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


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
In times Of such trials, the currency
has become worthless, or 30 much
deprecated in value as to initiate the
values of all the necessaries of life, as
compared with the currency. Every
one holding it has been anxious to
dispose of it on any terms, Now we
witness the rsverae. Holders of the
currency hoard it as they did gold in
former experiences of like nature
It Is patent to the most casual OBJ
server that much more currency or
money is required to transact the
Legitimate trade of the country DUR
the fall and winter months, than
during the balance of the year. I'm
der the present system the amount in
the country remains the same
throughout The year, resulting in an
accumulation of all the surplus capt
tai of the country when not employed
lin the moving of crops,
N Eastern cities tempted there
by offers of interest being paid
The surplus capital must earn this
interest paid with a profit. Being
subject to call, it cannot be loaned
only in part, at best, to the merchant
or manufacturer for a fixed term.
Hence, no mattsr how much currency
there might be in the country, it
would be absorbed, prices keeping
pace with the volume, and panics,
stringency, and disasters would svof
DO recurring with the elasticity in
our money system. There is this
object to be obtained first, and next,
as far as poasible,a prevention of the
use Of money in stock and other
species of speculation. To prevent
the latter it seems to nae that one
great step would be taken by pro
hibiting the national banks from
paying interest on dspositA by re-
/ quiring them to hold their reserves
in their own vaults, and by forcing
them into resumption, though i
would be only in legal-tender notes
For this purpose | would suggest tn,
establishment of clearing houses 70
your consideration. To secure tn
former, many plans have been sue
gested, most Of which look to m
like imitation, on one hand, or com
pelling the GOVERNMENT, on IN
other. to pay interest without GORE,
ponding benefits upon The surplu
funds Of the country during the seu
sons when otherwise unemployed
l submit for your considerable
whether this difficulty might not b
overcome by authorizing the Score
tary Of the Treasury TO issue, at an,
time, to nominal banks of issue, an,
amount of their notes below a fixsc
percentage of their issue, say 40 pc
cent, upon the banks deporting will
the Treasurer of the United State,
an amount of government bond
lequal to the amount of notes de
manded, the banks to forfeit to thu
government, say four per cent. Oh
the interest &C cruing on the bon 1,
| so pledged during tho time that they
Iremain with the Treasury as sseurit,
| for the increase of circulation, ths
bonds so pledged to be redeemablt
by the banks at their pleasure, either
in whole or in pary, by returning theil
Town bills for cancellation to az
amount equal to the face of the
lbonds withdrawn.
| I would further suggest for your
consideration the property of author
Iizing national banks to diminish