Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1867-12-10
NUMBER XIV.
flows throughout the commercial world.

| AT the beginning OF the reDelllon the Dank-
note circulation of the country amounted to not
much more than two hundred millions of dollars ;
| now the circulation of National Bank notes and
| those known as illegal tenders is nearly seven
| hundred millions. While it is urged by some
that this amount should be increased, others con-
tend that decided reduction is absolutely essen
tial to the best interests of the country. In view
of these diverse opinions, it may be well to as
certain the real value of our paper issues, when
compared with metallic or convertible curren-
cy. For this purpose, let us inqnire how much
gold and silver could be purchased by the seven
hundred millions of paper money now in circula-
ton Probably not more than half the amount
of the latter-showing that when our paper cur
rency is compared with gold and silver, its COM
mercial value is compressed into three hundred
and fifty millions. This striking fact makes it
the obvious duty of tho Government, as early as
may be consistent with the principle of sound
political economy, to take such measures as will
enable the holder of it's notes and those of the
National Banks to convert them, without loss,
into specie or its equivalent. A reduction 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 convertible into coin or its equiva-
lent, their present specie value in the hands of
their holders would be enhanced one hundred
per cent.
Legislation for the accomplishment of result
considerations. The Constitution comtemplates
that the circulating medium of the country shall
be uniform in quality and value. At the time
ofthe formation of that instrument, the country
had just emerged from the War of the Revolution,
and was suffering from the effects of redundant
and worthless paper currency. The sages of that
period were anxious TO protect their posterity
from the evils which they themselves had expe-
rienced. Hence, in providing a circulating me-
dunn, they conferred upon Congress the power
to coin money and regulate the value thereof, at
the same time prohibiting the States from making
anything but gold and silver q tender in pay
ment of debts.
The anomalous condition of our currency is in
striking contrast with that which was originally
designed. Our circulation now embraces, first,
notes OF the National Banks which are made re-
ceivable for all dues to the Government exclu-
ding imposts and by all its creditors, excepting
IN payment of interest upon its bonds and the
securities 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 Government
dues, excepting impoSts; and third gold and
silver coin. By the operation of our present sys-
tenn OF nnance, however, the metallic currency
when collected, is reserved only for one class of
Government creditors, who, holding its bonds
semi-aDnually receive their interest in coin from
the National Treasury. They are thus made TO
occupy an invidious position, which may be used
tC strengthen the arguments of those who would
bring into dlsrepute the obligations of the ma
ton. In the payment of all its debts the
plighted faith of the Government should be in
vlolably maintained. But while it acts with f.
deity toward the bondholder who loaned his
money that the integrity of the Union might 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.
that the Government may be able to fulfil its en-
gagements. There is no reason which will be
accepted as satisfactory by the people, why those
who defend US on the land and protect us on the
sea- the pensioner upon the gratitude of the ma
ton, bearing the scars and wounds received
while In its service; the public servants in the
various Departments of the Government; the
farmer who supplies the soldiers of the army and
the sailors of the navy; the artisan who tolls in
the nations workshops, or the mechanics and la
borerS who build its edifices and construct its
forts and vessels of war-should, in payment of
their just and hard-earned dues receive depre-
ciated paper, while another class of their coun-
trymen, no more deserving, are paid in coin of
gold and silver. Equal and exact Justice re-
qulres that all the creditors of the Government
should be paid IN a currency possessing uniform
value This can only be accomplished by the
restoration OF the currency to the standard estab
lished by the Constitution: and by this means
wewould remove discrimination which NAV.
if it has not already done so, create a prejudice
that may become deep-rooted and widespread,
and imperil the national credit.
The feasibility of making our currency cor
respond with the constitutional standard may be
seen by reference to a few facts derived from our
commercial statistics.
The production of precious metals in the Uni
ted States from lS49 to 1857 Inclusive. amounted
to S579, 900, 600; from 1858 to 1860. inclusive.
to $I37, 500, 600; and from 1861 to 1867, inclu-
sive, to $457, 500, 00O-making the grand agrre-
gate of products since l949, ST, IA 600 900. The
amount of specie coined from 1949 to 1857, in
elusive was S439, 600, 900; from 1858 to lS6O
inclusive, S125, 900, 600; and from 1861 to 1867,
inclusive $3lO, 600, ,OOO-making the total COIN
age since lS49, 1914, 600, 900. From ls49 to
1851, inclusive, the net exports ofspecie amount
d to $27l ZOO, 900; from 1858 to 1860, inclu-
sive, to $l48, 900, 600; and from 1861 to 1867
inclusive, 1922, ,000, ,000-makng the aggregate
of net exports since l849, $741, 900, OOO These
figures show an excess of product over net ex-
ports of $433, 900, ,O0O There are in the Treasu-
ry Sill, 900, 900 In coin, something more than
$40, 900, 900 in circulation on the Pacific Coast
and few millions in the National and other
Banks-in all about Sl60, 900, 900. This how
ever, taking into account the specie in the coun-
try prior to 1S49, leaves more than three hun
dred millions of dollars which have not been ac-
counted for by expectation, and therefore may
yet remain in the country.
These are important facts, and show how COM
pletely the inferior currency will supersede the
better, forcing it from circulation among the
masses, and causing it to be exported as a mere
article of trade, to add to the money capital of
foreign lands. They show the necessity of retir-
ing our paper money, that the return of gold
and silver to the avenues of trade may be invited
and demand created which will cause the re-
tention at home of at least so much of the pro-
ductions of rich and nexhaustible gold
bearing fields may be sufficient for purposes of
circulation 1t is unreasonable to expect a return
to a sound currency so long as the Government
by continuing to issue irredeemable notes, fills
the channels of circulation with deprecated pa
per. Notwithstanding a coinage by our mints,
since 1849, of eight hundred aad seventy-four
millions of dollars, the people are now strangers
to the currency which designed for their use
and benefit, and specimens of the precious metals
bearing the national device are seldom seen ex-
cept when produced to crafty the interest ex-
cited by their novelty If deprecated paper is to
be continued as the permanent currency of the
country, ard all our coin is to become a mere
article OF traffic and speculation, to the enhance
ment in price of all that is indispensable to the
comfort of the people, it would be wise economy
to abolish our mints, thus saving the nation the
care and expense incident to such establishments.
and let all our precious metals be exported I'M
bullion. The time has come however, when the
Government and National Banks should be re-
qulred to take the most efficient steps and make
all necessary arrangements for RESUMPTION of
specie payments at the earliest practicable period
Specie payments having been once resumed by
the Government and banks, all notes or bills of
paper issued by either of a less denomination
than twenty dollars should by law be excluded
from circulation so that the people may have the
benefit and convenience of gold and silver cur
rency which in all their business transactions
will be uniform in value at home and abroad
" Every man of property or industry, every
man who desires to preserve what he honast1v