The evening Argus. [volume] (Rock Island, Ill.) 1861-1871, 1867-12-05
THE PRESIDENTS MESSAGE.
Concluded
THE rIsaYcEs.

The present condition of our finances ana
circulating medium is one to whicn 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 its means is qUes
ton upon which political economists have
not agreed, nor can it be controlled by leg
islation, but must be left to the irrevocable
laws which everywhere regulate commerce
and trade. The circulating medium will
ever irresistibly flow to the points where it
is in the greatest demand. The law of de- |
mand and supply is as unerring as that
which regulates the tides of the ocean and, |
indeed, curr sncy, like the tides, has its Gibbs
and flows throughout the commercial world.
At the beginning of the rebellion, the
banknote circulation OF the country amount
ed to not much more than $500, 900
now the circulation of national bank-notes
and those known as legaltenders is nearly
$700,O00,000. While it is urged by some
that this amount should be increased, others
contend that decided reduction is absolute
ly essential to the best interests of the coun-
try. In view Of these diverse opinions, it
may be we'll to ascertain the real value OF
our paper issues when compared with the
metallic or convertible currency. For this
purpose, let us inquire how much gold and
silver could be purchased by the $70O,ooO,-
600 of paper money now IN circulation
Probably not more than half the amount of
the latter, showing that, when our paper
currency is compared with gold and silver,
its commercial value is compressed into
S350,O0o,000. This striking fact makes it
the obvious duty of the government, as early
as may be consistent with the principles of
sound political economy, to take such meas
ures as will enable the holders of its notes.
and those of the national banks, to convert
them without loss into specie or its equiva
lent. A reduction of our paper circulating
medium need not necessarily follow this,
however. We depend upon the law of de-
mand, though it should be borne in mind
that, by making legal tenders and bank-notes
covertible into coin or its equivalent, their
present specie value in the hands of their
holders would be enhanced one hundred per
cent. Legislation for accomplishing re-
suit so desirable is demanded by the high
est public considerations. The constitution
contempates that the circulating medium of
the country shall be uniform in quantity and
value. At the time of the formation of that
instrument, the country had just emerged
from the war of the revolution, and was suf-
fering from the effects of redundant and
that period were anxious to protect their
posterity from the evils which they them.
selves had experienced. Hence, in propid
ing that the integrity of the Union might be
preserved, it should, at the same time, OBJ
serve good faith with the great n-~sees- OF
the people who having preserved the Union
from the perils of the rebellion, now bear
the burdens of taxation that the government
may be able to fulfil it's engagements. There
is no reason, which will be accepted as salts
factory by the people, why those who defend
us on land and protect US on sea pension
ers upon the gratitude of the nation, bearing
the scars of wounds received while in its ser
vice public servants in the various depart
nlents 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 workshop; the mechanics and
laborers who build its edifces and construct
its forts and vessels-ofwar, should, in pay
ment of their just and hard-earned dues, re
ceive deprecated paper, while another elias:
of their countrymen, no more deserving, are
paid in coin,-gold and silver. Equal anc
exact justice requires that all 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 established by the
constitution and by this means we would
remove q discrimination which may, if il
has not already done so, create q prejudice
that may become deep-rooted and wide
spread, and imperil the national credit
The feasibility of making our currency cor
respond with the constitutional standard
may be seen by reference to few facts de
rived from our commercial statistics: TIL,
production of precious metals in the United
States from ls49 to 1857, inclusive, amount
ed TO $4,000, 900; from 1858 to 1860, in
elusive, to $l37, 100000; and from 1861 Il
1867, inclusive, to $457 800, 0,-makins
the grand aggregate of products since lS49
Sl,l74,0 100000. The amount of specie coin
ed from iS49 to 1857, inclusive, was $l39.
100000; from 1858 to 1860, inclusive
$l25,080,9Oo; and from 1861 to 1867, in
elusive, 100000 600, = making the tota
coinage since l849 Ss74,OOO,O00 From
1949 to 1857, inclusive, the net exports o
specie amounted to S271, 10000 from
1858 to 1850, inclusive, $l4s, 900, 600; ant
from 1861 to 1867 inclusive. 1922 900, 00O,-
making the total aggregate of net export.
since l949 $74l, 100000. These figures
show an increase of products over net ex
ports of $433, 100000. There is in tn
treasury Sill 100000 in coin, something
more than $40 ,0Oo, 900 in crcu lation on tn
Pacific coast, and few millions in the ma
tional and other banks in all, about SI6O
100000. This, however, taking into &C
count the specie in the country to 1864
leaves more than $500, 1000, 900 not accoun,
ed for by expectation, and which, therefore
may yet remain in the country. These ar
important facts, and show completely how
an inferior currency will supe-sede a better
forcing it from circulation amohy the mas
ses, and causing it to be exported a a mer
article of trade, to add to the money capita
of foreign lands. They show the ne,essit
of relieving our paper money, that reur
of gold and silver to the avenues of trad
may be invited, and demand created whie
will cause q retention at home of at least
much of the productions of our rich and il
exhsustible gold bearing fields as may /
sufficient for the purpose of contraction.
is unreasonable to expect a return to SCUM
currency as long as government, BY contin,
ing to issue irredeemable notes, fills II
channels of circulation with deprecated p
per. Notwithstanding the coinage by o,
mints, since l849, of $s74, 900, 900, the pc
pie are now strangers to the currency whic
was designed for their use and benefit an
specimens of the precious metals bearin
the national device are seldom seen, exceI
when produced to crafty the interest excl
ed by their novelty. If deprecated paper
TO be continued as the permanent currenc
OF the country, and all our coin is to becom
mere article of traffic and speculation,
the enhancement in nr;oo &c Ill xb.t =: :.