The Hancock Jeffersonian. [volume] (Findlay, Ohio) 1857-1870, 1865-12-15


money and fix the value thereof'
and, inasmuch MS q mixed currency,
consisting of paper and specie, has
been found TO be o commercial ne
cessity, it would seem also to lie
their duty to provide, as has been
done by the national currency act,
that this paper currency should be
secured beyond any reasonable con-
tingency. To go beyond this, how
ever, and issue government obliga-
tions, making them by statute legal
tender for all debts, public and pri-
vate, is not believed to be, under Or
dinary circumstances, within the
scope of their duties or constitutional
powers. Hi".as-3 i3
GREESBACKs TO BE wiTnDRAwN.
The reasons which are sometimes
urged In favor of United States notes
rs permanent currency are, the
saving of interest and their perfect
and uniform value.
The objections to such q policy
are, that the paper circulation of the
country should be flexible, increas-
ing according to the requirements OF
legitimate business, while, If furnish.
ed by the government, it would be
quite likely TO be governed by the
necessities of the Treasury or tho
interests Of parties, rather than the
demands of commerce or trade
Besides, n permanent government
currency would be greatly in the way
of public economy, and would give
to the party In possession OF the gov
ernment power which there might
be strong temptations TO use for 9TH
er purposes than the public good
keeping the question of the currency
constantly before the people as a
pr litical question, than which few
things would be more injurious to
business. t
But the great and insuperable Oh
lection, rs already stated, to the di.
rect issue of notes by the govern
ment, rs q policy, is the fact that the
Cover nment of the United States Is
one of limited and defined powers,
and that the authority to issue notes
us money is neither expressly given
to Congress by the Constitution, nor
fairly to be inferred, except as
measure of necessity in a great ma
tional exigency. No consideration
of a mere pecuniary character should
induced an exercise by Congress OF
powers not clearly contemplated by
the instrument upon which our politi.
cal fabric was established.
u n I.
The issue of United States notes
rs lawful money was measure expe-
dient, doubtless, and necessary in
great emergency in which it was
adopted; but this emergency no long
CT exists, and however desirable may
be the saving of interest, and howev.
er satisfactory these notes may be as
a circulating medium, these consid-
derations will not, it is respectfully
submitted, justify departure from
that strict construction of the consti-
tuition given TO it previous to the war
by patriotic men of all parties, and
which is essential to the equal and
harmonious working of our peculiar
institutions.
IL
In speaking of the legal tender acts,
Witch authorized the issue of United
States notes. The interest bearing
notes which are legal tender for,
their face value were intended to be
n security rather than circulating
medium, and it would be neither in
furious to the public, nor an act of
bad faith to the holders, for Congress
to declare that, after their maturity,
they shall cease to be a legal tender,
while such declaration would aid
the government in its efforts to retire
them, and is therefore recommended.
CONTRACTION NECESSARY,
The rapidity with which the gov.
ernmcnt notes can he withdrawn
will depend upon the ability Of the
Secretary to dispose OF securities -
The influences of funding upon the
money market will sufficiently pre-.
vent their too rapid withdrawal
J that decided movemoDt towarols O.
contraction Of the currency is not
only public necessity, bait that il
will speedily dissipate the apprehen-
zion which very generally exists,
that the effect of such policy must
necessarily he to make money scarce
and TO diminish the prosperity of the
country. -.
IL is we'll established fact, which
has pot escaped the attention of all
intelligent observers, that the de-
mand for money increases (by rea.
son of an advance Of prices, with
the supply, and that this demand is
not uni'requently most pressing when
the volume of currency is the largest
and imitation has reached the culmi-
mating point. Money being an unpro-
iitable article to hold, very little is
withheld from active use, and in pro-
portion to its increase prices adj.
vance; on the other hand, a reduc-
tion of it reduces prices. and as
prices are reduced the demand for it
falls of; so that, paradoxical as 1t
may seem, dimunition of the cur
rency may IN fact increase the sup.
ply Of it. f't '0f-i 3.
An irrcdecmable paper currency
may be a necessity, but it can scarce
ly fail, il long continued, to he ca d
lamity to any people. Gold and sill
yer are the only proper measure Of