The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1868-12-15

ed, and the fertile fields of the South are
becoming waste for want Of means to till
them. With the release of capital new
life would be infused into the paralyzed
energies of our people, and activity and
vigor impaired to every branch OF indus
try. Our people need encouragementin i'll
their efforts to recover from the effects
of the rebellion and Of injudicious lcgis- |
lation, and it should be the aim of the
Government to stimulate them with the
prospect of an early release from the
burdens which impede their prosperity.
If we cannot take the burdens from their
shoulders, we should at least manifest a
willingness to help to bear them.
THE CIRCULATING MEDIUM.
In referring to the condition Of the
circulating medium, l shall merely reite-
rate substantially that portion 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 product, cir
culating by its means, is a question upon
which political economists have not
agreed. Nor can it be controlled by leg
islation. but must be left to the irrevoca-
bic laws which everywhere regulate com
merce and trade. The circulating medl-
um will ever irrcsistibly flow to those
points where it is in greatest demand
The law of supply and demand is as I'M
erring as that which regulates the tides of
the ocean, and, indeed, currency, like the
tides, has its Gibbs 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 two hundred millions OF dol
lars. 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 con-
tend that q decided reduction is abso-
lutely 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 issue when com
pared with a metallic or convertible cur,
rency. For this purpose let us inquire
how much gold and silver could be pur-
chased 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 is compared with
gold and silver, its commercial value is
, compressed into three hundred and fifty
2 millions This striking fact makes il
: the obvious duty Of the Government as
: early as may be consistent with the prin-
: ciples OF sound political economy, to
: take such measures as will enable the
G holder ofthe notes and those OF the ma
: tional banks to convert them without
, loss into specie, or its equivalent. a re
: duction of our paper circulating medium
/ NAV not necessarily follow. This, how
. ever, would depend upon the law of de
: mand and supply, though it should b'
f born in mind that by making legal-ten
V ders and bank notes convertible into
+ coin, or its equivalent, their present spe
: Gle value in the hands Of their holders
S would be enhanced one hundred per cent
t Legislation for the accomplishment OF
result so desirable is demanded by thu
highest public considerations.
r ONE CURRENCY FOR EVERYBODY.
:, The Constitution contemplates tha
G the circulating medium of the countr.
/ shall be uniform in quality and value
: At the time of the formation Of that in
# strument the country had just emerged
t. from the war of the revolution, and wa
: suffering from the effects of a redundan
/ and worthless paper currency. The sa
ges of that period were anxious to pro
d fect their posterity from the evil whicl
:, they themselves had experienced; henc
n in providing q circulating medium the.
n conferred upon Congress the power t.
IS coin money and regulate the value there
IF of, at the same time prohibiting the State
le from making anything but gold and sil
n yer legal tender in payment Of debts
e The anomalous condition Of Our currer
N cy is in striking contrast with that whic
1t was originally designed. Our circul;
Y. ton now embraces, first, notes ofthe M
S tional Banks which are made receivabl
e. for all dues to the Government, excluo
re ing imposts and by all its creditors, e1
he cepting in payment Of interest upon ii
IS bonds and the securities themselves
e. second, legal tender notes issued by til
lie United States, and which the law require
le shall be received as well in payment
" all debts between citizens as of all Coy
n ernment dues excepting imposts; an
d. third, gold and silver coin. BY the OF
er Grafton Of our present system of finance
to however, the metallic currency, whe
al collected, is reserved only for one clas
s. of Government creditors who, holdin
er its bonds, semi-annually receive their ii
pt terest in coin from the National Treas
I'd ury. There is no reason which will |
er accepted as satisfactory by the poop
re why those who defend us on the Ian
er and protect US on the sea, the pensionf
ii upon the gratitude Of the nation bea
e. ing the scars and wounds received viii
III in its service, the public servants in I'll
various departments Of the Governmen
ID the farmer who supplies the soldiers
d. the army and the sailors of the navy, I'll
n artisan who tolls in the nations worl
be shops, or the mechanics and laborel
d. who build the editices and construct i
a forts and vessels of war should, in tt
ne payment of their just and hard earne
. dues, receive deprecated paper, viii
" another class of their countrymen, L
or more deserving, were paid in coin
at gold and silver. Equal and exact ju
Iii tice requires that all the creditors of Il
ur Government should be paid in a currel
IN cy possessing a uniform value. Ih
,ir can only be accomplished by the restor
Id ton of the currency to the standard e
is tablshed by the Constitution, and
he this means we would remove discrin
H. ination which may, if it has not alread
IN done so, create prejudice that may b
H. come deep-rooted and wide spread al
bt imperil the national credit.
a WHAT HAS BECOME OF THE COIN
d. The feasibility Of making our currel
IT. cy correspond with the Constitution