River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1873-12-09

DO a.blessing IN disguise, is yet 70 be demon.
strated n either event, it Is your duty Il
need the lesson aud provide by wise and wei
considered legislation, as far rs It lies ia your
power, against its recurrence, and 10 take adj
vantage OF all of the benefits that may have
occurred. My own Judgment Is, that however
much individuals my have suffered, one long
step has been taken toward specie payments
that we Canuok have permanent prosperity un-
/ al an entire new tmsls IL reached, and a specie
basis connut be reached and maintained I'M
til our exports, exclusive ut gold, pas for
our imports and interest due abroad aud
| other specuations so heavy rs to leave an ac-
FOUNDATIONS OF those metals IN our country
from the products of our mines. The
| development Of mines of precious metals dur
IN the past year, ana the pros ect've develop
mcnt of them for the year % come, are graft.
| iying m the extreme. II but hall the gold eX-
! uaCted from the mines should be retained at
/ home our advance towards specie payments
would be rapid. To Increase exports a sufficient
| currency ls required 20 keep all the industries
| Of tho country employed , without this, ma
tloual IS wen as individual bankruptcy must
/ enSue. Imitation, on the other hand, while
/ 70 Hlght give temporary relief, would only lead
to an imitation of prices. The imposslbility OF
competing 10 our market for produce, some
su labor aud repeated renewals Of exper-
fences elasticity 20 our circulating medium ;
! therefore enough II II 30 transact the iegitl-
mate business cf the country aud 10 keep all
industrious employed, is what Is nov desired.
THE EXACT MEDIUM
Specie is the recognized medium Of ex
| change the world over that obhges that We
shall have currency of an exact
/ degree Of elasticity; 1t there be too much OF
! q Tor the legitimate purposes OF trade and
commerce, " will flow ont OF the country IT
-" little OF IT., the reverse Eil be the result
u III
suroucy to tina. standard is deserving OF the
~ So serious consideration Of Congress. The
| experience ol the present panic has proven
that the currency Of the country, based - II
! Is upon the credit of The country, is the best
that has ever been d vIscd Usually in
times of such trials, currency has
become worthless, or 50 much de-
prccia'cd ia value as 60 initiate the value Of
all the necessares OF life as compared with
currency everyone holding II has been anX-
ious to dispose Of 1t on any terms, and now
witness the reverse the holders OF cur
rency hoard 1t as they did gold on lOrm5r ex-
pel1ence of like nature. II Is patent 90 the
most casual observer that much more
currency or money Is required to
transact the legitimate trade of the
country during the fall aud winter months.
when the vast crops ire being removed, than
during the balance Of the yoar. With the
present system, the amount IN the country re-
mains the same throughout the year, result.
lug in an accumulation Of he surplus caDital
OF The country when not employed IN the
moving of crops. Tempted then by offers of
interest being paid, the hol er6 Of this capital
loan it ont. Tins surplus capital must
earn this interest and pay profit.
Being subject to call It cannot
be loaned, only in part at best
to merchants or manufacturers for a fixed
term honce, no matter how much currency
there might be 10 the country, Il would be
alb orbed, the prices keeping pace with the
volume or panlCs, stringcncy aud Disasters
would ever be recurring each year, owing to
the elasticity IN our money system. There Is
this object to be attained first, and next, as
tar as possible, prevention OF The use OF
money Ia stock and other species of
speculation. 10 prevent the latter it seems
10 me ore grcat step should 10 taken bY pro-
hlniting national banks fronl paying interv SITS
on deposits, 10y requiring them to hold their
reserve M their own vaults. and by forcing
them into resumption, taough il would ue
only IN LEGAL tender notes Tor this purpose !
would suggest The establishment Of clearing
house for your consideration. To secure the
former, mauy plans have been suS-
gestcd, most of which look TO me
like an imitation on the one hand,
or compelling the Government on the other
hand 20 pay interest without corresponding
benefits upon the surplus funds Of the cnun-
tly during the seasons when otherwise unem-
poyed | submit for your consideration
whether this difficulty might not be overcome
by authorizing the Secretary OF the Treasury TO
issue at any time to nominal banks OF issue any
amount Of their notes, below fixed per cent,
OF new ISSUE say 10 per cent, upon the banks
depositng with Ike Treasurer of the United
States an amount o. government bonds equal
to the amount OF notes demanded the banks
to forfeit TO the Government say per cent.
On interest accrulng on the bonds SO pledged,
during the time they remain with the Secreta-
~ OF the Treasury as security Tor the increase
OF circulation the bonds so pledged
TO be redeemable 10y the banks az their
pleasure either 10 whole or IN part by return
ing their own bills for cancellation to an
amount equal to the face OF
the bonds withdrawn. | would
further suggesta for Your consideration
returning for cancellation their own bills and
Withdrawing so many Y. 5. bonds for the
bill returned. In view OF the great actual con-
traction that has taken place IN the currency
and the imperative contraction constantly
going on. due 10 the increase of population,
the increase of manufactures aud all the in
dustrles, | do not believe that there is too
much OF it now for the dullest period Of the
year. Indeed, n clearing houses should be
established, thus forcing redemption, It II
question for consideration whether bank
ing should not be made free, retaining
All StleNudfNs low ItQuftu 10 secure uUl
holders. In any modification Ut the present
laws regHlpting national banks, and further
step towards preparing for n sumption OF spe.
clc payment, l invite your attention 10 con-
sideration OF the propriety OF exacilng from
them the retention, as a part OF their reserve.
eitlcr the whole or part OF tire gold
interest aecruiDg upon the bonds
pledged as security for their issue.
have not reflected enough ON the bearing
this ought have in producing a scarcity Of
com with which to pay the duties on imports,
10 give il my positive recommendation. but
your attention is invited TO the subject. Dur
ing the last few years the currency has been
contracted directly by the withdrawal OF three
] per cent. certificates, composed OF interest,
notes aud 7-30 bonds outstanding on the 4th
/ OF March, 1869, all of which took the place Of
/ legal tenders ~ the bank reserves 30 the ex-
/ tent OF sos 000,u00. During the same
period there has boon much
/ larger comparative contraction VI the cur
rency; the population Of the country has
/ largely increased more than 10000 miles Ut
railroad have been built, requiring the active
use Of capital To operate them millions ~
acres ui land have been opened 10 cultivation,
requiring capital tu remove the products
manufactures have multiplied beyond all pre-
/ ced mt IN the same period ot time, requiring
/ capital weekly for the payment Of wages aud
/ for the purchase 0t material, and probably
/ the largest of all comparative contraction
arising from the organizing vt free labor ~
/ the south. Now every abOrer there receives