Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1873-12-04

"Ss io' tneir senators. But | would
nave the work conducted at times
when the rev mes of the country
would abundantly justify it. The rev.
enues have materially fallen off for the
last lew months of the present fiscal
year from what they were expected to
produce, owing TO the general panic
now pervading, which commenced
ABOUT the middle of September. The
fuil effect of the disaster, if it should
not prove to be a blessing in disguise,
Is yet to be demonstrated; in either
event, 1t is your duty to heed the les
son and provide by wise and we'll con
sidered Legislation, as far as it lies in
your power, against its recurrence,
and TO take advantage of all the bene-
hts that may have accrued. My own
Judgement is, that however much in
dividuaIs may nave suffered, Que long
step has been taken toward specie
payments; that we cannot have per
manent prosperity until an entire new
basis is reached, and specie basis
cannot be reached and maintained
until Our exports, exclusive of gold,
pay for our imports and interest that is
due abroad and other sp culations so
heavy as to leave an accumulation of
those metals in our country from the
products of our mines. The develop.
ment of mines of precious metals dur
ing the last year, and the prospective
development of them for the year To
g me, are gratifying in the extreme
II but half the gold extracted from the
mines should be retained at home, our
advance toward specie payment would
be rspld; n sufficient
currency is required to keep all the in
dustrles of the country employed;
without this, national as well as indi-
vidual bankruptcy must ensuc. Infla
ton, on the other hand while it might
give temporary relief, would only lead
to an initiation of prices. The impos-
sloillty OF competing in our ma, ket for
produce, some still labor and repeated
r newals of experiences elasticity to
our circulating medium; therefore
enough of it TO transact the legitimate
business of the country and to keep
all industrious employed, is what is
now desired.
THE EXACT MEDIUM.
Specie is the recognized medium of
exchange the world over; that obliges
that we shall have a currency Of an ex
+ act degree of elasticity; if there be too
much OF it Tor the legitimate purposes
OF trade and commerce, it will flow
ont of the country; if too little of it,
The reverse will be the result To
hold what we have and appreciate our
, currency to that standard is deserving
; OF the most serious consideration of
3 Congress. The experience of the
{ present panic has proven that the cur.
. rency ofthe country, based as it is mp
on the credit of the country, is the
best that has ever been devised. Us
. ually in times Of such trials, currency
has become worthless, or so much de.
! preciated in value as TO initiate the
value of all the necessaries of life as
compared with currency; anyone hold
ing it has been anxious TO dispose Of
3 il on any terms, and now witness the
reverse-the holders of currency hoard
, it as they did gold on former occas-
a ions Of like nature 1t is patent "a
e the most casual observer 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
I the year. With the present system
3 the amour. in the country remains
the same throughout the year, result
0 ING in an accumulation of the surplus
} capital of the country when not EN-.
I ployed IN the moving of crops. Temp
e ted then by offers of interest being
r paid, the holders of this capital loan i,
$ out This surplus capital must earn
( this interest and pay profit. Being
r subject to call it cannot be loaned, on.
Y Iy in part at best to merchants or man
!. ufacturers for fixed term, hence, nc
. matter how much currency there may
be in the country, it would be absorb
1 ed, the prices keeping pace with the
, volume; or panlcs, Iingency and dis
asters would ever be recurring each
, year, owing to the elasticity in our
D money system. There is this object
, to be attained first, and next, as far as
possible, prevention of the use OF
: money in stock ard other species OF
, speculation. To prevent the latter il
\ seems TO me one great step should be
, taken by prohibiting national banks
from paying interest on deposits, by
I requiring them to hold their reserve
2 IN their own wants, aud by forcing
q them into resumption, though it would
be only in legal tender notes; for this
purpose | would suggest the establish
D ment OF clearing house. To secure
the former, many plans have been
suggested, most of which look to me
like an initiation on the one hand, OF
D compelling the Government on the
g other hand to pay interest without
corresponding benefits upon the sur
plus funds of the country during the
seasons when otherwise unemployed.
: | 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
tn ir rotes below a fixed per
I cent, of new issue, say 40 per cent,
+ upon the banks depositing with the
Treasure of the United States an
amount of government bonds equal to
: the amount of notes demanded /; the
I banks to forfeit to the governments say
q four per cent. on interest accruing on
I the bonds so pledged, during the time
they remain with the Secretary of the
Treasury 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
f cancellation to an amount equal to
ihn tacn of tho hnnds mithdrn I'm