644 



PUBLIC DOCUMENTS. 



well to ascertain the real value of our paper issues, 

 when compared with a metallic or convertible cur- 

 rency. 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 latter 



with gold and silver, its commercial value is com- 

 pressed into three hundred and fifty millions. This 

 striking fact makes it the obvious duty of the Gov- 

 ernment, as early as may be consistent with the prin- 

 ciples 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 specie or its equivalent. A reduction of our 

 paper circulating medium need not necessarily follow. 

 This, however, would depend upon the law of de- 

 mand and supply, though it should be borne in mind 

 that by making legal-tender and bank-notes con- 

 vertible 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 a result so 

 desirable is demanded by the highest public consider- 

 ations. 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 instrument, the country had just emerged from 

 the war of the Eevolution, and was suffering from the 

 effects of a redundant 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 a circulating me- 

 dium, they conferred upon Congress the power to 

 coin money and regulate the value thereof, at the 

 same time prohibiting the States from making any 

 thing but gold and silver a tender in payment of 

 debts. 



The anomalous condition of our currency is in 

 striking contrast with that which was originally de- 

 signed. Our circulation now embraces, first, notes 

 or the national banks, which are made receivable for 

 all dues to the Government, excluding imposts, and 

 by all its creditors, excepting in payment of interest 

 upon its bonds and the 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 Gov- 

 ernment dues, excepting imposts ; and, third, gold 

 and silver coin. By the operation of our present sys- 

 tem of finance, however, the metallic currency, when 

 collected, is reserved only for one class of Govern- 

 ment creditors, who, holding its bonds, semi-annually 

 receive their interest in coin from the national 

 Treasury. There is no reason, which will be ac- 

 cepted as satisfactory by the people, why those who 

 defend us on the land and protect us on the sea ; 

 the pensioner upon the gratitude of the nation, bear- 

 ing the scars and wounds received while in its ser- 

 vice ; the public servants in the various departments 

 of the Government ; the farmer who supplies the sol- 

 diers of the army and the sailors of the navy ; the 

 artisan who toils in the nation's workshops, or the 

 mechanics and laborers who build its edifices and 

 construct its forts and vessels-of-war should, in pay- 

 ment of their just and hard-earned dues, receive de- 

 preciated paper, while another class of their country- 

 men, no more deserving, are paid in coin of gold and 

 silver. Equal and exact justice requires that all the 

 creditors of the Government should be paid in cur- 

 rency possessing a uniform value. This can only be 

 accomplished by the restoration of the currency to 

 the standard established by the Constitution ; and by 

 this means we would remove a discrimination which 

 may, if it has not already done so. create a prejudice 

 that may become deep-rooted and wide-spread, and 

 imperil the national credit. The feasibility of making 

 our currency correspond with the constitutional stand- 

 ard may be seen by reference to a few facts derived 

 from our commercial statistics. 



The aggregate product of precious metals in the 

 United States from 1849 to 1867 amounted to $1,174,- 

 000,000, while, for the same period, the net exports 

 of specie were $741,000,000. This shows an excess 

 of product over net exports of $433,000,000. There 

 are in the Treasury $103,407,985 in coin ; in circula- 

 tion in the States on the Pacific coast about $40,000,- 

 000, and a few millions in the national and other 

 banks in all less than $160,000,000. Taking into 

 consideration the specie in the country prior to 1849, 

 and that produced since 1867, and we have more than 

 $300,000,000 not accounted for by exportation or by 

 the returns of the Treasury, and, therefore, most 

 probably remaining in the country. 



These are important facts, and show how com- 

 pletely the inferior currency will supersede the better, 

 forcing it from circulation among the masses, and 

 causing it to be exported as a mere article of trade, to 

 add to the money capital of foreign lands. They 

 show the necessity of retiring our paper money, that 

 the return of gold and silver to the avenues of trade 

 may be invited, and a demand created which will 

 cause the retention at home of at least so much of the 

 productions of our rich and inexhaustible gold-bearing 

 fields as may be sufficient for purposes of circulation. 

 It is unreasonable to expect a return to a sound cur- 

 rency so long as the Government and banks, by con- 

 tinuing to issue irredeemable notes, fill the channels 

 of circulation with depreciated paper. Notwithstand- 

 ing a coinage by our mines since 1849 of $874,000,- 

 000, the people are now strangers to the currency 

 which was designed for their use and benefit, and 

 specimens of the precious metals bearing the national 

 device are seldom seen, except when produced to 

 gratify the interest excited by their novelty. 



If depreciated paper is to be continued as the perma- 

 nent currency of tke country, and all our coin is to be- 

 come a mere article of traffic and speculation, to the 

 enhancement in price of all that is indispensable to the 

 comfort of the people, it would be wise economy to 

 abolish our mints, thus saving the nation the care and 

 expense incident to such establishments, and let all our 

 precious metals be exported in bulli on. The time has 

 come, however, when the Government and national 

 banks should be required to take the most efficient 

 steps and make all necessary arrangements for a re- 

 sumption of specie payments. Let specie payments 

 once be earnestly inaugurated by the Government and 

 banks, and the value of the paper circulation would 

 directly approximate a specie standard. 



Specie payments having been resumed by the Gov- 

 ernment and banks, all notes or bills of paper issued 

 by either, of a less denomination than twenty dollars, 

 should by law be excluded from circulation, so that 

 the people may have the benefit and convenience of 

 a gold and silver currency which, in all their busi- 

 ness transactions, will be uniform in value at home 

 and abroad. 



" Every man of property or industry every man 

 who desires to preserve what he honestly possesses, 

 or to obtain what he can honestly earn, has a direct 

 interest in maintaining a safe circulating medium 

 such a medium as shan be real and substantial, not 

 liable to vibrate with opinions, not subject to be blown 

 up or blown down by the breath of speculation, but 

 to be made stable and secure. A disordered currency 

 is one of the greatest political evils. It undermines 

 the virtues necessary for the support of the_ social 

 system, and encourages propensities destructive of 

 its happiness ; it wars against industry, frugality, and 

 economy, and it fosters the evil spirits of extravagance 

 and speculation." It has been asserted by one of our 

 profound and most gifted statesmen, that " of all the 

 contrivances for cheating the laboring classes of man- 

 kind, none has been more effectual than that which 

 deludes them with paper money. This is the most 

 effectual of inventions to fertilize the rich man's fields 

 by the sweat of the poor man's brow. Ordinary 

 tyranny, oppression, excessive taxation these bear 

 lightly on the happiness of the mass of the community 



