The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1873-12-03

how much currency there might be in th,
country it would be absorbed, prices keep
ing pace with the volume, and panics
stringency and disasters would ever be re-
curing with the autumn. Elasticity II
our monetary system, therefore, is the
object to be obtained first, and next Ia
that, as far as possible, a prevention o.
the use of other peoples money in stock
and other species Of speculation. To pre-
vent the latter it seems to me that one o, eat
step would be taken by prohibiting the
national banks from paying interest on de.
posts, BY. requiring them to hold their re.
serves in their own vaults, and by forcing
them into resumption though It would
only be in legal-tender notes. For this
purpose 1 would suggest the establishment
OF clearinghouse for your considera.
ton. To secure the former many plans
have been suggested, most if not all OF
which looks to me more like imitation on
the one hand, or compelling the Government
on the other to pay interest, without cor
| responding benefits, upon the surplus funds
| Oh the country during the seasons when
otherwise unemployed. I submit for your
consideration whether this difficulty might
not be overcome by authorizing the Secre-
tary OF the Treasury to issue, at any time.
to natianal banks Of ISSUE any amount of
their own notes below fixed percentage
OF their issue-say forty per cent. upon
the banks depositing with the Treasurer of
the United States an amount of Govern
ment bonds equal to the amount of notes
demanded, the banks to forfeit to the Gov
eminent bonds equal to the amount of notes
demanded, the banks to forfeit to the Gov
eminent say four per cent. of the interest
accruing on the bonds SO pledged during
the time they remain with the Treasurer
as secarity for the increased circulation.
the bonds so pledged to be redeemable by
the banks at their pleasure, either in whole
or in part, by returning their own bills for
cancellation to an amount equal to the face
of the bonds withdrawn. / would further
suggest for your consideration the proprie-
tv of authorizing national banks to diInin-
ism tneir Standing issue at pleasure by re-
turning TOR cancellation their own bills and
as are pledged for the bills returned.
In view Of the great actual contraction
mat mas taken place in the currency, and
the comparative contraction continuously
gong on, due to the increase of popula-
ton, increase of manufactures and all the
Industries, l do not belisve there is too
much OF it now for the dullest period of
the year. Indeed, if clearinghouse should
De established, thus forcing redemption, it |
is q question for your consideration |
whether banking should not be made free,
retaining all the safeguards now required |
TO secure bill-holders. In any modifica-
ton OF the present laws regulating national |
banks, as further step towards prepar-
ing Tor resumption of specie payments, l |
invite your attention to consideration of |
the propriety Of exacting from them the
retention as a part of their reserve either
The whole or o part Of the gold-interest
accrulrg upon the bonds pledged as a Sc
curity for their issue. l have not reflected
enough on the bearing this might have in
producing scarcity of coin with which to
pay duties on imports to give it nv posi-
1--we recommendation but your attention is
invited to the subject.
During the last four years the currency
has been contracted directly by the with
travail of three per cent. certificates, com.
,ound-lnterest notes, and seven-thirty
'onds outstanding on the 18th of March.
500, and of which took the place of legal.
enders in the bank reserves to the extent
! sixty-three millions of dollars. During
ne same period there has been a much
arger comparative contraction of the cur.
ency. The population of the country
las largely increased. More than twenty.
We thousand miles of railroad have been
uilt. requiring the active use of capital to
peratc them. Millions of acres Of land
ave been opened to cultivation, recurring {
apltal to move the products. Manufac-
ories have developed beyond all pre- 9
edent in the same period of time, T
squirng capital weekly for the paw 7
tent of wages and for the purchase of Z
lateral. And probably the largest of all 2
Imperative contraction arises from the =
rganization of free labor in the South, i
ow every laborer there receives his .
ages, and for want of savings banks the g
eater part of such wages is car. Q
ca in the pocket or boarded until REQUIRED 0
r use. These suggestions are thrown out Q
r your consideration without any recon- a
endation that they shall be adopted liter tt
~, but hoping that the bestmethod NAV be "
rived at to secure such an elasticity of a.
currency as will keep employed ali the 9
dustries of the country, and prevent II
Gu an imitation as will put off indefinitely NJ
9 resumption of specie payments-an ~
Ject SO devoutly to be wished for by all, u
q by none more earnestly than the class c(
people most directly interested c.
10 earn their bread by the sweat of their "
oW. The decisions o, Congress on this W
beet will have the hearty support of the
lecutive.
INCREASE IN sHIP-BUILDING. ac
In previous messages have called atten. g.
q to the decline in American shin. of
iding, and recommended such legisla. or
as would secure to us our proportion en-
the carrying trade. Stimulated bv high SO
IS and abundance of freight, the pro. xii
50 ior the last year in ship-building has rev
n very satisfactory. There has been the
increase of about three per cent. in the Inc
cunt transported in American vessels spe
the amount of last year. With the lin
aced cost of material which has taken Tr'
'e, 1t may reasonably be hoped that This Az
gIess Will be maintained and even ten
eased. However, as we nav abont ticr
lty million dollars per annum to foreign pro
'els for the transportation of our sur mis-
products to market, thus increasing ma
balance of trade against us to tbis acc
unt, the subject is one worthy of your this
BUS consideration. nj The
CHEAP TRANspoRTar1oN tion