Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1873-12-03
~ ANDRJA GAZETTE AND VIRGINIA ADVERTISER

There Is Il TIL more fruitful sources OF eXpcn-
dlturc whiclI | will point Ut later IN this mes
sage. lrclcrc t. the easy method OF manufac-
turing claims for losses incurred IN suppreSsInS
| the late rebellion.
| | would not be understood here as opp ,.ing
| the erection of good. substantial, and even or
namental buildings by the Government when
ever such buildings are needed. In fact | ap-
prove of the Government owning its cwn build
lngS III all sections Of the country, aud hop" the
day is not far distant when it will not ouly pos
sess them, but will erect in the capital suitable
residences for all person: who now receive COM
mutation Tor quarters, Or rent al Government
expense and Tor the Cabinet, !hus setting al cx
ample TO the states which may induce them 10
erect buildings for their Senators But | would
have this work conducted at time when the
revenues OF the country would abuudant!y JUS
tily it,
| The revenues have materially fallen off fer
| the past five months OF the present fiscal year
from what they were expected to produce,
owing to the general panic now prevailing,
which commenced about the middle OF Supteu:
Der last. The full effect OF this disaster, if II
should not prove Il blessing in disguise, Is yet
10 be demons rated. In eltherevcnt it is your
duty to heed the lesson and TO provide by wise
aud well considered Legislation, as far as it lies
! In your power, against It's recurrence, aud to
take advantage OF all benefits that may have ac-
! Crurd
My own Judgment is that, however much in
dviduals may have suffered, one long step has
becu akeu towards specie payments; that we
can never have permanent prosperity uuril "a
specie basis Is reached; and that specie basis
cannot be reached, aud maintained, until our
exports exclusive Of gold, pay Tor our imp ports,
interest due abroad, and other specie ohlga-
tons, or So nearly so as to leave an appreciabie
accumulation of the precious metals 10 the
country from the products Of oar mines. The
development of the mlueS of precious metals
during the past year, and the prospective de
veopnIent OF them fJr years To come, are graft
flying in their results Could bur orc-half Of
| the gold extracted from the mines be retained
at home our advanc: towards specie payments
would be rapid
| TO increase our exports, sufficient currency
is required to keep all the industries Of The
country employed. WithOu this, rational Us
we'll as individual bankruptcy must cnsue. I'm
due lut itl0u, uu the other hand. while it hi ght
give temporary relief, would only lead to nfa
ton of prices, the impossiblty OF competing in
our own markets for the products OF home skill
and labor, and repeated rcneWals OF present tx
perieuccs Elasticity OF our circulating medium
therefore, and just enough of it to transact the
| legitimate business OF the country, and 10 keep
all industries employed, Is what is most to be
desired. The exact medium is specie. the rc-
cUgnized medium Of exchange the world over.
! That ubtaiued we shall have q currency Of an
exact degree Of elasticity II there be too much
of it for the legitimate purposes OF trade ADD
commerce it will f w out OF the country. II
100 litle the reverse will result. To hold what
i
standard, Is the problem deserving of the most
serious consideration IF Congress
The experience of the present panic has
proven that the currency Of the country based
as it is upon the credit OF the country, Is the
best that has ever been devised. Usually Ia
times Of such trials currency has become worth
less, or So much depreclatcd III value as 10 IN
fate the values oi all the nccsssares OF life as
compared With the currency. Every one hold
Ing 1t has been anxious to dispose OF II on
any terms. New We witness the reverse
Holders eff currency hoard it as they did gold
In former experiences Of 4 like nature
II is patent to the most casual observer that
much more currency, or money, is required To
transact the Legitimate trade OF the cJuntry du
ring the fall an winter months, when the vast
crops are being removed, than during the ba-
ance Of the year. With our present system
the amount in the country remalus the same
throughout the entire year, resulting IN an ac-
emulation ofa the surplus capital of the coun
try in a few centsrs when not employed in the
moving Of crops; tempted there b. the offer OF
Interest on cali loans. Interest being paid,
this surplus capital must earn this interest paid
with profit. Being subject to ''cal, - it
not be loaued only in part at best--to the
merchant or manufacturer Tor Il fixed term.
Hence, 30 matter how much currency there
might be in the country it would be absorbed,
prices keeping pace with the volume, aud
panics, strugcncy and disasters would ever be
recurring with the autumn + asticity 10 our
monetary system, therefore is the Object to he
attained fist, and next to that. as far as posi-.
bIe prevention Of the use Of other peoples
money in stocks aud other species OF >pccuia-
tiDD. To prevent the latter it seems to me that
one great step would be taken by prohibiting
the National banks from paying interest on de-
posts: byrrquirlng them to hold their reserves
in their own vaults, and by forcing them into
resumption though it would be only III legal
tender uotes. For this purpose | would sug-
gest the establishment Of Clearing Houses Tor
your consideration.
10 secure the former, many plans have been
suggested, most if not all Of which, look to
me more like iufation on the Que baud, ~
|
interest without corresponding bencli's, upon
the surplus fluids Of the country during the
season when otherwise unemployed.
submit for your consideration whether this
difficulty might not be overcome by authorz
log the Secretary of the Treasury to issue, at
any time, to National banks OF Issue, any amount
of TIER own notes below fixed per centage OF
their l. sue-->ay forty per cen.--upnn the banks
depositiDg with the Treasurer OF the United
States an am unit OF Government bonds equal
10 the amount of uotcs demanded; the banks TO
forfeit to the Government say four per cent. of
The interest accruing Oh the bonds 50 pledged,
during the time they remain with the Treasu-
rer as security for the Increased circulation, the
bonds so pledged to be redccruabIe by the bau Ks
at their pleasure either 10 whole or IN part, By
returning their own bills for cancellation to an
amount equal to the face Of the bonds with.
drawn. | would further suggest. for Your con-
sidcration. the propricty OF authorizing Natlon-
| al banks TO diminish their standing issue ut