Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1873-12-05

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Ii either event, it is your duty p
heed tho lessor, and provide by
wise and well considered lcgisla.
ton, rs far MS lies in your power,
against its recurrence, and to take
} advantage Of all benefits that may
have accrued. My own judgment
is, that, no matter how much in
diyidaals may have suffered, one
long step has been taken toward
SPECIE pAYAENT;
and that we can never have perma-
nent prosperity until an entirely
new basis is reached; and a specie
basis cannot be reached and main
tanned until our exports, exclusive
Of gold, pay for our imports. Inter-
est due abroad and other specula-
tions are SO heavy rs to leave no APP
preciablo accumulation of these
metals in this country from the
products of our mines. The devel-
opment of our
MINES OF PRECIOUS METALS
during the past year, and the pro.
spective development Of them for
years to come, are gratifying in the
extreme; could but onc-half the
| gold extracted from the mines be
retained at home, our advance to-
ward specie payment would be rap
id. To increase our exports, suf.
ficient currency is required to keep
all the industries of the country EN-
ployed. Without this, national as
we'll rs individual bankruptcy must
ensuc. re
UNDUE IMITATION,
while it might give temporary re
lief, would tend only to lead to in
flation of prices. 10 give elastici-
ty to our. circulating medium,
therefore, and just enough of it to
transact the Legitimate business of
the country, and keep all industries
employed, is what is most desired.
The exact medium is specie, the
recognized medium of exchange
the world over. That obtained,
we shall have a currency of an ex.
act degree OF elasticity. If there
be too much of it for the legitimate
purposes Of trade and commerce, it
will flow out of the country; if too
little, the reverse will result. TO
hold what we have, and to apprc.
ciatc our currency to that stand.
ard, is problem deserving of the
most serious consideration of Con-
gress. The experience Of the present
panic has proven that
THE CURRENCY OF THE COUNTRY,
based as it is upon the credit of the
nation. is the best that has eyer
been devised. Usually, in times of
such trials the currency has become
worthless, or so much depleted in
value as to initiate the value of all
the necessaries of life as compared
with the currency. Every one hold
ing it has been anxious to
dispose of it on any terms.
Now we witness the reverse.
Holders Of currency boarded
it like they did gold in former ex-
periences Of like nature. 1t is pat
ent to the most casual observer that
much more currency is required to
transact the Legitimate trade Of the
country during the fall and winter
months, when vast crops are being
moved, than during the balance of
tho year. With our prescn: system
the amount in the country remains
the same throughout; the year, re-
sulting in the accumulation of the
surplus capital Of the country in
the principal cities, when not en-
ployed in moving the crops, being
tempted th,thcr by offers Of high in
tercst. This surplus capital must
earn this intesest, besides profit.
Being subject to call, it can only be
loaned in portions best suited to
the merchant or manufactures, for
a fixed term. Hence, no matter how
much currency there might be in
the country, it would be all alb
sorbed, prices keeping pace with
the volume, and panic, stringency
or disaster repeatedly occurring.
While elasticity in our money sys-
tenn is one object to be obtained, the
next, as far as possible, is the pre-
vention Of the use of money in stocks
aud other spcculations. To prevent
the latter, it seems to me, one great
step would be taken bv
PROHIBITING NATIONAL BANKS PAY
ING INTEREST ON DEPOSITS
by requiring them to hold their re-
serves in their own vaults, and
working them into resumption. l
would suggest the establishment of
Clearing Houses for your consider
alton. TO secure the former many
plans have been suggested-most of
which look to me like imitation on
the one hand, or like compelling the
government, ON the other, to pay in
terest, without corresponding bene-
fits, upon surplus funds of the coun-
try during the season when other
wise unemployed. l submit for
your consideration whether this diff
ticulty might not be 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 point of
their issue, say 40 per cent, the
banks deposi8ng with the Treas
urer of the ! United States any
amount Of government bonds equal
to the amount of notes demanded,
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 in
creased CIRCULATION; the bonds so
pledged to he redeemable by the
banks at their pleasure, eth
or in whols or in part, by
returning their own bills for cancel
lation TO like amount equal to the
face of the bonds Withdrawn.
l would further suggest for your
consideration the propriety of
authorizing National banks to d.
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