Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1873-12-11

manufacturer for fixed term Hence, no matter
how much currency there might be IN the country
il would be absorbed, prices keeping pace with
the volume. and panics, strngency and disasters
would ever be recurring with the elasticity In our
money system. This Is the object to be obs
tanned first and next, as far as possible, proven
ton OF the use Of money in stock ana other
species OF speculation. To prevent the latter 1t
seems to me that one great step would be
taken by prohibiting the national sanhs
from paying interest on deposits, by requiring
them 20 hold their reserves in their own vaults, and
| by forcing them into redemption, though it 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 suggested, most Of which
| look to me like imitation, one hand, or compel
| ling the Government on the other 10 pay interest
| without corresponding benefits, upon the surplus
! funds Of the country during the seasons when
| otherwise unemployed. | submit for your Consd-
Grafton whether this difficulty might not be
| overcome by authorizing the Secretary OF
! the Treasury to issue, at any time, 10
nominal banks of issue, any amount Of
their notes below fixed percentage Of their issue,
say 40 per cent, upon the banks depositing with
! the Treasurer of the United States amount Of
! Government bonds equal to the amount of notes
| demanded, the banks to forfeit To the Govern
ment, say, per cent. of the interest accruing on
| the bonds SO pledged duung the time that they
| remain with the Treasury security for the in
crease OF circulation, the bonds 30 pledged to be
! redeemable by the banks at their pleasure. either
in whole or IN part, by returning their own bill.
| for cancellation to an amount equal to the face Of
! the bonds withdrawn | would further suggest
! for your consideration the propriety Of authoriz
ing national banks to diminish their standing issue
! at pleasure by returning for cancellation their
| own bills and Withdrawing so many United
States Stat bonds as "a, are e, pledged for the
traction that has taken place in the currency, and
the comparative contraction constantly going on,
due to the increase OF population, in
dustries, do not believe that there Is too much Of
| 1t now for the dullest period of the year. Indeed,
If clearing -houses should be established thus fore
ing redemption it is "A question for consideration
whether banking should not be made
free retaining all the safeguards now required to
secure bill-hOdcrs. In any modification Of the
present laws regulating national banks and fur
Their step toward the resumption of specie payment
invite your attention 10 consideration of the
| proprety Of eXacting from them a retention rs Il
par of their reserve of either the whole part of
the gold interest accrung upon the bonds pledged
a. security for their Issue. | have not reflected
enough on the bearing this might have in produce
ing scarcity of coin with which TO pay duties
on imports, 10 give IL my positive recommends
ton, but your attention II invited TO the subject
During the last four years the currency bas been
contracted directly by the withdrawal of per
cent. certificates, compound interest notes and
1-30 bonds outstanding on the 4th of March. 1869
all Of which took the place of lega-tender- in the
bank reserves to the extent OF sXythre millions
of dollars. During the same period there has
the currency, The population of the
country has largely increased; more
tam ]oVTo my octiro I"fo nT nay Deen
atn ham. m7llions Of acres Of 1end have ~ on
opened to cultivation, requiring capital to remove
r"I OH nrncadnnt ~ tho SANE r;S ~ - r
SUirinn cpnitaI weekly for the povrnont If oages
and for the purchase Of material, and, probably
So ~ nc or, I'm ,' 49, ~, t1
south Now every iaborer there receives
his wages, and for want of savings
parksi Wy gleaet Pla Hi sIIn wagus cn Is
T., .ie -, o tb d i f &
u9o' ,5 10 eu5t ;.,. ,. - ~ ~; ~ J' ~
i I'll ~ dnt5 ityraI,, 49,. h ,h"t
The hest method may be arrived Al TO secure such
an elasticity of the currency as will keen ernployed
alI the Industries of the country, and prevent snch
an inhatinn as win mt off indeGniiaIv no rn
sumption of specie paymenTs an object deyouty
TO be wished for by all and bv none more err
nesty than the class of people most directly inter.
ested- those who earn their bread bv the sweat of
the brow The decision of CONGRESS ON This sinh
iect win have the hearty support of the Executive
AMERICAN suIp-RUrDING
In previous messages | have called attention 10
the decline in American ship-buildipg and recon-
meuded such LEGISLATION "a would secnre TO the
United States our portion of the carving trade
Stimulated by higher rates and the abundance of
FREIGHT the progress for he last wear in shipbui1d
inr, 'ias been very satisfactory There has been an
increase of about three per cent in the amount
transported in American vessels over the amount
material which has taken place. il NAV reasonably
be hoped that this change will be maintained and
even increased However, as we pav about $50
600 900 per annum to foreign vessels for the trans
portatien of our surplus products TO market. thus
increasing the balance of trade AGAINST ms TO this
amount the subject liz one worthy of Your serious
consideration. Cheap transportation is a subject
that has attracted the attention of both producers
and consumers for the Dasf few wears and has con-
tributed TO- if il has not hecn the direct
cause of, the recent panic and stringency.
As Congress, at its last session. appoint
ed a special committee TO investigate this
whole subject during the vacation, and
until their report is ready
INLAND WATER NAVIGATION.
There is one work however of a national char.
acter in which the greater portion Of the East and
the West the North and the south are equally in
tercsted to which will invite your attention. The
state of New York has a canal connecting Lake
Erie with tide-water on the Hudson River The
State of Illinois has a similar one connecting Lake
Michigan with the navigable waters of the Illinois