Year: 1867

puDlC OmctS are Tue property Vi luOse


who hold them, They are given merely


as trust for the public bene6t-some.


times for fixed period and during good
behavior-but generally they are liable


to be terminated at the pleasure of the


appointing power, which represents the


collective majority and speaks the will


Of the people


The forced retention in Office of a
single dishonest person may work great


injury to the public interests, and danger
to the public service. Evil comes not


from the power to appoint; therefore it


was that the trainers Of the Constitution


left the power of removal unrestricted,


while they gave the Senate the right to
I,reject all appointments which In its


opinion were not fit to be made.


A little reflection on this subject will


probably satisfy all who have the good
| of country at heart, that our best course
| is 10 take the Constitution for our guide,


walk 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 present condition of our finances
and circulating medium is one to which


your early consideration is invited. The


proportion which currency of any coun-
| try should bear to the whole value of the


annual produce circulated by its 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 every
where regulate commerce and trade.
| The circulating medium will ever ire


sstably 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 oceanE
and indeed, currency, like tides, has ils
ebbs and flows throughout the CONNER


cial world. At the beginning of the
rebellion the bank note circulation of the
country amounted to not much mere
than two hundred millions of dollars
| Now the circulation of the 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.


decided reduction is absolutely es-
sential to the best interests of the
country. In view of these diverse
opinions it may be we'll to ascertain the


real value of our paper issues when
compared with metallic or convertible


currency. For this purpose let us
inquire how much gold and silver could


be purchased by the. seven hundred mil.


lion of paper money now in circulation 7


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 and Fifty


millions. This striking fact makes it the
obvious duty of the Government, as
early as may be consistent with the


principles of sound political economy,
to take such measures as will enable the
holder of its notes, and those of national
banks, to convert them without loss into
specie, or its equivalent. A reduction of
our paper circulating medium need not


necessarily follow. This, however,
would depend upon the law of demand
and supply, though it should be borne in


mind that by making legal tender and


bank notes convertible into coin or its
equivalent their present specie value in
the hands of their holders would be en-
hanced one hundred per cent. Legisla-
ton for accomplishing result so de-
sirable is demanded by the highest
public considerations. The Constitution
contemplates 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


NJ et,H n
effects of redundant and worthless pa
per currency. The soges of that period
were anxious to protect their posterty
from the evils which they themselves
had experienced Hence, in providing
a circulating medium, they conferred
upon Congress power to coin money,
and regulate the value thereof, at
the same time prohibiting the
States from making anything but gold
and silver a tender in payment OF debts.
The anomalous condition of our cur
rency is in striking contrast with that
which was originally designed. Our
circulation now embraces first, notes OF
national banks, which are made receiv-
able for all dues to the government,
including imports and by allits creditors,
excepting in. payment OF interest upon
its bonds and 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 gey-
ernment dues, excepting the imports
and one.thrd Of the gold and silver coin.
By the operation of our present system
of finance, however, metallic currency
when collected, is reserved only for
one class of government creditors,
who, holding its bonds, semi. anual-
ly receive their interest in coin
from the national treasury. They
are thus made to occupy an invidious
position, which may be of use to strength.
en- the arguments of those who would
bring into disrepute the obligations OF
the nation in payment of all its debts.
The plighted faith of the Government |
should be inviolably maintained; but |
while it acts with fidelity toward the |
bondholder who loaned his money that |
the integrity of the Union might be pre-
served, it should at the same time observe |
good faith with the great masses of the |
people who, having rescued the Union |
from the perils of rebellion, now bear the |
burdens oftaxation that that Government |
may be able to fulfill its engagements.
There is no reason which will be accepted |
as satisfactory by the people why those
who defend us on the land and protect us
on the sea, pensioners uponthe gratitude
of the nation, bearing scars aud wounds
received while in its service, public
servants in the various departments of
the Government the farmers, the
soldiers of the army and the sailors of
,ba navv ,ba artisars WIN toll in the ma