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PAGE. Imports of Flour into Great Britain. 87 | New York Canals......

388 of Dry Goods into G. Britain 85

City Bank Returns...84, 158 of Wheat into Great Britain 87

235, 319, 404, 478 laternal Revenue Report...

69

Foreign Trade of ... 120, 220 International Railway (Nova Scotia,

and Harlem Railroad &c.)..

207

(Analysis).......... 213 lowa, Census of.

297

State Bank notes (Schuy.
Cities and Towns of..

299
ler..

71
Finances of ...
368 North Carolina, Debt of....

162 Irish Joint-Stock Banks

67 Northern Nations, The conversion of
the...

168 Nova Scotia Gold mining..

196 Joint-Stock Banks in Ireland.....

115 67

Trade of... Journal of Banking, Currency and

0. Finance....82, 152, 285, 316, 403, 478

Ocean (An) Race in 1887.. ... ... 67 L.

Ogdensburg and Lake Champlain Legislative Lobbying

369 89 Railroad (Analysis)....

190 Lebigh Coal and Naviga'n (Analyses) 137 Oil Trade of Pittsburg. Licenses and Special Taxes........ 241 Lindell House, t. Louis...

64

P. Live Stock, (Imports of) into Great Pacific Railroad of Missouri....... 258

Britain..... .......42, 126, 274, 864 Petroleum in Middle Tennessee.... 440 London, American securities at ..73, 154

in New South Wales. 294 229, 402, 473 from Pittsburg.

240 Proposed water-supply for.. 296 Philadelphia Bank Returns..85, 158, 235 Stock Exchange-Historical

320, 404, 478 and Critical

412

Stock Sales at... 151
Assets of.

471) M.

Funded Debt of 470 Madras, Rice in........

806 Pittsburg, Fort Wayne and Chicago Manufactures of Massachusetts, 1865 326

Railroad (Analysis). 42, 129 of Pittsburg.

192

Petroleum from... 240 Marietta and Cincinnati Railroad

Its Present and Future.. 189 (Analysis). 220 Plains, Commerce of the...

59 Massachusetts Industry, 1865.. 826 Present (The) High Prices ..

61 Memphis and Charleston Railroad Price, With and Without Value. (Analysis).... 861 Prices of Breadstuffs...

379 Mexican Finances

807

of Wheat and Flour in Eng. (The Imperial) Railway... 20

laod (10 years)....

88 Michigan Central Railroad (Analysis) 224

of Leading Products.. 472 Mineral Products of the United King

Prince Edward Island.....

197 261 Provision Trade (Great Britatn). .41, 125 Mines and Manufactures in the Mis

188, 271, 354, 426 sissippi Valley..

249 Prussia, Army, Navy, and Population Mississippi Valley, Mines and Manu of...

159 factures in the

249 Money and Banks (Tellkampf)...96, 169

Quotations of Leading Stocks. 81, 156, 280 N.

313, 397, 473 National Bank Deposit Taxes (Olcott

R. and Spioner correspond'e) 70 Banks, Taxation of Stock- Railroad Earnings..........81, 398, 477 holders in

82

Reports, Analyses of...42, 126 253

213, 275, 369, 427 New Bildswick, Trade of.

Chicago, Burlington and Newfou dland, Trade of..

Quincy Railroad.... 275 New Jersey, Railroads and Canals of 667

Chicago and Rock Island.. 407 New Or eans & her material intere'ts 389

Har:ford and New Haven. 427 New Scuth Wales, Petroleum in.... 294 Cleveland and Toledo..... 217

9

dom......

Nesmib (Jobn) :

......... 114

• 197

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Railroad Illinois Central........47, 136 Taxation Proposed Reduction of..... 372 Memphis and Charleston.. 361

in the United Kingdom Michigan Central......... 227

(Peto) ....

242 Ogdensburg & Lake Cbam. Taxing the Sales of Bankers

49 plaio.. 869 Tea Cultivation....

281 Pacific of Missouri.

358 Telegraph Law of the United States 324 Papama and English Capi- Tellkampf (J. L.).....

95 talists...., 203 Textile, A new

391 Pittsburg, Fort Wayne and Thoughts on the Currency..

253 Chicago...

Trade with British America (Taylor)
St. Louis, Alton and Terre

104, 193, 271 Haute.....

132 of Great Britain with the UniSouthwestern (Mo.) Branch 257

ted States.....37, 122, 184, 271 Virginia Central....... 431

351, 422 Railroads (Our)......

93 " (Foreigo) of New York...120, 225 and Canals of New Jersey. 867 Treasure movement.........77, 167, 234 Rice Crop for 1866..

288

312, 399, 475 in Madras...

306 Treasury, Report of the Secretary of 442 Reform in England.

16

U.
S.

United States Debt153, 236,302, 393 471 St. Lawrence, Navigation of the.... 206

Trade of Great Britain St. Louis, Alton & Terre Haute R. R. 132

with the..37, 122, 184 St. Louis--the commercial centre of

271, 351, 422 North America.....

53

Receipts and Expenses Secretary of the Treasury's Report

for 1865-66..... 892 for 1865-66...

Receipts & expenses of 443 Sbark fishery in Norway..

239
Tonnage of.......

455 Shipping entered and cleared British

V. ports......42, 123, 188, 276, 364, 426

481 Silk Spider of South Carolina..... 68 Virginia Central Railroad.... Smith (Goldwin) on the Civil War in

W. America ...

166 Southwestern (Missouri) Branch R. R 259 Warehouse Movement at New York 121

War, The European... South Carolina, Silk Spider of......

68 | Waterhouse (3. D).. Specie Payments, Fallacies about... 267 Weights and Measures.

53

28 Stockholders in National Banks, Tax.

Whaling (Our) Fleet.. 82

305 ation of.

Wheat and Flour (Imports of) into Stocks, Quotations of leading....79, 156

Great Britain........87, 186, 353, 425 230, 313, 397, 473 Wheat and Flour, Prices of (ten Stocks, monthly range of prices of.. 80 Stock sales at Philadelphia (Jan-June) 15. Wisconsin, Debt, Finances and Popu

years). .

88 Strikes, The.....

63
lation...

182 Submarine Cables of the World..., 240

Population of Cities, &c., 286 Suez Canal..

890

Wool Trade Under the New Tariff.. 374 Systeme Metrique.... 24 Worlu-girdle......

407 T.

Wycliffites, or England in the FifTariff Bill.....

teenth Century... 210

163 Tariff, Revision of (McCulloch). 323

Y. Taxation, art cles exempt from...... 321 Young Men, Improvement of the of Government bonds..... 36 Social Condition of..

434

892

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31

THE

MERCHANTS' MAGAZINE

AND

COMMERCIAL REVIEW.

JULY, 18 6 6.

PRICE WITH AND WITHOUT VALUE.

0. H. CARROLL.

I am glad of the reappearance of your old contributor, Richard Sulley, in the pages of the MERCHANTS' MAGAZINE. In former times I have been indebted to him for good ideas in Political Economy, and I find much to approve in his article in the May issue, just received, which is courteous in criticism of the article on the Balance of Trade contributed by me to the February number. I think I shall be able to convince him of the correctness of the principle to which he objects, that money cheapened by mining, being capital, is profitably exported, when in natural excess, in exchange for other capital and is thus a source of national wealth, like everything else cheaply produced for foreign commerce--that is to say: over and above the home demand. I ought to have said it is national wealth, as well as the source of it. Money is a simple commodity governed by the same law of value and exchange as all other commodities and all other capital.

In the present stage of political economy there is an unaccountable tendency among thinkers to look beyond the facts experience has estab; lished (which constitute true science) into the regions of speculation and obscurity for truth that lies at our feet.

It seems to be given over, at present, to metaphysical abstractions and scholastic subtilties that appall practical minds, and render the science of little or no use in the conduct points of great national inexplicity have been most thoroughly obfuscated of government or of the business of life. By this sort of treatment two namely, money and value ; and Mr. Sulley, I think, has not altogether escaped the occult influence of such teaching,

He says:-“The opinion that money (gold and silver) is capital, and that we get value for it when it is exported in the usual course of trade,

VOL. LV.-NO, I.

1

mon

is not peculiar to Mr. Carroll, although it has been incidentally combatted in the pages of the MERCHANTS' MAGAZINE. Nevertheless all the claim it has to be considered capital, arises from its powers of saving labor by facilitating exchanges; but paper money, where it has value, is just as good as gold; and the only reason why gold is preferred for exportation is because its value is intrinsic, and therefore universal, while that of paper money is only imputed, and therefore local."

This argument is founded upon the abstration that money is merely a medium of exchange, and everything professing the quality of a medium of exchange is money: hence paper, stamped or issued by government, or by corporations, is money. On this theory overvalued tokens are money and wealth, because money is wealth, and the Spartans were as rich with their iron currency as if they had earned and possessed its weight in gold But money is no such abstraction. It is not merely a medium of exchange, but also an object of exchange, the product of labor and capital, from wbich it derives its attribute of value, and by reason of which it is the equivalent of other products of labor and capital. Without this equivalence there is no money, and with it a thing is not money, unless it is acknowledged and accepted as such in absolute payment of intrinsic value, by the commercial world.

Money was discovered or invented in the unknown past: its use and its meaving were established before the records of history, and the com

sense of mankind determines what is money to day with more accuracy than the most profound disquisitions of the most learned political economists. Indeed these learned men acknowledge the corruption of the word, and concede the argument to common sense, when they use the term real money. What is not real money? Why, spurious money—10 money at all. And such is a currency of debt, which expels money, and is an incubus upon the capital of the country. It pays nothing, but requires continually to be paid in money or in other capital, and when this requirement becomes urgent, its issues assume the position of preferred creditors, take possession of the money and floating capital of the public, to the extent of their requirement, and plunge other debtors into insolvency and ruin. There is nothing of this nature in money.

But,” Mr. Sulley says, “paper money where it has value is just as good as gold.” Let me assure him there is no place where it has value. The element of value does not exist in a paper currency, nor in any other description of debt whatever. The value to which all debt relates is the property appropriated to pay it. There cannot be two values embracing one and the same thing ; one in an estate and another in the deed of conveyance which certifies its ownership, or in the instrument of mortgage

The term “paper money” is a ridiculous sophism ; there can bo no such thing. The dollar, which in this country the maker of the paper promises to pay, is 23.22 grains of pure gold; the gold is the money, not the paper; and the value is in the gold, not in the paper. Gold being acknowledged and accepted as a common equivalent of other values all the world over, an equivalent of gold in other capital is capable of discharging an obligation to pay gold. The notion that there is the value of a dollar in a memorandum of a contract—a written promise to pay a dollar—is the delusion upon which rests the whole scheme of factitious credit miscalled "paper money." The amount of bank petes,

upon it.

as such, is of no consequence in the consideration of this question. The bank, having no value to lend, lends promises to pay dollars of value which have no existence, and whether it inscribes this factitious credit on a piece of loose paper for circulation, or on a book of account to be circulated by check, makes not the slightest difference in principle or effect. Hence deposits in bank, subject to check at sight, are currency as completely as bank notes deposited in one's pocket. Naturally, the same proportion of currency as of capital will be at rest, in the long run, waiting demand somewhere.

In what is called the credit system, the currency is based on coinmercial notes, by which the trade of the country, that with a currency of money would be a cash system, is forced through debt and credit. Under the credit system the same value in raw material, or in the process of manufacture, is frequently sold several times over or credit. The amount of needless debt thus created can scarcely be conjectured; but the daily settlements at the Clearing Houses show that it is enormous,

Does Mr. Sulley, or does any one, imagine that this vast debt, whether needless or otherwise, is value to be added to the inventory of the property of the country i This would be necessary, on principle, if there were value in a paper or debt currency. I do not understand the significance of the term

imputed value," unless it means spurious value. It seems to me there must be either value or no value in every thing. Debt circulates in its evidences, not for the value it is, but for the value it promises.

Mr. Sulley appears to bave overlooked, or perhaps does not remember, an explication of this thing called “paper money," showing the fallacy of the notion that it is as good as gold, that, without reference, I am sure I have furnished in some one or more of my contributions to this Magazine. Let me repeat the idea in another example. It happens that the aggregate price of the property of this country, and doubtless of other countries, is always about twenty-five times the sum of the currency. Let the volume of currency vary as it may, the price of the whole property in due time rises and falls accordingly, not equally, but in the aggregate. Things in the most immediate request rise first, and in the greatest pro. portion. If one thing does not advance in due proportion, something else advances more than the due proportion, and thus the currency is duly employed and the average completed. The circulating capital is in the ratio, approximately, of 10 to 1; the fixed capital 10 to 1; and the unproductive and enjoyable wealth, which is not capital, is as 5 to 1 of the currency, making 25 to 1 in all, as before mentioned. This is an approxi. mate calculation that is, perhaps, as nearly correct as an estimate of the kind can be made. At all events, it is sufficiently accurate for my acquirement.

In the last census year, 1860, the currency of this country, including California, amounted to about $640,000,000 ; consisting of say $430,000,000 net liabilities of banks, payable on demand, i. e., notes and deposits and balances due to other banks, deducting specie reserves, $4,000,000 of counterfeit currency, and $200,000,000 of money in and out of bank and free of hoards. Had this currency been money exclu. sively the wealth of the country would have been in money value as stated in the census, $16,000,000,000, divided as follows:

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