distinct, though frequently conjoined. A fine lady and a merchant of the society of Friends have very different views of the utility of diamonds; but if the merchant has diamonds for sale, the creed of his church does not induce him to value them at less than the fine lady is able and willing to give. The value of commodities is in proportion to their adaptation to the wants and wishes of mankind, rational or irrational, and to the facility or the diffieulty with which those wants and wishes can be gratified.
A Short History of Paper-Money and Banking in the United States: Including an Account of Provincial and Continental Paper-Money. to Which Is Prefixed, an Inquiry Into the Principles of the System by William M. Gouge