Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1873-12-05

toward specie payments would be rapid.
10 increase our exports sufficient cur
of the country employed. Without this,
national as well as individual bankruptcy
must ensue. Undue imitation, on the other
hand, while 1t might give temporary relief,
would only lead to initiation of prices.
THE THING DESIRED.
Just enough circulating medium TO trans
act the legitimate business of the country
aud 10 keep all industry employed, Is what
Is most to be desired. The exact medium
Is specie, the recognized medium of ex-
| change the world over. That obtained, we
| shall have a currency of an exact degree of
| elasticity. If there be too much of 1t for
| the legitimate purposes of trade and COM
merce, IL will How out of the country; II
too little, the reverse will result.
THE PROBLEM SET FOR CONGRESS.
To hold what we have, and to appreciate
| our currency to that standard, Is problem
deserving of the most serious consideration
of Congress. The experience of the pres
| cnt panic has proven that the currency of
the country, based as It is upon the credit
of the country, is the best that has ever
| been devised. Usually, In times of such
trials, currency has become worthless, or
| so much deprecated In value as TO initiate
the values of all the necessaries of life, as
| compared with the currency. Every one
| holding it has been anxious to dispose of il
| on any terms. Now we witness the reverse.
The holders of currency hoard it as they
did gold in former experiences OF a like ma
| ture.
II is patent to the most casual observer
that much more currency or money is re-
quired to transact the legitimate trade of
the country during the fall and winter
months, when the vast crops are being NOV
ed, than during the balance of the year.
| with our present system, the amount in
| fba romans tlp thrOuUhOnt
| the entire veal, resulting in an accumula-
| ton of all the surplus capital of the country
in few centres, when not employed Ion
the moving of crops, tempted there by Of
iers of interest on call loans. Interest be-
ing paid this surplus capital must earn
this interest with profit. Being subject to
call, IT cannot be loaned, only in part, Mt
best, TO the merchant or manufacturer for
a fixed time; hence, no matter how much
currency there might be in the country, il
would be absorbed, prices keeping pace
with the volume, and panics, stringency
and disasters, would ever lie ling with
the autumn. Elasticity in our monetary
system, therefore, is the object TO be attain
ed first, and next to that the prevention of
the use of other peoples money in stock
and other species of speculation.
TO prevent the latter, ii seems TO me t at
one great step would be taken by prohibit
ing the national banks from paying inter
est on deposits by requiring them to hold
|
forcing them into resumption, though it
would be onl y in legal tender notes.
THE PRESIDENTS PLANS.
For this purp SO would suggest tho estab-
lishment Of clearing houses for Your considera-
ton. To secure the former many plans have
been suggested, most IL not all, of which look
to me more like imitation, on the one hand, or
compelling the government. on the other, to pay
interest without corresponding benefits. upon
the surplus funds of the country during the sea
l.. xnI II
submit to your consideration whether this diff
Guilty might not b. overcome by authorizing the
Secretary of the Treasury to Issue at any time to
national banks OF issue any amount of their
notes below a fixed per cen'age of their ISSUE
say about 40 per cent-upon the banks de-
posting with the Treasurer OF the United States
an amount of government bonds equal to the
amount Of notes demanded. the banks to forfeit
to the government, say 1 per cent. OF the inter
est accruing on the bonds pledged during the
time they remain with the Treasurer as securi-
ty for the increased circulation, the bonds "a
pledged to be icdeemable by the banks at theil
pleasure, either in whole or in part by returning
their own bills for cancellation to any amount
f equal to the face OF the bonds withdrawn.
A PLAN FOR An ELASTIC CURRENCY.
would further suggest for your consideration
; the propiiety Of authorizing National Banks &c
diminish their standing issue at pleasure by re
tuning for cancellation their own bills and with
drawing 70 many United States bonds as are
pledged for the bills returned. In view of the
great actual contraction than has taken place
: in currency, and the comparative contraction
: continually gong on, due TO the increase Of pop
, ulation, increase of manufactures, and all the
industries, do not believe that there is toe
much of it now for the dulest period OF The
, year. Indeed, il clearing houses Should be es
! tablshed, thus forcing redemption. it ID
; question for your consideration whether bank
; ing should not be made free, retaining all tn,
, safeguards now required to secure bill-hold
ere.
2 now 10 KEEP THE GOLD IN THE BANKS.
In my modification Of the present laws reg
, ulating National banks, as further steps towarC
, preparing for the resumption of specie paymen
/ invite your attention to considerable ion of TIT
proprety Of exacting from them the retention
t as part of their reserve, either the whole or
: | part of the gold interest accruirg upon bond
pledged as security for their issue. have no
reflected enough on the bearing this might hav'
. in producing a aicty OF coin with which t
[ pay duties Oh imports to give it my port W
Recommendation, but your attention IL invited
10 the subject During the last four years, thu
, currency has been contracted directly by thu
, | withdrawal of three per cent. certificates, com
! pound interest notes and I 30bonds outstanding
e ON the 4th Of March, 1869, all Of which took tn,
place OF legal tenders i'll the bank reserves t
the extent OF $50, 100000. During the same per
Z iod there has Ueen much larger comparative
e contraction OF the currency. The population o
I the country has largely increased, more THAI
20, 900 miles OF railroad have been built, requir
: ing the active use of capital to operate them
|
f cultivation, requiring capital to move the pro
= ducts; manufactures have multiplied beyond al
precedent in the same period of time, requiring
capital weekly fol the payment OF wages and TO
the purchase OF material, and probably the larg
II est Of all comparative contraction arises from or
e ganzing free labor in the South. Now every Ia
G borer there receives his wages and for want o
J. Savings Banks the greater part OF such wages Il
T. carried i'll the pocket or boarded until required
It Tor use. These suggestions are thrown out TO
e your consideration without any recommendation
, that they should be adopted literally but hoping
h that the best method may DO arrived at TO secure
a such an elasticity of the currency as will keel
: employ ed all the industries of the country ant
. prevent such aninhation as will put or indefinite
il ly the resumption of specie payments, an OBJ
;, ect 80 devoutly to DO wished for by all, and b.
= none more earnestly than the class of peopl
most directly interested, those who earn thei
bread by the sweat o ftheir brow. The dccision
=, by Congress on this subject will have tho heart
g support OF the executive.
i SATISFACTORY PROGRESS IN snPBuILDING.
y In previous messages have called attention
u to the decline III American shil building, an
= recommended such legislation as would secur
o to us our proportion OF the carrying trade
o stimulated by the high rates and abundance o
freight the progress for the last yearin shipbuild
: ing has been very satisfactory. There has bee
II an increase Of about per cent. in the amour
d transported in American vessels oy er the amour
r OF last year. With reduced cost of material whic
I has taken place, 1t may reasonably DO hope
o that theis progress will be maintsi ed and eve
n increased. However, as We pay about $1,000
- cooper annum to forei n vessels for tho ranspol
~ tation OF our surplus products to market thu
increasing the balance OF trade against us to thi
amount the subjec is one worthy OF your SER
rs Gus consideration.
. CHEAP TRANSPORTATION.
- Cheap transportation is a subject that has al
u tracted the attention of both producers and cor
a. ., sumers for the past few years, and has contr
W buted to, II it has not been the direct cause Of
" the recent manic and stringencY. As Congresl