The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1869-12-30

means by which the National Government
10 naaiRtaiAsd.
The right to use lawful powers frsa
frem any restrictions or claim Of anethsr.
10 on escsRtial condition Of AovereiR nty,
and the national government should new
or surTeadsf or qualify it's power in THE
particular. In eRsriAg tho new loan, cit
lssrs esA s1bjscts Of ethsr governments
should raosivs the strongest assurances
that the interest and principal are 10 be
pAla In ooia according to the tarma Of .hs
bonds issued, without any deduc4iea or
abatoEaeAt whAsevef Ia order 10 ave;d
the necessity of employing agents for the
Ess~tiAtisn Of loaAc, respectfully recon-
meAd that liberal eommissioA be allew.
ed TO subscribers, and that those who frst
sEbscribo be permitbod 10 select the olasn
OF benae in which their Subscriptions shall
be made. farther recomkaea6, in cen
nsotiOa with the proposed loan, that tbs
hsnks established HadsF the Get 10 pro-
vide ,nAtieRel eHrrsney be reqaiFed to
substiteso benda that NAY DO issnsd under
the proposed loar fes thooe now deposit
Cd 90 sseaHity for the redemption Of their
biils. Should envy benk be unwilling to
accept tao now condition, pFeviOien should
DO made for the surrender Of ito charter,
and authority given for the organization
OF new easEs to supply tho deAsiencY
thus created
An esusntial condisionto the suceesa of
the proposed new loan is tho continuance
OF the prsssnt revenue system. A chief
means By which the preecnt holders of
6-SO boads can be induced to surrender
them, and receive bond upon longer
time and OF Q lower 9ete Of interest, il the
eeTtainty furaishsd by tho magnitude of
the national revenue, that those bonde are
soon TO be redeemed We must be pre-
pared to offer thsn the alternative, oithsr
Of accepting tho new bond at lower rate
Of interest, or tAs payment Of tina princi-
pal Of tho exissiBg bends. Whsn El2O
honda shall have bocR funded, to tbs
aaacunt of f1 ,0o0, eco 900, or e1,2O0, 00O,-
600, the revenues can DO reduced matcri-
ally, and yet sufficient suns DO Tsieed TO
meet the ordinary expenses Of the govern
rasnt, TO pay the interest ON the public
debt, and also 10 pay from e26, GOO, 900 to
$50, 10000 of the principal annually.
Should our success In negotiating the loan
be equal 10 nay expectations, based upon
the Aaet that the ability and disposition
of the people Of tie United States to paw
the pablo debt are sufficient to Justify us
in assunoinG that the bonds Of the q. s.
will command the highest rates in the
markets Of the world, We shall then be in
. condition TO enter upon the work of re-
ducing taxation ct the eommencement of
the neKt seefion Of Congress.
On the 8Oth Of June, 1858, tho amount
of outstanding three per cent. certificates
and compound interest notes convertible
into three per cent. certificates, was a71,-
60d, $50; On the both Of June, 1859, the
amount outstanding was 054, col ,410, show
ing Q reduction Of e16,613,AeO in that
form Of indebtednssa. On the first of De-
esMbor, 1890, the amount outstanding was
still further reduced &c Q4O, Tie, $50, chow
ing total reduction in seventeen months
Of &22, 1888, TAO. The three per cent certi-
fcates, are q substitute 20 considerable
extent, for United States bonds BEING
largely hold by banks esa portion of their
reserve, end thus indirectly, though not
to their fall nominal value, they sWellthe
volume of currency. I recommend that
provision be made for the redemption of
the three per cent. certificates within a
reasonable time, and as q compromising
measure for the reduction in the amount
of currency which would thus be caused.
that authority be given to grant charters
for banks in the states where the bank
ing capital is less than the share to which
they woald be entitled, to an amount NOT
exceeding $35,000,00c in the aggregate.
The redemption Of three per cent, certi-
fcates, and the additions to banking can
ital might be so arranged as not to pro-
duce a serious disturbance in the finances
or business of the country, while addi-
tlonal banking capital would be supplied
to the sections now in need of it, and this
without any increase of the volume of
circulation. There are two evils in the
present banking system which REQUIRES
remedy by prompt and efficient legislation
The first is the practice on the part of
banks, of allowing interest upon deposits.
The effect Of the practice is, that monev
in the hands of individuals, which other
wise might be loaned for regular mercan-
tile and other business, is diverted into
the custody of banks, upon the idea that.
if the security is not better, payment can
be obtained at 3 moments notice. Coun-
! try banks, and others remote from the
large centres of trade, having received
money on deposit, for which tGey paw in
terest, are anxious to transfer such funds
to other banks from which they will re-
ceive an equal or larger amount of inter-
est; in return they are stimulated also by
the desire to place their funds where they
can be at all times commanded. Thus in
fuenced, large sums are placed on de-
post with banks in cities, especially in
the city Of New York, which is the great
centre of trade and finance for the Allan
tic coast. In the ordinary course of trade
the currency of the country tends randi