Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1873-12-11

The first of these amendments would protect the
public against the many abuses and waste OF pup
tic MONEYS which creep into Appropriation oliis
and other important measures passing ouflng tne
expiring hours of Congress, 10 which otnef"ise
due consideration cannot be gwen
REVENUES AND EXPENDITURES.
The receipts of the Government from al sources
for the last fiscal fiscal year were 1888, i3S,20l, and
the expenditures on all accounts SAsD,5to,~4o' .lua
showing an excess of receipts over tbe eh - M
lures Of $43, 1872, $50; but it is not probable thal lhls
favorable exhibit Will be shown for the present
fiscal year. Indeed, it is very doubtful Whether,
except with great economy on the part OF congress
i'll making appropriations, ana Inc same economy
in the Administrator in administering the various
departments of the Government, the revenues VIII
not fall short of making the annual expenses III
Guiding the interest on the public debt. | com
| mend to Congress such economy and point out Two
sources where it seems to me 1t might commence,
to-wit: In the appropriations for public buildings
in the MANY cities where work has not been com
menced; in the appropriations for river ana haroof
Improvements in those localities where the I'M
provements are of but little benefit to general
commerce and Notifications. There
is a still more fruitful source
Of expenditure, which l will point out later
in this message. l refer to the easy method of
manufacturing claims for losses incurred in the
suppression of the late rebellion.
| would not be understood here as opposing the
erection of good. substantial. and even ornamental
buildings by the Government, wherever such build
ings are needed. In fact. | approve of the Govern.
ment owning its own buildings i'll all sections OF
the country, and hope the day is not far distant
when it Will not only possess them, but will erect
in the Capital suitable residences for all persons
who now receive communication for quarters or rent
at the Governments expense, and for the Cabinet,
thus setting an example 10 the States which may
induce them to erect buildings for their Senator'S;
but | would have this work conducted at tunes
when the revenues of the country would abundant
ly Justify it.
THE PANIC AND SPECIE PAYMENTS,
The revenues have materially fallen off for the
last five months of the present fiscal year, from
what ileY were expected to produce, OWING TO IIG
general panic now prevailing, which commenced
about the middle Of September, last. The full ef-
feet of this disaster, if it should not prove 10 be
"a blessing in disguise, :" is yet to be demonstrated.
In either event it is your duty to heed the lesson
and provide by wise and well-considered legisla-
ton, As far as it hes in your power, against Its re-
currence. and TO take advantage of all the benefits
that may have accrued My own Judgment is that,
however much individuals may have suffered, one
long step has been taken towards specie payments;
that we never can have permanent prosperity until
an entirely new basis is reached and main
~tained-untii our exports, exclusive of gold, pay
for our imports. interest due abroad, and other
speculations so heavy as to leave an appreciahle
accumulation of these metals in the country from
the products of our mines. The development of
mines Of precious metals during the past year, and
the prospective development Of them for years TO
come, are gratifying III the extreme; could but
one-half the gold extracted from the mines be re-
tanned al home, our advance toward specie pay
ments would be rapid. TO increase our exports,
sufficient currency is required to keep all the in
dustries of the country employed. Without this,
national as well as individual bankruptcy must en-
sue. Undue imitation, on the other hand, while it
might give temporary relief, would only lead to an
imitation of prices, and the impossibility of Compel
ing in our own markets for the products of home
skill and labor, and repeated renewals OF such eX-
pcriences. Elasticity to our circulating medium.
therefore, and just enough of it to transact the
legitimate business of the country and to keep all.
the industries employed, is what is most desired.
The exact medium Is specie, the recognized medium
of exchange, the world over. That obtained, we
shall have a currency of an exact degree of Clasti-
city. If there be too much Of it for the legitimate
| nlTnNA1s of trade and commerce II Will flow ont
of the country; if too little of ii, tie reverse will
be the result. To hold what we have, and to ap-
preciate our currcncs 10 that standard, is 4 prob
lem deserving of the most serious consideration
of Congress.
THE CURRENCY.
The experience of the present panic has proven
that the currency of the country, based a. 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 so
much deprecated in value as 10 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 reverse. Holders of the currency hoard il as
they did gold in former experiences of a like
nature. II is patent TO the most 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 removed, than during the balance of the
year. Under the present system, the
amount in the country remains the same
throughout the year, resulting in
an accumulation of all the surplus capital of the
I tOHhtAy Ntfi hSl ~ td III INT tl'N ihN vi 'IopC,
in eastern cities. tempted there by offers of high in
terest. This surplus capital must earn this interest
paid, with a profit. Being subject 10 call, it can be
loaned only in part, at best, to the merchant or
manufacturer for a fixed term. Hence. no matter
how much currency there might be in the country,
1t would be absorbed. prices keeping pace with
the volume, and panics, striDgency and disasters
would ever be recurring with the elasticity in our
money system. This is the object to be OBJ
tanned first, and next. as far as possible, a preven-
ton of the use of money in stock and other
species of speculation. To prevent the latter it
seems to me that one great step would be
taken by prohibiting the national banks
from paying interest on deposits. by requiring
them to hold their reserves in their own vaults, and
by forcing them into redemption, though it would
be only in legal tender notes. For this purpose [
would suggest the establishment of clearing houses
for your consideration. To secure the former
many plans have been suggested, most of which
look to me like imitation, on one hand, or compel
ling the Government, on the other, to pay interest,
without corresponding benefits, upon the surplus
funds Of the country during the seasons when
otherwise unemployed. / submit for your consid-
Grafton 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 a fixed percentage of their issue,
say 40 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 forfeit to the Govern
ment, say, i per cent. Ofthe interest aCcruing on
the bonds SO pledged during the time that they
remain with the Treasury as security for the in
crease of circulation, the bonds so pledged to be
ituCtIldDiCb ny III pdHh d tIClE plCdSHTG, e1lUGT
in whole or IN part, by returning their own bills
for cancellation to an amount equal to the face of
the bonds withdrawn. | would further suggest
for your consideration the prOpriety of authoriz-
ing national banks TO diminish their standing issue
at pleasure by returning for cancellation their
own bills and Withdrawing so many United
States bonds as are pledged for the
bills returned. In view of the great actual COR
traction that has taken place in the currency, and
due to the increase of population, in
crease of manufactures and all the in
dustr1es, L do not believe that there is too much of
it now for the dullest period of the year. Indeed,
If clearing houses should be established, thus fore
ing redemption, 1t is a question for consideration
whether banking should not be made
free, retaining all the safeguards now required to
secure bin holders. In any modification of the
present laws regulating national banks and a fur
Their step toward the resumptiono of specie payment.
| invite your attention to a consideration of the
part of their reserve of either the whole or a part of
the gold interest accruing upon the bonds pledged
as security for their issue. | have not reflected
enough on the bearing this might have in produc-
ing a scarcity of coin with which to pay duties
on imports, 10 give it my positive recommended
ton, but your attention is invited to the subject.
During the last four years the currency has been
contracted directly by the withdrawal Of 3 per
cent. certificates, compound interest notes and
7-30 bonds outstanding on the 4th of March. 1869,
all of which took the place of legal-tenders in the
of dollars. During the same period there has
been a much larger comparative contraction of
the currency. The population of the
country has largely increased: more
than $4,000 miles of railroad have been
built. requiring the active use of capital to oper-