New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-12-03
expenditure, which viii point out later in
this message. refer to the easy method Of

MANUFACTURING CLAIMS
For losses incurred in suppressing the lat,
instruction.
would not be understood here as oppos
ing the erection of good, substantial, anl
even ornamental buildings by the govern
ment wherever such buildings are needed
In fact, approve Of the government own
ing its own buildings in all sections of tn,
country, and hope the day is not far distan
when it will not only possess them, but viii
erect in the capital
SUITABLE RESIDENCES
For all persons who now receive commute
ton for quarters or rent at government eX
pense, and for the Cabinet, thus setting ar
example to the States which may induce
them TO erect buildings for their Senators
But would have this work conducted al
time when the revenues of the country
would abundantly justify it.
The revenues have materially fallen of
for the first five months OF the present year
from what they were expected to produce,
owing to the
GENERAL PANIC
now prevailing, which commenced about
the middle OF September last. The full
effect Of this disaster, if it should not
prove
BLESSING IN DISGUISE.
Is yet to be demonstrated. In either event it
is your duty to heed the lesson, and to pro-
vide by wise and we'll considered legisla-
ton as far as it lies in your power against
its recurrence, and to take advantage Of all
benefits that may have accrued.
MY own judgment is that, however much
individuals may have suffered, one long
step has been taken toward specie pay
ments. That we can never have permanent
prosperity until
SPECIE BASIS
Is reached. and that a specie basis can not
be reached and maintained until our ex-
ports, exclusive of gold, pay for our i'm
ports, interest due abroad, and other specie
obligations, or so nearly SO as to leave an
appreciable accumulation of the precious
metals IN the country from the products of
our mines.
THE DEVELOPMENT OF THE MINES
OF precious metals during the past year and
the prospective development of them for
years TO come are gratifying in their results.
Could but one-half of the gold extracted
from the mines be retained at home. our ad-
vance toward specie payments would be
rapid. To increase our exports sufficient
currency is required to keep all the indus
tries of the country employed. Without
this, national as we'll as Individual bank
ruptcy must ensue. Undue Initiation, on the
other hand. while it might give temporary
relief, would only lead to initiation of prices.
The impossibility of competing in our own
markets for the products of home skill and
labor are repeated renewals of present ex-
periences.
ELASTICITY TO OUR CIRCULATING MEDIUM,
Therefore. and just enough of it to transact
the legitimate business of the country and
to keep all Industries employed, is what is
most to be desired. The exact medium is
specie, the recognized medium Of exchanges
the world over. That obtained, we shall
have currency OF an exact degree of elias
ITCHY. II there be too much OF it for the
legitimate purposes of trade and commerce,
it will flow out of the country; if too little,
the reverse will result. To hold what we
have, and to appreciate our currency to
that standard, is the problem deserving of
the most serious consideration of Congress.
The experience of the present panic has
proven that the currency OF the country,
based az it is upon the credit Of the country
is the best that has ever been devised
Usually, in times OF such trials, currency
has become worthless. or so much depre-
ciared IN value as to initiate the values of
all the necessdries 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 curren-
cy hoard it as they did gold in former ex-
periences of like nature.
1t is patent to the most casual observer
that much more currency or money is re-
luired 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. With our present
no a,va
he same throughout the entire year, re-
;ulting in an accumulation of all the sur
plus capital Of the country in few centres,
when not employed in the moving of crops.
empted there by the offer of interest on
,all loans. Interest being paid, this sur
,lus capital must earn this interest. Paid
With profit; being subject to '.call;" it can
lot be loaned, only in part, at best, to the
merchant or manufacturer for fixed term.
Hence, no matter how much currency there
night be in the country, it would be alb
orbed, prices keeping pace with the volume
md panics, stringency and disasters would
ver be recurring with the autumn.
Elasticity i'll our monetary system, there |
ore, is the object to be attained first, and
lext to that, as far as possible, proven
ion of the use OF other peoples money in |
took and other species of speculation.
To prevent the latter. it seems to me that |
ne great step would be taken by prohibit
ng the nationa! banks from paying inter
st On deposits by requiring them to hold
heiy |
RESERVES IN THEIR own rACLfs.
md BY forcing them into resumption, !
hough it woulo be only in legal tender
oses. For this purpose l would suggest |
he establishment OF
CLEARING HOUSES,
Or your consideration. To secure the for |
Ter many plans have been suggested, most. |
not all. Of which look to me more like |
lfiation on the one hand, or compelling the |
Overnment on the other to pay interest |
Tithouf corresponding benefits upon the |
urplus funds of the country during the |
easons when otherwise unemployed.
l submit for your consideration whether |
his difficulty might not be overcome by |
the Secretary OF the Treasury
} issue at any time TO natiOna! banks of
sue any amount Of their own notes below
fixed percentage of their issue. say forty
10 treasurer OF the United States, an
mount OF government bonds equal to the
mount OF notes demanded, che banks to
,rteit TO the government say four per cent
the interest accrulng on the bonds so
lodged during the time they remain with
he Treasurer as security for the increased
rculation the bonds so pledged to be re-
eemable by the banks at theiE pleasure,
Their in whole or in part. by returning
leir own bills tos cancellation to an
mount equal to toe face of the bonds with
rawn.
would further suggest 70: your eonside-
.tioa the propriety OK
AUTHORIZING. NATIONAL BANKS
l
, diminish their standing issue at pleas
e by returning for cancellation their own
lis and withdrawing so many United
ates bonds as are pledged for the bills re-
yned. In view Of the
GREAT ACTUAL CONTRACTION
at has taken place in the currency and
e comparative contraction continually
ling on, due to the increase of population.
crease of manufactt res. and all the in