The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1869-12-17

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BONDS HELD ABROAD
The suggestions that I have made
indicate my opinion that it will not be
wise to resume specie payments while
so large part of the interest bearing
debt of the country is represented by
five-twenty bonds, aud held by Euro
pean merchants, bankers aud manu-
facturers. The questions that have
been raised in regard to the nature of
the obligation assumed by the govern
ment, in the issue Of these bonds. have
undoubtedly deferred many persons
from purchasing them as a permanent
investment, and consequently they are
largely held in this country and in
Europe for speculative purposes by per
sons who design to put them upon the
market whenever an advance shall furn-
ish sufficient inducemenb or when
political or financial disturbances may
create demand for money for other
purposes. 1t is proba5ie that from
seven to nine hundred millions of these
bonds are now held in Europe, and to
a considerable extent by persons who
will dispose Of them under the infuen-
ees to which l have referred. Such
panic as existed in Europe in 1866, at
the opening of the Austrian and Prus-
sian war, would be likely to induce the
return of sufficient amount to this
country for sale, to embarrass business
and in case of resumption to cause the
suspension of the banks: 1t is, there
fore in my judgment essential that the
largest part of the five-twenty bonds be
withdrawn, and that other bonds be
substituted in their place, issued upon
terms and conditions which admit of
no doubt. In fue, the practical ques-
ton is not merely the resumption of
specie payments. As a measure by itself
it is not difficult but the problem is to
resume under such circumstances that
the position can be maintained not only
in time of tranquility, but also in perie.
Our course, it seems to ne, is plain.
Every measure of the government bear
ing upon the subject should ten1 to
appreciate the yaeue Of our paper cur
rency. 1t is probable that some
decrease in the volume of paper will
ultimately be necessary, and [ therefore
respectfully suggest that the secretary
of the treasury be clothed with author
ity to reduce the circulation Of United
States notes in amount not exceeding
two millions of dollars in any one
month Thus will the country be brought
gradually 1t may be, and yet without
disaster, into a condition when the
resumption Of specie payments will be
easy if not unavoidable.
DIFFRENT CLASSES OF BONDS
On the lst of December, 1869, the
principal of the public debt of the
United States, not deducting bonds and
each on hand, amounted to S2,6O5,-
2s6, 1882. OF this amount the sum
of 356,I13 ,258, so is represented. Of
the United States notes bearing interest
the esrgsr part is needed for circulation
but the amount can be reduced from
the ordinary revenue Of the country if
Congress shall consider it expedient to
make provision for such reduction. The
fractional currency in circulation was
$3s, ,ss5 ,564.6s, and there is no occs-
sion for any legislation in reference to
this item 6f the public debt. There
we're outstanding, also, certificates for
gold deposited in the treasury to the
Tmount of $50, ,s62, 940. These cerif-
Gates are redeemable on presentation.
| These three items amount in the ag-
gregate to S3I, 1861, 1858, Is, and in max
ing provision for the public debt they
are not necessarily to bsconsidered. OF
the loan of January Ist 1861, the sum
of 81, ,O22,OO0 is outstanding and pay.
able on the first of January, 1861. The
loan of 1858, OF $50, 100000, is pay
able in 1878. The bonds known as
lO-40 bonds amounting to S194 1861
500, are not payable until 1874. The
six per cent, bonds, payable in 1888,
amount to s2s3, 3,677, 900. The bonds
known as Sis and lO-4Os, amounting
lin the aggregate to s47S,244, 900, are
not due and cannot be paid previous
to 1874 and 1881. 1t is unnecessary to
4 consider them in making provision for
a new loan. The $40 bonds, anODdt-
ing in the aggregate to Sl,6O2, ,671,-
100, are either due or will soon become
due, and it is to this class of the public
debt, and to this class alone, that
attention should be directed. Of this
amount, the sum of $50, ,477,s 800 has
been purchased since March last and
the bonds are now held by the govern
ment Before any measure for funding
the 500 bonds can be consummated,
I the government will be able to purchase
at least S75,OOO,OOO more, There
will then remain on the 1st Of July
next about 81, ,45O, 100000 ofthe $40
bonds in the hands of the public
creditors. OF the entire Indebtedness of
the United States, only the unimportant
sum Of S27, 100000 will be due and
payable previous to 1874.
EVILS IN THE BANKING SYSTEM.
There are two evils IN the present
banking system which require reme-
dy by prompt and efficient legislation.
The first is the practice on the part OF
banks allowing interests upon deposits.
The effect of the practice is that moneys
in the hands of individuals which 9th
erHise might be loaned for regular mer-
camille and other business purposes are
diverted into the custody of banks upon
the idea that if the security Is not better
payment can be obtained at a moment:
notice. Country banks and Others re-
mote from the large eenters of trade
having received money on deposit, fol
the interest are anxious to transfer
such funds to other banks from which
. they will receive an equal or larger
amount ofinterest In return. They are
stimulated, also, by the desire to plaet
their funds where they can be at al
. times commanded. Thus Influenced
t large sums are placed on deposit witt
banks in cities, especially in the city 0
/ New York, which is the great center o
trade and finance for the Atlantic cost
8 In the ordinary course Of trade the cur
, rency of the country tends rapidly u
2 these cities, and it is unwise to stimu
: late this tendency by artificial means
: but the evil does not end with the i'm
. L,,,,rt Of The counfrv as tn