The Lancaster gazette. [volume] (Lancaster, Ohio) 1863-1886, 1868-12-17
Established 1925.

the six per cent. interest now pait
by the Government should be ap
! plied 20 the reduction OF the prin,
eipal in semi-anuual instaIlments
which in siXteen;years and eigbr
months would liquidate the entir,
national debt. Six per cent, in
gold would. at present rates, b,
equal to nine per cent. in currency
and equivalent 10 the payment ot
the debt one and u bali lines in d
fraction less than seventeen wears
This, in connection with all the
olbcr advantages derived from
this investment, would afford tc
tho public creditors a fair and lib
eral compensation for the use Eol
their capital, aud with this they
should he Satisfied The lesson.
| OF the past adm0hish the lender
( that il is not well TO be over unx.
ious in exacting from the borrow
or rigid compliance with the let.
ter Of the bond. If provision be
made for tho payment Of tie in
debtcdDess Of Tic government in
the manner ggcsted, cur nation
will rapidly recover its national
property. Its interests require
that some measures should be tax
en- to release The large amount ol
capital invested in the securities OF
tho Government. 1t is not now
merely unprOductive, but in taxa.
ton annually consumes $50, 600, q.
coo, which would otherwise be used
by our entsrprising people in u! =
ding 10 tho wealth Of the nation.
Oar commerce, which at one
time successfully rivallel tha. Of
the great maritime powers, has
rapidly diminished, and our indus.
trial interests arc in depressed
and Ianguishing condition. The
7 development OF our inexhaustible
resources is checked, and the fer
tile fields of the South are becom
ing wastes tor want Of means to
ill them. With the release Of cap.
ital new life would be:infuscd into
the paralzed energies of our peo.
pie, and activity and vigor impart.
ed to every branch Of industry.
Our people need encouragement in
their efforts TO recover from the cf-
fects Of the rebellion and OF iniuri-
Gus legislation, and it should be
the aim of the Government to
stimulate them by Il o prospect of
an carly release from tho burdens
which impede their progress. If
we cannot take the burdens from
their shoulders, Ut least manifest q
willingness to help bear them.
CIRCULATING MEDIUM.
In referring 10 the condition OF
the circulating medium, | shall
merely reiterate, substantially,
that portion Of my last annual mes.
sage which relates TO that subject.
The proportion which the currcn.
cy Of any country should bear to
the whole value of The annual pro.
duce, is question upon which po.
litical ecoLomists have not agreed,
nor can it be controlled by legisIa.
licn, but must be left to the ire.
vocable laws which everywhere
regulate commerce and trade. The
circulating medium will ever ir.
rcsistibly flow TO those points
where it is in greatest demand.
The law of demand and supply is
as un erring as that which rcgu
Iates the tides Of the ocean; and
indeed currency, like the tides,
has its ebbs and flows throughout
the commercial world. At the be-
ginning of the rebellion the bank
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 US
legal tenders is nearly seven hun.
dred millions. While it is urged
by some that this amount should
be increased, others contend that a
decided reduction is absolutely cs-
sential 10 the best interests OF the
country.
In view of these diverse opinions,
it may be we'll to ascertain the
real value OF our paper issues when
compared with u metallic or con.
vertible currency. For this pur-
pose lot us inquire how much gold
and silver could be purchased by
the seven hundred millions of pa.
per money now IN circulation, pro-
baby 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 three hundred and fifty mil
lions. This striking fact makes it
the Obvious duty of the Govern.
ment as early as may be consistent
with the principles of sound politi-
cal economy, to take such measures
us will enable the holder of its notes
and those of the national Banks,
to convert them without loss of
time into specie or lis equivalent.
A reductisn Of our paper circula.
ting medium may not necessarily
follow. This, however, would de-
pend upon tho law of demand
and supply. Though it should
bo borne in mind that by max
ing legal tender and bank notes
convertible into coin or its equiga.
lent, their present specie value
in the hands OF their holders
would bo advanced one hundred
per cent.
Legislation tor the accomplish
ment of n result so desirable is de-
mandod by the highest public con-
s;Sarotiona The constitution con.