In the presence

hunsssalin Thu Mar 17, 2011 2:19 pm

In the presence

In the presence of such facts, what justice is there in the accusations so frequently made of unskilfulness and improvidence in the management of the American banks ?In the United States the total circulation does not exceed ordinarily per inhabitant, of which one quarter, at most, is specie ; whilst in England it amounts to per inhabitant, of which one third is specie. In France the difference is probably twice as great, and it is well known that the greater part of the circulation in that country is specie. The reason of the larger circulation in France than in England and in the United States, is selfevident. Every community must have, at any moment, the amount of currency necessary to transact the exchanges then taking place. Where coin alone is used, when commerce and industry require an increase of the circulation, it can only be obtained from private hoards of specie made in moments when the specie is in excess of the demand, and the circulation is therefore contracting; or when specie is imported tory burch sale in excess of the immediate wants of the community.f The community is thus forced to keep on hand at all times an amount of coin equal tory burch flats to the maximum amount used, no matter for how short a period a portion of it may be required ; and to obtain this coin the tory burch shoes country must part with an equivalent amount of real, useful capital, of This synopsis of the American banks is mostly taken from " De la Monnaie, du credit, et de Timpot," by G. de Puynode, who derived the facts from " The Credit System," by H. C. Carey, of Philadelphia.f " The hoards absorb the superfluous produce of the mines when it is overflowing, and disgorge it again when it is wanted for use; so that the fluctuations of supply and demand do not affect at all that portion of the coin which circulates, and which alone operates on prices, but only that portion which is hoarded. (Fullarton on the Regulation of Currencies, p. .)" Upon the action of the hoards depends the whole economy of the international payments between speciecirculating communities; tory burch outlet while any operation of the money collected in hoards upon prices must, even according to the currency hypothesis, be wholly impossible." commodities that contribute to the well being and progress of all.