The Tiffin tribune. (Tiffin, Ohio) 1868-1887, 1873-12-11


may have accrued. Ny own judg
ment is, that however much indi-
viduals may have suffered, one long
i step has been taken towards specie
payments, and that we can neve,
have permanent prosperity until
specie basis II reached, and that
specie basis cannot be reached and
maintained until our exports, ex'
elusive Of gold, pay for our imports
interest due abroad, and other specie
obligations, so heavy as 10 leave an
appreciabie accum ulation Of the pre-
cions metals in the country from pro-
ducts ofour mines. The development
Of mines of precious metals during
the past year, and prospective devel-
1 optaent Of them for years 70 come,
are gratifying in their results Could
but eone-half OF the gold extracted
from the mines be retained at home,
our advance towards specie payments
would be rapid. To increase our ex-
/ ports, sufficienteurrency is required
10 keep all the industries of tee cOun-
try employed. Without this, national
las well as individual bankruptcy mrst
leusue undue imitation ON the other
hand, while it might give Temporary
relief, would only to lead to infia-
ton Of prices, the impracticability Oi
competing in our own markets for
the products of home skill and labor,
and repeated renewals of present ex-
lperiences. Elasticity TO our circulating
nedium, therefore, and just enough
oSs< to transact the legitimate busi-
ness of the country, and to keep ali
the industries employed, Is what is
most needed. The exact medium is
specie, the recognized medium of ex-
change the world over. That obtain
ed, we shall have currency of an ex-
act degree of elasticity. II there be
too much of it for the legitimate pur-
poses of trade and commerce it will
fioW out of the country; if too little,
the reverse will result. To hold what
we have, and TO appreciate our cur
rency to that standard is a prob
lem deserving of the most serious con-
sideration of Congress. The expert
ence of the present panic has proved
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 such trials, cur
rency has become worthless, or so
much deprecated in value as to in
fate the values of all the necessaries
of life, as compared with the currency,
everyone holding it has been anxious
to dispose of it on any terms. Now
we witness the reverse. Holders Of
currency hoard it as they did gold in
former experiences of like mature.
1t is patent to the most casual obseTv-
er that much more currency or money
is required to transact the legitimate
/ trade of the country during the fall
and winter months, when the vast
crops are being removed, than during
the balance of the year. With the
present system the amount in the
country remains the same through
cut the entire year, resulting in ac-
cumulation of all the surplus capital
of the country in few centres when
not employed in the moving Of crops,
tempted thereby by the offer. of in
terest on call loans, interest being
paid. This surplus capital must earn
this interest paid. with profit, being
subject to call. 1t cannot be loaned
only in part at best to the merchant
or manufacturer, for a fixed term,
hence, no matter how much currency
there might be in the country, it
would be absorbed, the price keeping
pace with the volume, and panics,
stringency and disasters would be ever
recurring with the autumn. Elasti-
city in our money system, therefore,
is the object to be obtained first, and
next that as far as possible 3 preven-
tion of the use of other peoples mon
ey in stocks and other species ofspecU-
lation. To prevent the latter, 1t seems
to me, that one great step would be
taken by prohibiting the National
Banks from paying interest on depOs-
its, by requiring them to hold their
reserves in their own vaults. and by
forcing them into resumption, though
il would be only in legal tender notes.
For this purpose, would suggest the
establishment of, clearing houses, for
your consideration. To secure the
former, many plans have been sug-
gested, most, If not all, of which look
TO me like imitation on the one hand,
or compelling the Government on the
other to pay interest without cores
ponding benefits upon the surplus
funds OF the country, during the sea-
sons when otherwise unemployed. L
submit for your consideration wheth-
er this difficulty might not be over
come by authorizing the Secretary Of
the Treasury to issue, at any time, to
nominal banks Of issue any amount
of their notes below a fixed pereen-
tage 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 I;
the banks to forfeit to the govern
ment say per cent. on the interest
accruing. on the bonds so pledged
during the time they remain with the
Treasurer, as security for the increase
of 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 ofthe bonds withdrawn. /
would further suggest for your con-
sideration the propriety of authoriz-
ing National Banks TO diminish their
standing issue at their pleasure, by
returning for cancellation their own
bills and Withdrawing so many U.
s. bonds as are pledged for the bills
returned, in view of tie great actual
contraction that has taken place in
the currency, and the comparative
contraction constantly going on, due
to the increase of population, increase
of manufactures and all the indus
tries. do not believe that there is
too much of it now for the dullest
period of the year. Indeed, if clear
ing houses should be established, thus
forcing a redemption, it is a question
for consideration whether baking.
should not be made free, retaining all
the safeguards now required to secure
the bill holders in any modification of
the present law regulating National
Banks, and a further step towards
paying for the resumption of specie
payment. / invite your attention to
a consideration of the lropriety of ex-
acting from them the retention, as q
part of their reserve, either the whole
or part of the gold interest accruing
on u e bonds pledged as security for
their issue.I have not reflected enough
on the bearing this might have in
producing a scarcity of coin with
which to pay duties on Imports to
give it my positive recommendation
NOuE dNlChllOu - lllNlNEu " LlAE
subject. During the last four years
the currency has been contracted
directly by the withdrawal of three
per cent certificate compound inter
est notes and 7-5O bonds outstanding
on the 4th of March, 1859, all of which
took the place of legal tenders in the
bank reserve, to the extent of S63, 900, :
coo. During the same period there
has been much larger comparative
contraction of the currency. The
population of the country has largely
increased. More than 25,000 miles of
Railroad have been built, requiring
the active use of capital to operate
them millions Of acres Of land have
been opened to cultivation, requiring
capital to move the products /; manu-
factures have multiplied beyond all
precedent in the same period of time,
requiring capital weekly for the pay
ment of wages and the purchase of
material, and probably the largest of
all, the comparative contraction, aris-
ingfrom the organizing of free labor
inthe South. Now every laborer there
receives his wages, and for want of
savings banks, the greater part of such
wages is carried in pocket or boarded
till required for use. These sugges-
tons are thrown out for your consld-