l to be overanxious in exacting
from the borrower rigid compliance with the letter of the bond.

If provision be made for the payment of the indebtedness of the
Government in the manner suggested, our nation will rapidly recover its
wonted prosperity. Its interests require that some measure should be
taken to release the large amount of capital invested in the securities
of the Government. It is not now merely unproductive, but in taxation
annually consumes $150,000,000, which would otherwise be used by our
enterprising people in adding to the wealth of the nation. Our commerce,
which at one time successfully rivaled that of the great maritime
powers, has, rapidly diminished, and our industrial interests are
in a depressed and languishing condition. The development of our
inexhaustible resources is checked, and the fertile fields of the South
are becoming waste for want of means to till them. With the release of
capital, new life would be infused into the paralyzed energies of our
people and activity and vigor imparted to every branch of industry. Our
people need encouragement in their efforts to recover from the effects
of the rebellion and of injudicious legislation, and it should be the
aim of the Government to stimulate them by the prospect of an early
release from the burdens which impede their prosperity. If we can not
take the burdens from their shoulders, we should at least manifest
a willingness to help to bear them.

In referring to the condition of the circulating medium, I shall merely
reiterate substantially that portion of my last annual message which
relates to that subject.

The proportion which the currency of any country should bear to
the whole value of the annual produce circulated by its means is a
question upon which political economists have not agreed. Nor can it
be controlled by legislation, but must be left to the irrevocable laws
which everywhere regulate commerce and trade. The circulating medium
will ever irresistibly flow to those points where it 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
country amounted to not much more than $200,000,000; now the circulation
of national-bank notes and those known as "legal-tenders" is nearly
seven hundred millions. While