The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1873-12-11

crease exports, sufficient currency Is re-
required 10 keel all tie industries Of the
country employed; without this, national
a. eli a. individual Bankruptcy must en-
sue. in!i ,tioa, on the other hand, While 1t
I might giro temporary reiicf would only
lead to an ini.tIun Of PRICES.
( THE EXACT MEDIUM.
/ Specie i. tie recognized medium OF ex-
change the world owe, that otli.es that
We snail have irrency OF exlct de
gree Of elasticity it there be {, o much for
4 the legitimate purposes Of trade and com
merCe, II vii fIw out Of the country if
tUu little of IT, the reverse viii be the re-
suit. TO hold what we have, ID appre-
cite our C rrenry 10 thai standard, Is de-
serving OF the most serious consideration
If Congress. The exp@riguce Of the pres
cut panic has proven that the currency Of
the cJuhtry is the bes, that has eyer been
I devised. Usually, in times Of such trials,
currency has become worthless. or so much
3 depTcclited in value rs to intiatc the value
uf all the neCessarieS of life rs compared
with cur"encv every one holding 1t has
! 5-en anxious to dispose Of il on any terms,
ami now witness the reverse-the holders
/ Of Currency hoard it os they did gold on
former cxpcriaRce Of ike nature. i is
patent 10 IA: most casual obs rver hat
much more currency nr. m iney j. required
70 transact the legitimate trade Of the
country during the fail CT winter months,
when the vast crops are being moved than
during the balance OF the year. With the
present syst IN, tic amount in the country
remains the same throughout the year, ,e-
sul.ing IN accumulation of TIE surplus capt
tai Of the country when nos employed in
the mnyiag Of crops. Tempted then By
! of RS vi interest ring paid. the holders Of
+ this capital loan il oat. Tie surplus capi-
tai must earn this interest and pay profit
! Bong subject 70 cal 1t cannot be loaned.
+ only in part at best, to merchants or man
ut"cturers for fixed term, hence, no mat
Ter how much Currency there III ight be IN
the country, i would lie absorbed, the pri-
ces keeping pace with the volume or pan
r., >triu1euyy and DISASTERS would ever he
recurring each year, owing to the elasticity
in our money system. There Is this object
to be Outlined first, and next, As far as pos
>ip!e, prevention of the use OF money in
prevent the latter it sem to me one great
tip shCu'l be taken by prohibiting nation.
al banks from paying interest On deposits,
by requiring them to hold their reserve in
their own vaults, and BY forcin. them into
resumpti2n though it would be only in le-
gll tender notes. For this purpose | would
suggest the establishment Of Il clearing
l,-u,e for your COAST lnrari n. To secure
the IOrC!Cr many plans have been suggested,
most Of winch look to be ike an imitation
on the one hand, or compelling the Covert
mcut on the OF or hand to pay interest
Althout corresponding benefits upon the
surplus funds of the country during the
seasons wien othtrwi-e unemployed. !
submit for YOU" e. n>i ration whether this
dithca.ty IN Ght not be overcome by author
zlng the Secretary of the Treasury to is
IL at any time to nominal banks of issue
any amount of then notes, below :. fixed
per cent. ri new issue, say 40 per cent,
upon the banks dcru-itInT lth the Treas
Hrrr If the United >tifps an amount of
government boLd> equal to the amount of
notes demanded the banks to forfeit to
the Government say per cent. on interest
,ccrung on the bonds so pledged, during
"
tie Treasury as security for the Increase
of circul alton : the b"nis So pledged to
be reGcemat lie BY the bank, ut their pleas
are, either in whole or in part, by return,
ing their own bills for cancellation to an
amount equal t. tie face Of tie bon is with
dream. would further suggest G,c your
con>i ,erat,nn the propri'ty of authorizing
the returning for cancellation their own
bills and Withdrawing 80 many [. :. bonds
for the bills returned. Ia view of the
treat act-ll contraction that has taken
place in the currency, and the comparative
contraction constantly going on. due to the
Increase Of pnpulatinn, the Increase of
manufac'urcS and all the industries. do
not believe Ihat there i too much OF l. now
for the Gu'lcst period Of the year. Indeed,
if clearing houses should be established.
Il u forcing eden ption, il is Il question for
consideration wherler banking should not
be made free, ret ,irirg all s-fcgnar is now
required to secure hi!-hnlder>. In any
modification 81 yhH present la@~ regulating
national banks, and further st"I towards
preparing to s rrsumTt on of specie pay
tlent, in: ite your ntt"nt ON to ii c1n.il-
Grafton of the proui,tv Of cxacting from
them The retertinn. aS 4 Dart Of their re
serve. either the whole or n part Of the
gold interest acrruing nron the bonds
pledged as security for III If issue. | have
not reflected enough on the hearing this
might have in producing n scarcity of coin
with which to pay the duties on imports,
to rive it nv positive recommendation, but
your attention l. invited 10 the subject -
During the last few years the currency has
FL i'll
Of three per cent. cortlictt-s C, imposed of
interest notes ard 80 bonds outstanding
on the 18th of Mare. 1859, all OF which
took the rI"ce If legal tenders IN the bank
reserves to the extent of SOB 900 600
During the same period there has been a
much larger comparatiso cnutrac'inn OF the
CURRENCY the p0pulat en- cf 4 e country has
largely increased m1rc than 2j,uOp miles
of railroad have been built, requiring the
active use Of capital to o3er tie hem; mill
ions nf acres If land have been opened TO
cultivation, requiring carit,l TO remove the
ducts ; manufactured have multiplied
/ beyo5,, all precedent in the same period OF
t;mc ram. rg capital weekly for the pay
mont of WAGES nd for the purchase of ma
teral: and probably the largest OF all com
ganizing ct free labor in the E., "'"' NO"
every lahnrer there receives his v."o-' ""a
for the want Of savings banks tie q 3''eT
part of such wage. is carried IN tin
pocket, or boarded for future use. These
Suggestions are thrown ont for your coz
,iirration without any recommendation
that they shall lac adopted literally, but
hoping that method mas be arrived at &c
secure Snch az Ella ticitv # thu cure acy
a. will keep employed all the industries of
the country, and prevent such an imitation
as will pnt of Indefinitely the resumption
Of specie payments, an object devoutly to
lie wished for by all and by nD-e more
earnestly than the class Of people, most
duectlv interested -rhnse who earn their
bread by the sweat Of ,hcir brow. The
decision of Con,ress on this subject will
have the hearty support Of the Executive.
THE SHIP BUILDING INTEREST.
In previous messages | have called at
tenticn to the declin. in American ship
buildirc. and recommend such legislt on
rs would secure tn us our portion of the
carrying trade. Stimulated By high rates
and an abundance Of freight, the progress
for the last year in ship building has been
satisfactory There has been an increase
of about three per cent. in the amount
transported in American vessels over the