ated. Yet, the operations of the
mint are continued, with the avowed object of creating a specie
currency. This practice is, however, of some use. It serves to show that
mind and matter are governed by the same general laws,--that either
being put in motion wilt continue to move in the given direction, though
the original intention may have ceased. That the original intention of
coining has ceased when the use of the precious metals is confined
almost exclusively to ornamentation and security is a plain case.

The National Government issues coin for currency, and the States create
banks, with the privilege of using the coin as security, and of issuing
in its stead a larger quantity of notes. These, diluted in value to the
extent of the difference, form, with the authority derived from State
laws, a species of currency that, because of its great convenience,
derived from its representative character, has become, notwithstanding
its defects, one of the greatest powers known to man. The defects of a
bank-note currency are, that, being based on specie, it is necessarily
inconstant, and being insufficiently based, it is necessarily insecure.

The precious metals are desired for three distinct uses,--ornamentation,
security, and currency; they have, therefore, three distinct elements of
value. By the creation of banks a portion of the currency is converted
into security, and another portion undergoes the same change by reason
of the insecurity of bank-notes. Thus, by the influence of banks, the
precious metals are deprived of most of the value they had as currency,
the specie and the notes depreciating together, and maintaining an
equilibrium of value, until the exportation of the former to countries
where its value is not thus impaired becomes profitable. Then, if the
notes continue to depreciate, as is sometimes the case, the equilibrium
is destroyed, and specie commands a premium. This causes the remainder
to be hoarded, so that it then commands an additional premium as
security, in view of the increasing insecurity of bank-notes.

A result of the inconstancy of a bank-note currency is exhibited in each
of its several states,--as a diluted, as a depreciated, and as an
irredeemable currency; but more especially in this its third state. But
as it is not intended to be redeemed, except to a very limited extent,
and as these several states are proper to it, and differ only in degree,
it will be sufficient to point out the fin