The Bedford gazette. [volume] (Bedford, Pa.) 1805-current, 1868-12-25

eStS require shat some measure should
be taken to release the large amount
of capital invested in the securities of
the government. 1t is not now mere
( ly unproductiYe, but in taxation annu-
ally consumes one hundred and fifty
millions Of dollars, which would 9th
erwise be used By our enterprising peo-
plein adding to the wealth 0fthe nation.
Our commerce, which at one time sue
cessfully rivalled that of the great mar
itime powers, has rapidly diminished,
and our industrial interests are in a de-
pressed and languishing condition.
/ The development of our ineXhaustible
resources is checked, and the fertile
fields Of the South are becoming waste
for want of means to till them. With
the release Of capital, new life would
be infused into the paralyzed energies
Of our people, and activity and vigOr
impaired to every branch Of industry.
Our people need encouragement in
their efforts to recover from the effects
Of the rebellion and of injudicious leg
islation and it should be the aim Of
the government to stimulate them by
the prospect of an early release from
burdens which impede their prosperi-
ty. it cannot take the burdens from
their shoulders, we should at least man
ifest willingness to help to bear
them.
In referring to the condition of the
circulating medium, | shall merely re-
iterate, substantially, that portion of
my last annual message which relates
to that subject. The proportion which
the currency Of any country should
bear 10 the whole value Of the annual
produce circulated by its means is a
question upon which political ecOnO-
mists have not agreed. Nor can it be
controlled by legislation, but must be
left to the irrevocable laws which ev-
eryWhere regulate commerce and trade.
The circulating medium will ever ir-
resistibly flow to those points where it
IS in its greatest demand. The law Of
demand and supply is as Unerring as
that which regulates the tides Of the o.
cean and indeed currency like the
tides, has its.ebbS and flows throughout
the commercial world. At the begin
ming Of the rebellion the bank note cir
culatiOn Of the country amounted to
not much more than two hundsed mill
hons OF dollars now the circulation Of
national bank notes and those known
as legal tenders" is nearly seven hun
dred millions. While it is urged by
some that this amount should be in
creased, others contend dthatadecided re-
ductiOn is absolutely essential to the
best interests Of the country. In view
OF these diverse opinions, ii may be well
to ascertain the real value Of our paper
issues when compared with a metallic
or convertible currency. For this pur-
pose, let Us inquire how much gold and
silver could be purchased by the seven
hundred millions of paper money now
in circulation? Probably not more
than half the amount OF the latter
showing that when our paper cur
rency is compared with gold and sill
yer, its commercial value is compress
ed into three hundred and fifty mill
lions. This striking fact makes it the
obvions duty of the government, as
early as may be consistent with the
principles of sound political economy,
to take such measures as will enable
the holder of its notes and those Of the
national banks to convert them, with
out loss, into specie or its equivalent.
y reduction Of our paper circulating
medium need not necessarily follow.
This however, would depend upon the
law Of demand and supply, though it
SiiDhitl bt DDI tIE III liiliAAI AtItiL DN Ild-
king legal-tender and notes convertible
into coin or its equivalent, their pre-
sent specie value in the hands of their
holders would be enhanced one hun
drCd per cent. Legislation for the ac-
cOmplishment of a result so desirable is
demanded by the highest public con-
sideratinns. The Constitution cOntem-
plates that the circulating medium Of
sI, ll,alI l5 i,,
ty and value. at the time of the for
nation Ofthat instrument, the country
had Just emerged from the war Of Rev
OlutiOn, and was suffering from the ef-
fects Of q redundant and worthless pa
per currency. The sage5 Of that peri
Oh were anxious to protect their pos
terity from the evils.which they them
selves had experienced. Hence, in
providing a circulating medium, they
conferred upon Congress the power to
coinm0neyaud regulate the value there
Of thesame time prohibiting thestates
from making anything but gold and
silver a tender in payment Of debts.
The anomalous condition of our
currency is in striking contrast with
that which was originally designed.
Our circulation now embraces, first,
notes of the national banks, which are
made receivable for all dues to the gov
ernment, excluding imposts, and by
all its creditors, excepting in payment
of interest upon its bonds and the Sc
curitie5 themselves; second, legal-ten-
der notes, issued by the United States,
and which the law requires shall be
received as we'll in payment Of all debts
between citizens as of all government
4, iraFp-r-- anI third
gold and silver coin. By the operation
Of our present system of finance. how
ever the metallic currency, when coll
lected, is reserved only for one class of
government creditors, who holding its
bonds, semi-annually receive their in
terast in coin from the national treasu-
ry. 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 pension
er upon the gratitude Of the nation,
bearing the sears and wounds received
while in its service; the public ser
wants in the various departments of the
government, the farmer who supplies
the soldiers Of the army and the sail
ors Of the navy; the artisan who tolls
i'm the nations workshops, or the me-
chanics and laborer5 who build its edi-
fees and construct its forts and vessels
of war-shouId, in payment Of their
just and hard-earned dues, receive de-
preciated paper, while another class Of
their countrymen, no more deserving,
are paid in coin of gold and silver. E
qual and exact justice requires that all
the creditors of the government should
be paid in a currency to the stan
dard established by the Constitution
and by this means we Would remove a
discrimination which may, if it has
not already done so, create a prejudice
that may become deep-rooted and
widespread, and imperil the national
credit. The feasibility Of making our