Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-04-11

louf punaEed per cent less than the obligation.
WHEN me IL Is said IN return can not be denied.
, Thus We are paving an eztravarant price for
tne money borrowed which was paper.currency
greatly deprecated below the value Of coin
that bond-holders receive from the Treasury
| upon each dollar they owe upon Government
securities SIX per cent. in gold. which is quite
| OF nearly equal 20 nine per cent. ia currency:
that the bonds are then COW srted into capital
for National Banks upon which those institu-
tons issue their circulation, bearing six per cent.
the government and States and thereby en-
HANGED two per cent in the hands Of the hold
eTs. We thus have an aggregate Of seventeen
| per cent, which may be received upon each dol
lar by the owners Of government securities
81 stem that produces such results is Justly re-
garied as favoring few at the expense Of the
many. and has led to the further inquiry whether
our bond holders in view of the large profits
which they have enjoyed would themselves be
ayerse to a settlement of our indebtedness on
plan which would yield them fair Temunera-
| tion. ana az the same time be lust TO the tax
| payers Of the nation.
cur national credit should be saeredly OBJ
| served, but in making provision for cur credit
1 ors We should not forget what is due to the
masses Of the people. Ii may be assumed that
l the holders of our securities have already re
1 celTed upon their bonds larger amount than
tnelr original investment measured by gold
standard. Upon this statement OF facts il would
seem Just and equitable that the six per cent
interest now psid BY the government should be
applied to the reduction of the principal In
II AhotntA1uoulSs WulCIs IN clAbctu
/ years and eight months would liz uidate the en-
tire national debt. Six per cent. in gold would
at present rates be equal to nine per cent in
| currency, and equivalent to the payment of the
amount in half the time in a fraction less tta1
seventeen years. This. with AL the other al
ysntages derived from the investment, would
anord the public creditors fair and liberal
compensation for the use Of their capital, and
with TINS they should be satisfied.
1 Inc lessons OF the past admonish the lender
tnat II Is not well to be over anxious IN exaetinZ
hnE - IL
letter Of the bond. If provision be made for the
payment OF the Indebtedness of the government
IN the manner suggested, our country viii
t splaIy recover ITS wonted Prosperity; l!s n
tefesS require that seine measures should be
Iaken 70 release the large amount of capital 10
vested ~ securities of the government IL 10
nHt merely nnproductive but in taxation annu-
any consumes Sl5O. zoo, which would other
wise De used By our enterprising people in ad-
dlng TO the wealth OF the nation. Our COM
merces which at one time successfully riTslled
snat OF the great maratime powers. has rapidly
diminished and our industrial interests are in
depressed and languishing condition.
DEVELOPMENT OF TIE SOUTH.
The development Of our inexhaustible re-
sources is checked, and the fertile fields of the
/ South are becoming waste for want Of means 10
/ till them. With the release of capital new life
would be infused into the paralyzsd energies OF
| our people. and activity and vigor impaired to
every branch Of industry-Our people receive
/ announcement in their efforts to recover from
the effect of the rebellion and of ipjudieiOus
legislation; and it should be the aim of the gov
l eminent to stimulate them by the prospect of
an early release from the burdens which i'm
| pede their prosperity. If we cannot take the
| burdens from their shoulders We should at least
manifest a willingness to help bear them.
The proportion which the currency OF any
L country should bear to the whole value of an
nual produce circulated by its means. is a ques-
i ton on which political economists have not
agreed; nor can IL be controlled by legislation,
1 but must be left to the irrevocable laws which
| everywhere regulate commerce and trade. The
1 circulating medium will ever Irresstibiy dow to
those points where it is in greatest demand. The
| laws OF demand and supply are as unerring as
that which regulates the tides of the ocean, and
indeed, curreney-like, the tides have their 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. Nov the circulation of the national bank
notes and those kEown as legal tenders Is nearly
1 seven hundred millions. While u Is urged by
| some that this amount should be increased,
others contend that q decided reduction Is Also
lutely essential TO the best interests Of the eoun-
try. In view of these diverse opinions, It may
be well to ascertain the real value OF our paper
4 issues when compared with metallic OF con-
/ vertible currency. For this purpose let US lu-
1 quire how much gold aud 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 com
pressed in three hundred and fifty millions. This
i striking fact makes it the obvious duty of the
government. as early as may be consistent with
the principles of sound political ecOnmy, to take
such measures will enable the holder OF its
Il notes and those of the natiOnsl thanks 20 con
l vert them without loss into specie OF its equiv
Il alent. A reduction of our paper circulating
medium may not necessarily follow. This.
1 however, would depend upon the law Of de-
1 mand and supply. though 1t should be borne 10
| mind that by making leg u ten1er and bank
notes convertible into coin Or ITS equiya,
4 lent. their present specie value in the hands OF
i their holders would be enhanced one hundred
per cent Legislation Tor the accomplishment
/ of result so desirable IS demanded by the
| highest public considerations The eOnstitu-
ton contemplates that the circulating medium
l of the country shall be uniform in quality and
Il value. At the time OF the formation Of that
instrument the country had Just emerged from
the war of the revolution and was suffering
| from the effect of redundant and worth
that period were anxious TO protect
1 their prosperity from the evil which they
| themselves had experienced. Hence, in pro-
l viding a circulating medium, they conferred
L upon Congress the power to coin money and
| regulate the value thereof at the same time
/ prohibiting the States from making any thing
| but gold and silver a tender in payment Ofdebts.
| The anomalous condition of our currency IS in
| striking contrast with that which was originally
| designed Our circulation now embraces, first,
1 notes of the National Bank, which are made re-
eeiv able for all dues to the government, exelud-
1 ing imports, and by all its creditors. excepting
| in payment Of interest upon its bonds and the
securities themselves; second, legal tender notes
/ issued by the United States, and which the law
1 requires shall be received as we'll in payment Of
ali debts between citizens. as Of all import dues
| excepting imports payable IN gold and silver
coin; By the operation Of our present ;St
metallic currency when collected IS re-
| served only for one class of government cred
itors who. holding its bonds. semi aonually re.
ceive their interest in coin from the National
/ Treasury. There is no reason which will be ac-
eepted as satisfactory by the people why those
| who defend US on the land and protect US on the
sea; the pensi0ner upon the gratitude OF the
| nation, bearing the scars and wounds received
| while IN its service; the public servants in the
| various departments of the government; the
| farmer, who supplies the soldiers of the army
| and the sailors Of the navy; the artisan, who
| tolls in the nations workshops; or the meehan-
| les and IabOrers who build its edifees and con-
struct its forts and vessels OF war, should. IN
! payment of their inst and hard-earned dues,
| receive deprecated paper, while another class
| of their cOuntrymen, no more deserving, are
| PAL in coin of gold or silver. Equal and exact
Justice requires that all the creditors of the gov
| eminent should be paid in currency possessing
| a uniform value.
UNIFORM cURRREcT
Can only be accomplished By the restoration
L of the currency to the standard established BY
/ the constitution, and by this means we would
remove a discrimination which may, if it has
| not already done so, create prejudice that may
become deepseated and widespread, inperil ina
the national credit. The feasibility OF N su NJ
| standard may be seen by reference to a few fact
| derived from our commercial statistics. Ihs
!, | aggregate product OF precious metals IN tn
United States from 1s49 to 1867 amounted 10 81.
l l73 900 900, while for the same period the ne
| experts of specie were Sal ,0OUOO0. This show
| an excess Of product over net exports Of s433.
| 100 OCO There are in the Treasury So. 34l 955
| in coin in circulation 10 the States on tho Paci
i fe coast about $4,000 200. and few million:
| in the National and other banks in al
| les than $i6,C00.OOJ Taking into cOn5id-
/ Grafton the specie in the country prior To
/ 1873 and that since ls17. We have more thal
| a3 ODO 900 net aecOuntedfor by the expectation
or by the returns Of the Treasury, and therefore
l most probably remaining in the country. These
/ are important facts and show how completely
| the inferior currency will supersede the better
/ forcing il from circulation among the masse:
! ami causinR it to be exported as merely AZ
/ article Of trade 20 add TO the money capita
| of foreign lands. They show the necessity OfTe
| firing our paper money that the return of gold
and silver to the avenues of trade may be in
/, | yiteti and q demand created which will cause
| the retention at home OF at least so much OF the
| productions of our rich and lnexhaustible gold
bearing fields as may DO sufficient for purpose:
Is il reasonabts to expect a return to a sound
currency SO long as the government and banks
| continue to iSsuelrredeemabie notes and I'LL ID
| chan3els of circulation with deprecated paper
| Notwithstanding a coinage by the mints since
1919 Of 1914 100 40, the people are now stranger:
| to the currency which was designed for their
, | uses and benefit. and specimens Of the preciOa:
| metals bearing the national device are seldom
seen except when produced TO crafty tho in
| terest elected by their novelty. IL depreeiated
| paper is to be continued as the permanent cur
| re1ey vi the country, and all our coin is tO be
| come a mere article Of traffic aud speculation,
| to the enhancement of the price OF all that i;
| Indispensable to the comfort OF the people, il
. | will be wise economy to abolish minis
| thus saTing the nation the care ami expense
i incident to such establishments and let our
! | precious metals be exported in bullion. The
| fime has come when the government and ma
| tional banks should be required 10 take the
? | most efficient steps and make all necessary ar
| ranEenents for resumption of specie payments