The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1873-12-05

OsuaIIy, IN eucn tflaiS, currency mas
become worthless, or so much depre-
ciated in value as to initiate the val
ues of all the necessaries of life, as
compared with the currency, every
one holding it has been anxious to
dispose oft on any terms. Now we
witness the reverse. Holders OF cur
rency board it as they did gold in
! former experiences of like nature.
1t Is patent 10 the moet casual observer that
much more currency or money is required to
transact the legitimate trade of the country
| during the fall and winter months, when the
vast crops are being moved, than during the
| balance of the year. With the present system
the amount in the country remains the same
/ throughout the entire year, resulting in accu-
mutation of all the surplus capital Of the coun-
try IN few centerE, when not employed in
moving the crops, tempted there by the offer
of interest, on call loans interest being paid.
This surplus capital must earn the interest paid
with profit, being subject to call. It cannot
be loaned only in part at best to the merchant
or manufacturer, for fixed term, hence, no
matter how much currency there might be in
the country, it would be absorbed, the price
| keeping pace with the volume, and panics,
| strlngency and disasters would be ever recUr-
ring with the autumn. Elasticity in our mo-
ney system, therefore, is the object to be at
| tanned first, and next that as fsr as possible a
/ prevention of the use Of other peoples money
| IN stocks aud other species of speculation. To
prevent the latter,It seems to me that one great
step would be taken by prohibiting the Nation
al Banks from paying interest on deposits, by
requiring them to hold their reserves in their
own vaults, and forcing them into resumption
though 1t would be only in legal tender notes.
For this purpose, would suggest the estab-
llshment OF clearing houses, for your consider
alton To secure the former many plans have
| been suggested, most If not all of which look
| to me like imitation on the one hand, or COM
pelling the government on the other hand to
pay interest without corresponding benefit up
on che surplus funds of the country, during the
seasons when otherwise unemployed. 1 submit
for your consideration whether this difficulty
might not be overcome By authorizing the Sec
rotary of the Treasury to issue, at any time,
to nominal banks of issue any amount Of their
notes below fixed per centage of their issue,
say forty per cent, upon the banks depositing
| with the Treasurer of the United States an
amount of government bonds equal to the
amount of notes demanded the banks to for
felt to the government say per cent. on the
interest accrulng on the bOnds SO pledged du-
ring the time thsy remain with tue treasurer,
| as security for the increase Of circulation. The
bonds so pledged to be redeemabIa by the
banks at their pleasure, either in whole or in
part. by returning their own bills for cancella-
zion, to an amount equal to the face OF the
bonds withdrawn. l would further suggest for
your consideration the propriety of authoriz-
ing National Banks to diminish their standing
issue at their pleasure, by returning for can
collation. their own bills and withdrawing so
many U. s. bonds as are pledged for the bills
returned, In view of the great actual contrac-
ton that has taken place in the currency, and
the comparative contraction constantly going
on, due to the increase of population, increase
OF manufactures and ali the industries. do
not believe that there is too much of it now
for the dullest portion of the year, Indeed, if
clearing houses should be established, thus for
eng redemption, it is question for consider
stion Wnether banking should not be made
Hee, 1etdIning ali the safeguards now requir-
ca 70 secure the bill holders in any modItca-
uon OF the present law regulating National
banks, and a further step towards providing
Ior the resumption Of specie payment. l IN
Vlte your attention to q consideration Of the
propnsty OF exacting from them the retention
as part OF their reserve, either the whole or
part OF the gold interest accruing on the
oonds pledged as security for their issue. l
nave not reflected enough on the bearing this
mlgoI nave in producing a scarcity Of coin
with which to pay duties on imports, to give it
my positive Recommendation, but your alton
uon Is invited TO the subject.
During the last four years the currency has
been contracted directly by the withdrawal of
three per cent certificate compound interest
notes and 7-30 bonds outstanding on the 4th of
March, 1870, all OF which took the place of le-
gal tenders in the bank reserve, to the extent
OF S63, 100000. During the same psriod there
has been much larger comparative contrac-
ton OF currency. The population of the coun-
try has largely increased. More than $4,000
miles Of railroad have been bull, requiring the
| active use of capital 70 operate them; millions
OF acres Of land have been opened to civiliaa-
| tion, requiring capital to move the products;
manufactures have multiplied beyond all pre-
cedsnt In the same period Of time, REQUIRING
capital weekly for the payment Of wages and
| the purchase Of material, and probably the
largest Of all comparative contraction, arising
| from the organization of free labor IN the
| South. Now every laborer thsre receives his
wages, and for want OF savings banks, the lar
| ger part of such wages Is carried in pocket or
boarded till required for uss. These sugges-
| tions are thrown out for your consideration,
without any recommendation that they shall
be adopted literally, but hoping that the best
method may be arrived 1T to secure such an
elasticity of the currency as will keep employ
ed all the industries of ths country, and pre-
vent such an imitation as will put of indefinite
ly the resumption Of specie payments, an OBJ
Ject devoutly to be wished for by all, and by
none more earnestly than the class of people
most directly interested-those who earn their
bread by the sweat of their brows. The de-
cisions of Congress on this subject will have
the hearty support Of the Executive.
In previous messages I have called attention
to the decline in American ship building, and
recommended such legislation as would So
cure to US our proportion of the carrying
trade, stimulated by high rates and abundance
of profit.
The progress for the last year in ship build |
ing has heen very satisfactory. There has |
been IN increase of about per cent in the |
amount transported in American vessels, over
the amount OF last year. With the reduced |
cost of material which has taken place, it may |
reasonably be hoped that this change will be |
maintained, and ever increased, However,
we pay about SS0,000,00O per annum to for
eign vessels for the transportation of our sur
plus products thus increasing the balance of
trade against us to this amount. The subject
is one worthy Of your serious consideration.
Cheap transportation Is q subject that has
attracted the attention Of both producers and
consumers for the past fey years, and has con-
tr1buted to, If it has not been the direct cause
of the recent panic and stringency. As Con-
gress at its last session appointed a special
committee to investigate this whole subiect
during the vacation, and report at this sss-
oAOly naNC nOllAlB " ISCOmm6nu Until Lleir
report is ready. There is one work. however
of national character in which the greater
portion of the East and the West, 20 North
and South are equally interested, to which
will invite your attention. The State Of New
York has a canal connecting Lake Ere with
tide water on the Hudson River,and the State
of Illinois has similar one connecting Lake
Michigan with navigabls water on the Illinois
River, thus making water communication be-
n Al. /
These great artificial water courses are the
of the States through which they {
pass, and pay toll to those States would it not
be wise statesmanship to pledge these States !
that If they will open these canals for the !
passage of large vessels, the government will !
look after and keep them in navigabis condi-
lion. The great public highways with which
they connect with the overslough Oh the Hud- '
son, the st. Clair Flats, and the Illinois and {
Mississippi Rivers, this would be a national
work, and one of great value to the producers J
If the West and South, in giving them cheap t
for their produce to the sea- t
BOARD; and u market to the consumers in the
East, in giving them cheaper food, particular Q
y Of those articles of food which do not find q
foreign market, and the prices of which, a
therefore,, are not regulated by foreign de- {
nands. The advantage Of such a work are O
90 obvious for argument I submit the sub 3
ect to you, therefore, without further COM
nent. e
In attempting to regain our lost commerce b
nd carrying trade, 1 have heretofore called \
ttention to the states south of US, offering a B
cid whore much might be accomplished To b
1rther this subject, suggest thar small sp- n
ropriation be made, accompanied with the q
uthority Of the Secretary Of the Navy to lit 81
ut a naval vessel to ascend the Amazon Riv- o
T to the mouth of the Madeira, thence 10 er- "
lore that river and It's tributaries into Boil Al
ia, and to report to Congress, at its next sss- a
on, or as soon as practicable, the accessible q
I OF the country By water, its resources. and et