The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1873-12-18


Europe, was compelled to decline
this proposition, which, if accepted,
would have put the Department in
the position of becoming . dealer in
exchange position clearly moon
sistsnt with it's duties. Subsequent
ly the New York Produce Exchange
made a. proposition to accomplish
the same result in a different form,
aud also requested, as others had be-
fore, that the Secretary should pay
at once the $2o, 100000 loan of 1853.
Tho Chamber of Commerce OF
Charleston petitionsd for the trasfsr
of currency to that city, and pur-
chase with it at that point exchange
On New York to aid these engaged in
forwarding ths cotton crop to the mar
kst. The Executive Department Of the
Government was anxious to do every.
thing in It's power ander the law, and
with due regard to the 2pre ection Of the
Treasury and maintenance of the public
credit, to allay toe panic, and to prevent
disaster to heilegitimats but commercial
: and Industrial Interest of the country
aud it was found impossible to afford re-
lief in any Of the many FERNS in which
tha4 relief was asked. It was decided.
therefore. to adopt the oaly practicable
course which seemed to be open to it,
the purchase Of bonds for the sinking
fund to such cxteAt as the cenditlon Of
the Treasury would allow, and thus re-
lease . considerable amount of currency
frsm its vaults Purchases of boAds were
commenced on the morning Of Septcm-
Der 90, sand continued until the Gath,
when it btcans evident that the amount
offering for purchase was increasing to
to an extent beyond ths power Of ths
Treasury to accept, and the purchasing
was cloGed after bonds to the amount ei
about SIS ,Oeo,eos had been bought, and
without the use Of any part of tie ga,
0oo,0os efUnited States notes generally
] Known az the reserve. It shsuld be
Z stated that in the excitement there wsrs
many persons in the City Of New Ysrk
who insisted, with great Oarnes:nsIs, that
it Was the duty of the Executive to dis
regard any and all laws which atood in
the way of sfordinS the relief suggested
by thsm.-a proposition which indicator
T the state of feeling and excitement I'm
der which applications wsre MAIDS to the
Secrctary OF the Treasury to use pnblic
, money, snd which, it is scarcely necsssa
ry to add, could not DO entertained BY
the officers of the Government to whsm
it was addressoa. The currency paid
cut Of the Treasury for bonds aidod
much 20 strcngthen many saviHgs banks
and to prevent a panic among their Au-
! msrcus depositors. who began to bs
| alarms Cd, and had their developed an ex-
tended run upon those useful institution
, it would have caused widespread disaster
, and distress. It also fortified other
banks, and checked the general alarm tc
some extent, But the loss I confidence
in the value of q great amount OF corpo
, rate property which Immediately follow
ed tho failure of banking houses conxcc-
ted with largely indebted corporations
the distrust Of the Sslvency of many
other ;nstitutions,thc doubt rs to thc
credit of firms and individuals whose
business was supposed to be greatly ex-
: tended, and the Legitimate effect Thereof
!, in disturbing the buSinos of the coun-
: try, could not be avoided by any anoua
8 Of currency which might be added to Tho
q circulation already existing. Confidence
was tOssbe eventually restored ONLY b,
the slow and cautious process OF xainins
g better knowledge of the trus value, anc
making investments accordingly, and, By
conducting business on 1rlner basis, anG
, moro regard to real soundnsss and in
L trinsic values, there can be no doubt tha
. the practice by banks Of allowing inte-
I rest on deposits, payable on aemand, II
. pernicious, and fraught with danger and
t embarrassment to borrower and lender
, as we'll asto gensral business, interests
9 Deposits payable on demand should b,
, limi' sd to that surplus which individ-
uals require over and above their in