The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1873-10-30


will prove invaluable, it must of cours,
be supplied in larger parcels" .n
=, Specie Payments,
The sahsnnea TO be considered in Com
gress this Winter.
New York Journal of Commerce.
i Nearly every person interested in the
inances of the country viii remember
the proposition of a year or a little
more ago, to start ana immense bank in
he city of New York, as bank Of re-
emption and clearance for country
banks. This bank was to have capital
ofS5, 900, 600, with Hon. Freeman Clarke
IS president, and the stock was all sub
>cribed. 1t was not long after this wa
proposed that the matter came up in
congress, but in manner that has
scarcely been observed. And as tn,
scheme that surrounds it will be one Of
the prominent matters before. congress
This winter. a description of its purpos,
becomes quite interesting. A charter
could have been obtained without going
10 congress, but, for reasons that viii ap
pear, Hon. Freeman Clarke introduced
INTO the house of representative ON the
I1th of January, 1872, bill, of which
,his bank seemed asmall part, and which
Jumped the question Of shrinkage Of
values to authorization of the direct fact
Of specie payments. The bank was to
be banks bank-a concern created by
The banks In their interests, and q re
iemptiOn agency on the free-bsnking
basis. The whole theory of Mr. Clark
bill was to evade the statute which pre-
ven one bank from subscribing to the
stock al another by having congress
authorize the organization of such an
institution by the banks, with power to
take the stock in the corporate names OF
The different banking associations, in
stead of compelling them to do So in the
names of their officers. This g big
bank was to redeem the notes of the
country banks in legal tenders, the gov
ernment redeeming its legal tenders il
coin, and no bank was to have more
than one per cent. interest in it. 1t was
proposed by Mr.. Clarke that the gov
ernment should have 800, OOO, 900 in
coin to redeem its legal tenders with,
and that, he held, wonld have saved the
LANCER Of inability to meet the drain OF
gold, because the banks would lock mp
come $3.50, 900, coo of the 1856, 900, 600
legal tender issue, in the reserves. The
banking laws we're 10 apply as free as
the air, aud any bank might issue eircu-
Iation IS freely as it chose upon the re-
gular security, but the feature of forced
redemption was to be the safeguard
against imitation. Whenever note o.
any bank making its clearings at the re
iemption agency, where its account
must be kept good, should be presented
for redemption, it should be redeemed
in legai-tenders. This, it will be seen,
would make legal-tenders the basis Of
values based on coin that the treasury
would come back with and, the bur
den OF the redemption being thrown OF
the government, would, it is claimed
inspire confidence in the greenbacki
that would make them, preferable t.
gold as a more easily handled money
It is the old bank Of England system
nver again. The bank OF England re
leems its notes in coin, and all othe
banks in England may redeem thei
notes in bank of England notes. So thu
@ edit of English banks rests upon tn
solveucy of the bank of England an'
the idea of the banks here is to maxi
the credit of the national banks res
upon the solYency of the government
The privilege of the banks to Issue a
much or as little circulation rs is re
quired or desired would, it is urged, re
lease the crops by expansion, or contrac
the currency, in times when the cur
rency was not wanted, and would at al
times prevent a panic. It would ais
allow double system of discount
without too great risk. Between thi
and the interchangeable currency bon
proposition Cboth Of them intended i
the direction Of elasticity and the el
pansion Of greenhacks, congress- will b
occupied this winter. Any one who ha
followed the drift of debate and con
mittee action in congress- can not fail {
have noticed that the theory of free an
unlimited banking grows stronger an
stronger each year, the difference b'
tween its devotees being as to the r,
strictions and limitations. The So, 600
600 act Of 1870 was the hrst practic'
step in this direction, A bold polio.
tinged with q careful desire TO avoi
violence to trade, VIII be the ruin
topic of debate in congress this white
and the " big bank, being nearer
tangible form to the much-talked-of ce
trail redeeming agency proposition th'
anything 50 far brought before eongres
may be made the basis of much fnanci
, Legislation. The arrivals of gold fro
9 Europe seem to have broken the ic
Men are walking about New York wi
I, pockets full Of silver regularly taken
change. AstoDished conductors of sire
cars receive silver quarters, ten and 81
|. cent. pieces for fares. Silver does n
e now command premium over leg
,. tenders if one wants 70 sell silver, b
d If one wants 70 buy ,t-well, somebo
must have q profit The preside
. speaks of payments. The creditor ella
and merchants having goods on ha1
are never prepared for Il. bat congr
) wiIl undoubtedly, for the frat time
V late years, seriously considered the y
u iect this winter, and the great bulb
o called shrinkage of values may
!. Prioked-