The St. Cloud journal. [volume] (St. Cloud, Minn.) 1866-1876, 1873-11-27

your consideration whether this difficulty might |
not be overcome BY AUTHORIZING. tho Secretary
Of the Treasury to issue at any time to national
hapks Of issue any amount OF their notes, be- |
low n1od per cont Of their Issue, say 10 per |
dspositing with the treasury |
Of tho United States an amount OF government
bonds equal to the amount Of notes demanded;
the banks to forfeit to tho Govern
ment, say four per cent. on interest sccrning
on the bonds 80 pledged, during the time they
remain with the Treasury Is security for the in-
creased circulation ;(the bonds 50 pledged to be
either In whole or In part, by returning their
own bills. for cancellation In amount equal to
the face Of the bonds Withdrawn.
/ would further suggest for your cOnsidera-
ton the proprlety Of authorizing national banks
to diminish their standing issue at pleasure by
returning for cancellation their own bills and
Withdrawing 80 many United States bonds for
the bills returned.
sIn view Of the great actual contraction that has
taken place in the currency, and the greater com
parative contraction constantly going on, duo
to the increase of population and increase of
manufactures and all the Industries, do not
believe that there is too much Of it now for tho
dullest period OF tho year. Indeed.
II clearing houses should
be established, thus forcing redemption. 1t Is
a.question for consideration whether banking
should not he made fret, --retaining all safe
guards now required to secure bill holders, In
any modification Of present. laws regulating ma
tional banks.
Az further step towards paving the way for
resumption of specie payment, Invite yonr at
tention to consideration Of the o1riety Of
exacting from them the retention 40 part OF
their reserve either the whole or part of the
gold interest accruing upon the bonds pledged
- security for their issue. have not reflected
enough on the bearing this might have 10 pro-
ducing scarcity of coin with which to pay d.
ties on imports, to give it my positive recon-
meDdation, but your attention Is invited to the
subject. - :.
During the last few years the currency has
been contracted directly by the withdrawal of
three per cent. certificates, compound interest
notes, and $50 bonds outstanding ON the 4th Of
March, 1850, all Of which took the place OF
legal tenders in the bank reserves, to the extent
Of $6S,OOO.0O0. During tho same period there
has been much larger comparative contrac-
the country has been largely increased; more
than 5000 miles of railroad, has been built,
requiring the active use Of capital 10 operate
them; millions Of scres of land have been
opened to cultivation, requiring capital to re
move the products; manufactured have multi
piled beyond all precedent in the same
period Of time, requiring capital weekly for
payment Of wages and for the purchase Of
material; land probably the largest Of all com
parative contractiOns, arising from the
organizing of free labor in the south. Now
every laborer there receives his wages and.
for want Of savings banks, the greater part OF
such wages 10 carried In their pockets or hoard
cd for future use.
These suggestions are thrown ont for your
consideration without any recommendation
that they shall be adopted literally, but hoping
that the best method may be arrived At to 50
cure such an elasticity ef the currency
the industries Of the country and prevent such
IN imitation as will put off indefinitely the re-
sumption Of specie payments; an object de-
vout]y to be wished for by all, and by none
more earnestly than the class Of people most
directly interested-those who earn their bread
by the sweat Of their br0ws. The decisions Of
Congress on this subject will have the hearty
support Of the Executive.
OCEAN SHIPPING.
In previous messages have called attention
to the decline in American ship building and
recommended such legislation az would secure
to Us Our portion OF the carrying t1ade5' Ram-
ulsted by high rates and abundance Of freight,
the progress for the Inst year in ship building
nas been very satisfactory. There has bseh an
increase Of about per cent. In - the
'om6unt transported - in American
vessels over the amount Of last
year. With the reduced cost Of material which
,hsa taken place, 1t may reasonably be hoped
that this change WILDE maintained and even
increased. However, as we pay about eighty
million dollars per annum to foreign vessels for
transportation Of our surplus products to a
market, thus increasing the balance Of trade
against ne to this amount, the subject IL one
worthy Of Your senons consideration.
CHEAP TRANSPORTATION.
Cheap transportation Ia a subject that. has at
tfscted the attention Of both producers and
consumers for the past few years and has con-
tributed to, II 1t has not been the cause, of the
recent panic and stringency. As Congress ct
its last session appointed a special committee
to investigate this whole subject during the va
cation, and to report at this session, have
nothing to recommend until their report IL
ready.
There is one work, however, of a nationa.
character. Ia which the greater portion of the
East and West,the North and South are equally
interested, to which will invite your atten.
t1On. The State of New York has q canal
connecting Lake Erie with tide water on the
Hudson river. The State of Illinois has sim
liar canal connecting Lake Michigan with nav
igable water on the Illinois river, thus making
water communication inland between the Rast
and the West and South. These great artificial
water courses ars the property of the States
through which they pass and pay toll to those
States. Would 1t not be wise statesmanship
to pledge these States that If they will open
these canals for the passage Of large vessels
the government will look after and keep in
navigable condition the great public ways with
which they connect, to wit: The overrlough
on tho Hudson, the st. Clair Flats and the Illi-
nsis and Mississippi rivers. This would
be national work, one
OF great value to the producers Of the West and
Month In giving them cooar, &.anaxo.4.As..H..