Clarksville chronicle. (Clarksville, Tenn.) 186?-1872, 1868-12-18

! be equal to nine per cent. Ia currency
and equivalent to the payment of tn
amount In frnctioirless than sever
years. This, in connectlosi with nj
the other advantages derived from
their investment, would afford tn
. public creditors fair andlibcral coul
pensafiori for the use of their capital
and with this they should be satisfied
The lessons of the past admonisl
the lender that IL Is not we'll to b
; over anxious In exacting from III,
borrower rigid compliance with In,
bond. III provision he made for tn,
payment Of the indebtedness of III,
Government I'm the manner suggest
ed, our country WIFI rapidly recover
Its wonted prosperity. Fts i,,tercsts
require that some measures should bs
taken to release the large amount O
capital invested in securities of Gov,
ernment. IL Is not now merely un.
productive. but In taxation, annually
consumes $50, 600, 600, which wonl,l
otherwise be used by our enterprisinv
people I'm adding to the wealth of the
nation.
Our commerce, which, at one time,
successfully rivalcd that of the great
maratime powers, has rapidly dinin.
ished, and our Industrial Interests are
IN depressed and languishing condi-
tion. The development of our mex
haustible resources Is checked and the
fertile fields of the South are becom-
Ing 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. Ourpeople should
receive encouragement In their efforts
to recover from the effect of the re-
belliOn, and of injudicious legislation.
and 1t should be the aim of the Gov
crnment to stimulate them by the
prospect of an early release from the
burdens which impede their prosper
ity. If we can not take the burdens
from their shoulders, we should ut
least manifest willingness to hel .
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 to the whole value of the annual
produce circulated by its means is a
question on which political econo-
mists have not agreed; nor can it he
controlled by legislation, but must be
left to the irrevocable laws which ey-
erywhere regulate commerce aud
trade. The circulating medium will
ever irresistibly flow to those points
where 1t is in greatest demand. The
law Of demand and supply is as uner-
ring 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 bank note circulation Of the coun.
try amounted to not much more than
$500, 900, 900. Now, the circulation of
the National Bank notes and those
known as legal tenders Is nearly $780,
100000. While it is urged by some
that this amount should be increased,
Others contend that decided rcduc-
tion Is absolutely essential to the best
these diverse op opiriiois' ini II may ISacw Se wwelf
to ascertain the real value of our
paper issues, when compared with a
metallic or convertible currency. For
this purpose let us inquire how much
gold and silver could be purchased by
the 500, 900, 900 of paper money now
in circulation.
Probably not more than half the
amount of the latter, showing that
when our paper currencySs compared
with gold and silver, its commercial
value Is compressed into three hum
dred and fifty millions. This striking
fact makes 1t the duty of the Govern
ment, as early ns may be consistent
with the principles of sound political
economy, to take such measures rs
will enable the holder of its notes,
and those of the National Banks, to
convert them without loss into specie
or Its equivalent. A reduction OF our
paper circulating medium may not
necessarily follow. This, however,
would depend upon the law of de-
mand and supply, though 1t should
be borne In mind that by making le-
gal tender and bank notes convertible
Into coin or its equivalent, their pres
ent specie value In the hands Of their
holders would be enhanced one hun.
dred per cent. Legislation for the ac-
complishment of a result 80 desirable
Is demanded by the highest public
considerations. The Constitution
contemplates that the circulating
medium Of the country shall bc uni.
form in quality and value. At the
time of tho formation of that instru-
ment the country had inst emerged
from the war of the Revolution, and
was suffering from the effect of re-
dundant and worthless paper curren-
cy. The people Of that period were
anxious tO protect their posterity from
the evil In which they themselves
had experienced. Hence, in providing
a circulating medium they conferred
upon Congress the power to coin
money and regulate the value thereof,
at the same time prohibiting the
States from making anything but
gold and silver tender In payment
OF debt.
The anomalous condition Of our
currency Is in striking contrast with
that which was originally designed.
Our circulation now embraces:
First. The notes Of tho National
Banks, which arc made receivable
for all dues 10 the Government, ex-
cepting imports, and by all Its condi-
tion, excepting in payment OF inter
est upon Its bonds and the securities
themselves.
Second, The legal tender notes is
sued by the United States, and which
tho law requires shall he received as
well In payment Of all debts between
citizens, as ofall ports dues excepting
imports and gold and silver coin. BY
the operation of our present system
OF finances, however, the metallic cur
rency, when collected, Is reserved
only for one class OF Government
creditors. who, holding its bonds,
emi-annually receive their interest
In cash from the National Treasury.
There il no reason which will l,c ar-