Arizona miner., 1867-12-28
Pre=ident's NIcssae-c. .
THE NATIONAL FINANCES.

circulating medium ], one to which your early consideration Is invited. The proportiouvb the currency of any country should i'ar Co the whole value of the annual prolHci c.rcu- lated by it, means, i- question upon which political cc3nomist, pave not agrccd, nor can it bc controlled by legislation but must bc left to the irrev0cablc laws which cvcr where rcgla.e commerce and trade The circulating medium will ever ir si,tiby flow to tho-e points where it ], iu greatest demand. The law of demand aud supply is as uncrrirg as tll2t Yhich re-u.atc- Lle tides 0i the ocean, and indeed currency, Ike the tides. has its ohbs and flows tlir0ughout the commercial world. Al tle beginning of the rebellion tAc Bank note circulation Of the country amount cd t0 not much more tdsntHo hundred mil lions of dollars, now the circulation Of Ma iional Bank notes and those known as legal tenders ], nearly seven hundred millions. While it i- ur-e3 by -0me that tbs amount should be incr l,ca others contend that a decided reduction Is absolutely essential to the best interests of the country. Tn view of these diverse opinions it may be well 10 as certain the real value of our paper i,sucs when compared with a metallic or convertible currency. For this purpose, let Us inquire how much gold and silver could be purchased br the seven hundred millions of paper money HOW in circulation probably not more than half tlc amount co tIe latter. moving that when our paper currency is compared with gold and silver its commercial value is com pressed into three huulrsd and iii,y millions This -trfh ing fzct makes it the obvious duty of the Government. a- eariy as may be con si-tent with the principle- Of sound political economy, to take such measures as will en- able the holder of its notes. and those of the National Banks, tO convert tacm, without loss, into specie, or ts equivalent A reduc- ton of our paper circulating medium need not necessarily follow This, however would depend upon the law of demand and supply. though it should be borne in mind that by making legal tender and bank notes convert ihic into coin or it, equivalent, their present specie value, in the hands of their holders would be enhanced one hundred ger cent Legislation for the accomplishment of result so desirable iz demanded by ibc highest pu6- lic considerations. The Coustituti0n contem- plates that the circulating medium of the country shall he uniform in quality and val uc. At the time of the formation of that instru- ment the country had just emerged from the war of the revolution. and was suffering from the effects of a redundant Snd wOrtlless pa per currency. The sages of that period were anxious to protect their p0stcrity from the evils which they themselves Lad experienced;
 
 they conferred upon Congress the power t0 coin money and regulate the value thereof, at the same time prohibiting the States from making anything but gold and silyera tender in payment of debts. The anomalous condi- ton of our currency Is !n striking contrast with that which was originally designed Our circulation now embraces-hrst. notes oi National Banks, which are made receivable for all ducs to the Government. excluding imports, and by all ifs creditors, excepting in payment of interest upon its bonds, and the securities themselves; second, legal tender notes issued by the United States. and whiel the law requires shall be received as well ig payment of all debts between citizens as o all Government dues, excepting imports; and third Eaa aHd siige- coin F the sJT-fttiio7 Of our present system of finance, however, tn, metallic currency, when collected, is reserved only for one class of Government creditors who. holding its bonds, scmi-annnaliy receiy, their interest in com from the National Trca- ury. They are thus made Co occupy an inyi diOus position, which may be used 10 strength en the arguments of those who would bring into disieplte the obligations of tLre Govern ment. which should be !nYioiably maintained Bat while it acts with fidelity tOwarl th, bondholdcr, who loaned his money that tn integrity of the Union might be preserved, i should at the same time observe good faitl with the great masses of the people, who having rescued the Union from the perils O rebellion, now bear the burdens of taxation that the Government may be able to fulfil it engagements. There is no reason which vii be accepted as satisfactory by the people wh
 those who defend as on land and proyeet U on the sea, the pcnsioHer upon the graiitud of the nation. bearing scars and wounds re eeiyed while in it's service, the public seryan in the various departments of the Govern ment. the farmer who supplies tho soldiers C our army and the sailors of our navy. the aI tisan who tG;is in the nations workshops and mechanics and laDOrers who build edif ees and construct it's forts and vessels of wal should, in payment of their just and har earned dnes, receive depreciated paper, whil another class of their countrymen, no nor deserving, are paid in coin of gold and silver Equal and exact justice requires that d
 creditors of the Government should be pal in currency possessing uniform Talue. Tn can onisf be accomplished by restoration ( the currency to the standard established b the Constitution, and by this means we woul remove discrimination iIiciI may, ii u Id not already done SO, create a prejudice tha may become deeprO0ted and widespread, an impeFil the national credit. The ieasiblt of making our currency correspond with tn Constitutional standard may be seen by refel ence to few facts derived from our cOmmei cial statistics. The production of the preciOu metals in the United States from ls49 10 l55l inclusive, amounted to S579 100000; frOr 1858, to 1860, inclusive, to S127 ,0O0, ,0OO an from 1861 to 1867, inclusive, to sf57 OOe, ,50( rnqliuQ fhc rrrau1 a0greoata of ftroducfs