Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1867-12-13
THE NATIONAL FINANCES.

that which preoedea. We give it il
full.
THE NATIONAL FINANCES.
II The present condition of our finances
n and circulating medium is one to which
a your early consideration is invited
n The proportion which the currency Of
Z any country should bear to the whole
value of the annual produce circulated
by its means, is q question upon which
political economists have not agreed
nor can 1t be controlled by legislation
4 but must be leFC to the laws which ave-
u TYEhere regulate commerce and trade.
n The circulating medium wiz ever
u fioTv to those points where 1t is In the
greatest demand. The law of demand
and supply is as uneTring as that which
7 regulates the tides of the ocean and,
indeed, currencY, like the tides, has its
! GIBBS and lows throughout the CONNER
I cial world.
I at the beginning of the rebellion the
4 bank note circulation Of the country
amounted to not more than two hum
drsd millions Of dollars. Now, the cir
tCulation Of National Bank notes, and
I those known as legal tenders, is nearly
seven hundred millions. While It ia
urged by some thaE this amount should d
be increased, others contend that de-
leidHd raduefion absolutely. essential
y 1aS Jes5 1dLt't tia acIutrv
In view of these diverse opinions, it
/ might be we'll to ascertain the real val
ue Of our paper issue, when compared
/ with a metallic or convertible currency.
| For this purpose let us inquire how
much gold and silver could be purehas-
/ ed by the seven millions of paper mon
/ ey now in circulation. Probably not
Z more than half the amount Of the lat
ter-shOwing that when our paper cur
I renCy is compared with gold and silver
/ its commercial value is compressed in
] to three hundred and fifty millions.
This striking fact makes it the OBJ
/ viOus duty of the Government, as early
1 as may be consistent with the principles
] of sound political economy, to take such
measures as win enable the holders, Of
I its 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 max
ing legal tenders and bank notes con-
V6rtIble into coin OF It's equivalent,
their present specie value in the hands
of their holders would. be enhanced one
hundred per cent.
Legislation for accomplishing a re-
suit SO desirable is demanded by the
highest public considerations. The con
stitution contemplates that the circula-
uniform in quality and value. at the
time of the formation of that instru-
ment, the country had just emerged
from the war of the Revolution, and
vas suffering from the effects of q re-
dundant and worthless paper currency.
The sages of that period were anxious
to protect their posterity from the evils
which they themselves had expert
snced. Hence, in providing circula-
ting medium, they conferred upon Con-
gress the power to coin money and reg
ulate the value thereof, at the same
time prohibiting States from making
anything but gold and silver legal
tender in payment OF debts.
The present anomalous condition of
our currency is in striking contrast to
that which was originally designed.
Our circulation now embraces, first
Notes of National Banks, which are
made receivable for all dues to the Gov
ernment, including imposts, and by all
its creditors excepting In payment OF
interest upon its bonds and 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 Government dues except
ing imposts and third. gold and sill
szeEs coin.
BY the operation Of cur present sys-
tenn of finance, however, the metallic
"
only for one class of Government cred
itors, who, holding its bonds, seni-an-
nualIy receive their interest in coin
from the National Treasury, They are
thus made to occupy ansinvidious posi-
tiOn, which may be used to strengthen
the arguments of those who would
bring into disrepute the obligations of
the nation.
In the payment Of all its debts the
plighted faith ofthe Government should
be invioIably maintained; but while it
acts with fidelity toward the bOndhol-
der, who loaned his money that the in
tegrity of the Union might be preserved
it should at the same time, observe I
good faith with the great masses of the |
people, who, have rescued the Union
from the peFils Of rebellion, now bear
the burdens of taxation, that the Gov
srnment may be able to fulfil its en-
gagements.
There is no reason which will be ac-
cepted as satisfactory by the people, /
why those who defend us on land and
pr otect US on the sea, pensioners on the !
gratitude of the nation, bearing scars
and wounds received while in its SER
vice public servants in the various de- |
partments of the Government ; the far !
mer, who supplies the soldiers of the /
army and the sailors of the navy the /
artisan who tolls in the nations work |
shops mechanics and labOrers who j
and vessels of war-should in payment |
of their Just and hard-earned dues, re- /
ceive deprecated paper; while another |
class, their cOuntryn1en, no more de- /
serving, are paid in gold and silver.
Equal and exact justice requires that ]
all creditors of the Government should |
be paid in a currency possessing uni /
form value. This can only be accom- /
plished by a restoration Of the currency /
to the standard established by the Con- |
4 +T.e IA
remove a discrimination which may, if /
it has not already done so, create a 4
prejudice that may become deeply root 4
ed, widespread, and imperil the nation
al credit.
The feasibility of making our curren-
cy. correspond with the constitutional /
standard, may be seen by reference to Il
a few facts derived from our CONNER
cial statistics.
The production of precious metals in 4
the United States, from IS49 TO 1857, in 4
elusive amounted to 1919 100000 from /
1858 to 1860, inclusive, to S137, 500, 900, l
and from 1861 to 1867, inclusive, to 1851
0,000-making grand aggregate OF /
products, since 1S49, of 81, 100000.
The amount of specie coined from 1919 /
to 1857, inclusive, was S439, 600, 600; from
1858 to 1860, inclusive, $125, 100000, and /
from 1861 to 1867, inclusive, $50, 1000, 600,
making total coinage since 1910, Of
S874, 600, 900.
From 1S49 to 1857, 1ncIUsiVes, the net \
exports of specie amounted to S27I, co.,,
OO0; from 1858 to 1860, inclusive, to
SI4S, ,OOO, 900, and from 1861 70 1867, in
elusive, 1922 000, 600, making an aggre-
crate of net exports since I649, $74I, ,000,-
600. These figures show an excess Of
product over net exports of S433. 900, 600.
There are in the Treasury Sill, ,00O, 900 /
n coin, something more than $40, ,0OO, 600 /
in circulation on the Pacific coast, and
a few millions ia National and other
banks, in all, about 100000, 600. This,
however, taking into account the spe
Gle in the country prior to 1849, leaves
more than $500, ,O0O, 600 which have not
been accounted for by expectation, and
therefore may yet remain in the coun-
try.
These are important facts and show
how completely an inferior currency
will supersede a better, forcing IL from
cit.cnIaIion among The masses. and