Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1873-12-11

would suggest the establishment of
clearing houses for your eonsideFa-
tion. To secnre the former nanV
plans have been suggested, most, il
| not all, of which look to me like the
imitation on the one hand, or compeFf-
ing the government ON the other to-
pay interest without corresponding
benefits upon the surplus funds Of the
country during the seasons when 9TH
erwise unemployed --
REMEDY FOR PIE FINANCIAL, Ills.
submit for yoHr consideration
whether siEis difficulty mfghtz not be-
overcome by authorizing the Secreta-
ry Of the Treasury to issue at any time
to nominal banks of issue any amount
of their notes below y fiSe,t RerccE taag
of their issue-say forty per CENT
upon the banks depositing with the
| Treasurer of the United States an
amount of government bonds equal to-
the amount of notes demanded. the
banks to forfeit to TIE government
say 4 per cent. on the interest accru-
! ing on the bonds so pledged during
the time they remain with the Freas-
| ury as security for the increased eircu-
lation, cIe bonds so pledged to be re-
deemable by the banks at their p9e2S~
ure either in whole or in part by re-
| turning their own bills for circulation
to the amount equal to the face of the
bonds withdrGwn. ztsf "a
I would further suggest for your
consideration the propriety Of autAoF<
izing national banks to diminish their
standing issue at pleasure by returning
for cancellation their own bills and
withdrawing so Baany United States
bonds as are rfctged for the bills Fs>
turned.
EASKs. ae 7ti 1oi
In view of the great actual contrac.
ton that has taken place in the eurfen-
cy, and the comparative contractfoR
constantly going on, due to- the :. in
crease of speculation, increase of man.
ufaCtures, and all the industries, I do
not believe that there is too much q
it now for the dullest period Of the
year. Indeed, if clearing houses
should be established, thus forcing re-
demption, is a question for considera-
tion whether banking should not be-
free, retaining all the safeguards now
required to secure bill hokiers.
In any modification of the present
laws regulating national banks, and
a further step toward preparing foF
the resumption of specie payment, IT.
vite your attention to the considera-
ton of the propriety of exacting from
them the retention, us part OF theiR
reserve, either the whole or a part Of
the gold interest accruing upon the
LII for fhaSa
issue. l have not reflected enough on
the bearing this might have in pro.
ducing a scarcity OF coin with which.
to pay duties on imports to give ie
my positive recommendation, but yOnE
attention is invited to the subject. Dtsr
ring the last four years the currency
has been contracted directly by the
withdrawal of 3 per cent. GeFti6eatesr
compound interest notes, and 80
bonds outstanding on the 4th o.
March, 1869, all of which took the
place OF legal tenders in the bank re-
serves to the extent of sixty three mil.
| lions of dollars During the same Pc
Rod there has been much larger CON-
parative contraction of the currency
Fac population of the country has
| largely increased. More than 25soeO
miles of..railroad have been built, re-
quitting tue active use of capital TO
| operate them. Millions of acres Of
land have been opened to cultivationi.
requiring capital to move the pro-
ducts. Manufactures have multiplied
beyond all precedent in the same. pc.
ROD of time, req uiring capital weekly
for the payment of wages and for the
| Of al a hlly-
the largest of all, the comparative
contraction arising from the organic
ing 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 is carried
in the pocket o. boarded till required
for use. 4H
These suggestions are thrown out
for your consideration, without s1E
recommendation that they shall. bo.
adopted, literally. But hoping that
the best method may he arrived. at to,
secure such an elasticity of the. cuE-
rency as will keep employed, all. the
| industries of the country. and prevent
such an imitation as will put off indefl-
nitely the resumption OF specie pay.
ments, an object devoutly to- be wish =
ed for by all, and by none more earn
estly than the class of people most di-
| rectly interested-thOse who earn theig
bread by the sweat of their bIoR-
The decisions of Congress ON this
question will have the hearty support
of the Executive. z.a !=
. AMERICAN sIIIRBEILDiNG. 81
In previous messages 7 have called
attention to the decline in Americas
shipbuilding, and Teeommende6I sOch
Legislation as would secure to Us our
proportion of the carrying trade. stim
ulated by high rates and the abR06-
ance of freight. The progress fos the
last year in shipbuilding has been very
satisfactory There has been M in.
crease of about three per cent. IN the
amount transported in AmeFTcxu veg.
sells over the amount of last year
With the reduced cost of material
which has taken place, it may FeSsOn-
ably be hoped that this charge will be
maintained, and even increased. How.
ever, as we pay about $50. .000, 900 per
annum to foreign vessels for the trans
portation of our surplus prOtucts.to .
market thus increased, the balance Of
trade is against US to this amount
The subject is one worthy Of your Sc
rious consideration. ~
Cheap transportation is q subject
that has attracted the attention of both
producers and consumers for the Dasa
few wears, and has contributed to, if g