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fuNFINISHED WORK — A BLUB BOOK FOR THE HUSTINGS — CUIBFLT COM.
PILBO FROM BLUB BOOKS'^-IlUrERIAL, COI.ONIAL, ANO UNyrKB^STATKB.'J
A HOME MARKET FOR THE FARMER, OUR BEST RECIPROCITY.
BRILVIN THE COUNTRY,
VEXSUS
BRITAIN THE EMPIRE.
OUR MONETARY DISTRESSES— THEIR
LEGISLATIVE CAUSE AND CURE.
" If political economy Is against w, then are we against political economy."— Z«U ipmch'
»f a Working Man in Hyde Pork.
" TM» tkat they call 'organizing of labor' ii,if teell understood, tht preblem of th» vkolt
future for all vko will pretend to govern wKn."— Thomas Cablvlb.
" PeelUm seems altogether Incapable of leeing that In al) -icuntries the goodness or popu*
larlty of a government is Just In the proportion that It sides with the labcr, as opposed to th«
money power— seeing that to the moneyed class the monetary distress of the country is pros-
perity— low wages, or want of employment, and high-priced money being convertible terms,
iaA vice verta."— From an article of IsAAO Bcohanan, in tAe " Glasgow K««mlner," 0/ «*
Jfooemier, 1848.
** Tentanda via est, qua me quoque poMim,
" TMere Aumo.— Viboil.
■ !' Canada, too, must Independently attempt something, must strike out some path or method,
by which she may raise herself i>om the ground— by which the may rise into celebrity— by
which she may soar aioR."
DEDICATED TO HIS OON8TJTUKNT8,
BY ISAAC BUCHANAN, M.P.P, FOR HAMILTON.
HAMILTON, C. W. :
PRINTBD AT THE " 8PBCTAT0R " JOB OFFICE, PRINCs's iQUARB,
1801.
APXlllVES PUBUQUS*.
OTTAWA, OMT,
M?f
(■I— l/iIKo;-! :::
j
DEDICATION.
.. Peri«entte.Oolon.e. plutot qu^n pHnc.pe."-The« word, of Eobe.p.e.re embod;
the principle of tHe BrltUh jfoUlloal Economists.
"0 Freedom- [freedom of tr,de] what crime, have been committed In thy namel"
Madamt Roland.
TO MY CONSTITUENTS.
A work, suggested to me by tlie presence of euclx unpre-
cedented distfess, or want o/ pn^P^^yPf^^ ,P J^^ ^o^n^
Hamilton, may most appropriately be fff^^^^^f^^. ,;*; J'^f
Constituents ; and they I trust, wil ref^ve-t as an evidence o^
my gratitudp, for their having so kindly ^^^^^^^^ "^,^! ^^^^^^
1 ftVr I was attempted to be ostracised. The pecuhar claim
ri alSetlU to throw together thc»ot^^^^^^^^^^^^
mithnvitles was that it seemed certain that, (overwncimea uy
ul en 'aTdlUons to the already too "--ero^s f^^^^^^^^^
me of private business,) I must retire ^'<>'^'^'^^?l^^'^^'^^^
as finding myself unable to continue to ^o f s^^^^^ *X
public business for which I was elected, f^^ I saw also
that the sympathies of the whole ^rovince could be elicited
in favor oi" llamilton, if the peculiar ^^^^^^f "P^/j^"/, \Z
were generally understood, and li it were ^"f f « ,^/^^"^^^^^
much it is for the interest of the Province that aU ^^^^"
palities be enabled to remain in the category of risiog com
"'''''in pursuing my scrutiny into the cause of the distress of
HamUt^n, I eofld n^ot over Jok that, -P to a cc^am p^^^^^^^^^
suffersinJommonwiththerrovince,whichissufficie^^^^^^^^
bythefact,thatthepopulatonthathase^^
gone to some other part tf the 1 rovince, o"^ J^ , .j
States. There no doubt exists t^J^J^^g^f \^,S ^tates thoS
also exists throughout Brita n and the ^m ,f ftf e^' f ^^^^^^^
in these countrie% there -,f ./^-P^S^^^^^^^
continuous arrivals of gold from -^"^^^^^.^ ""^. trggg the
a common cause of ever recurring monetary distreee, me
DEDICATION.
8
direct effect of a bad, because unpatriotic, principle of Icgis-
lation-our Provincial industry and our Provincial money
market being perpetually overwhelmed by importations of
British manufactures, quite disproportioned to our exportable
resources. While our legislative violation of the law ot
supply and demand, in regard to the exportable commodity
Jl (a five-dollar bill being made_ by law eynommous, or
fearly synonimous, with a sovereign) violates the law o
fiupply and demand in respect to our larm-produce, and all
otLr exportable articles; as these ^ease to be exportable
(the exportation of gold being more profitable), the moment
thev are affected in the least by local prosperity, or become
dearer than gold at its fixed raw material price.
And it became necessary for me to dispose, first, ottlie
consideration of this legislative cause of distress which is
common to the Canadas, (though, in Lower Canada, it ope-
rates little, from the Lower Canadians consuming comparative-
ly few imported goods) whose effect on th3 body politic is the
same as a tumour ontlie leg or any part ot the body physical
—the only thing for which is removal by the knife. Ihe cause
of the public distress alluded to is, that for the sake of Provincial
Kevenue, importations of foreign labor were, till lately, insti-
gated by a Tariff not one half as high as that found necessary
fn the llnited States./b}- tU ^otecUon ofthf^r cwmr.cy-and
that foreign importations are still unduly instigated by our hard
money sf^i^xn, th^ effect of whTch is, thattheforenn manufac-
turers i^dthemmep7\ce\n bash,as the Canadanmanvfac-
tmer 'nfrade or Barter. 6ur law (by making a five dollar bill
and a quarter of an ounce of gold synonimous) fixes the
article, gold or foreirm exchange, in jpnc^, and prev^^ts it being
«m.«! according to .ts value, by the law of supply and demand,
like the Canadian articles which have to compete with the
foreign goods, (of whose cost that exchange forms part, just as
does the^freight and other charges on them) thus givmg the
latter (the foreign labor) an undue advantage m the race ot
competition, and unduly instigating importations-a course no
more excusable, (no more good policjr) in the government of a
country, than if a municipal council, lor i\ i^e of mcreasmg
the money-means of the corporation, were unduly to increase
the number of tavern licenses, thus making prodigal, and
ruining, the individuals and their families on whom the
prosperity of the municipality depends, thus, in a word,
^killing the goose for the golden egg." If to run a
Locality or Municipality into debt is to be prodigal, ajid
if to run a country into debt is to be prodigal, that unpatriotic
-.„^****'
''%
DEDICATION.
the flistanc market of Britain. And why i9 tins ? Bkcausk
THK. United Statks iiavk a Manufacturing Poi'ULAriow, which
Canada as yct hab not. Tho Canadian tarivL-r Blu.uld rc(ium,
no further proof of the necessity to hini,m the present, ol tho
raising up of home manufactares in tho Provinee, ..n(],per'
manently, of the American Zolvcrcin ].roposcd m these pa^^'S
I find it out of my power to give sufficient tune at present
for the due consideration of the important supgcstions 1 intend-
ed to make as to Canada's best course, with regard to her muni-
cipal indebtedneoB -and as I am anxiou8,at the present moment,
to call iminediate attention to my view of the erroneous prin-
ciple of our Monetary Legislation,— I have made vp my imnd
no longer to delay tho issue of these long promised pages. And
by way of giving a greater prominence to thio vital subject
of our monetary legidation, I reproduce here the following
paragraphs which will be found elsewhere in this voli le :
''Every backvoodsmt n in America knows well the ditierence
betwixt a payment by h m in Cash, and a payment by hira
in Trade, as he calls an exchange of one commodity .n his
possession for another whi di he wants. Practically he knows
ft to be the diiference between prosperity and adversity, it
not between honesty and dishonesty, to promise to pajr cash
which he has not, and cannot get, instead of promising to
pay Trade, or commodities of which he is possessed at the
moment. And so should it bo with the nation ; but strange
to say, Presidents of the United States in messap'es to Congress,
equally with the Queen of England in speeches to Parliament,
ignore this important difference. And the common attempt
oT the Political Economists is to conceal that payments in
America to the Foreign Merchant are practically hard cash,
(or promises to pay hard cash or specie which cannot be ful-
fill^) while payment to the Bo7,ie manufacturer is practically
Trade, or an exchange of commodities in our possession, 83
that a piece of cloth purchased at homo is already paid ter
in the natianal point of view, the currency being m no way
disorganized, as occurs in payments to the foreign merchant
by the removal of its basis, specie. All writers on the science
(falsely so called) of Political Eaonomy are guilty of circulat-
ing the common fallacy, that there is no ditference between
cash and Trad j as a payment, whatever other fallacies may be
peculia/- to each writer. And this indeed ts the fallacy tn
0v,r legislatim from which pws all our distresses on this
continent. . . .
"My object in giving such prominence to the foregoing w
6
DEDICATION.
that it points to tlie rock on wliicli the hopes of every indns-
trions family in the Empire, as well as in the Canadas and in
the United States, has since 1819 been, and still continues to
be, wrecked. And firmly convinced of this, I have long felt
that if people could only"be induced to reflect upon the mon-
strous practical evils which, individually and as a society,
they suffer from the present state ot our Money Laws, an
immediate remedy, through legislation. must be the philanthro-
pic result. For thirty years I have seen, and, in season and
out of season, explained, (generally to a very heedless
auditory), that the practical cause of our being unable to cope
either as a Province, as municipalities, as merchants, or as
individuals, without our ever recurring monetary distress, is
that it is originated and perpetuated by our Legislation ! Our
Legislation, in a word, makes the Banks and the Banks' note
circulation the mere handmaid of the foreign trade ; for all
must admit that, seeing Bank Kotes may immediately be con-
verted into Exchange, nothing, under our Money Law, is a
legitimate commodity for the Canadian Banks to advance on
except it is exportable, and will thus bring back gold ; and
it follows, that as the Ba7iks are hound to pay 'n spec\e^ they
ought to deal in nothing which in due time cannot be turned
into specie, or, in other words, in articles whose sale abroad
will fetch specie, and, if this is allowed my case is proved.
"The object of this explanation is simply to endeavour to
get Members of Parliament, as well as their constituents,
to ask themselves whether this was the intention of the
country in establishing Banks, and in establishing a
paper circulation? There was a day in the Province when
those Banks and that circulation did not exist. And was it
then the intention of the people, in applying for these to the
Legislaturcjthat the result should chiefly*be to inereaseForeign
Trade, or more properly, to increase the importation of Foreign
labor, thus hegga/ring the Province f So far from this being
the people's object, it was the result which of all others it was
the interest of the Province to avoid. It is clear, then, that
though they have been the best possible Institutions, and their
paper circulation the most undoubtedly safe to the holder, tho
Banks have not realised the higher obj ect which it is the interest
of the Province they should subserve. They have been little
more than Exchange Brokers, and they could not possibly
have been anything else. For what purpose, then, it may be
asked, was the est^lishment of Banks and of a paper circula-
• The other great use the Banks have been toOanada is that they have facili-
tated the moving to market of her crop.
DIODICATION.
ting medium demanded by the people ? The purpose of the
people in increased circulation, could only be ikcreased
EMPLOYMENT TO CANADIANS, flicy had been told that the more
money, there would be the more demand for Canadian labor,
and (as a necessary consequQnce of more V^dders) a greater
pr\ce for it. It was, however, concealed from them that this
law of supply and demand had already in fact been violated
in the admission of the principle of the money law of Canada,
in existence before fhe Banks were created, so that (as shown
above) firstly, the Canadian Banks' notes cannot safely be
advanced, except to parties who can sopner or later produce
something convertible into Foreign Exchange— and, *ecow<ZZy,
the increasing demand (that apparently greatest blessing to
the producer) is not allowed to shed its benign influenca in
raising the prices even of commodities fitted for exporta-
tion ! The Foreign Export Merchant, always having it in
his power to excliange his Bank notes for gold near the
price it will fetch abroad, will not take wheat or other
Canadian exportable commodity at any liigher price; and
indeed from this price has to be deducted a margin to save
liim from the contingenciess of markets, besides the freights
and charges to the foreign market. Th^s perjyetual \ncl^na-
^on to the harest raw material prjces for our exports is a
very serious consideration for the farmer, and would be still
, more so if the country, instead of importing on an average
ten millions of dollars worth more than she exports, had the
balance of trade in her favour. In such case, the price offered
by the foreign merchant, for our exports, would be reduced, at
least, by the reduction in the Exchange he would get for his
Bill of Exchange. I mention this view, not as anticipating
the likelihood of- such a state of things,^ but to show the
absurdity of our -monetary principle, which, while it at all
times debars the farmer from getting more than the price
abroad for his produce (as shewn above), does not secure him
even that ! It' debars him from having the advantage of an
adverse state of the Balance of Trade, such as we now have,
and which would be indicated by an increased rate of
Exchange when the extra premium would be an addition to
the price of the farmer's produce (an immense advantage in
settlmg his accounts,) while it does not secure him against
the disadvantage of a favorable state of the Balance of Trade,
which would be indicated (as the law :iow stands) by a de-
creased rate of Exchange, when the reducf^on \ri thej)rem'um
yiould he a reduction tn the price of the farmer'' s proat
tuce
I
[M,
II'
,--~:^rt» ■.
Hi
8
DEDICATION.
if
exported. And if the law is to remain as it is, there is even
the more necessity for the farmers protecting themselves
through raising up a home market, in which they will always
find themselves on equal terms with the parties from whom
they draw their supplies.
"But it cannot be supposed possible that Canada will long be
content to remain in this hopelessly degraded position indus-
trially—about one-fouith of her wheat, {of what thejiy »parea^
being taken to convey it to England, and about one-fourth
being curtailed from the supplies got from England in
return, so that the Canadian, fanner taking the most favora-
ble view of it, realizes about one-half the price the English
farmer does ! She, howevor, no doubt must so remain,
until she repudiates the interference of England in her
monetary legislation, and asserts for Canadian industry an
independence of all influences external to the bounds ot the
Province. CANADA MUST HAVE A CANADIAN
PRICE FOR GOLD AND SILVER, equivalent to the value
of these in Canada, not in England— and the true way to
establish this, is not to fix it arbitrarily aa is done in England,
but allow it to be regulated by the law of supply and demand,
the same as all other commodities. This same thnig was
proposed by the Directors of the Bank of Englamd, to the
Vhaiicellor of the Exchequer^ in 1818. [See Appendix, page
164.]"
The present Canadian Banks are Banks of Issue, and aro
admirable Institutions— far superior to any that exist to any
extent in the United States— but, under our present currency
law, their (ihief use is to facilitate the foreign trade, and
to find better and quicker markets for our produce. And I
may here mentioA that it has long been evident to me that if
PBODUOTioN and agricultural improvement are to get justiqp
' uCanada, we must originate a system of large, reliable, Ston
....lumG iNSTTTunoNS which we might call agricultural banks,
from which our farmers could get an advance to the extent of
one third, or so, of the value of their real estate— which ad-:
vance they might pay up at any time, but would not be
bound to pay up till the end of a certain period, say thirty
years— the bon'ower making an annual payment to cover
interest of money, a sinking fund to provide for payment of
the principal in thirty years, and a lite insurance premium to
secure his property being free from debt in case of his death
]^efore the loan i» paid off.
;!»-<"■ ^-^
■-■*,.