Year: 1867

absolutely essential to the best inter
ests Of the country. srsac ff
In view of these diverse opinions,
it may be we'll TO ascertain the real
value OF our paper issues, when com
pared with metallic o. converted cur
rency. 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 eircuia-
tion. Probably not more than half
the amount OF the latter, showing
that when our paper currency is COM
pared with gold and silver, its com
mercial value is compressed into three
hundred and fifty millions. This
str king 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 Ma
tional Banks to convert them with
out loss into specie, or its equivalent.
A reduction of our paper and circu-
lating medium need not necessarily
| follow. This, hewever, 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 enhanced one hundred per cent
Legislation for accomplishing re-
suit so desira bic 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 a war of revolution, and
was suffering from the effects of a re-
| dundant and worthless paper curren-
! cy. The sages of that period were
anxious to protect their posterity from
the evils which they themselves had
experienced; hence, in providing
circulating medium they conferred
| upon Congress the power to coin mon
ey and regulate the value thereof, at
the same time prohibiting the States
from making anything but gold and
silver a legal tender in payment of
| debts. The anomalous condition of
our cOuBtry is In striking contrast with
that which was origina ly designed.
| Our circulation now embraces, first


notes of National Banks, which are
made receivable for all du7s to the
| Government, excluding imports, and
! by all It's creditors, excepting in pay
ment OF iaterest upon its bonds and
the securities themselves; second,
legal tender notes, issued by the
United States, and which the lawsre-
quires shall be received as we'll 10
payment Of all debts between citizens
as of Government dues, excepting
imports; and third, gold and silver
coin.


By the operation of the present
system of finance, however, metallic
currency, 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.
/ They are thus made to occupy an in.
vidious position, which may be used
to strengthen the arguments Of those
who would bring into disrepute the
obligations of the nation. .


In the payment of all its debts the
plighted faith of the Government
should be inviolably main Gtained, but


while it acts with fidelity toward the


bondholder who loaned his money
that the integrity of the Union might


be preserved, 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 of
taxation. that the 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 on
the gratitude of the nation, bearing
scars aud wounds received while in
its service, the public servants in va
rious departments of the Government.
of ne army and the sailors of the ma


ton s workshops, mechanics and la
borers who build edifces, and con-
struUt its forts and vessels of war,
should, in payment Of their just and


hard earned dues, receive deprecated


paper, while another class, their
countrymen, no more deserving, are
paid in coin, gold and silver. Equal


and exact justice requires that all


the creditors of the Government
should be paid In currency possess


ing uniform value.


This can only be accomplished by


the restoration of currency to the


standard established by the Constitu-


ton, and by this means we could re-


move a discrimination which may, if
it has not already done so, create


prejudice that may become deep


rooted, widespread and imperil the


National credit. The feasibility of