Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1873-10-23

NAV be met in crises like these, ana also
during those periodical crises which are
experienced with more or less force each
autumn, by system which will be auto
matte in its action, governed by the Will
or Judgment Of no single man? 1t IS be-
lieved that this is entirely practlcable ana
within easy reach. The following propo-
sition was submitted through the daily
papers both East and West, last autumn.
It has been quite generally discussed, ana
the comments on it have been favorable.
No serious objection has been urged
against it, and it is believed by many
thoughtful and experienced business men
and financiers that its adoption and en-
actment by Congress would be exceed.
ingly beneficial, to the whole country
The proposition is as follows:
"To permit any holder of ten thousand
dollars, or multiples thereof. in any gold
bearing bonds of the United States, to
retire the same temporarily, at the SUB
Treasures or designated Repositories IN
New York, San Francisco, New Orleans,
or Chicago under regulations to be made
by the Secretary of the Treasury, ana re-
ceive an amount of United States Legal
Tender Notes equal to the face OF SAID
Bonds temporarily retired; and upon pre-
Notes at the place where said Bonds were
temporarily retired, to receive the said
Bonds, or their equivalent in kind, less
the interest which would have accrued
during the time that the said Bonds were
temporarily retired; and provide further,
that the Secretary of the Treasury be re-
uuired to hold IN reserve United States
Legal-Tendcr Notes to the amount of
forty-four millions of dollars, to be used
for the purpose Of temporarily retiring
United States Bonds as aforesaid; but the
said notes shall not be used for any other
purpose, nor shall the whole amount Of
United States Legal-Tender Notes, in
Guiding those which may be held in re-
serve and those which may at any time
be held in the United States Treasury,
Sub-Tleasuries and Repositories exceed
four hundred millions of dollars, until
expressly authorized by law"
The rate Of interest which money com
manded on ample security during the
winter of 1S72-1S13, in New York City,
reached and exceeded the rate of three
fourths Of one per cent. per day, which is
equal to the enormous rate of 273A per
cent per annum. During the summer of
1873 common rate of interest at the same
place, on like securities, was three per cent.
per annum. Here is difference in the
rate of interest of 2704 per cent. within
six months. This indicates the pinch and
plethora throughout the country. There
were times when, outside of New York,
money could not be borrowed at any rate
of interest, and if currency had been de-
manded in New York it could not have
been had even at these rates, in any large
amount, for the banks of that city were
far below their reserves.
If the proposed law had been enacted,
the money markets Of the whole country
would have been relieved by the deposit
of bonds in the Sub-Treasuries and the
outflow of greenbacks from the $44 ,O0O,-
600 reserve, and when money reached the
low rate of three per cent. per annum,
those whose bonds were in the Treasury
bearing interest at the rate of five per
cent. g0ld interest, would certainly have
returned greenbacks and have withdrawn
their bonds, thus contracting the currency,
and we should have been prepared to re-
peat the same movement for expansion
this autumn.-Chicago Standard.