Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1867-12-11

subject will probably satisfy all who have
the good of the country at heart, that our
best course is to take the Cons titution for our
guide, walk in the path marked out by the
founders Of the republic, and obey the rules
made sacred by the observance of our great
predecessors.
TIE NATIONAL FINANCES.
The present condition of our finances and
circulating medium is one to which your
early consideration is invited. The proper
ton which the currency of any country
should bear to the whole value of the annual
produce circulated by it's means. is a question
upon which political economists lave not
agreed. Nor can it be controlled by legisla-
ton, bat must be left to the irrevocable laws
which everywhere regulate commerce and
trade. The circulating medium will ever
irresistibly flow to those points where it is in
the greatest demand. The law of supply
and demand is unerring as that which
regulates the tides OF the ocean, and indeed
currency, like the tides, has its ebbs and
flows throughout the commercial world AT
the beginning of the rebellion the bank note
circulation Of the country amounted to not
much more than $500 900 200. Now the
circulation of national bank notes and those
known as legal tenders is nearly $50 200, :
coo. While it is urged by some that this
amount should be increased. Others contend
that decided reduction is absolutely essen
tial to tie hest interests of the country In
view of these diverse opinions it NAV be well
to ascertain the real value of our paper is
sues when complred with a metallic or con-
vcrtible currency. For this purpose lei us
inquire how much gold and -iNer could be
purchased by seven hundred millions of paper
money now in circulation probably not
more than halt the amount of the latter,
showing that when our paper currency is
compared with gold and silver, the CONNER
cial value is compressed into $3.50 ,000 900
This striking fact makes il the obvious duty
OF the z lvernment, as curly as may be con-
slstent with the principles of sound political
economy. to take such measures as will en-
able the holders of it's notes and those of tho
national banks, to convert them without loss
into specie or its equivalent. reduction OF
our paper circulating medium need not nee
essarily follow. This. however, would de-
pend upon the law of demand and supply,
though II should be borne in mind that bv
making legal tender and bank notes convert
iblc into coin or its equivalent, their present
specie value in the hands of their holders
would be enhanced one hundred per cent
legislation, for the accomplishment of a re-
sult so desirable, is demanded By the highest
public considerations.
circulating medium of the country shall be
uniform in quality and value. At the time
Of the fOruation of that instrument the
country had just emerged from war of rev
olutIon and was suffering from the effects of
redundant and worthless paper currency
The sases OF that period were anxious TO
protect their post-rity from the evils which
they themselves had experienced. thence, in
providing a circulating medium they CON
ierred upon Congress the power to coin mon
ey and regulate the value thereof. at the
same time prohibiting the states from max
ing anything bat gold and silver legal tender
FOR the payment of debts. The anomalous
condition of our currency is in striking con-
trast with that which was originally designed
Our circulation now embraces first notes
Of national banks which are made receivable
for all dues to the government excluding i'm
posts, and by all It's creditors excepting in
payment OF interest upon its bonds and Sc
curItieS themselves second legal tender
notes issued by the United States and which
the law requires shall be received as well in
payment OF all debts between citizens, as of
all governments dues excepting imposts.
Third, gold and silver coin. BY the opcra-
ton of our present system of finance, how
ever, the metallic currency when collected is
reserved only for one class OF government
NASIito4c Ntlc. lIOlOiilE llS hUnOs. keluI-dnllL-
ally receive their interest in coin from the
national treasury. They are thus made to
occupy an invldIous position which NAV be
used to strengthen the arguments of those
who would bring into dIsrcpute the obliga-
tions of the nation. In the payment of all
its debts, the plighted faith of the govern
ment should be inviolably maintained. Bat
while it acts with fidelity toward the bond
holder who loaned his money that the inter-
rity of the Union mig be preserved, it
should at the same time observe good faith
with the great masses Of the people, who.
having rescued the Union from the perils of
rebellion, now bear the burdens of taxation
In order that the government NAV be able to
fulfill Its engagements. There is no reason
which will be accepted as satisfactory bv the
people why those who defend us on land and
protect us on the sea tae pensioner upon
the gratitude of the nation, bearing sears
and wounds while in it's service; the public
service in vari nus departments of the govern
ment; the farmer who supplies the soldiers
OF the army and sailors of the navy the
artisan, who tolls in the nations workshop
or the mechanics and lahorcrs who build It's
edifces and constructs its forts and vessels of
war, should IN payment of their Just and
rd-earned dues receive deprecated paper
while another class Of their countrvmen. no
more deserving. are paid in gold and silver
coin. Equal and exact justice requires that
al creditors of government should be paid in
4 currency possessing 4 uniform value. This
can only b. accomplished by the restoration
of the currency u the standard established
by the Constitution, and by this means we
would remove discrimination which may,
If 1t has not already done SO, create Il preiu-
dice that may become deep-rooted and wide
spread, and imperil the national credit
The Feasibility of making our currency
correspond with the constitutional standard
may be seen by reference to few facts de-
rived from our commercial statistics. The
production of precious metals in the United
states from 1S49 to 1857, inclusive, amounted
to S519, 900 geo; from 1853 TO 1860, inclu-
siye, To Sl31 500 600; and from 1861 to
1867, inclusive, to S457 500 600; making
the grand aggregate of produce since 1919,
81 ,l74 eco 900. The amount of specie coined
from lS49 to 1857, inclusive, was S439 900, :
900; from 1858 to 1900. inclusive, SI25,-
0O0, 900, and from 1861 to 1867, inclusive,
100000 600; making the total coinage
since 1919, 1874, 10000 From lS49 to
1887, inclusive. the net exports of specie
amounted to S21l .0eO, 600; from 1858 to
1860, inclusive, ID $14S 900 900; and from
1861 to 1867, inclusive, $500 900 900 max
ing the aggregate net exports since lS49,
Sal ,O00. 900. These figures show an excess
Of product over the net exports of $433,-
600. 900. There are in the Treasury SILL
00O,000 in coin something more than
100000 in circulation on the Pacific
Coast, and few millions in national and
other banks I; in all about $l60, 600 600.
This, however, taking into account the specie
in the country prior TO 1S49, leaves more
than three hundred millions of dollars which
have not been accounted for by expectation,
and therefore may yet remain in the country.
These are important facts, and show how
completely inferior currency will supersede
better. forcing it from circulation among the