The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1868-12-11

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is now not merely unproductive, but
in taxation annually consumes $780,
600, 600, 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 depressed and languishing
condition. The development of our
lnexhaustible resources is checked,
and fertile fields of the South are be-
coming waste, for want of means to
till them. With the return of capt.
tai, new life would be infused into
the paralyzed energies of our people,
and activity and vigor impaired to
every branch of industry. Our peo-
pie need encouragement in their eff
forts to recover from the effects of
the rebellion, and of injudicious le-
gislation; and it should be the aim of
this Government to stimulate them
by the prospect of IN early release
from the burdens which impede their
prosperity. If we cannot take the
burdens from their shoulders, we
should Mt least manifest willingness
to help to bear them. In referring
to the condition of the circulating
medium, L shall merely reiterate sub
stantially that portion of my last an
nual 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 question
upon which political economists have
not agreed, nor can it be controlled
by legislation; but must be left to the
irrevocable laws which everywhere
regulate commerce and trade. The
circulating medium will ever irresist-
IDLY flow to those points where it is
in greatest demand. The law of de-
mand and supply is as uncrring as
that which regulates the tides of the
ocean; and indeed currency, like the
tides, has its GIBBS and flows through
out the commercial world. At the
beginning of the rebellion, the bank
note circulation of the country
amounted to not much more than
$500, 600, 600; now the circulation of
national bank notes, and those known
as legal tenders, is nearly 500, ,OOO,-
600. While it is urged by some that
this amount should be increased,
others contend that decided reduc-
tion is absolutely essential to the best
interests of the country. In view Of
those diverse opinions, it may be
we'll to ascertain the real value of our
paper issue, when compared with
metallic or convertible currency. For
this purpose, let us inquire how much
gold and silver could be purchased
by the 500, 1000, 600 of paper money
now i'll circulation-probably not
more than half the amount of the
latter-showing that when our paper
currency is compared with gold and
silver, its commercial value is COM
pressed into $3.50, 900, 900. This strik-
ing fact makes it the obvious duty of
the Government, as early as may be
consistent with the principles of
sound political economy, to take such
measures as will enable the holders
of its notes and those of the national
banks, to convert them without loss
into specie or its equivalent. A re-
duction of our paper circulating me-
dunn need not necessarily follow;
this, however, would depend upon
the law of demand and supply; though
it should be borne in mind, by max
ing legal tenders and bank notes con-
vertible into coin or its equivalent,
their present specie value in the hands
OF their holders would be enhanced
one hundred per cent. Legislation
for the accomplishment of result so
desirable, is demanded by the high
est public consideration. The Con-
stitution contemplates that the circu-
lating medium of the country shall
be uniform in quality and value. At
the time of the formation of that in
strument. the country had just emerg-
ed from the war of the Revolution,
and was suffering from the effects of
redundant and worthless paper cur
rency. The sages of that period were
anxious to protect their posterity
from the evils which they themselves
had experienced; hence, in providing
n circulating medium, they conferred
upon Congress the power to coin
money and rim the value thereon; at
the same time, prohibiting the States
from makir9 anything but gold and
silver tender in payment of debts.
fNhn a.,,l;t..>..