The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1873-12-04

| banks to forfeit 10 the Government,
say four per cent. on the interest ac-
cruing on the bonds so pledged du
ring the time they remain with the
Treasury as security for the increase
of circulation, the bonds so pledged
to be beredeemablc by the banks atstheir
pleasure, either in whole or in part,
by returning their own bills for can
collation. to an amount equal TO the face
/ of the bonds withdrawn. | would
further suggest for your consideration
the proprietv OF authorizing national
banks to diminish their standing issue
at pleasure, by returning for cancela-
ton their own bills and Withdrawing
so many United States bonds as are
pledged for the bills returned. In
| view OF the great actual contraction
! that has taken place in the currency
and the comparative contraction con-
\ stantly going on, due to the increase
of population, increase OF manufac-
tures and all the Industries / do not
believe that there is too much of it
now tor the dullest period of the year.
Indeed, if clearing houses should be
established, thus forcing redemption,
it is a question for considerations Whe-
ther banking should not be made free,
retaining all the safeguards now re-
quired to secure billholders. In any
modification of the present laws reg
ulating national banks and further
step towards paying for resumption
of specie payment, invite your at
tention to a consideration of the pro-
! priety of exacting from them the re-
! tention as q part of theirreserve either
| the whole or part of the gold inter-
est accruing upon the 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 i'm
ports, to give it my positive recon-
mendation,.bu your attention is in
vited to the subject. During the last
four years the currency has been con-
tracted directly by the withdrawal of
three per cent. certificates, compound
interest notes and 7-30 bonds outstan-
ding on the fourth of March, 1869, all
of which took the place of the legal
tenders in the bank reserves, to the
extent ST sixty-three millions of dol
lars. During the same period there
has been asmuch larger comparative
contraction of the currency. The
population of the country has largely
incrersed.more than tw wenty-fve thou
sand miles of railroad have been built
requiring the active use of capital to
operate them, millions of acres land
have been open to cultivation, requir-
ing capital to move the products,
manufactures have multiplied beyond
all precedent in the same period of
time, requiring capital weekly for the
payment ofsWages and for the pur-
chase of material and probably the
largest of all comparative contrac-
ltions arising from the organizing of
free labor in the South. Now every
llaborer there receives his wages, and
| for the want of savings banks the
greater part of such wages is carried
| in the pocket or boarded Till required
| for use. These suggestions are thrown
out for your consideration without
any Recommendation that they shall
be adopted literally, but hoping that
the best method may be arrived at to
secure such an elasticity 10 theacur-
rency as wiH keep employs ed all the
! industries ofsthe country and prevent
such an imitation as will put off ihdef-
initlys the resumption of specie pay
menfs, an object devoatly to be wish
ed for by all, and by none more ear
nesfly then the class ofpeoplc most
directly interested-thosel who earn
their bread by the sweat of their brow.
The decisions of Congress on this SUBJ
| Jest will have the hearty support of
the Executive. 8 atszo.efsa
In previous messages have called
attention tOthe decline in American
ship building and recommended such
legislation 1as would secure us our
proportion of the carrying itrade.-
Stimulated by high rates and album
dance of freight, the progress for the
| lass=year in ship building has been
ve-S satisfactory. There has been an
| increase of about three per cent. in
! the amount transported in American
vessels over the amount transported
| last wear. With the reduced cost of
material which has taken place it may
reasonably be hoped that this change
will be maintained and even increas-
ed. However, as we payabOut eighty
millions dollars per annum b foreign
vessels for the transportation of our
surplus products to market, thus in
creasing the balance of trade against
us to that amount. The subject is one
worthy of your serious consid deration.
! Cheap transportation is subject that
has attracted the attention of both
/ producers and consumers for the past
/ few wears and has. contributed to, if
| it has not been the direct cause of, the
recent panic and stringency. As Con-
gress at its last session app ofnted a
special committee to investigate this
whole subject during vacation and re-
port atthis session, have nothing to
] recommend until their report is ready.
There is one work. however, OF q
national character, in which a greater
portion of the East and the West, the
! North and the South are equally in
terrested, to which viii invite your
attention. The State of New York
has a canal connecting Lake Erie with
| tide wafer on the Hudson River. The
State of illinois has a similar one con-
Meeting lake Michigan ithMaYigable
water on the Illinois river. thus MAX
| ing water communication inland be-
tween the East and the West, and
South, These great artificial water
courses are the property OF the states
/ through which they pass and pay
tolls to those states. Would it not be
wise craftsmanship to pledge these
states that if they viii open these ca
nails for the passage of large vessels,
the Government will look after and
keep in navigable condition the great
/ pubic highways with winch they con-
meet, to Wit: fhe overslough on the
Hudson. the st. Clair Flats, and the
Illinois aud Mississippi rivers !? This
would be national work, one of
great value to the producers of the
West and South, in giving them cheap
transportation tor their produce to
the seaboard and a market to the con-
sumers of the East, giving them chea-
per food, particularly those articles of
iood which do not find a foreign mar
ket, and the prices of which, there
fore. are not regulated by foreign de-
mand. The advantages. of such a work
are toe. obvious for argument. I sub
nit the subject to you, therefore, with
out further comment.
In. attempting to regain our lost
commerce and carrying trade, | have
heretofore called attention to the
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