ty of the
Government, as early as may be consistent with the principles of sound
political economy, to take such measures 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 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 that 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 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 Government dues, excepting imposts; and, third, gold
and silver coin. By the operation of our present system of finance,
however, the metallic currency, when collected, is reserved only for one
class of Government creditors, who, holding its bonds, semiannually
receive their interest in coin from the National Treasury. They are thus
made to occupy an invidious position, 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 plighted faith of
the Government should be inviolably mainta