Year: 1867

=
ject all appointments which, in its opinion,
were not fit to be made A little reflection
on this subject will probably satisfy all WIN
have the good of the country at heart that
our best course is to take the Constitution for
our guide, y-alk In the path marked out by
the founders of the Republic, and obey the
rules made sacred by the observance of our
great predecessors.


THE FINANCES AND THE CURRENCY.


The present condition of our finances and
circulating medium is one to which your ear
ly consideration Is iAvited. The proportioD
which the currency of any country sbopId


bear to the whole value of the annual mo-
duce circulated by its means is a question mn
on which political economists have not aorecS
! nor can 1t be controlled bv legislation bur
must be left to the irrevOcable laws which ev.
| eryWhere regulate commerce and trade. The
circulating medium will ever irresistiLly fow


to those points where it Is in greatest demand.


The law OF supply and demand is as uuerriny
as that which regulates the tide of the ocean:
aud indeed, currency ike the tides, has i,S
ebbs 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 humid


red millions of dollars now, the circulation
OF national bank notes, and those known "a
-SsN@A NSNNSiS1 hGaIlN SGNGu nuQQFeQ mill
lions. While it Is urged by some that this
amount should be increased, others contend
that decided reduction is absolutely essen
tial 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 is
| sues When compared with a metallic or
convertible currency for this purpose, let M
| inquire how much gold and silver could be-
purchased by the seven hundred millions of
paper money now in circulation Probably
not more than half of the amount of the lat
'er' showing that when our paper currency il
compared with gold and silver its commercial
value is compressed into three hundred and
fifty millions. This striking fact makes il tho
obvious duty Of the Government, rs early as
may be consistent with the principle of sound
political economy, to take such measures as
will enable the holder of its notes, aud those
OF the national banks, to convert them with.
out loss on specie or its equivalent. A re-
ductIon OF our paper circulating medium need
not necessarily follow. This, however, would
depend upon the law of demand aud supply,
though 1t should be borne in mind that by
making legal tender and bank notes convert
lble into coin or its equivalent their present
specie value in the hands of their holder.
would be enhanced one hundred per cent
Legislation for the accomplishment of u re-
suit so desirable is demanded by the highest
public considerations. The Constitution con-


templates that the circulating medium of the
country shall be uniform in quality and val.
ue at the time of the formation of that in.
strument. The country had just emerged
from the war Of the revolution, and was suF-
lerlnS from the effects Of redundant and
worthless paper currency. The sages Of that
period were anxious to protect their posterity
from the evils which they themselves had ex-
Perienced. Hence, in providing a circula-
ting medium, they conferred upon Congress-
the power TO coin money and regulate tho
value thereof, at the same time prohibitipa,
the States from making anything but gold and
silver tender in payment Of debts The
anomalous condition of our currency is in
striking contrast with that which was origin-
ally designed. Our circulation now en-.
braces, hrst, notes of the national banks,
which are made receivable for all dues 10 the
Government, excluding imports, and by all
'ts creditors excepting in payment of inter
est upon its bonds and the securities them
selves; I'd, legal tender notes issued by the
United States and which the law reouiresshaII
be received as we'll in payment Of ali debts be-
tween citizens, as Of all Government dues, ex-
ceptIng imports; and 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 Government creditors, who, holding its
bonds, sernl-annually receive their interes. in
com from the National Treasury. They arc
thus made to occupy an inyidious position,
which may be used to strengthen arguments
OF those who would bring into disrepute the
obligation Of the nation In the payment of
all its debts the plighted faith Of tie Govern
ment should be inviOlabIy maintained but.
while it acts with fidelity towards the bond


holder who loaned his money, that the in.
teSrity OF the Union might BE- preserved. il
should, at the same time, observe GOOD filth
with the great masses of the people who. hay-
ing rescued the Union from the perils Of re-
bellIon, now bear the burdens of taxation that
the Government may be able TO fulfil its on
gagements There is no reason which will
oe accepted az satisfactory by the people, why
those VINO defend Us on the land and protect
US on the sea, the pensioners upon the grati-
tuue OF the nation, Drawing 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 mechanics and Iaborers who
build its edifiees and construct its forts and
vessels OF war, should in payment Of their
just and hard earned dues receive depreciated
paper, while another class of their country
men, no more deserving, arc paid in coin Of
gold or silver.


=, Equal and exact justice requires that all
the creditors of the Government should be
paid In a currency possessing uniform value.
This can only be accomplished by the resto-
ration OF the currency to the standard estab-
lished By the Constitution, and by this means
we would removes discrimination which may,
If 1t has not already done so, create preju-
dice that may become deep rooted and vide