wishes, was poor in the midst of its
treasures.' Such was the effect of violating the law which regulates the
ratio of money to wealth; such the consequence of a superabundant
currency, even in specie. The result was that Spain, which had been the
most prosperous nation of Europe, and whose products and manufactures
had supplied the markets of the world, lost nearly all her exports, and
was forced to resort to the prohibitory system. The cost of living, of
working farms, of manufacturing goods, of making and sailing ships,
became so high in Spain, from her superabundant currency, that she was
unable to compete with any other nation, was reduced to poverty, and
never began to recover until 'Spain changed her system, encouraged the
exportation of the precious metals, and thus brought down her
superabundant currency and inflated prices, and thus enabled Spanish
industry to supply the markets of the Peninsula and of the world.'
_Then_, the distinguished historian tells us, 'the precious metals,
instead of flowing in so abundantly as to palsy the arm of industry,
only served to stimulate it, the foreign intercourse of the country was
every day more widely extended;' 'the flourishing condition of the
nation was seen in the wealth and population of its cities,' etc. It is
a redundant currency, even if gold or convertible into gold, that
produces these evils, although depreciation adds to the disaster.

What is the effect here of a redundant currency, is ascertained by
reference to our exports. By Treasury Tables 20 and 21, our foreign
imports consumed here in 1836-'7 rose to $168,233,675, being largely
more than double what they were in 1832 ($76,989,793), and nearly double
the consumption, _per capita_, which was $5.61 in 1832, and $10.93 in
1836. This was our great year of a redundant, although still a
convertible currency, when our imports consumed exceeded our exports of
domestic produce, $61,662,733; and so enhanced was the cost of living
and production here, that we actually imported breadstuffs that year of
the value of $5,271,576. (Table 1, Com. and Nav.) Our bank currency that
year was as follows: Circulation, $149,185,890; deposits, $127,397,185;
circulation and deposits, $276,583,075; loans, $525,115,702. (Treasury
Report, 1838, Doc. 79, tables K. K.) The legitimate result of this
expansion of loans and currency was the great bank suspension of May,
1837, and general bankruptcy throughout the country.

Now our ban