it is urged by some that this amount
should be increased, others contend that a decided reduction is
absolutely essential to the best interests of the country. In view of
these diverse opinions, it may be well 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 latter;
showing that when our paper currency is compared with gold and silver
its commercial value is compressed into three hundred and fifty
millions. This striking 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 holders 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 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 100 per cent.

Legislation for the accomplishment of a result so desirable 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 the War of the Revolution, 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 medium they
conferred upon Congress the power to coin money and regulate the value
thereof, at the same time prohibiting the States from making anything
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 designed. Our circulation now embraces, first,
notes of 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, issued by the United State