The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1868-12-10

| creditors fair and liberal compensation for
| the use of their capital, and with this they
| should be satisfied. The lessons of the past
| admonish the lender that II Is not we'll TO be
| over anxious in exactlng from the borrower
| rigid compliance with the letter of the bond.
| If provision be made for the payment OF the
| Indebtedness of the Government In the man.
| ner suggested our nation will rapidly recover
| It's wouted prosperity. Its interests require
| that some measure should ne taken to release
| the large amount of capital invested In the
securities of the Government. It is not now
merely unproductive, but in taxation annual
| " consumes one hundred and fifty millions of
dollars 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 dimi-
| nished, and our industrial interests are
| in n depressed and langnishing condi-
ton, 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 CAPT.
| tai new life would be infused into the para
| lived energies of our people, and activity ana
| vlgor impaired to every branch OF industry
! Our people need encouragement in their
| efforts to recover from the effects of the re-
bellion and of iniudicious legislation. And it
should be the aim of the Government to slim
Mate them by the prospect OF an early release
| from the burdens which impede their pros
| perity. If we cannot take the burdens from
! their shoulders, we should at least manifest
Willingness to help to bear them In referring
| to the condition of the circulating medium, L
shall merely reiterate, substantially, that por :
| tion of my last annual message which relates to
| that subject The proportion which the cur
| rency of any country should bear to the whole
value of the annual produce circulated oy its
! means Is question upon when polltical
| economists have not agreed nor can IT be con-
| trolled by legislation, but must be left to the
irrevocable laws which everywhere regulate
commerce and trade. The circulating me-
dunn will ever irresistibly flow TO those
points where it is in greatest demand. Inc
| law of demand and supply is ms unerring
rs that which regulates the tides OF the
| ocean; and, indeed, currency. ike the tides,
has it's Gibbs and flows throughout the
commercial world At the beginning OF the
rebellion the hank note circulation of the
country amounted to not much more than
two hundred millions of dollars. NOW the
circulation of national bank notes and those
known as legal tenders is nearly seven
hundred millions. While it is urged by some
that this amount should be increased, others
intend that n decided reduction is absolutely
essential to the best interests OF the country.
In view of these diverse opinions, 1t may be
we'll to ascertain the real value OF our paper
issues when compared with metallic or
us inouire 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 currency
commercial value Is compressed INTO three
hundred and fifty millions. This striking tact
makes it the obvious duty OF the Toverh-
ment as early rs may be consistent WIN tne
principles of sound political economy, to 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 us
equivalent. A reduction OF our paper circu-
Eating medium need not necessarily 1oiloW.
This however, would depend upon the law OF
demand and supply. Though 1t should be
borne in mind that by making iegal lenoer
and bank notes convertible into com or us
equivalent their present specie value IN the
hands of their holders would he enhanced one
hundred per cent. Legislation for the ac-
complishment Of a result so desiraole Is ue-
manded by the highest public CONSIDERATIONS.
The Constitution contemplates that Tue CIR ~
latng medium of the country shall be
uniform in quality and value. AT lhe tine
of the formation of that instrument the
country had just emerged from the war
of the Revolution, and was suffering from
the effects of 4 redundant and worthless paper
currency The sages Of that period were anX-
ious TO protect their posterlty from tue e'iis
which they themselves had experienced
hence in providing circulating medium tneS
conferred upon Congress the power TO com
money and regulate the value thereof, at the
same time prohibiting the States from making
anything but gold and. silver tender IN pay
ment of debts. The anomalous condltlon OF
our currency is in striking contrast win tnat
which was originally designed. Our circula-
lion now emOraceS-hrst, notes OF Tue W.
tional banks, which are MADE recelraple lol
all dues to the Government, excluding I'M
D0sts and by all its creditors, taking III pay
ment of interest upon its bonds ana the secu-
rites themselves; second, legal tehdef NOTES
issued by the United States, and which the
Jaw requires shall be received as wen III Ply
meut of all debts between citiZensns o. al no
yerpment dues excepting imposts ana, thlro,
gold and silver com. BY the operation Oh our
present system of finance, however, the me
at.,,l &c ~
tallc currency, when collected, Is [tsel Gu On
Nv for one class Of Government creditors, VINO,
holding its bonds, semi. annually receive lhelr
interest in coin from the national treasury.
There is no reason which Will be accepteu aS
satisfactory by the people why lhose wno uo
fend us on the land and protect us on the sea
the pensioner upon the gratitude OF the ma
ton bearing the sears and wounds TeCeiNeu
while in its service the puDhc setNahts ~
the various departments Oh the IoNelninen''
the farmer who supplies the soldiers OF the
army and the sailors Of the navy; the artisan
who tolls in the nations workshops, OF Inc
mechanics and laborers who build us eolnces
and construct it's forts and vessels OF war
should in payment OF tnelr JUST anu -
earned dues receive deprecated paper "nlle
another class of their countrymen, no more
deserving, are paid in coin OF gold ana silver
Equal and exact justice req lures ln;lI 'ill liie
creditors of the Government shoula DC g.iu
in n currency possessing Il uniform value his
can only be accomplished by the RESTORATION VI
currency to the standard established by the
Constitution; and by this means we Woulu
remove a discrimination which may, IL IL mas
not already done SO, create pleJuui. ., . amd
NAV become deep rooted and wide spread, tila
imperil the national credit. The leaslplilly ol
making our currency correspond WIN tie
constitutional standard may be seen py refer
ence to few facts derived from our CONNER
cial StatlStlcs.
The aggregate product of precious metals III
the United States from lS49 10 lSt| amounted
T1-t i'm II
net exports of specie were S74l,0oo,oVo; TINS
shows an excess of products over net exports
of 1888 000, 900. There are III the treasury
Sl3 I07 $50 in coin in circulation i'll the States
on the Pgcific coast about 1orty hiitloi aoi
lars; and a few million in the national ana
other banks in ALL less than Sl6O, ooo,o00.
Taking into consideration the specie IN the
country prior to 1919, and that produceu sihee
1867, and we have more than three huhoieo
million dollars not accounted for by eNporta,
tion or by the returns of the Treasury, ana
therefore most probably remaining in the coun-
try. These are important facts, ana sno" now
completely the inferior currency VIII superseoe
the better, forcing IL from circulation among
the masses and causing it to be exported as 4
mere article of trade to add 10 the money
capital of foreign lands. Ihey snow the ne
cessity of retiring our paper money, thaI Tue
return of gold and silver to the avenues OF
trade may be invited, and Il demand created
which will cause the retention At nome OF u
least so much of the productions OF our rlcu
and iuexhaus tible gold bearing neids as may
be sufficient for purposes OF clrcula'lon. ~
is unreasonable to pect return to SOUND
currency so long as the Government ana s,a
banks, by continuing to issue irredeema6ie
notes, fill the channels OF circulation win ae,
preciated paper. Notwithstanding coihase
nv our minis since 1919 Of eight hundred ana
seventy-fou millions of dollars, the people
are now strangers to The currency which was
designed for their use and benefit, ana specl-
mems Of the precious metals bearing Tue .h ~
tionaI device are seldom seen except when
produced to crafty the interest excited by
their novelty. If deprecated paper Is 10 De