The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1868-12-18

TelcuSe tne luTSe diilDuut vi Cupllul III
vested in the securities of the govern
ment. 1t is not now merely unproduc-
tive, but in taxation uallyconsumes
one hundred and fifty millions of dol
lars, which would otherwise be used by
our enterprising people in adding to the
wealth of the nation. Our commerce,
which at one time successfully rivalled
that of the great maritime powers,
has rapidly diminished, and our indus.
trial interests are in u depressed and
languishing condition. The develop
ment 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 in
to 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 legislation; and ii
should be the aim of the government to
stimulate them by the prospect of an
early release from the burdens which
impede their prosperity. If it cannu,
take the burdens from their shoulders,
we should at least manifest a willing
ness to help to bear them.
THE CIRCULATING MEDIUM.
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 to the whole value of the annual
produce circulated by its means is II
question uponwhich political economists
have not agreed. Nor can it be control
led by legislation but must be left TO the
irrevocable laws which everywhere reg
ulatc commerce and trade. The circu-
lating medium will ever irresistibly
flow to those points where it is in great
est demand. The law of domand and
supply is as unerring as that which reg
ulates the tides ofthe ocean; and Indeed
currency, like the tides, has its GIBBS
and flows throughout the commercial
world. At the beginning of the rebel
lion the bank-note circulation of the
country amounted to not much more
than two hundred millions eff dollars /;
now the circulation of national bank
notes and those known as illegal tend
ers" is nearly seven hundred millions.
While it is urged by some that this
amount should be increased, Others con-
tend that a decided reduction is abso-
lutely essential to the best interests OF
| the Country, III view WI tneoc "iNti 81
opinions, it may be well to ascertain
the real value OF our paper issues when
compared with metallic or cpnverti-
bic currency. For this purpose, let US
inquire how much gold and silver could
be purchased by the seven hundred
millions Of paper money now In circu-
lation? 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 is compressed into three hundred
and fifty millions. This striking fact
makes it the obvious duty of the gov
ernment, 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 Jut loss, into specie or its equiva-
lent. A reduction of our paper circu-
lating medium need not necessarily fol
low. This, however, would depenG
upon the law of demand and supply
though it should be borne in mind that
by making legal-tender and bank note.
convertible into coin or its equivalent
their present specie value in the hand,
of their holders would be enhanced
one hundred per cent. Legislation fol
the accomplishment of result so de
sirablc is demanded by the highest pub
lie considerations. The constitution
contemplates that the circulating medi
um of the country shall be uniform in
quality and value. At the time Of tn,
formation of that instrument, the coun
try had just emerged from the war o
the Revolution, and was suffering from
the effects of redundant and WORTHLESS
paper currency. The sages of that per
iod were anxious to protect their pos
tcrity from the evils which they them
selves had experienced. Hence, in pro
viding a circulating medium. they con
ferrcd upon Congress the po~cl 10 COZ
money and regulate the value thereof
at the same time prohibiting the State
: from making anything but gold an,
: silvc. II tender in payment OF debts.
f CONDITION OF OUR CURRENCY.
+ The anomalous condition of our eur
. rency is in striking contrast with tha
which was originally designed. Gu
circulation now embraces, first, notes {
/ the national banks, which are made re
} ceivahe for all dues to the government
excluding imports, and by all its cred
tors, excepting in payment of intercs
: unon its bonds and the securities them
: selves second, legal tender-nOtes, i,
= sued by the United States, and whic
r the law requires shall be received a
= we'll in payment OF all debts bCtwee
70 citizens as of all government dues, eS
e cepting imposts; and third, gold an
: silver coin. BY the operation of uu
present system of finance, however, I'll
3, metallic currency, when collected, is n
1 served only for one class of goVernmCu
1 creditors, who, holding its bonds, sem
e annually receive their interest in col
I from the national treasury. There
:, no reason which will hc accepted a. sa
r isfactory by the people, why thoss Wh
= defend US ON the land and protect us %
i the sea; the pensOuer upon the graf
= tud- of the nation, bearing the sears an
r wounds received while in its service
: the public servants in the various de
4 partmeuts of the government; the ial
G ner who supplies the soldiers Of III
+ army and the sailors Of the navy; Ii
C artizan who tolls in the nations worl
n shops, or the mechanics and lahore
n who build its edifCcs and construct /
l. forts and vessels of war should
l. payment OF their just and hard Carno
- dues, receive deprecated paper whiI
e another class of their countrymen, u
j. more deserving, are paid in coin of gul
# and silver. Equal and exact Justice n
= auires that all the creditors of the gO'
q ernment should be paid i'll 4 currenC
II possessing uniform value. This ca
3 only be accomplished by the restoratic
e of the currency to the standard esial
ir lished by the Constitution: and hy IN
y means we would remove II discrimin
'r tion which may, if it has not alrcad
It done so, create a prejudice that may b
1t come deep-rooted and widespread, ~
lr imperil the national credit. The feas
n bility of making our currency CORE
ir pond with the constitutional standaI
may be seen by reference to II few fnc
Of derived from our commercial statistic
n The aggregate product of precious me
W ais in the United States from 1919
p 1867 amounted to sl,l7i,000, 900. Will
al for the same period, the net expol
<, of specie were s74l 10000 This sho,