The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-12-10


whether oHr bOndbolders, in vie " Of the large
profits which they have enjoyed, wOnld them
selves be verse 10 q settlement of our indebt T.
ness upon plan which would yied them a fair
remuneration and at the same time be jnst to the
taxpayers OF the nation. 0nr national credit
should be sscredly observed but in making pro-
Visions Tor our creditors we should not forget
what Is dne TO the masses of the people. IL
may be assumed that the holders of our secuii-
ties have already received upon their bonds a
larger amount than thair original investment,
measured by gold standard. upon this state
ment of facts IL would seem but just and equit
able that the six per cent. interest now paid By
the government should be applied to the reduc
ton of the principal 10 semi-annual instaments
which in sixteen years and eight months would
liquidste the entire national debt. Six per cent
in gold would AT present rates be equal to niue
per cent. 10 currency and equivalent to the pay.
ment OF 1ihe debt and half time in
fraction less thao seventeen years. This, in con.
Dectlon with all the other advantages derived
from their investment. would afford TO the public
creditors fair and liberal compensation for the
use OF their capital, and with this they should
be satisfied.
The lessons OF the past sdmonish the lender that
II is not well TO be over anxious in exsctng from
the borrower rigid compliance with the letter of
the bond III provision be made for the payment
OF the Indebtedness of the government in the man.
Der suggested our nation will rapidly recover its
woDted prosperity. Its interests require that
tome mesnf should be taken 10 release the large
amount OF eapita invested in the securities of the
but in taxation annually consumes one hundred
and fifty millions of dollars, which would other.
wise be ns9d by our enterprisng people in adding
to the wealth OF the nation.
Our commerce, which at one time successfully
rivaltd that OF the great maritime powers, has
rapidly Diminished, and Industrial interests are
10 depressed and languishing condition. The
development OF our inexhaustbe resources Is
checked ard the fertile fields OF the South are be.
coming .waste for want Of means to till them.
With The pelease OF capital new life would be in
fused into she 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 re-
beilion an} Of injudicous legislation and 1t should
be the en- of the government 10 stimulate
mem by pe prospect of an early release from
the burd9ps which impede their prosperity. II
we cannot take the burdens from their shoulders
we thoulG at least manifest willingness to help
TO bear THIN.
In referring to the condition of the circulating
medium shall merely reiterate substantially that
portion oamy last annual message which relates
to that 'stbject. The proportion which the cur.
rency Of any country should bear to the whole
value OF THE annual produce circulated by its
means, Tsp question upon which political ecOno-
mists havt not agreed. Nor can it be controlled
by leRflstOn, but must be left 10 the rrevocable
laws wfiah everywhere regulate commerce aud
trade. Ipe circulating medium will ever irresis-
tlbly new 70 those points where It is in greatest
demand The law of demand and supply is as
unefring fs that which regulates the tides Of the
ocean ard indeed currency. like tides has its
Gibbs and lows throughout the commercial world.
At the beginning of the rebellion the bank note
cTculatIOf OF the country amounted to not much |
more thai two hundred millions of dollars-now
the cirf1ston of national bank notes aud those
known ah legal tenders is nearly seven hundred
Millions. While it is urged by some that this
emoun should be increased others contend that |
decided reduction is absolutely essential to the
best infe}ests of the country.
In view OF these diverse opinions IL may be |
af
hsues y Zen compared with metallic or converti- !
BILE cuIfebcy. For this purpose let US inquire how |
much eo.d and silver could be purchased by the
circulation? Probably not more than half the |
amount of the latter, showing that when our pa. |
per currency is compared with gold and silver its
commercial value Is compressed into three hun
dred and fifty millions. This striking fact makes
IL the obvious duty of the government as early
rs may be consistent with the principles of sound
poltcai economy, to take such measures as will /
enable the holders Of its notes and those of the
natlonaf banks to convert them without loss into
specie or its equivalent.
reduction Of cur paper circulating medium
need not necessarily follow. This. hovever
would depend upon the law Of demand and sup.
Fly, though IL should be borne 10 mind that by
making legal tender and bank notes convertible
into CON or It's equivalent their present specie
value in the hands Of their holders would be en-.
hanced one hundred per cent Legislation for the
accomplishment of a result so desirable ia de.
manded by the highest public considerations.
The Constitution contemplates that the cjrcu-
laiiDg medium of the country shall be uniform in
eqality and value. At the time OF tie formation
OF that instrument the country had lust emerged
from the war of the revolution and was suffering
from the effects of a redundant 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 conferred
upon Congress the power to coin money and reg
uate the value thereof, at the same time prohibit.
ing the States from making anything but gold and
silver tender IN payment Of debts.
The anomalous condition OF our currency ia in |
striking contrast with that which was originally
designed. Our circulation now embraces, first,
notes OF the national banks which are made re- !
ctivhbe for sll dues to the government excluding
imports. and by all its creditors excepting in paw.
nent OF interest upon its bonds and the securi.
lies themselves. Second, legal tender notes is.
'ueo py tne United States, aid which the law re.
]ulres shall be received well in payment of all
iebts between citizens as Of all government dues ,
excepting imposts. Third, gold and silver COIN
~ tne operation OF our present system of finance,
however, the metallic currency when collected Is
eserved only for one class Of government credit {
rs who, holding its bonds. semi annually receive
heir interest in coin from the national treasury I
There is no reason which will be accepted as
satisfactory by the people, why those who defend q
10 on the land and protect Us on the sea: the c
'ensioner upon the gratitude of the nation bear.
ng The scars and wounds received while in its Y
ervice; the public servants 10 the various de- | Q
artmenIs OF Inc government; the farmer who | 6
upplies the soldiers of the army and the sailors y
Z The navy; the artisan who tolls In the nations '
'orkshops, or the mechanics and laborers who v
nid IT, edihces and construct its forts and vessels
war, should, in payment of their Just and hard Il
armed dues, receive deprecated paper, while an u
fher class OF their countrymeu, no more deserv.
u, are paid In coin of gold and silver. Equal s
I'd exact justice requires that all the creditors of Il
he government should be paid in q currency ID
assessing uniform value. This can only be &C. Il
Dmplshed by the restoration of the currency 10 a
e standard established by the Constitution, sud a
J this means we would remove a discrimination | If
hieh may, If 1t has not already done So create in
reJudice that may become deep-rooted and wide. in
'reed and imperl the national credit. b,
The feasibility OF making our currency cor. II
spond with the constitutional standard NAV be 81
en- by reference to few facts derived from our Ii
'mperoial statistics The aggregate product of
ectous metals in the United States from Isl9 TO il
67,amounted to sl,l74 goo 600. while for the ma
me period the net exports Of specie were SAL Of
1000. This shows an excess of product over ~
Z exports OF $t33. goo 900. There are In the w
sasury sl02 407 9S5 In coin in circulation 10 the WI
SITES on the Pacific coast about $40 600 600 aad tn
lew millions in the national aud other banks, in sh
less than $3.50 0C0,000. Taking into considera We
IN The sDecie in the countrv nrior IN and no