British and Foreign State Papers Volume 7 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1834 Excerpt: ...employed as the medium of their exchange, enterprise of every kind will be repressed, and misery and distress universally prevail. When this shall be effected, the relations of society, founded upon a new basis, will be equitable and just, and tend to promote and secure the general prosperity. Such, it is contended by the Advocates of a paper currency, are the circumstances under which the principal States of Europe are endeavouring to return to a metallic currency. For a Century past, the currency of these States has been greatly increased by the employment of paper, founded, it is true, originally upon a metallic basis. During the last 20 years, this paper has ceased to be convertible into specie; and, as no systematic effort has been made to prevent excessive issues, it has become redundant, and, consequently, depreciated. Notwithstanding this depreciation, the production of those Countries, it is believed, have more rapidly increased, than those of Countries where a metallic currency has been preserved. The first efforts that are seriously made by those States to return to a metallic currency, will be the repression of enterprise of every description among themselves. It will be foreseen that the currency must appreciate, and that all other articles must depreciate in value. The effects of this appreciation of money will be first manifested in those States, by the fall of the price of all articles which cannot be exported. In the progress of these measures, the price of the exportable articles will also be affected, by the reduction in the currency employed in effecting their exchange. It is even probable that the quantity of exchangeable articles will be diminished. Whilst the appreciation of the currency is perceptibly advancing, the Manufacturer will...