Year: 1867

power Of removal unrestricted, while
they gave the Senate a right to reject all
appointments which, in its opinion,
were not tit to be made. A little reflec-
tion on this subject will probably
satisfy all who have the good of
the country ut heart that our best course
is 20 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.


FINANCE AND THE CIRCULATING MEDIUM


The present condition of our finances
and circulating medium is one to which
your early consideration is invited.


The proportion which the currency of
any country 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 bc controlled by legislation,
but must be left 70 the irrevocable laws
which everywhere regulate commerce
will ever irresistibly flow to those
points where il is in greatest demand,
The law of demand and supply is as
unerring as that which regulates the
| tides of the ocean; and indeed currency,
like the tides, has its ebbs and flows
throughout the commercial world.


At the beginning of the rebellion the
bank-note circulation of the couRtry
amounted TO not much more than two
hundred millions of dollars; now the
circulation of National Bank notes and


those known as illegal tenders" is near
ly seveR hundred millions. While il is
urged by some that this amount should
be increased, others contend that a de-
cided 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
a metallic 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 circulation Probably
not more than half the amount of the
Ilatter-showing that when our paper
currency is compared with gold and sill.
yer, its commercial value is compressed
into three hundred and fifty millions.
This striking fact makes il the obvious
duty of the Government, rs early as may
be consistent with the principles of
sound political economy, 10 take such
lmeasures as will enable the holder Ofits
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 need not no
Ccssarily follow. This, however would
depend upon the law of demand and
supply, though it should be borne in
mind that by making legal itcnder aud
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 the accomplishment
of result so desirable is demanded by
the highest public considerations. The
Constitution contemplates that the cir
culating medium of the country shall
be uniform in quality and value. At
the time of the formation of that in
strument, the country has just emerged
from the War of the Revolution, and
was suffering from the effects of q re-
dHndant and worthless paper currency.
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 meney aud regulate
the value thereof, a5 tire same time pro-
hibiting the States from making any
T thing but gold and silver tender in
payment of debts.


CONDITION OF THE CURRENCY.


The anomalous condition of our cur-
rency is in striking contrast with that
which was originally designed. Our
circulation now embraces, first, notes
of the National Banks, which are made
receivable for all dues t. the Govern
ment, excluding impOsts, and by all it's
creditors, excepting IN payment OF in
tcrest upon It's bonds and the securities
themselves; second, legal tender notes,
issued by the United States. and which
the law requires shall he received as
weH in payment Of all debts between
citizens as of all Government dues, eX-
ceptiDg imposts; and, third, gold and
silver coin. BY the operation of our
present system of finance, however,
the metallic currency, when col
lectUd, is reserved only for one
class of Government creditors


who, holding its bonds. scmi-an-
nuallY receive their interest in coin
from the National Treasury. They are
thus IRa3e TO occupy an inyidious posi-
tion, 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 plikhted faith Of the Gov
crnmeut should be inviolably main
tanned. But while IL 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 Tescued the Union from
the perils Of rebellion, now bear
the burdens Of taxation, that the
Government may be able 20 fnlil
its engagements. There Is no Tea-
son which will be accepted az salts
factory by the people, why those who
defend us on the land aud protect us on
the sea; the peusioner upon the graft
tude Of the nation, bearing the scars
aud wounds received while in its ser
vice the public servantsin the various
! departments Of the Government the
farmer who supplies the soldiers Of the
army and the sailors Of the navy the
artisan who tOils in the nations work
shops, or the mechanics and lsboror
who build its edifices aud construct its
forts aud vessels Of war-sbOuld, IN pay
ment Of their just and hard-earned dues,
receive deprecated paper, while another
class of their cOuntrymen, NO more de-
serving, are paid in coin Of gold and
silver. Equal and eJact Justice requires
that all the creditors ofths Government
should he paid in currency possessing
n uniform value, This can only be ac-
cOmplished by the restoration Of
the currency to the standard established
! by the Constitution and by this means
we would remove q discrimiBation
which may, II IL has not already dom
so, create prejudice that may become
deep-rOoted and wide spread, aDd i'm
peril the national credit.


COMMERCIAL sTATIsTfCs.


The feasibility Of making our euraen-
cy correspond with the constitutional
standard may be seen by reference u
few facts derived from our commercial
statistics.