Year: 1868

, y
proportion which the currency of any
country should bear to the whole of the
annual product circulated by it's 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 rcgu.
late commerce and trade The circula-
ting medium will ever irresistably flow to
those points where it is in the greatest
demand. The law of demand and supply
is as unerring as that which regulates
the tides of the ocean, aud indeed, cur.
rency, like the tides, has its Gibbs and
flows throughout the comm crcial world.
At the beginning of the rebellion the
bank note circulation of the country
amounted to not much more than 5000.
600, 900; now the circulation Of the Ma.
tional Bank notes and those known as
legal tenders is nearly 100000, 900


While it is urged by some that this amount
should be increased, others contend that
n decided reduction is absolutely essential
to the best interests Of the country. In
view of these diverse opinions il may be
we'll to ascertain the real value of our
paper issues when compared with n metal.
lie or convertible currency. For this
purpose let us inquire how much gold and
silver could be purchased by the seven
hundred millions of paper money now in
circulqtion /; 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 aud
fifty millions This striking fact makes
it the obvious duty Of the Government


as early as may be considered consistcn;
with the principles Of sound political econ.
omy. TO take such measures as will enable
/ the holder Of It's notes, and those of the
National Banks. to convert them without
loss into the specie of It's equivalent. 4
reduction Of our paper circulation medium
need not necessarily follow. This how.
ever would depend upon the law Of de


mand and supply. though it should be
borne in mind that in making legal tender
and bank notes convertible into coin or
its equivalent, their present specie value


in the hands Of their holders. would be
enhanced one hundred per cent. Lcgis
lafion for the accomplishment Of 4 result
so desirable is demanded by the hishes;
public considerations. The Constitution
contcmplatcs that the circulating medium
of the country shall be uniform in quality
and value At the time Of the formation
Of that instrument the country had just
emerged from the war Of the revolution


and was suffering rom rhc effects of q
redundant and worthless paper currency
The sages of that period were anxious II
protect their posterity from the evil.
which they themselves had experienced
hence, in providing a circulating medium


they conferred upon Congress the powel
TO coin money and regulate the value
| there {. at the same time prohibiting tho
States from making anything but gold
and silver tender IN paymcn: for debts
/ The anomalous condition Of our currency
| is in striking contrast with that which
was originally designed. Our circulation
now embraces-frst, notes of National


Banks, which are made receivable fol
all dues to the Government, excluding
imports, and by all its creditors, except
IN payment Of interest upon It's bonds


and the securities themselves; second
/ legal tender notes issued By the United
States, and which the law requires shal


be received as well in payment of al


debts between citizens as of all Govern


ment dues, excepting imports; and, third


gold and silver coin. By the operation
Of our present system Of finance, however


the metallic currency, when collected, i,
preserved only for one class of Government


creditors, who. holding its bonds, semi


annually receive their interest in coir
from the National Treasury. They arr
thus made to occupy an invidious posi-


tiOn, which may be used TO Strengthen
the arguments of those who would bring
into disrepute the obligations of the Gov


ernment, which should be inviolabIy main


tained. But while it acts with fdelit,
toward the bondholder, who loaned hi
money that the integrity of the Uuior
might be preserved, it should at the same
time observe good faith with the grea


masses with the people, who, having res


cued the Union from the perils of rebel


lion, now bear the burdens of taxation


that the Government may be able Il
fulfill its engagements. There is no rea


son which will be accepted as satisfactory
by the people why those who defend VI
on land and protect us on sea-the pen


sioner upon the gratitude Of the nation


bearing scars and wounds received while
in its service the public servant in the
various departments of the Government


the farmer who supplies the soldiers o.
the army and the sailors of our navy


! the artisan who tolls in the nations work
shops, and mechanics and laborers who
build its edifces and construct it's forts
and vessels of war, should in payment Of
their just and hard-earned dues, receive
deprecated paper, while another class Of
their countrymen. no more deserving, arc
paid in coin of gold and silver. EquaI
and exact justice requires that all cred


itors of the Government should be paid
in currency possessing uniform value


This can only be accomplished by restora


tlon of the currency to the standard estab-
lished by the Constitution, and by this
means we would remove discrimination
which may, if it has not already done so,
create prejudice that may become deep
rooted and widespread and imperil the
national credit The feasibility Of making
our currency correspond with the Consti.
tutional standard may be seen by reference
to few facts derived from our CONNER
cial statistics. The production of the
precious metals in the United States from
l849 to 1857, inclusive, amounted to