Page images
PDF
EPUB

haps, he labors with his own hands, as to him not a small one certainly-Mr. Colton who works for hire. The time has never yet has marched boldly into a field yet more been in the history of the United States as an entirely new, with an array of figures and independent nation, when labor was not in this sense an independent agent-when it could not facts, to demonstrate a system of foreign reject an unsatisfactory offer, and yet live. It taxation, under free trade, which is not is not pretended that labor has been able to dic- only immense, but amazing. It is to be tate its own terms. That would be equally hoped that these two chapters, so new improper and unjust, as for the employer to do and strong as they are, will not only be it. But it has always had an alternative. As appreciated, but that they will produce a last resort the American laborer can at any their proper effect. With these remarks time go to the backwoods. His independence is never necessarily sacrificed. * * we leave them, as the argument, in either case, cannot be broken up without injustice.

*

"In the light of this contrast, the condition of European and other foreign labor is one of absolute bondage. In the first place, it is for the most part deprived of all political influence. This is the primary cause of its misfortunes. In the next place, and also for the most part, it has no voice in its wages. There is no alternative left to it. It must work for what is offered, and work hard, or perish in want; and the wages doled out are measured by so nice an estimate for bare subsistence, as to be often insufficient for that. In all those countries, labor is the agent of power. Power dictates its wages, controls it, enslaves it; and it needs but a little reflection, in connection with what has already been said, to see that this difference is immense, and ir mensely important."

But we must resist the temptation to further extracts from this interesting chapter, to pass to the fifth point as we have specified them, which in fact contains two of the most important to be found in the work, occupying two chapters replete with facts, statistics, and argnment. We refer to the positions, that protective duties are not taxes, and that they are besides a rescue from an enormous system of foreign taxation. It must be admitted that this point established in the first case, would be enough to settle the controversy between free trade and protection. We cannot begin to do justice to these chapters by citations. They must be taken in their very wide, yet condensed embodiment of facts, to be appreciated. They are overwhelmingly convincing, and leave little to be said. It has been so generally conceded, and it is so easy and natural to believe, that protective duties are taxes, that an argument to prove the contrary will occasion surprise. It will be yet more surprising, when the subject comes to be understood, that the free trade argument on this point had ever received the slightest credence.

But not content with this achievement

The chapter which is devoted to the sixth point enumerated by us, and which is the tenth of the work, entitled, "The different states of society in Europe and America, require different systems of public economy," will naturally be appreciated by this title. Like other distinct lines of argument in this work, it is replete with fact, and characterized by skill and energy. The fallacies, not to say the atrocities of the doctrine of the Adam Smith school, as it relates to this point, are here laid bare to observation, and the Malthusian theory is scattered as with a thunderbolt. We cite the following passages on this point:—

"Mr. Malthus's theory of population, which is generally respected in Europe, particularly in Great Britain, explains all this. He thinks and food for them; that the masses will fight men multiply faster than there is room, work, against each other for employment to support life; that landlords, and all capitalists, may rely on this natural strife, among laborers, in bidding for the lowest wages that will support existence; and as a consequence, resulting from this theory, it may be assumed that the blessing, but a curse, to the majority of the natural increase of the human family is not a race; and that the masses are doomed by Providence to degradation, to a state of serfdom or slavery, to want and wretchedness, without hope or possibility of relief.

"Rather than be guilty of this libel on Providence--it is indeed a very grave and impious one-it would have been much more consistent with Christian piety, and with the Christian doctrine of morals, it may be said more philosophical, to assume a defect in society. It is shocking to ascribe such a want of wisdom and goodness to the Creator! Mr. Malthus supplies in theory what was wanted to wit, the hopeless degradation and misery of the sustain the practice of the European world, to masses; and the European economists of the Free-Trade school, assume the fact as a postulate, putting it in the place of one of the foun

dation-stones of their edifice. They are not ashamed to do this openly-to make it visible, prominent, staring out in the face of man and of heaven. This theory, recognized and reduced to practice in society, is an insuperable bar, a yoke that cannot be broken, an iron despotism over the masses of mankind. * * * "It may, therefore, be assumed as a fact, involving a fundamental element in the system of the Free-Trade economists, and pervading every part of it, that the masses of mankind are to be regarded as mere working machines for the benefit of the few, with no other cost than to be kept in the best working order. Such an element of public economy, lying at the foundation of a system, being as one to three of the capital parts, stops nowhere in its influence and control over the various subdivisions and ramifications of that system. The only thing that remains the same, is, the position, the necessity, the hopeless doom of this working machine."

One more extract from this chapter :

"No such state of society as that for which Adam Smith, Ricardo and Say wrote, is found in the United States, and it would not be tolerated here for a moment. It is, indeed, that very state of things that was forsworn in the American Revolution, and against which the new government, institutions, and laws, set up at that epoch, and afterward matured and permanently established, were expressly framed to guard, and guard forever, with jealous care, that they should never obtain footing again on American soil. This new and reformed state

of society, commonly and not inaptly called republicanism, rejects with indignation and scorn the idea of those relations which constitute the basis of the system of Smith, Ricardo, Say, M'Culloch, and others of that school. It was natural enough, it may be said it was necessary, at least apparently unavoidable, that they should take such premises as they were furnished with, on which to erect their edifice. It is evident what those premises were, because they are distinctly laid down; and it is also evident that a system built upon such premises, must correspond with them. But the American system is directly the opposite of this. There is no resemblance in the premises, and none in the structure raised upon them, if it be properly built."

and virtue of the people depend upon education. It remains to show, in what respects, and how far, education becomes an element of public economy in the United States. We are not prescribing rules for European or other foreign nations. The withholding or lack of popular education among them-for it is the education of the people generally of which we speak-may be as necessary to their theory of society, as the enjoyment of it is to ours. It has already and frequently been stated, and should be constantly borne in mind, that Adam Smith and his school have adapted their system of public economy to the state of society with which they were surrounded, and not to that which exists among us. It is impossible, under their system, that general education should prevail-as much so as that it should prevail among slaves. There is no provision for it. It is the bare subsistence only of those who do the labor of society which they have provided for. In the first place, they have not a democratic state of society; next, they do not propose to have it; thirdly, they make no calculation for it; and lastly, as the working classes, with government, their education is not deemed under their system, have little or nothing to do important. On the contrary it is systematically suppressed, because it is reckoned dangerous. It must be seen, therefore, that the condition of society in the United States, in these particulars, is diametrically opposite.

[blocks in formation]

Europe-especially those from Great Britain"The original settlers of this country from were men of intelligence and strong virtue. Many of them were persons of as high culture, and of as much chivalry of character, as any that were left behind them. It may be said, of the times that produced them; and those that they were men of the strongest character who followed in their train were men of the same stamp. The motives of emigration then were of a high and social character, and not such as now pour upon this continent the floods of European paupers and culprits. It was endure the chains of European despotism, and mind of the highest order which could not which came here for freedom. The object of their coming, and the qualifications which fitted them for the enterprise, are directly in point of It was their high culture and eminent virtues the argument in which we are now engaged. which enabled them to lay the foundation of that stupendous system of political society and of public economy, which has subsequently and gradually grown up on their endeavors and their plan. Freedom was their end, and the means which they ordained to secure it, were schools and religion, education and the virtues of Christianity. The history of the colonies, from the earliest settlements, down to the Revolution and establishment of American inde"It need not be said, that the intelligence pendence, is replete with proof of this assertion.

In the chapters on "Education as an element of public economy in the United States," the seventh head as enumerated by us, is opened another rich field of argument, where our author is not less at home than elsewhere. We present the following extracts :—

There arose, therefore, from the first, a state of society not before known in Europe or elsewhere-a republican or democratic society, in which there were no uneducated classes, and no laboring classes which did not comprehend the whole community. All went to school, and all worked when old enough; and on no point were the people more thoroughly educated than on the principles of free government. The oppressions of the old world drove out its own sons from its own bosom, and under its own charters, to set up a school, which must necessarily, in a course of time, subvert its authority, and become independent, because the emigrants brought away all that was good, and left behind all that was bad. The elements of this

new state of society were all healthy, and full of infant purity. While the old world, from a vitiated and decrepit constitution, tended to decay, the new, purged of parental diseases, sprung up with giant strides, to giant vigor. Instead of the old leaven of European economists, that intellectual and moral culture belongs only to the higher classes, and that the working classes require nothing but bare subsistence like cattle, schools were provided for all-all were educated-trained to knowledge and virtue as a preparation for the working time of life. It was a republican or democratic state of society from the first, and continued to be such, till the struggle arose between the colonies and the mother-country, which resulted in American independence.

[blocks in formation]

"The system of common schools, early set up in this country, coeval indeed with American civilization, handed down from generation to generation, provided for as the first care of the state, watched over with paternal solicitude, nurtured, endowed, edified, and never suffered to decline, but always put forward with vigor and efficiency, is the cradle of those chances of which we speak. On this broad foundation, common to all, has been erected a system of select and higher schools, up to the college and university, which are also within the reach of all, by reason of a system of public economy, which it is our special purpose in this chapter to notice; not, indeed, so much within the reach of all, as the common schools, but yet not excluding any, nor presenting insuperable obstacles to any. The poorest and meanest born of the land, prompted by innate ambition, and developing hopeful talent, can, and do often, pass through all the stages of education, from the common school till they have graduated with honor at the highest seminaries, and entered upon the graver responsibilities of life, to contend in open and fair field, with the best born, for the highest prizes of the social state, whether of wealth or of influence. And it is an attribute of American society and institutions, to favor and help forward merit that emerges from obscurity, and strives to rise.

[ocr errors][merged small]

66

Passing for the present our eighth enumeration of new points, relative to money, we hasten to dispose of several following that, which, though eminently interesting and instructive for the novelty and practical character of the views presented, we have space only to notice with a few brief remarks. The chapter under the head of a definition of freedom, as consisting in the enjoyment of commercial rights, and in the independent control of commercial values fairly acquired," exhibits what we will venture to say will be regarded as an entirely new element of public economy, if it is to be received into the list; and our author makes it at least one of the foundation stones of an American system. It is an argument of profound interest, and must be read entire to be appreciated.

Of a near affinity to this, and growing out of it, are several points which we have specified in our enumeration, which, we doubt not, will receive attention and awaken sympathy, as exhibiting views in a striking light, and which, though not before reduced to form, are common to most minds, such as, protection the cause of the the American revolution; protection the ground of all the struggles for freedom, in past ages, down to this time; the new use of freedom in American independence, as founded in a protective system; the rise and progress of the free trade hypothesis; American instincts as they bear on this question; the fact and reason of the different cost of money and labor, here and elsewhere; the destiny of freedom but imperfectly achieved, being only in the beginning of its career, and its dependence on a protective system; free trade a license for depredation on the rights of others, or its identity with the principle of anarchy; &c., &c. All these are great topics, and are elaborately treated in this work; but in our condensed notice it is impossible to do justice to them by an attempted analytical review.

We return to the subject of money, only, however, for the purpose of noticing the new points, one of which is the announcement and specification of the foundation of the value of money; another, the distinction

between money as a subject and as the instrument of trade; a third, money as the "tools of trade;" and a fourth, the functions of money. The author allows that other economists have approximated these points, and cites them enough to show that they had glimpses, but not clear views of them; and that for want of clear views, great mistakes and some fatal errors have been committed-errors still current with all their mischievous influences. The following are a few brief citations, made very much at random, here and there, from the chapters on money-there are four of them-which may serve, in some measure, to show their character and drift:

"In process of time, of which the memory of man and history give no advice, certain metals, commonly called gold and silver, having been discovered and found to possess excellent and unrivalled qualities for certain uses, and for ornament, became precious.' This may be supposed to be the origin of the name, 'precious metals. For certain purposes of use and ornament, other things have been held much more valuable even than gold and silver, and for which ten, twenty, a hundred, and even a thousand to one, in weight, of the precious metals have been and are given, as an equivalent. Nevertheless, partly on account of their scarcity, and especially on account of their adaptation to so many useful and ornamental purposes, no other substances, original, or however formed, have ever acquired the position of being held so universally 'precious,' as gold and silver.

to them the functions of money, apparently for ever, without the remotest probability of change. Nevertheless, this was not an accident, was not arbitrary; but there were substantial, fundamental reasons, of the nature of value, lying somewhere back, beyond. Gold and silver could not even now retain their value as money, but for the foundation on which they fall back and rest, as being greatly valuable for an almost infinite variety of other purposes, which are always ready to take up and absorb them, whenever they can be spared from trade, and which, as a part of trade, is constantly being done; and as a part of trade also, they are as constantly going back into the forms or into the uses of money, though not in so great amount. The natural current from the bowels of the earth, is to the other uses of gold and silver; and only so much of them is arrested, on the passage, for money, as the necessities of trade require. It is only in distress, that people will surrender their plate, trinkets, or any other precious' things, composed of gold or silver, for money.

*

*

Assuming that nothing is money but gold and silver, or that which will command them at the will of the holder, it may be remarked, that the universal credit of these substances, when used as money, must have a foundation. That foundation is usually called intrinsic value. But a little reflection will show that the value thus asserted, lies farther back than the use of these metals as money, not denying that this use is a fraction of their value. But how came they to be used as money? Davanzati, an Italian economist of high repute, says: Gold and silver, being found to be of no use in supporting human life, And it is to be observed, that this view have been adopted,' &c., that is, appropriated does not bring us to their position and use as to the use of money. This, we should think money. Gold and silver are not valuable, too puerile to be noticed, except for the gravity simply because they are money. This was not with which it has been cited by others. M. the original ground of their being held in such Turgot answers this question: By the nature high estenm; but they have been adopted, and and force of things.' But this answer, as must have obtained universal consent, to be used as be seen, has no more point in it than the surmoney, or a common medium of exchange, face and materials of creation, inasmuch as it because of their value for other uses, and has all this range. Others answer: By reason because they are always in demand for such a of their qualities. This is not denied, so far vast variety of appropriations, other than as those qualities determine their intrinsic money. Money is but one of their uses, later value, which brings us back to where we startin the order of things; and it is only a fractioned from. But it is said, they mean the adaptof their value that is created by their use as money, in the same manner as anything else is increased in value, in proportion as its uses are multiplied. The real foundation of the value of gold and silver may be said to be, was in fact, prior to their having been viewed in the light of money, and appropriated to that use; and the cause of their being thus appropriated, was doubtless the discovery, by experience and observation, of their unrivalled qualities for other uses and in other applications. Time and immemorial usage, therefore, have assigned

ation of their qualities to this specific use; which has some reason in it, but more against it. The very authorities who give this reason, because forsooth they must give some reason, such as M'Culloch, overturn it by starting objections and proving the great inconvenience and expense of these qualities in such an appropriation of these substances.

"The truth is, gold and silver were proved to be valuable, highly so, and always in demand, before they were used as money. They were found to be remarkable for their beauty and

utility, and to excel all other substances for the number of uses in which they were held in high esteem, no matter whether for utility or fancy, as both these ends impart value or command price; and the longer and better that they have been known, tried, and compared, so much more stern and abiding has been the proof of their excellence, and so much greater the number of uses to which they have been appropriated and for which they have been in request. These are facts which run back through all history, and are without contradiction; and the growth of history on this point, as to both materials and time, only tends to verify them. Gradually in the course of time and by the exigencies of society, they came to be appropriated by general consent to the uses of money, till at last that consent became universal in the civilized world. This appropriation, therefore, was ulterior and consequent to the ascertainment of the many useful and admirable qualities of these metals for other purposes, without which there is no probability that they would have been employed

as money.

*

*

* "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 1823. 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 cannot 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 on 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

[blocks in formation]

"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 that money has a value which after all is factitious, and that it should be satisfied with this persuasion on the principle that it is a convenient delusion, is not more absurd than contrary to M. Say's own doctrine, when he says, 'a system of swindling can never be long-lived, and must infallibly in the end produce much more loss than profit.' It is not easy to believe that the world has been thus cheated, and that the credit of its circulating medium does not rest on a basis entirely independent of itself. It is the very nature of credit to have a basis. To say that intrinsic value is the basis is precisely what we maintain. Intrinsic value for what? It is not the idea or function of money that constitutes intrinsic value, but it is that which qualifies for the function; and the qualifying power lies back of money itself, is underneath it, is its foundation. But why adopt an absurdity without cause? Why hold debate here when the numerous and important values of gold and silver for other uses are so palpable, quite enough to recommend them for the offices of money, and quite sufficient to sustain them in the discharge of these functions? In this light, society is safe, and the good sense of mankind is vindicated, in adopting the precious metals as a common

« ՆախորդըՇարունակել »