Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1868-12-19

anxious in exacting ffom the borrower .
rigid complia.cc, Provisios mvst be made
for the payment Of the indsbtedses of. tks
Government in the manner saggestSd, df
the nation viii mot rapidly recover il
prosperity. Its interests require that so4e
measures should be taken 70 release tie
large amount o. capital invested in ths
Government II 10 not merely unprodset-
i've, but in taxation il annually c0nsunss
el5O, ,00O, 900, which would Otherwise b
used By our eutsypriaing people il ddiar
those Of our people needing encoursG-
ment in their efforts to recover from -
effects Of the rebellion and injudicious leg.
islatiou; and il should be the will Of tie
Government 10 stimulate them by the a.
surancc Of an carly relcase from the bur-
dens which impede their prosperity; five
cannot take tho burdens from their shoul-
dcrs, we should at least manifest willing.
ness to help to bear them. In referring to
the condition oftheir circulating mediums,
/ shall merely rciteratc the relations, as
substantially stated in my last annual
message. In regard to the subject Of the
relations which the currency Of any coun-
try should bear to the annual produce cir
culated by its means, it is question Upon
which political economists have not agreed,
nor can it be controlled by Legislation, but
must be left to the laws which everywhere
regulate commerce and trade. The circu-
lating medium will flow to those points
where it is in greatest demand; the law Of
demand and supply is as unerring Is 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 country
amounted to not much more than $500, :
000,0O now the circulation Of National
Bank Notes and those known as legal ten.
ders, is nearly $70O, 100000. It is argued
BY some that this amount should be in
creased and others contend that decrease
is absolutely essential to the interests Of the
country. In view Of these adverse opin-
ions, it may be we'll to ascertain the pro-
portional value Of our paper. issues when
compared with a.mctallic or convertible
currency. For this purpose let US enquire
how much gold and silver could be pur-
chased by tho 500, ,000, 900 of paper mon
ey now in circulation. Probably not more
than half the amount Of the latter, show
ing that when our paper currency is com.
pared with gold and silver, its commercial
value is compressed into $3.50, 900, 900.
This striking fact makes it the duty Of the
Government, as carly as may be consistent
with the principles Of sound political ccon-
omy, to take such measures rs will enable
the holders Of its notes and those Of tho
national banks to convert them without
loss into specie. The equivalent reduction
OS our paper circulating mediums may not
follow. This, however, would depend on
the law Of demand and supply, though it
should be borne in mind that by making
legal tenders and bank notes convertible
into coin or its equivalent, the present spe-
Gle value in the hands Of their holders
would be enhanced ten per cont Legisla-
ton for the accomplishment Of result %
desirable IL demanded BY the highest con-
siderations. The Constitution contem-
plates that the circulating medium Of the
country shall be uniform in quality and
value. Atthe time Of the formation Of that
instrument, tho country had just emerged
from the Revolutionary war, and was luf.
fsrinx from the effects Il worthless pspef
currency. The ssgcs II tliak period wore
anxious 70 protect their posterity from tho
evils which they themselves had expert
euoed; hence, in providing for circulat-
i'm medium, they conferred upon Congress
the power 70 Coll money and regulate the
yalne thereof, 1t the same time prohibiting
the States from making anything but gold
and silver legal tender in payment Of
debts. The anomalous condition of our
currency il in striking contrast with that
which was originally designed for our cir.
culation. L sew embraces: lst, Some
notes Of national banks, which ere made
receivable for oil dues 70 the Government
excepting imports, and by al il creditors,
exospting for psymeat Of interest upon II
beads ard the securities themselves. ID,
Lsxi1 tender notes issued BY the United
States, and which the law requires should
be received q veil in psynHe4t Of all dehss
due between citissns. "a, Gold and silver
coin. By the opesatioa q our presest
systsu q auaiSss, However, the mstallie
currency, ,vksd collected, = received for
oplv one clss Of Govsrnmsaf creditors
thcss holdisg bonds, Who ssnisads.lly 10
ceivs their interests in coin from the ~
tionsl Treasury. There p no reason which
vim bc rsosived - tatisfictory By The peo,
~. bv thoss Who dsfssded ~ Usilsd
AE.-HAS tsrA.nA - H1SI Iyni1sd
otaSss d the sea, ths pessiossn upc6 As
gsal;tadS 4 tho nation, bsaridg tic scam
"a vouuids received vhilS ID II service,
IL publ;c ssrvass h Ne vsfious dspat
rjsais q he Govsrnmsst Tie farmer WHO
stpplies the soldiers of Tie army and sail-
dIs II IL ssvy, TIC artisan who toik in -
sssisiTs ~eskshose, he neslaaS~ s:a r
hAoeeu IA0 buiA ID edi4css I'D 60
strsa II 1bsss sdd vessels Of var: sAosIa
n norne.t of thsif jsst and Aard-sarssd
ls:s, ssss;vs dsPsssiiasd paPsr, viii a.
.HA., -. of Dir oounisvDeo. % noss