The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1873-12-11

tkeir standing issue at pleasure by
returning for cancellation their OWL
bills and Withdrawing SO many
/ United States bonds as are pledged
for the bills returned. In view oil
the great actual contraction that has
taken place in the currency, and the
comparative contraction constantly
going on, due to the increase OF
population, increase of manufactu lures
and all the industries, I do not be-
lieve that there is too much of it
now Tor the dullest period of the
year. Indeed, if clearing houses
should be established, thus forcing
redemption, it is question for con-
slderation whether banking should
not be made free, retaining all the
safeguards now required to secure
bill-holders. IN any modification of
the present laws regulating national
banks and a further step toward the
resumption of specie payment, in.
vite your attention to consideration
of the propriety of exacting from
them the retention as a part
of their reserve, Of either
the whole or a part of the gold in
terest securing upon the bonds
pledged as security for their issue. /
have not reflected enough ON the bearing
this II light have in producing a scarcity
of coin with Which to pay duties on i'm
ports to give it my positive recommends
tisn, but your intention is invited t.
the subject Daring the last four year.
the currency has been contracted directly
by the Withdrawal of three per cent
certificates composod OF interest notes
and soven-tairty bonds outstanding on
the 4th of March, 1869, all of which took
the place Of legal tenders in the bank
reserves, to the extent of $4,000, 900
During the sa,ae period ia ere has been
much larger comparative contraction O
the currency. The population Of til
country has largely increased; more thai
$4,000 miles of railway hvVe beeu built
requiring the active use Of capital ia
operAts them millions OF acres of lane
have bsen open to cultivation, requiring
capital to remove the products maEu'
factories have multiplied beyond al
precedent in the same period of time
requiring capital weekly for the paymen
Of wages and for the purchase Of ma
teriaI, aud, probably the largest Of all
the comparative contraction arising from
the organizing of free labor in tn
South. Now every @.laborer there re-
ccives his wages, and, fer waat Of saving
banks, the greater part OF such wages i
Carried in tho pocket or boarded unit
! required for use. Thoso Suggestions ar
thrswa out for your consideration, with
cut any recommendation that they shsl
be adopted literally, but hoping that TIA,
best method may be arrived at to secur
uch an elasticity Of the currency as we
keep EN- ployed all the industries Of til
country, and prevent such on initiation a
3 will put off indefinitely the rssumptio
of specie payment, an object dcveutl
4 to be wished for by ali, and by nol
more earnestly than the class of peep
@ must directly interested-th0se who ear
:, their bread by the sweat of the brow
The decision Of Congress on this subio
will bavs the hearty support of til
. Executive.
DIR MERCHANT MAXINE.
In previous messages [ have called q
Q tention to tho decline in American shi
J; building recommended SUCH lcgislati,
10 as would secHre to tbs United States o
A. portion of the carrying trade. Slim,
q lated by higher rates and the abundan
D. of freight, tue progress for tho last We
- In ship' Building has been very satisfA
tory. There has been an increase
about three per cent. in the smou
- transported in American vessels over I'll
Il amount of last year With the reduc,
's cost OF material which has taken ola
- it may reasonably be hep>d that til
y change Will be maintained ana even il
Y creased. However, az we paw abo,
d $8o.o00,0S0 per annum to isrcgn vcass