BLACKWELL FAMILY
LUCY STONE

Article: 1845No. 2
Could there not be paper money in the
country consistently? There might which
should be counter issued for government
dues would be attended with the loss
of sustaining the system, and the danger
of issuing too many counters. Difference
between bills of exchange and credit
money. Why are not bills of exchange
just the same as [new] credit money?
Why don't they destroy the standard of
value? Bills of exchange are to merchandise
what certificates are to specie
(1) They are not used as money so they do 
not effect the currency. They are drawn
against convertible money, and so can
increase only as fast as convertible money 
does.          Distribution of Wealth.
In production, labor capital and land
comprise. There must be a certain proportion
of each. The laborer must have a share
or he will not work ie. wages
Necessary wages = such a rate as will
enable the laborer to procure the necessaries
of life, and render him respectable
in the community in which he lives.
Wages must vary in different [countries?]

If the wages are [less?] than the standard
the population will decrease. if it rises
above, the population will increase.for it creates restraint. Young men will not 
marry when there is not the prospect of supporting 
a family honorably. Moral causes will 
affect the standard Nominal wages or money
wages differs in different countries, and in
different parts of the same country.

deal or merchandise wages. Men work
for commodities, not for money. (two dollars
a day in New Orleans) Professional wages
differ in different countries. All labor does
not receive the same wages. The simple
kinds of labor like that with the spade is
the cheapest because all can do it.
Educated labor commands a high
price and the advance is interest on
the capital. Skilful labor recieves
rent for better brains. Trust labor
recieves large pay for the trust [refund?]

The wages of males and females differ
The fact is too obvious to need note. In the
U. S. there is 1/2 difference In France a
woman gets only 6 sou a day, while a
man gets 25. What are the causes of
this difference? Labor is an article of
merchandise and subject to the same
laws of supply and demand as all
other things. It is a universal law and
unchangeable. There must be a decrease
of supply or an increased demand or the
price of labor will be low. The unhealthiness
of the trade ought to affect the price of labor
Statistics show the ages [wages] of the different
professions. Farmers 64. Blacksmiths 54



Shoemakers 43. teachers 36 [?] 29

Labor of want and labor of luxury.
(1) Female labor is more restricted than men
(2) It is more dispensable i e. might be dispensed
with. Men can do every kind of
work. - mechanical, commercial, literary, &c
Women are confined almost exclusively to
domestic operations and the lower branches
of education. There are as many women as
men in any given community, so that
the wages must be low [?] being confined
to so few branches. There is a great supply
in proportion to the effective demand
A large part of female labor is for
ornaments and luxury. There is as great
a demand for female as for male
but it must be at a certain price.
Let the price be increased and the demand
is reduced. Enlarge the sphere of womans
labor and its price will increase.

A woman may get the same pay as
a man if she does the same labor [and
does it as well] Then she does not come
into market as a laborer but as a
capitalist. (1) It requires less effort &
strength to perform the labor of females
But clerks and professional men, who do
the lightest labor get the greatest pay.

The customs of soc. - - They dont pay beans
they have not the means - - -
Price is the value of any commodity
expressed in money. The price knows
more than all the legislators in the
world.Wages are higher in U.S. than in 
England
(1) Because there is more intelligence
(2) More political influence
(3) More freedom of industry
(4) More self respect
(5) A wider public domain
May workmen combine to raise the price of
[labor?]? they may. It is a natural right.
They have a right to and the legislation to incorporate
them If capital may be incorporated They
have a right to incorporate their labor but
all monopoly is wrong It is a false principle
to incorporate wealth. No corporations for
manufactures exist in England, or [about?]
Island Corporations destroy individuality -
have no soul. but are immortal
May the legislature pass laws regulating the
hours of labor They may, but it will be of
no avail. - Interest. Save for a [?]
[?] regulating usury, except in Greece. At
present there are none in England
Laws against usury can never be observed
because they are contrary to nature. Her
laws have always increased the rate of interest
(1) by increasing the evil. C E. of the lands for
8 he et contrary to law he may be sued and
that liability makes a high interest.
(2) By driving timid and scrupulous lenders
out of the market
(3) by rendering [?] [?] infamous.  So a
man must [?] large [?] in toll. [?]
etc. to pay for his loss of reputation.



(4) By introducing direct instead of circuitous
lending (5) As a consequence of all this
it operates directly against the borrower
[?] don't emigrate

Profit.
Profits are the net income of the capital employed
 —differ in different countries &
in different parts of the same country.
Profits are in [?] [them? than?] in the
younger states.  In any given country there
is an equality of profits in [crossed out]
all kinds of business. - -Rent 
Rent is a sum [?] for [the?] natural
and inherent powers of the soil. - Rent of a
house is profit on capital on it is interest
if you please to call it that
Effect of monopoly - land becomes individual
property - Land [?] [?] a higher rent
near cities - often arises from the [?]
of population - or from accidental good
from railroads because it brings us &
our [?] nearer cities.No. 1
Mr. Culler of Edinburgh is the 
present head of the system of P. E.
Political Economy is the science of wealth
and is to the state what domestic economy
is to the family - P. E. differs from politics
Wealth is anything in which mankind
place a value.  Anything, to be valuable
must be deniable, and cost labor.
[??]tality does not give value.  Bills are
the representation of value.  P. E. is the
science of values.  [?] is the only 
source of value & the demand.
Value is the ability to be exchanged for
something else.  What can not be exchanged,
is of no value.  P. E. treats of the production,
distribution, and consumption of wealth.
Production is the exchanging one value for
another.  And is divided into, Agricultures
which includes Fisheries, and Mines.  Manufactures
and Commerce.   4-5% of all production
is from exchange.  All production is 
the result of labor.  Capital is the resolution
of labor.  Capital is accumulated
labor.  Capital is wealth employed in its
production.  Fixed and circulating capital.



Fixed capital is the part that cannot be
readily transferred to something else.
Circulating capital may be.  Capital is formed
by the accumulation of labor.  Land when
appropriated is wealth.  It has that about
it which makes it wealth.
Labor is the effort of human beings
to create value.  Division of labor means
that in the production of a single article
a number of persons are employed.
Advantages of division of labor are
(1) Increased dexterity.  : : 900 : 4800
(2) The saving of going from one piece of 
labor to another
(3) It facilitates the invention and improvement
of machinery.
(4) It shortens the time necessary to learn a trade
(5) The better adaptation of physical and 
mental powers.
(6) It gives advantage for mental and
social improvement
(7) As a consequence of all these advantages
is increased production, which
benefits all mankind.
The limits of the division of labor
are (1) the nature of the business
(2) There must be a greater amount of
capital (3) Demand.  If there is a 

small demand it will never be an
object to make a division.
Disadvantages
(1) It contracts the human mind - [?] herd
(2) It renders man helpless and dependent.
[?] [?] the problem.  How can manufactures
be carried to their ne plus ultra and
not destroy human beings?
(3) The unwholesomeness of the employment
Unproductive labor is that which does
not result in value to the individual who
performs it.
Productive labor is that which does result
in benefit to the individual who performed it.
There is no such thing as a class of 
unproductive laborers.
What are the laws that govern the
application of labor to Capital?
(1) Capital will be most successfully applied 
to labor when there is a clear proportion
of each.  Capital must increase in
proportion to the population, or there is
a diminution of capital.
(2) When each is sure of its full reward
(3) When property is generally divided.
(4) When there is general intelligence 
among the people.
(5) Perfect freedom of industry when all

all are at liberty to choose what form
of labor they please.
Machinery - its agency in the production
of values.  it is inconceivable. The manufacturing
power is said to be 200,000,000.
Natural agents do not give value to anything - 
only utility - reduce the cost.
[?] [?] saving machinery - machinery
of trade
[?] is carrying on business for the
role of [?].
Commerce is a mode of trade.
Barter is a direct exchange
Traffic is a sort of personal trade.
Commerce is always on 
a large scale and generally
on the water.
Trade includes all the business of a 
country.
Simple State of society - The labor
saving machinery of trade has two functions
(1) an instrument of exchange
(2) a standard of value - the yard stick
of trade.  An instrument of exchange
becomes a standard of value, because 
it can measure value.  Wheat is not as good a standard as might be

be had (1) because it is cumbersome &
not easily moved from place to place.
(2) It is perishable, depreciating in value 
each year.
(3) Variable in quality
(4) Variable in quantity
Iron used as a standard but not a good 
one.  Oxen too. 4½ - Sheep.
Gold and silver are the best instruments
of exchange and standards of value.
(1) Because they have a uniformity of
value, varying less from year to year
than anything else and are a standard
upon which future obligations should be
based.
(2) Their portability - great value in small bulk
(3) Divisibility - fused without loss.
(4) Malleability - (5) Impressibility
(6) Uniformity of quality
(7) Alloyability  (8) [?]onorousness.
(9) Specific gravity.  (10) Beauty & utility
(11) Universal diffusion.  (12) Plentiful.
Gold & Silver the Sacred merchandise
of the world.



Coinage
Government should coin and a law
be made that this coin should be lawful
tender. When the option of coinage was
made in the U. S. two standards which
should be lawful tender were made viz.
gold and silver, and they were always to
bear the same relation to each other.
A certain number of grains of
gold were always be equal to a certain
number of grains of silver.
Gold and silver are real wealth.
Because they are desirable, and cost
labor.
In what manner is the division of labor
in manufactures applied to [the]
Commerce Bank. = a place [where?]
money is left.
Check. = an order. by which deposits are
withdrawn.
A certificate of deposit shows that the bearer
of it has money in the bank.
Bills of exchange are orders for the 
transfer of values 19/20 of the means of
exchange is bills. Money is needed
merely to settle balances.
Direct exchange. Indirect exchange.

Bills of exchange are the thermometer of
the business world. - bills are at par
discount or premium as the case may be.
Foreign trade is our interchange of commodities
between different nations. All
commerce is of that kind.
Every nation must buy, in order to 
sell, and sell, in order to buy. and
every nation must buy as much as it 
sells, and vice versa.
If money were paid for exchange, all
the money in the country would not pay
for two years of importation
Buy cash for balances. Money must
increase with the population
Home trade. is the interchange of commodities,
between parts of the same
country. Which is most profitable
foreign or domestic trade? - that is most
profitable which employs or requires
most capital and labor. so either
may be most profitable as case is
Does commerce enrich a nation?
Not directly, but indirectly by stimulating
production. The wealth of a 
nation is equal to the extent of thecapital and labor employed. It is
no more in commerce. than in any
thing else.
Balance of trade is ascertained from
the custom house [statistics] certificate.
If we import more than we export, it
is not a loss but a gain to us (Dont see [Law? how?])
The goods are invoiced here. and in the
European market. The imports must not
exceed the efforts It is not [an evil?]
to export [specie?] to pay a debt abroad.
The sooner it is paid the better.
If we ship [specie?], we diminish the
price of products at home.
Why would it not be matter of [company?]
to import 50 millions of [specie?]?
Injustice = by the carrying trade is meant
the carrying goods for different nations from
one country to another. and it increases the
wealth of a country - One nation does
not gain by commerce. what the other
nation looses. What we gain, is the
use of our own labor and capital in
commerce.

The real balance of trade is what we
import more than we export. or vice versa
All foreign trade is not direct
Circuitous voyages - Exchange in
England 7 1/2 to 10 1/2 percent. The
reason why we pay so much premium
is the difference in the Standard of
currency. We reckon 4-6 for what
they reckon to half penny.
Credit is the use which in man
gives to another of a portion of Capital
in consideration of compensation in
dividends. and is produced by the
general confidence we have in each
others honesty and ability. In rural
communities it is safest.
Credit system [fund's?] more in this
country than in any other. It is an
ocean not current. Its advantages are
(1) it facilitates exchange.
(2) it enables a person with little or
no capital to commence trade
(3) it promotes industry
(4) circulates commodities, without gold
and silver. Its disadvantages are
(1) It enables the idle to rob the industrious.
(2) It holds out great inducement
to extravagance. (3) It induces men to
speculate unprofitably.(4) It operates as a great tax on the
community - It is an immutable
law of the credit system, that those who
do pay for their goods, must also pay
for those who do not pay. - Importer -
Jobber - Retailer = 15 per cts. The first
30.00.000 goes to sustain useless merchants
- lawyers. All bankruptcy is
to be traced entirely to the credit system.
(with all its evils.)
Is credit malum in [so]? no in the
existing state of society it seems to
be a means of increasing production.
Credit may be employed legitimately
when he who lends is sure to get
back principal and interest and when
good will result to the man who
borrows. He may borrow with advantage
for Capital but never for
consumption. - Interest is a cancer
Does credit need any stimulus? no
[?] because the lender has notion enough
in the profit that will allow to him
and the borrower hopes by a fortunate
investment of borrowed capital to
make a fortune. - show - fashion -
present gratification.
Currency is the actual money of the
world.

Value money, and credit money [was?]
a mixed currency.
Value money is that which has absolute
value in itself, as gold & silver.
Credit money is that which performs its
office of real money, but is only a substitute 
for it. Amsterdam bank 1609
Hamburg bank 1619. These banks
deal in value money only.
Credit is divided into two classes, governmental
and commercial.
Credit may be traced to China where certificates
of deposit were given, and the
money spent. [?] money A.D. 960
Merchandise deposits 1022
Assignee payable in three years
1171 Venice bank, at the time of the
Crusades. [?] forced loans incorporated
in banks. - 1798 closed the
bank of Venice 1407 the bank of Genoa
1484 Count issued English bank 1693
1763 Austria issued promissory notes to
Maria Theresa. 1793 120 [bars?]. Wm.
borrowed certificates of debt. - depreciated
[?] to - P. G invaded Florida 1792
Mandate allowed a person to takepossession of public property to the [amt]
amt. of the mandate.
Credit money of [bar?] to pay its [?] bills
Mixed currency of Commerce
Speculation banking = American Banking
system. Mass bank 1784 (1) object
What does a bank create? Credit, just to
the extent that it issues bills. England bank
see the merchants deposit their money in
this bank - The merchants all pay their
notes on the bank. - notes may never 
be paid at a certain time a head, this a
labor saving machine
On what principle are more bills issued
than specie? On the doctrine of chances,
hoping that all the bills will not come in
at once. ::1:20  What is the result of this
expansion. Bills rise - double money is in
circulation. - it is expected, the bills
are sent to the bank for specie and then
perhaps they fail.
What is the object to issue more bills?
To get interaction money it has not in its
possession. It is clear gain to circulate
double the amount of specie. Objective
(1) It seems to make the currency fluctuating.
The Ohio bank went in a few years
from 12 million to 11/2
Mass. currency is stable, and simple
Complex bank

Natural tides - fluctuating.
(2) This kind of currency stimulates credit.
When paper money is plenty the banks
pay a nice discount long paper i.e. to pay
a long time a [?] or 10 and 18 men this
credit. When money is not plenty, there
is less paid for goods. it is in an inverse
ratio. People purchase with the premise to
pay by and by. When the explosion comes
a long stagnation follows the contraction.
Will come down less than the specie.
(3) It is destructive to the arrangements for
trade and business generally
When the currency has been expanded 
in this way. the first thing will be an increased
demand for merchandise - this
makes more laborers - the demand increases
and the crash comes.
As agricultural products are diminished
the price increases. but the price of labor increases,
so that the gain is not so great.
(4) These arrangements to cause money bankrupting, 
and failures in business.
Is the laborer just as well off  when the
price of [labor], goods, and of course of labor
is increased? His labor does not rise
in proportion to the rise of merchandise.
because labor can't be monopolised
the laborer loses. - the merchant and
manufacturers make the money.
Labor falls sooner. than other commodities
because other commodities, are more [held?]a life held by the capitalists. But the
laborer must have daily sale because he
must eat today. They are worse off when
the labor is high
U S. Bank [?] 1816 loaned from four
different branches 60 millions and the bank
contracted. (1) Their clients in cities feel the
effect of bank contractions first
(2) Manufacturers and country merchants.
(3) Laborers. (4) Agriculturalists
The bankrupted of any nation are just
in proportion to its credit money.
France has the soundest mixed currency
in the world. The portion of bills to specie 5
bankruptcies only 15 in 100. While in England
55 in 100  Scottish bank is bad. bankruptcies
65 in 100. U.S. money fluctuates more
than any where else. Bankruptcies 90
in 100. 1840 500,000 bankrupts oweing
60 millions
(5) It transfers large amounts to speculators
and swindlers. The bank had no increased
between 1833 & 37. to 3 hundred millions
(6) It is demoralizing (1) by exciting avarice
and acquisition. (2) Speculation (3) [?]
all sense of obligation of the sacredness of
contracts. (4) [?] (bank officers plunder
the banks to the amt. of 80 millions.)
(1) By holding large reserves of money that
belong to others (2) Seeing others make

money by the use of it. (3) The property
seems to belong to a bank or corporation.
and to no individual and this appears to
be common property.
(4) Temptation. - borrows clandestinely - hope
to make money enough to pay soon are detected
and ruined.  The directors speculate with
the funds of the bank.
7) More banks deal in exchange and thus
destroy the thermometer of trade so that it
cannot be relied on. All the bank in this
country deal in exchange. England bank
exchange & speculate immensely - cotton crop
draft - keep in the money. U.S. bank - It centralizes
capital - makes its own terms. so that
those who borrow pay large interest if they get money
make short loans - [?]. - From the
Ohio bank 169 persons received loans to almost
2 millions. - 1 out of 506 got a loan and
for this the people were taxed enormously
9) Examinations to the public - 900 Before 1840
1727 Counterfeits - Bills bear out. it grant
amt of bills all never returned to the bank
There are 53 fictitious banks
10) Failures of banks. [?] to "45. 154 banks had
failed in the sum of 100 millions of capital
and they lost the bills besides
10) Injurious effect on public expenditures
[?] and extravagance always exist just
in proportion to the credit money.
11) It perpetuates slavery - for slavery affects
production unfavorably. and thus affects the
currency
(12) The impracticality of regulating the banksLaws (13) The banks may be used as political
engines - advantages of credit money? Most
popular arguments in favor of banks
(1) Make money plenty; and very soon can it
change the standard of value and does
[best?] to the public
2) Create capital - but it does not.
3) Banks make business [?] I [?] dull.
4) If cheaper medium of circulation than
[?] - but the wear and tear of bills
and of conscience is dear.
5) Banks regulate exchange - not now
6) Helps young men. - rich without merit
and poor without crime.
7) What could we do without banks?
It is quite obvious that [?] [?] has
no confidence in banks.
Government has nothing to do with the
currency, but too [?] money.
A value money bank should be a bank of
deposit. subject to have the money withdrawn
by check or otherwise, but it should
never loan. Certificate on such banks are
at a little more than [Jan?].
One pd [a???prise] = 950 dollars The
revenue of the Hamburg bank supports
the government of the city.
8 millions have been coined in
the U. S. A in this month's. CouldLucy Stone                          [Obu??]
                                                1845
Composition #1House, at Boston
September A. D. 1[9]
why said Motion s
such notice to be g
in the Boston Trav
twenty-fifth day o[f]
paid, forthwith a p
to said Receiver.

September 9, 1952
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