The Conservative. (M'connelsville, Ohio) 1866-1871, 1868-12-25

averse to a settlement Of our indebtedness !
upon a plan which would yield them a fair
remuneration, and at the same time DO Just
to the Taxpayers OF the nation. Our nation
al credit should be most sacredly observ-
ed, but in making provision for our creditors
we should not forget what Is due to the
masses OF the people. II may be assumed
that the huldcfs of our securities have
already received upon their bonds a larger
amount than their original Investment, meas
urcd by a gold standard. Upon this state
mcnt Of facts it would seem but just and
equitable that the 6 per cent. interest now
paid by the government should be applied to
the reduction of the principal, in semi-annual
installmcnts, which, in sixteen years ana
eight mosths, wOuld hquidate the entire ma
tioBal dabt. Six per cent. IN gold would, AT
present rates, be equal to Q per cent. in cur
rency. and equivalent to the payment OF the
debt one and'a half times In n fraction less
than seventeen years. This, in connection
with all the other advantages derived IRON
their investment, would afford to the pup
lie creditor q fair and liberal compensation
for tho uso of their capital; and with this
they should be satisfied. Tho lessons OF the
past admonish the londor that 1t Ia not wen
to be over auXiOus in CNactng from tho Dor
rover rigid compliance with the letter OF the
bond.
If provision be made for thopaymcnt of tho
indebtedness of the government in the man
ncr suggested, our nation willraptdly recover
its wOntud prosperity. Its interests require
that some measure should be taken to release
the large amount OF capital invested in the
securities Of the government. IL Is not now
merely unproductive. but in taxation annual
ly consumes SlJO,OO0, 600, which would other
wi4o be used by our Cntcrpriaing people IN
adding to the wealth Of the nation.
Our m which at ono time success
fully riyallcd that of the great maritime pow
ora. has rapidly diminished, and our
industrial interests arc in q, depressed
and llucuishing condition.. Tho develop
mcnt Of our incXhaustaOle resources IL
/ checked, aud tho fertile fields OF tn" South
are becoming waste, for want Of means to
TN them. with the release OF capital, new
life wuuld be infused into the paralyzcd ne
| prrips of our pCuplC, aud activity aud vigOr
impaired to every branch of industry. Onr
people need encouragement ia their efforts
to- recover from the oiicc = ct the rebellion;
and OF inludiaious legislation, and It si0nld
be the aim Of the government tn. stimulate
them, by the prospect ~ an carry i'leaHo
from the burdonH which impede their pros
pcrity. II we cannot take the burdctf nom
thcir shoulders, we should at least manifest
q willingness to hello 20 bear them.
In referring to the condition Of The cirou-
Iatiup medium, / shall merely rCit, rate sub
stautially that portion OF my last animal mes
sage which relates 10 that subject. Inc pro
portion winch the currency OF any country
should bear to the whole value ct the annual
produce circulated 10y its means, is q ques-
lion upon which political economists have
not agreed, nor can IL be controlled by lcEis-
lauon. but must be left 10 the irrcvocoble
laws Which everywhere regulate
and trade. The circulating medium
Will ever irrczislihiy How to the
to those points where 1t IL IN greatest dc-
mand. Tie law OF demand aud SUPPLY "a as
uncrring AZ that which regulates the udcs ni
the ocean. and indeed currency, Hhc tue
tides. has its Gibbs aud flows throughout the
commercial world. At tho beginning 81 INC
rebellion the bank note circulation OF tho
country amounted to not much more
than two hundred million %dollarsi
now tho circulation uf National Bank notes
and those known az legal tcndCrs, h nearly
seven hundred millions. While II "a urged ny
some that this amount should be increased
others contend that o decided reductlon H.
absolutely essential to The best lnterosts OF
the country. In yiCw Of these Divers. npih-
ions It may be woil to ascertain the real Nalue
OF our paper issues When conn q cd WIN u
{ metal ia ~ convertible cur. enc Tor this par
pose, let us Inquire how much gold ana Ill,
vur could be purchased bythc seven hnhlieu
millions of paper money now Ia clrtuluttuu'
Probably not moro than half the amount Of the lat
ter. showing that when uur paper currtn.y u com
plrcd with gold and silver it, commercial Naiuo "a
, eomprcsscd into three hundred and nifty millions
, This striking tact makes II the obvious dnly OF W
government. ~ early us may be consistent Win me
: principles OF sound political economy 20 tko aucl
measures "a will enable the holder OF It's notes anu
those OF the national banks 10 convert them,
, without loss, into specie or its cqui'Hltht'
A reduction Of our paper circulating medium
may not necessarily follow this; however II would
DEPEND upon the law OF demand and supply
! though It should be borne in mind that by making
: LEGAL tenders and bank notes cunNcrtiblc INTO COIN
or liza equivalent, thCir present specie value IN thV
= hands ali tDpir holdcrs would be enhanced one hun.
% l.d pprrcut. LEGISLATION for the acrompl ,hulcnt
I. OF a result 30 desirable Is dcinardcd by the highes'
public considerations. The Constitution c"hu'ul'
. Iiates that the circulating medium Of the country
i shall be uniform In quality and valuo.At the uhIc OF
ue formation oI That instrument, tho
2. country lad lust emerged IRON tht
= war of the Hry0luuOu, aud was suffering from tlt
/, effects Of q redundant aud worthless p'pcr cur
4 rcncy. The Higcs OF that period were anxious U
: protect their postcrity from the oyil which theJ
g ihcmsclysa had experienced; hence, Ia providing @
= circulating medium, they conferred upon Congress
= the power to coin money ana regulate inc NAlu'
q thereof; at the same time prohibiting the hulti
from making anything hut gold aud silver q tcndel
4 in payment ur debts. The anomalous condluoh %
y our currency Is IN striking contrast with thai Whltl
- was originally designed Our circulation now en-
n braces; First. Notes ofthc national banks which arr
: made receivable for all dues e. the government
excluding impusts, and hy all Its creditors, except
. ing interest upon It's bonds ana ihe securlt.
thrpgrl,cs. atc0nd. Legal tender notes, issued b.
: thc United States. and which tlu lazy requires hhal
l be- received us well in payment ul AL dents bet"oel
Il citizens. ~ OF all government daca, excepting I'm
u posts. Third. Gold and silver coin, By the opera
i lion Of our present system OF hunIoo' however ~
Is metallic currency, wnOn Collected d resclNci ON
/. for one class OF government CREDITORS, Who holdhl
IA b1nds. scmi.nnnualiy receive their interest ii
coin from the National Treasury. There IS no rea
n son which will be accepted AZ satisfactory by tn
~ people, why those VINO pIote1t US on We inn ~ m
u on the SEQ, the pensioners upon the grautndeo i IN
i nation, bearing the scars nnd wounds ItltlNtI
ne while In it, service, the public servants IN tue va
ls riaus departments OF the Government, the idrint
who supplies the soldiers OF tic army and tue sal
NJ ors of to navy, the artisan who tolls H. the M
H. tou's workshops, or the mechanics and lGboroi
- who build liza edihccs and construct is forts an
! vessels OF war should, in payment Of thoiF just an
: hard earned dues, receive depfcclatcd paptf'Nhl
u another class OF their countrymcn, no more d'
e., serving, are paid In coin Of gold and silver Elui
ne ana exact Justice requires that all the creditors
al the government should be- paid in q currency POI
p scssing uniform value. This can only be accom-
iy pished by the restoration OF the currency TO IL
l1 star dard established .Ry rho CONSTITUTION
~, aud by this means we would remove a di5clllnlh
~ ton which may, II II has not already done n
IT, create a prejudice that may become deep root5
ne ana wide spread, and imperil the national credi
o. The feasibility Of making our currency corrcspor
Ig with the constitutional standard may De seen ny
ed reference TO o few facts derived from our CONNIE
ty cial statistics. Tho aggregate product Of pIc"io'
~ metal in tho United states ironI 1850 TO ~
r. amounted 70 81, l6I, OOO,OUO, while for the san
ri period the net cuporIs Of specie we're s14l,OOO,Wl
ny mis- shows an excess OF product over the net c
~ p0rtg of $685. eco, 900. There are in ihe tloaSu
SlO3.4O7, 0s5. In coin in circulation IN the Unit
lr- states, on the Pacific coast, about S4O.OOO,VOO, Gnd
nd frw millions i'm the national and other hunks-in
Iss less than 6 0,OOO,OOO. Taking into cunsldefatI
tLe specie in the country prior TO 1s4g, and IL
80 5000 OO,O 900 not accounted fr by expectation or
az he returns Of the treasury, and therefore NJ,
probably remaining in tho country. These are 1
a portant Igrls and show how completely the inter-
lty currency will auprrccdc the better, forcing II fro
circulation among the massop and causing II %
ed exported az u mere article Of tra'
to aud 10 The money capital Of forci
,y lands. They show the necessity OF rctlfl
~ onr paper money, that tho return OF gOld aud Ill,
" 10 Tie avenue Of trade may be invited, and a
, mand created which will cause the retention
lv homo Of at least so much Of the productions OF @
ICY ricL andi nexhaustahle gold-hCaTng folds as may
in %suficicnt for purposes Of circulation. 1t Is uur
to sonable TO expect 10 return to q sound currency
,ty long a. the government ana banks ny coAthni
mi 10 issue irredaomablo notes, nh the channels of ,
Ihc culGtion with deprecated paper. Nutwithstandi
,t a coinage by our mintA, since 1919, Of s%sIl,OOn,O
r,n tho people are now atrangors % the curreI