Bloomsburg democrat. [volume] (Bloomsburg, Pa.) 1867-1869, 1868-12-16

vested in the securities of tho Government.
It islnot now merely unproductivc, but in
taxation annually consumes ono hundred
and fifty millions Of dollars, which would
Otherwise be used by our ontorprising pco-
plo in adding 10 tho wealth Of the nation.
Our commerce, which at one time success
fully rivallcd that Of the great maritime
Powers, has rapidly diminished, and our
industrial interests aroIin depressed and
languishing condition. The development
Of our inexhaustablc resources is checked,
and the fertile fields Of the South are be-
coming waste for want of means to till them.
With the release Of capital, new life would
be infused into tho parayzcd energies Of
our people, and activity and vigor impaired
to every branch Of industry. Our people
need encouragement in their. efforts to re.
cover from the effects Of the rebellion and
of injudicious legislation and it"should be
the aim Of tho Government to stimulate
them by the prospect Of an early release
from, the burdens which impede their pros
pcrity. If VIC cannot take the burdens from
their shoulders, VIC should at least manifest
willingness to help to bear them. ..
In referring to the condition Of the Cir
culating medium, I shalE merely reiteratc,
substantially that portion Of my last annual
message which relates to that subject. N
Tho portion which the currency ..of any
country should bear to the whole value Of
the annual produce circulated by its means
is a question upon which political econo-
mists have not agreed. Nor can it be con-
trolled by legislation, but must be left to
the irrcvocablc laws.which everywhere reg
ulatc commerce and trace. The'circulating
medium will ever irrcsistably flow to those
points where it is in greatest demand. Z The
law Of demand and supply is as unerriug as
that which regulates the tides Of the ocean
and indeed currency, like the tides, has its
ebbs and flows through tho commercial
world. .
At the beginning of the rebellion the
bank note circulation Of the country amount
ed 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
contend that a decided reduction is abso-
lutcly essential to the best interests Of the
country. In view Of these diverse opinions
it may be well to ascertain the real value of
our paper issues, when compared with q
metallic or convertible currency. For this
purpose, let us inquire how much gold and
silver conld be purchased by the seven hun
drcd millions of popor money now in circu-
lation? Probably not more than half the
amount Of tho lattcr-showing that when
our paper currency is compared with gold
and silver, itscommcrcial value is compress
cd into three hundred and fifty millions
This striking fact makes it the obvious duty
Of the Government, as early as may be con-
sistent with the principles of sound politi-
cal economy, to take such measures as will
enable the holder Of its notes and those Of
the national banks to convert them, without
loss, into specie or its equivalent. a re-
ductions of our paper circulating medium
need not nccessarilyifollow. - This however,
would depend upon the law Of demand and
supply, though it should be borne in mind
that by making legal tender and bank notes
convertible into coin Or its equivalent, their
present specie.value in the hands of their
holders would DO enhanced one hundred per
cent.
Legislation for the accomplishment Of
result 30 desirable is demanded by the high
est public considerations. The Constitution
conteinplatcs that the circulating medium OF
the country shall be uniform in quality and
value. At tho simo of tho. formation Of
that instrument, the country had just emer-
gcd from tho War Of the Revolution, and
was suffering from tho effects of a redun-
dant and worthless paper currency. The
sages of that period were anxious to protect
their posterity from. the evils which they
themselves had experienced. Hence, in
providing circulating medium, they con-
fcrrcd upon Congress the power to coin
money and regulate the value thoreof, at
the same time prohibiting the States from
making anything but gold and silver ten
dor in payment of debts.
The anomalous condition of our currency
is in striking contrast with that which was
originally designed. Our circulation now
embraces, first, notes of the National Banks
which are made receivable for oil dues to the
Government, excluding imposts, and by oil
its creditors, excepting in payment Of inter
est upon its bonds and the securities them.
solves second, legaltcnder notes, issued by
the United States, and which the law re-
quires shall be received as we'll in payment
of all debts between citizens as Of all Gov
crnment dues, excepting imposts and, third
gold and siver coin. By tho operation OF
our present system Of finance, however, the
metallic currency, when collected, is reser-
! we'd only for one class Of GoverpMent credi'
tors, who, holding its bonds, semi.annually
receive their, interest in coin from tho Ma
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