RESUMPTION OF SPECIE PAYMENTS. 441 



backs in circulation. In other words that about one-third 

 of the people would take their paper money to the 

 treasury to get coin for it. But the sequel proved that 

 they were mistaken. Instead of presenting paper money 

 for redemption, millions of dollars of gold and silver were 

 deposited in the treasury, and gold and silver paper certifi- 

 cates taken in preference. These certificates, though not 

 clothed with legal tender qualities, circulate and perform 

 all the functions of money, for the very simple reason that 

 the people are willing to receive them as such. The 

 question might naturally arise, is it necessary to keep all 

 this coin hoarded in the treasury for a contingency that is 

 not at all likely to arise, and if it should arise the 

 inadequacy of the coin to meet the demand would only be 

 an additional proof of the utter fallacy of the system? 



Is it necessary to keep hundreds of millions of dollars 

 of a commodity (for such is gold and silver) locked up in 

 the treasury, that has a commercial value in the markets 

 of the world, and could be converted into other forms of 

 property that would confer a blessing on society, and be an 

 auxiliary to the Nation's prosperity? One of the greatest 

 objects to be attained with regard to the circulating 

 medium, is uniformity of volume. This would be impos- 

 sible if gold and silver were the only money, or if the 

 other money is made convertible into gold and silver. 

 The volume of currency would then depend upon the out- 

 put of the present existing mines, or the chances of dis- 

 covering new ones. The fact that gold and silver are unfit 

 to be the sole medium of exchange has frequently been 

 indicated by the supporters of the metallic system. In 

 1849 when gold was discovered in large quantities in Cali- 

 fornia, closely following rich discoveries in Australia, the 

 capitalists of Europe became so alarmed at the rapidly 

 increasing supply, and the consequent rise in prices, and 

 reduced value of the stock of coin on hand, that they 



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