Evening star. [volume] (Washington, D.C.) 1854-1972, 1868-12-09

rowed, which was paper currency, greatly
deprecated below the value OF coin. This fact
Is made apparent when we consider that bond
holders receive from the Treasury, upon each
dollar they own in.Government securities, SIX
Ter cent. in gold, which Is nearly or quite
equal TO nine per cent. IN currency: that the
bonds are then converted into capital for th-
national banks, upon " hich those institutions
issue their circulation, be.Uin5 six per
cent. interest: and that they are exempt
from taxation by the Government and tue
Sia;es, and theraby enhanced two per cent. in
inr n nds OF the holders. We thus nave au ag
cregate Of seventeen per cent. which may b.
rrCriyaC u0ou each dollar by the owners of
Government securities. system that Tro-
duces such results IL justly regarded as favor
inS a lew AT the expense OF tue many, ana has
led 70 The further inquiry whether cur bond
Folders, IN view of the large profits whjch
they have enjoyed, would them mselyes b. ayerSe
% a sr'tlemtnt OF our indebtedness upon
plan which Won Yield them filI =lnuneTa-
uon, and az the same time be just to the tax
payers of the nation. our national credit
should be- sacredIy Observed but ia making
provision for our creditors We should not Iur-
get what is que 10 tue masses of the peo-
pie. 1t may be assumed that the holders
Of our securities have already Received
upon their bonds a larger amount Ihan
their original investment metsuTet ny gOl d
standard. Upon this statement Of facts II
would seem out Just and equitahle that the
six per cent. In terest now pad by the Govern-
ment NJ uld be applied TO tha reduction OF tl-
principal in sem annual instalnents, which
In sixteen. years and eight mon rs would ligUi-
date the entire naUOlal debt. Six per cent
gold would at present rates b. rqual 10 nine
per cent. i'll currency, and equivalent TO the
payment Of the debt one aud half time III L
traction less tnan seventeen years This. in
connection with all the other advantages de-
rived from their investment, would afford to
the public creditors a fair and liberal com pen.
sa ion for the use of their cdpi'ai and with
this they should be satisfied The lessons OF
me past aGmonlsh the lender Jhat H. not
Well TO be over-auxous IL exacrng from
the borrower rigid compliance with the letter
OF the bond.
IL provision be made ior the payn mt of the
1T deDedness OF the Government in the manner
suggested, our nation will rapidly recover its
wont'd prosperity. Its interests require that
some measure should taken TOT release the
large amount OF capital i'll vested in the securI-
ties OF the eGoyernment. 1t is not now merely
unpToductive but in taxation annually con-
sumeS 5OUOaGtU, which would Otherwise b.
used by our enterprising people In adding to the
wealth OF tie nation. Our commerce, which
At one time successfully rivalled that OF the
great maritime Powers, has rapidly dimiu-
ished, and our industrial interests are in a de-
pressed and languIshing condition. The
development of our inexhaustIhle resources
is checked. and the fertile neIds of the
South are becoming waste for want of means
TO TIL them. With the release OF capital. new
life would ba infused into the paralvzed ener-
gies of our people, and activity and vigor I'M.
parted 10 every branch of industry Our peo-
PIE need encouragement in their fO.t, to re
cover from the effects OF the rebellion and of
lpIudlclous iegislatIon: a nd 1t should be ths
tie pros pect OF an early release from the bar
dens which impede their prosperity. Il we
cannot take the burdens from their shoulders,
we should at least manifest Il willingness 10
help 10 bear them.
In referring 10 the condition of the circula-
ting medium, L shall merely reilerata, ,substin-
TALLY, that portion of my last annual message
which relates 10 that subject.
The proportion which the currency Of any
country should bear to the whole value OF tue
annual produce circulated by its means /, Il
question upon which political economists have
not agreed. Nor can II be controlled by legts-
lallon, but m ust be lett to the irrevoc tble Avs
which every where regulate comnarca aui
tata. the circuisiiug medium VIII ever iT-
rlsIsuDiy How TO those points Where II is in
Creates demand. The law of demand and sup
ply is as uneIring as that which reg Cuiates the
lGes OF the ocean; and indeed currency, like
the ldes, has IT'S Gibbs and IoTs throughout the
CommerC Iai world.
At the beginning OF The rebellion the bank.
rote circulation OF the country amounted 10
not much more than Two huLCred millions of
dollars: noW The circulation Of National Bank
notes s4nd those known as illegal tenders" is
nearly seven hundred millions. While il is
urged by some that this amount should b.
Increased. Others contend that DE- cded r.duc-
ZION is absolutely essential 10 tn. best interest
Il the country. Ia vI"T OF these diverse
opinicns, II may be we'll to ascertain the rea
value II onr paper Issue, Thru compared
with metallic or COnN rrtlOlo curgency For
this purpose, let ms inquire how muCh gold
and silver could be purchased by the seven
culatlOn! Probably not more than half of the
amount OF the latter-showing that when our
paper currency Is compared with gold and
silver, its commercial yalua Is com.
pIesssd d into thee hundred aud fifty millions
This striking fact makes it the obvious duty OF
the Government, as early aS may be consistent
with the principles ct sound political economy,
10 take such meas ufes As W Ill enable the holder
OF Its notes and those of the National Banks to
convert them, without loss, into specie or it's
equivalent. A reduction of our paper circu-
"a y or N H.
This, however, would depend upon The law of
demand and supply, though it should he borne
III mind that by making legal-tender and bank
notes convertible into com or Its equivalent
their present specie value IN the haads of their
holders would be enhanced one hundred per
cent.
Legislation for the accomplishment of a re-
suit 80 desirable is demanded by the highest
public considerations. The Constitution con-
templates that the circulating medium Of the
country shall be uniform in quality and value.
AT the time Of the formation OF that instrument,
the country had just emerged from the War Of
the Revolution, and was suffering from the
effects of a redundant and worthless paper cur
rency. The sages of that period were an xious to
protect their posterlty from the wills which they
themselves had experienced. Hence, in pro.
yiding circulating medium, they conferred
upon Congress the power 10 coin money and
regulate the value thereof, at the same time
prohibiting the States from making anything
but gold and silver tender in pay yment of
debts.
ue uuOudlOuS COuuhtlOh VI our currency Is
in striking contrast with that which was ORR
glnaily designed. Our circulation now en-
braces. first, notes Of the National Banks.
which are made receivable for all dues to the
Government, excluding imposts, aud by all
Its creditors, excepting in pay ment OF interest
upon its bonds and the securities them sell yes
second, legal-tender notes, issued by the United
States, and W hich the law req uires shall be re-
ceived as Well in payment OF all debts be tween
citizens as of all Government dues, excepting
imposts and, third, gold and silver coin BY
the operation Of our present system Of finance,
however, the metallic currency, when collected.
is reserved only for one class of Government
creditors. who, holding its bonds, semi-an-
nually receive their interest In coin from the
National Treasury. There is no reason
which will be accepted as satisfactory
by the people. why those who
defend us on the land and protect us on the
sea; the pensioner upon the gratitude Of the
nation, bearing the sears and wounds received
while IN its service; the public servants in the
various Departments 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 workshops, or the me-
construct its forts and vessels Of war-should,
In payment OF their Iust and hard learned dues
receive deprecated paper, while another class
Of their cOuntrymen, no more deserving, are
pald in coin of gold and silver. Equal and ex.
act justice requires that all the creditors of
the Government should be paid in . CURRENCY
possessing uniform value. This can only
NJ acc omplished by the restoration OF the cur.
reney to the standard established by the Con-
sttutiop and by this means we would re-.
move q determination which may, IL i. hiss