Year: 1868

ures should be taken to release the
large amount of capital invested in
the securities of the government. 1t
is not now merely unproductive, but
in taxation annually consumes $780,
100000, which would otherwise be used
by our enterprising people in adding
to the wealth of the nation. Our
commerce, which at one time exceed
ingly rivalled that of the great mari
I tine powers, has rapidly diminished,
and our industrial interests are in a
depressed and languishing condition.
The development of our rinexhaustible
resources is checked, 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 industry.
Our people need encouragement in
their efforts to recover from the effects
of the rebellion, of injudicious legis-
lation, and it should be the aim of the
government to stimulate them by the
prospect of an early release from the
burdens which impede their prosperi-
ty. If we cannot take the burdens
from their shoulders, we should at
least manifest willingness to help to
bear them.


CURRENCY.


In reference to the condition of the
circulating medium, shall merely re-
iterate substantially that portion of
my last annual message which relates
to that subject. The proportion which
the currency of any country should
bear to the whole value of the annual
product circulated by its means is
question upon which political econo-
mists have not agreed. Nor can it be
controlled by legislation, but must be
left to the irreVOkable laws which ev-
cry where regulate commerce and
trade. The circulating medium will
ever irresistibly flow to those points
where it is in greatest demand. The
law of demand and supply is as unerr-
ing as that which regulates the tides
of the ocean, and, indeed, like the
tides, has its ebbs 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 two
hundred millions of dollars. Now
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 contend that de-
cided reduction is absolutely essential
to the best interests of the country
In view of these diverse opinions it
may be well to ascertain the real val
ue of our paper issues when compared
with metallic or convertible curren-
cy. For this purpose let US inquire
how much gold and silver could be
purchased by the seven hundred mil
lions of paper money now in circula-
ton? 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 hun
dred and fifty millions. This striking
fact makes it the obvious duty of the
government, as early as may be con-
sistent with the principles of sound
political economy, to take such meas
ures as will enable the holder of its
notes and those of the National Banks
to convert them without loss into spe-
Gle or its Equivalent. A reduction OF
our paper circulating medium may not
necessarily follow. This, however,
| WOulA oCPGIiO upO4A ID" VI uO-
mand and supply, though it should be
borne in mind that by making legal
tender and bank notes convertible in
to coin or its equivalent their present
specie value in the hands of their
holders would be enhanced one hum
dred per cent. Legislation for the ac-
complishment of q result so desirable
is demanded by the highest public
considerations.


The Constitution contemplates that
the circulating medium of the country
shall be uniform in quality and value.
instrument the country had just
ton, and was suffering from the effects
of redundant and worthless paper
currency; the sages of that period
were anxious to protect their posteri-
ty from the evils which they them
selves had experienced. Hence in
providing circulating medium they
conferred upon Congress the power
to coin money and regulate the value
thereof, at the same time prohibiting
the States from making anything but
gold and silver tender in payment
of debts. The anomalous condition
vi Jul 10 III
with that which was originally de-
signed. Our circulation now embra-
ces: First-Notes of the National
Banks, which are made receivable for
all dues to the Government, excluding
imports, and by all its creditors, ex-
cepting in the payment of interest up
on the bonds and the securities them


selves. 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,
exempting imports: Third-Gold and
silver coin. By the operation of our
. present system of finance however,
!, the metallic currency, when collected,
is reserved only for one class of Gov
er1lment creditors, who, holding its
bonds, semi-annually receive their in
: terest in coin from the National Treas
: ury. There is no reason which will
be accepted as satisfactory by the peo-
pie why those who defend us on the
J 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 pub
, lie servants in the various departments
of the Government, the farmer who
supplies the soldiers of the army and
l the sailors of the navy, the artizan
who tolls in the nations workshops,
, OF the mechanics and laborers who


build its edifices and construct its
: forts and vessels of war should, in
: payment of their just and hard earned
dues, receive deprecated paper while
3 another class of their country, nc
g more deserving, are paid in coin OF
Y gold or silver. Equal and exact JUS
+ tice requires that all the creditors OF
, the Government should be paid in 8
4 currency possessing uniform value
n This can only be accomplished by the
: restoration of the currency to the
, standard established by the Constitu-
f ton and by this means we would re.
: move a discrimination which may, il
i it has not already done so, create s