American citizen. [volume] (Canton, Miss.) 1864-1890, 1873-12-13

| expenses. including the interest On the public
| debt commend 10 Congress such economy and
| point OFT two scuICc- where il seems to me it
might commence 10 wit. In the appropriations
| for rEhlie buildings in the many ciTles where
work has not been mmei ced; in the Gpprupria-
Hons IN river and hafb'r improvements IN tho-e
l'c-itics where the improvements are of but
cations There is n sull more fruitful
source OF expenditure. which ! will point out
later III This message. refer TO the easy method
of manufacturing claims for losses incurred in the
suppression of the late rebellion.
world MOI be understood here opposing the
erection of good substantial and even ornam, al
buildings by the Government. wherever such
buildings are needed. In fact approve Of The Gov
eminent owning its huildiugs.in all sections of
the country.and hope The day is dis ant when
il Will not only possess Them hut will erett in the
Capital suitable residences for persons who now
receive concentration for quarters the
Government expense and fo' the Cabinet. thus
setting an example to he States which may in
duce them 10 erect buildings for their Senators;
but wonld have this work conducted at times
whcn.the revenues Of the country would album
dainty Justify H.
THE PANIC AND SPECIE PAYMENTS
The revenues have naturally fallen of for the
last five months of The pre- sent fiscal wear. from
whai III were expected 70 produce. owing to the
ren.rf'l panic now prevailing. which commenced
about the middle Of September last. Tnc fun cf
fect of this disaster, if II should not prove 10 he
blessing in Disguise is yet 10 be demons ed.
In either event il your duty 10 heed the lesson
and provide by wise and well considered lreisla-
lion, as far 1t lies in your power against il
curr. noe. and to take advantage of all the hene
fits Thai NAV have accrued NV own Indictment is
that however much individuals may have suffered,
one long step has been taken toward specie pay
meut>; that can never have permanent pros per
ity until an entirely basis Is reached and main
Iainodzuhill rr exports, exclusive OF go d, pay
for our iup1rie. interest dRt- atrcad, AZ 4 other
sp' cuatiurs 20 heavy as to leave apareciabe
accumu lati"n of these metals in The county from
the pr, ducts If our mines The development Of
mines-oi precious metals during the past year and
the prospect We development OF them for years
come, gratifying in the extreme: could but
oie-h If the gold extracted from the mines he
tanned at home, our ADJ ance toward specie pay
sufficient currency Is required To keep all the ii
dus,ries Of The country employed. Without this,
rational as well as individual bankruptcy
ensue. Undue Imitation. the other
hand, while it might give temporary re
lief. would only lead to an infiltion of
prices The inpos-ibility of competing
in markets for The products of home skill
give elasticity Circulating medium therefore,
and just enough OF ii to transact HE legitimate
business of the country. and TO keep all the indus
tries employed. is what is most desired. The exact
medium i specie. the recognized medium of ex-
change, the world Over. That obtalued- we shall
have currency Of an exact degree of elastici y.
If there he too much of ii for the legitimate pur
poses of trade and commerce, it will flow out of
the country: if 100 little of it, the reverse will be
the result To hold what we have. and TO appreci-
ate our currency TO that standard. is oblem de-
serving OF the most serious consideration of Con-
gress.
The experience Of the present panic has proven
that the currency of the country Is the best that
has ever been Devised, Usually. in times of such
trials. the cdrrcner has become -vurj HESS,
Of all the II cere;ric~ of life a. compared with The
currency. Every holding il has been anxious
to dispose of i on any terms. Now we witness
the reverse iloi,ier- Of the currency hoard it IA
they did gold III former experiences of a like
nature. Ii Is patent 10 the most casual observer
that much more currency or money l. required to
the lcI innate trade of the country during
the fall and winter months: when the vast
crops are being removed. Than during the
balance Of the year. Under the present
system the amount in the country remains
. he same throughout the year resulting in
Igtfp .f oil rIlI rs1a he
county when not employed in the mos lug Of crops,
tempted there hr offers Of interest hcii'g raid.
with profit. Being subject TO cali it cannot be
loaned only IN part. at best TO the merchant or
how much currency there might be in the country.
ii would be absorbed prices keeping pace with the
volume, aud pancs sTringency and disasters would
ever be recurring with the elasticity IN our money
system. There is tins object 10 he obtained irsr,
and next, Il, far as possible. prevention OF the
of specuia ION To prevent the latter, ii
seems to me that one great step would be
taken by prohibiting tn" NATIONAL banks
from PAVING interest deposits. hy requiring
them hold their reserves in their own vaul and
hy forcina, lhcm INFO redemption though il would
would suggest the establishment of clearing
houses for your consideration. To secure the
former. many plans have been suggest ed. most of
which look TO me like inila ion, one hand or |
The Government. on The other 10 pay
interest," wi hout ofre-pondng benefits. upon the
surplus funds Of the country during he seasons
when Otherwise unempl yed. | submit for your |
consideration whether this difficulty might not he
overcome by authorizing the Secretary |
OF the Treasury 70 issue, at any liint, to
their notes below fixed percentage of their |
issue, say per cent. npon the hanks den"siting
with The Treasurer Of the United States an amount
of Government bonds equal To the amount uf |
notes demanded, the banks to forfeit 10 the Gov
eminent say pei cent. Of The interest accruing
on the bonds so pledged during lime that they
GREASE. of circua ion, the bonds pledged 10 be
redeemnhie by the banks at their pleasure, either
siFsFr fh4Hf- H..
for meditation amount e'Gul To the face Of
the bonds Withdrawn. | woUld further suggest |
zing national bank To diminish their Standing
issue pleasure by returning Tor cancellation |
nited states bonds a. are pledged Tor the
bill returned in view of the great actual contrac
lion that has taken place in the currency, and The
contraction constantly going on. due
TO The increase Of population. increase of mann |
features, and all the iudu-Ir ies do not believe |
that there j. TOO much Of it now. for the dullest
period of the year. Indeed. if clearing houses
should be established, thus forcing. re-
dempIion it is question for con-iderl- |
frer retaining alt The safeguards req ired To
secure hiilh lders- In any modification OF the |
Ihrr step toward the resumption of specie pay
neut. invite year attention to consideration of
the ur,pricty of exact IL, from hem the retention,
l. part OF tlI,l reserve either The whole or a |
part the gold interest ucr"uiug upon The bonds |
have not ref cted enough III" bear
ing thus might have in producing a |
-carci y Of CON with which to pay dn'ie-
IN imports 10 give my posi- i've rccommenda, ion,
but y0nr attention is invited 10 the subject. Dur
M The last four years The currency has been CON
racd directly by he wi hdrlwal of per cent
ifcares composed of compound interest notes and |
80 bonds outstanding the iih of March. 1859 al
# which took The pacc Of cotl tender. in The bank
reserves rhc of -ixtyrhrec millions of dol
irS. During the same period there has been much |
arr.r coIut,aratfvc contrac ion of the currency |
The population of the country hn- LARGELY iucrca
ed more than 80 miivs OF railroad have been
built requiring The active Of capital TO operate
llI 1.ar.
10 cultivation, requiring capital to remove the |
products; manufactures have multiplied beyond |
al precedent in the same period of time requiring
capital weekly Tor the payment OF wages ana Tor |
he purchase OF material, aud. probably the larS- |
.sj Of all, the comparative contraction ariein" |
from the ORGANIZING Of free labor in |
The South. Now, every Iabprer there |
-cccvrs his wages, and for want of savings
banks the greater uart of such WAGES j. |
,arricd in the pocket or boarded tll required for
Use. These suggestions are thrown ont for your !
consideration. without any recommendation that !
hey shall be adopted literally but hopin" that the |
,c~i method may he arrived at 10 secure such an |
Elastic ~ of The currency will keep employed all
MIA ion a. will put OH Indefinitely the r,-Ump ION
IF specie payment. an object dcvoutr 10 be- wished
for by all. and by none more earnestly Than the |
lass OF people most directly ini"rcs cd-'hose VINO
arm their bread by the sweat OF the brow The !
lec-ion Of Congress on this subject will have the !
hearty support uf the Executive
AMERICAN suIp BUILDISG-
In previous messages have called attention to
the de line in American ship building, and re-
such LEGISLATION -. would secure to |
hr United States our portion of me carrying trade
by higher rates and IN" abundance of |
nT has been very satisfactory There has been !
an Increase of about per cent in the amount I
n-p"rted IN american vessels over The amount |
~ Inst year With the reduced cost OF material |
which has taken place, 1t may reasonably be |
hoped ihht this change viii he maintyiued and !
even increased. However, nav about $50. (
1000 per mum fO.,igIi vc--cls for the
the lance u atlc against us To- This
Inv rfVt