Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1868-12-10

IL
Indebtedness OF the Government in the man
ne' suggested, our nation will rapidly recover
~ Wonted prosperity. Its interests reauire
.hnt some measure should be taken 10 release
.ne large amount of capital invested in securi-
yes OF the government. II was nearly unpro-
anuctVe, but in taxation annually consumes
SioO,ooo,OOO which would otherwise be used
ny TsL enterprlsing people in adding to the
Our commerce, which nj one time sucoe.,..
iully rivaled that Of the great maritime powers.
mas rapidly diminished, and our industrial in
y s,l are IN depressed and anguishing con-
u,uon. The development Of our inexhausti-
Dle resources is checked and the fertile fields
OF the South are becoming waste for want Of
means to TIL them. With the release Of CAPT
hi new lille would be infused into the parnlysed
energies of our people, and activity and yigor
impaired to every branch of industry.
Qua people need encouragement in their eff.
ii?rts 70 recover from the elects Of the rebel
non and iWudicious legislation and il should
S the aim Of the government to stimulate
them by the prospect Of an early release from
the burdens which impede their prosperity. If
We cannot take the burdens from their Shout
ders, we should at least manifest a willingness
to help them bear them.
In referring 10 the condition Of the circula
ung medium, shall merely reiterate substan-
uallJ that portion Of my last annual message
winch relates to that subject. The proportion
whics the currency Of any country should bear
70 the whole value Of the annual produce cir
euiated BY its means IS "a question upon which
political economists have not agreed. Nor
can Il be controlled By legislation, but must
be lett 70 the irrevocible laws which every
where regulate commerce and trade The cir
enlating medium will ever irresistibly flow 10
those points where il is in great demand
The law OF demand and supply is as unerring
as that which regulates the tides Of the ocean,
and, indeed, currency, like the tides, has its
ebbs and flows throughout the commercial
world. At the beginning Of the rebellion. the
lank-note circulation Of the country amounted
u not much more than two hundred millions
OF dollars now the circulation OF national
hank-notes and those known as LEGAL tenders.
is nearly seven hundred millions. While Il
is urged by some that this amount should be
increased. others contend that decided re-
duction is absolutely essential TO the best in
terests Of the country.
In view Of these diverse opinions, il may be
well 10 ascertain the real value Of our paper
issues when compared with metallic or con-
yertible currency. For this purpose let US
inquire how much gold and silver could be
purchased by the 500 900 600 Of paper money
now in circulation probably not more than
half the amount Of the latter, showing that
when our paper currency Is compared with
gold and silver, its commercial value il COM
pressed into three hundred and fifty millions
This striking fact makes it the obvious duty
OF the Government as early as may be consist
ent with the principles Of sound political econ
omy, 10 take such measures as will enable the
holders Of its notes and those Of the National
Banks 10 convert them without loss into specie
or its equivalent.
\ reduction Of our paper circulating medi-
um need not nessarily follow. This, however,
would depend upon the law Of demand and
supply, though 1t should be borne in mind
that by making legal tender and bank notes
convertible into coin or its equivalent, their
present value, in the hands Of their holders,
would be enhanced one hundred per cent.
Legislation for the accomplishment oil a result
so desirable is demanded By the highest public
consideration. The Constitution contemplates
that the circulating medium Of the country
shall be uniform in quality and value.
At the time of the formation of that instru-
uent the country had just emerged from the
war OF the revolution and was suffering from
the effects Of redundant and worthless paper
currency. The sages Of that period were anx-
ious TO protect their posterity from the evils
which they themselves had experienced Hence
in providing circulating medium they con-
fcrred upon Congress the power 10 coin money
and regulate the value thereof, at the same
time prohibiting States from making anything
but gold and silver n tender in payment Of
debts. The anomalous condition Of our cur
rency is in striking contrast with that which
was originally designed. Our circulation now
embraces--frst, notes Of National banks, which
are made receivable for all dues to the Govern
ment, excluding imports, and by all creditors,
excepting in payment Of interest upon its
bonds aud the securities themselves second
lt tf, mil
and which the law requires shall he received
us well in payment OF all debts between citi-
zens as Of all Government dues, excepting i'm
ports and third, gold and silver coin.
By the operation Of the present system Of
finance, however, the metallic currency when
collected is reserved only for one class Of gov
eminent creditors who, holding its bonds
scnli-annually receive their interest in coin
from the national treasury. There Is no rea-
son which will be accepted as satisfactory why
those who defend US on the land and protect
Us on the SEA, the pcnsioner upon the graft
tude Of the nation, bearing the scars and
wounds received while IL its service, the pub
lie servants in the various departments Of the
government, the farmer who supplies the sol
diers of the army and sailors Of the navy, the
artisan who tolls in the nations workshops,
or the mechanics and laborers who build its
edifces and construct It's forts and vessels OF
war, should, in payment OF their just and
hard-earned dues, receive deprecated paper,
while another class of their countrymen, no
more deserving, are paid in coin Of gold and
silver. Equal and exact justice requires that
all the creditors Of the government should be
paid in a currency possessing uniform val
ne
This can only be accomplished by the res
toration of the currency 10 the standard estab-
lished BY the Constitution, and by this means
we would remove discrimination which may
IL it has not already done 50, create preju-
dice that may become decp-rooted and wide
spread and iRjure the national credit. The
feasibility Of making our currency correspond
with the Constitutional standard, may lie seen
by reference to few facts derived from our
commercial statistics. The aggregate product
Of precious metals in the United States from
1919 to 1867 amounted 10 LIZA ,00o, 900,
while from the nme period the net exports Of
specie were SAL 900 900.
This shows an excess Of product over net ex-
ports of S433, OO0, 900. There are in the Urea
sury sos, 407 ,965, in coin; in circulation IL
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