Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-09-20

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upon their bonds a larger amount tan the
original inves: ment, measured bya gold
standard. Upon this statement OF hcts il
would seem but just and equitable Tat the
six per cent. interest now paid by tie gov
eminent should be applied to the reaction
of the principal in seIni-annual nstall-
ments. which, in sixteen years an eight
months, would liquidate the entire ntional
debt. Six per cent. in gold would pres
ent rates be equal to nine per cent.in cuf-
rency, and equivalent to the paylent of
the debt one and half time in action
less than seventeen years. This, N con-
nection with all the other ADVANTAGES de-
rived from their investment, woulI afford
to the public creditors a fair andiberal
conversation for the use of their apitaI.
and with this they should be satisfd. The
lessons of the past admonish thelender
that it is not well to be oyer-anxiousin ex-
acting from the borrower rigid eomlianee
with the letter of the bond.
If provision be made for the PAYMENT Of
the idebtedness of the Government. in the
manner suggested, our nation will apidly
recover its wonted prosperity. Its Interests
require that some measure should e taken
to release the large amount of capital in
vested in the securities OF the Government.
1t is not now merely unproductive, but in
taxation annually consumes ore Kindred
and fifty millions of dollars, which would
otherwise be used by our enterpris bg peo-
pie in adding to the wealth of the nation.
Our commerce, waich at one time access-
fully rivalled that of the great mritime
powers, las rapidly diminished, aid our
industrial interests are in a depressed and
lansuishing condition. The develpment
of our inexhaustible resources is checked.
and the fertile fields of the South re be-
coming waste for TIE want of meaH to till
them. With the release of capiti, new
life would be infuse. into the pa1iyzed
energies Ct Our people, and activity and
! vigUr impaired to every branch Of Industry.
Our people need encouragement i'm their
efforts to recover from the efiecs Of the re-
belliOn and Of injudicious legislation; aud
il should be the aim of the Government to
stimulate them by 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 willingness to help to bear
them.
Al the beginning of the rebellion, the
| bark noe circulation of the country
amounted TO not much more than $780,
| 100000; now it is nearly ST00,0OO,100.
Probably not more than half this amount
of gold and silver could be purchased with
our paper currency, and this fac makes it
obviously the duty of the Government to
| take such measures as will enable the
holder OF its notes and those of the nation
al banks to convert them, without loss,
into specie or its equivalent, and a reduc
/ ton Of our paper circulating medium need
not necessarily follow.
The Constitution contemplate that the
| circulating medium of the country shall he
/ uniform in quality and value. A the time
of the formation of that instrument, the
| country had just emerged from tfR 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 they themselves had experienced.
| Hence, in providing a circulating medium,
/ they conferred upon Congress the power to
| coin money and regulate the value thereof,
at the same time prohibiting tie States
! from making anything but gold and silver a
/ tender in payment of detts.
The anomalous condition of cur cur
rency is in striking contrast with that
which was originally designed. Our circu-
/ lation now embraces, first, notes of the
/ National banks, which are made receivable
/ for all dues to the Government, excluding
| impOsts, 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 requires shall be received
as well IN payment Of all debts between
/ citizens as Of all Government dues, except
1 ing impOSts; ard, third, gold and silver
! coin. By the operation Of our present sys-
| TEN of finance, however, the metallic cur
| rency, when collected, is reserved only for
one class of Government creditors, who,
| holding its bonds, semi-annually receive
| their interest in coin from the national
| Treasury. There is no reason which VIII
be accepted as satisfactory by the people,
why those who defend us on the land and
| protect us on the sea; the pensioner 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 sup
plies the soldiers of the army and the sail
! Ors Of the navy; the artisan who tolls in the
nations workshops, or the mechanics and
| laborers who build its edifices and con-
strict its forts and vessels of war-shOuld,
! in payment of their Just and hard earned
| dues, receive deprecated paper, while an
| other class of their cOuntrymen, no
more deserving, are paid in coin
| of gold and silver. Equal and eX-
act justice requires that all creditors Of
! the Government should be paid in a cur
! reney possessing a uniform value. This
can only be accomplished by the restOra-
| tiOn of the currency to the standard estab-
/ lished 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 deep
rooted aud widespread, and imperil the na-
l tiOnal credit.
The feasibility of making our currency
! correspond with the constitutional stand
ard may be seen by reference to few facts
| derived from our commercial statistics.
| The aggregate product of precious metals
/ in the United States from 1S49 to 1867
amounted TO 81 ia, 100000, while, for the
| same period, the net exports Of specie were
| Sal, 100000. This shows an excess OF
| product over net exports of S433, OOo,OOO.
! There are i'm the Treasury Sl03, 407,9o5 in
/ coin: in circulation in the States ON the
| Pacific coast about S40OO0O00, and few
millions in the National and other banks
/
! consideration the specie in the country
| prior to 1910, and thar produced since 1867,
! and We have more than $500, 900 not &C
/ counted for by expectation or by the Ie-
| turns of the Treasury, and therefore most
| probably remaining in the country.
These are important facts, and show how
| completely the inferior currency will super
cede the better, forcing it from circulation
among the masses, and causing it 10 be ex-
ported rs mere article of trade, TO add to
| the money capital OF foreign lands. They
| show the necessity of retiring our paper
money, that the return Of gold and silver TO
| the avenues of trade may he invited, and q
| demand created which will caIIse the re-
| tentiOn al home of at least so much of the
productions of our rich and ineXhaus,ible
! gold-bcaring fields rs may be sufficient for
| purposes of circulation. 1t is unreasOn-
| able to expect a return TO a sound currency
| so long as the Government and banks, BY
| continuing to issue irredeemable notes, fill
| the channels Of circulation with deprecated
| paper. Notwithstanding a coinage by our
| minis, since 1919, of eight hundred and
! seventv-four millions of dollars, the people
| are now strangers TO the currency which was
| designed for their use and benefit, and
specimens Of the precious metals bearing
| the national device are seldom seen, except