The Lancaster gazette. [volume] (Lancaster, Ohio) 1863-1886, 1867-12-12

the annual produce circulated
by its means, is q question upon
which political economists have
not agreed nor can is be con-
trolled BY Legislation, but must be
lett 10 the laws which every whore
regulate commerce aud trade
The circulating medium will ever,
flow to those points where il is in
the greatest dem md The law OF
demand and supply is as unerring
a. that which regulates the tides
Of the ocean; and, indeed, curren.
ey. like the tides, has its ebbs and
its flows throughout the commercial
world.
At the beginning Of the rebel
lion the bank note circulation of
the country amounted to not
much more than two hundred mil.
lions OF dollars. Now, tho circu.
lation of National Bank notes, and
those known as legal tenders, is
nearly seyon hundred millions
While it is urged by some that
this amount should be increased,
others contend that decided re.
duction is absolutely essential to
the best interests OF the country.
In view of these diverse opin-
ions, it might be we'll to ascertain
the real value of our paper issue.
when compared with a metallic or
convertible currencv. For this
purpose let US inquire how much
gold and silver could be purchas
ed 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 commercial value is com.
pressed into three hundred and fif-
ty millions.
This striking fact makes it the
obvious duty of the Government.
as early as may be consistent with
the principles OF sound polilica! O.
economy, to take such measures ~
will enable the holders of its notes.
and those OF the National Banks,
to convert them, without loss, into
specie or its equivalent.
A reduction of our paper circu
lating medium need not necessari
ly follow. This, however, would
depend upon tho law OF demand
and supply, though it should be
borne in mind that, BY making le.
gal tenders and bank notes con-
vertible into coin or its equivalent,
their present specie value in the
hands Of their holders would DO On
hanced one hundred per cent.
Legislation for accomplishing q
result so desirable, is demanded by
the highest public considerations.
The constitution contcmpIates that
tho circulating medium!aof the
country shall bo uniform in quail.
ty and value. At the sime of the
formation Of that instrument, the
country had just emerged from the
war ofthe Revolution, and was suf.
fering from the effects of a rodun-
dant and worthless paper curren.
cy. The sages Of that period were
anxious TO protect their posterity
from the evils which they them
selves had experienced. Hence, in
providing a circulating mediu m,
they conferred upon Congress the
power to coin money and regulate
the value thereof, at the same time
prohibiting States from making
anything but gold and silver a le.
gal tender in payment OF debts.
The present anomalous condi.
tion OF our currency is in striking
contrast to that which was origin
ally designed. Our circulation
now embraces. first: Notes of Ma.
tional Banks, which are made re-
ceivable for all dues to the Govorn-
mont, excluding imposts, and by
all its creditors excepting in pay.
mont OF interest upon its bonds and
socunities themselves; second, 10
gal-tender notes issued by the Uni.
tod States, and which the law 70.
quires shall be received rs woll in
payment Of all debts between citi.
zens as of the Government daes
excepting imposts; aud third, GOLD
and silver coin.
BY tho operation of our presonJ
system of finance, however, th,
metallic currency, when collected
Is reserved only for only one elias,
of Government creditors, who
holdingits bonds, semi annually 70
ceive their interest in coin irou
the National Treasury. They ar,
thus made to occupy an invidioui
position, which may be usel t.
strengthen the arguments of those
who would bring into disreput,
the obligations of tho nation.
In the payment of all its debit
the plighted faith of the Govern
mont should be inviolably main
tained but while it acts with fl
deity toward the bondholdoE wht
loaned his money that the integri
~ OF tho Union might be presery
ed, it should, at the same time, OBJ
serve good faith with the great
masses of the people, who, having
rescued the Union from the periil
OF the rebellion, nov bear the bur
dens OF taxation. that tho Govern
ment may be able to fulfill It's en-
gagements.
There is no reason which will b,
accepted unsatisfactory by the peo
pie, why those who doMnd us OF
land and protect us on the sea
pensioners on the gratitude of tn,
nation, bearing scars aud wounds
received while in its service pub