The Opelousas journal. [volume] (Opelousas, La.) 1868-1878, 1873-12-12

! ings for their Senators. But I would
have this work conducted at a time
when the revenues of the country would
abundantly justify it. Revenues have
| materially fallen off 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 EFFECTS OF THE PANIC.
| The full effect of this disaster, if it
| should not prove "blessing i'll dis
guise," is yet to be demonstrated In
either event it is your duty to heed the
lesson and to provide by wise and we'll
considered legislation as far as it lies
IN your power against its recurrence,
and to take advantage of all benefits
that may have accrued.
NEVER HAVE PERMANENT PROSPERITY
UNTIL A SPECIE BASIS is REACHED.
My own judgment is that, however
much individuals may have suffered,
one long step has been taken towards
specie payments; that we can never
have permanent prosperity until spe-
Gle basis is reached, and that specie
basis cannot be reached and maintained
until our exports, exclusive of gold,
pay for our imports, interest due abroad,
and other specie obligations, or so near
~ so as to leave an appreciable accu-
mutation of the precious metals in the
country from the products Of our mines.
DEVELOPMENT OF MINES OF PRECIOUS
METALS
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 advance towards
| specie payment would be rapid.
| OUR EXPORTS AND OUR CURRENCY.
| To increase our exports, sufficient
| dustries of the country employed.
| Without this, national as well as indi-
| vldual bankruptcy must ensue; undue
imitation on the other hand, while it
might give temporary relief would only
lead to imitation of prices, the impOssi-
| blllty OF competing in our own markets
| for the products Of home skill and la
| Dor, and repeated renewals of present
| experiences; elasticity to our circulat-
ing medium, therefore, and just enough
OF 1T to transact the legitimate business
OF. the country and to keep all indus
! tries employed, is what IS most TO DO
desired. The exact medium is specie
the recognized medium of exchange,
the world over. That obtained, we
shall have a currency of an exact de-
gree of elasticity. If 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 stan
dard is the problem deserving of the
most serious consideration of Congress.
The experience of the present panic
| has proven that the currency of the cOun-
| try, based as it is upon the credit of tho
| country, is the best that has ever been
| devised. Usually, in times Of such trials,
currency has become worthless, or so
much deprecated in value, as to initiate
the values of all the necessaries of life,
as compared with the currency. Every
one holding it has been anxious to dis
pose Of it on any terms. Now we witness
the reverse. Holders of currency hoard
| it as they did gold in former experiences
of like nature. It is patent to the
most casual observer that much more
currency or money is required to trans
act 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 system the amount in the
country remains the same throughout
! the entire year, resulting in an accumu-
latlOn OF all the surplus capital of the
| country in few centres when not en-
plOyed in the moving of the crops.
Tempted thereby, the offer of interest
on call loans. Interest being paid this
surplus capital must earn this interest
paid with profit. Being subject to
"call it cannot be loaned, only in part
| q tn fha mt Co.
| for a fixed term. Hence no matter how
| much currency there might be in the
| country, it would be absorbed, prices
| keeping pace with the volume, and pan
| les, stringency and disasters would ever
| be recurring with the autumn. Elastic
| lty IN our monetary system, therefore, is
! the object to be attained first and next
to that, as far as possible, q prevention
OF the use of other peoples 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 recurring
them to hold their reserves in their own
| vaults, and by forcing them into resunr
tiOn, though it would only be in legal
| tender notes. I..,,..,-...
ADVOCATES THE ESTABLISHMENT OF
I 'f NALtAhANST~EODSESs
| For this purpose / would suggest tbe
establishment of clearing-hoIses for
your consideration. To secure the former
many plans have been suggested, most
it not all of which look to me more like
! imitation on the one hand, or compelling
| the Government on the other to nav in
| terest without corresponding benefits
upon the surplus funds of the country
during the seasons when otherwise un-
employed. ....s.r
PROPOSITION THAT THE SECRETARY OF
THE TREASURY ISSUE TO NATIONAL.
| BANKS ANY AMOUNT OF THEIR OWN
NOTES AT A FIXED PERCENTAGE. fs~
1submit foryoUr consideration wheth-
er this difficulty might not be overcome
| by authorizing the Secretary of the
| treasury to issue any amount of their
notes below a fixed percentage of their
/ lssue-say, forty per cent.-upOn the
banks depOsiting with the Treasurer Of
/ the United States an amount of Govern
ment bonds equal to the amount of notes
demanded, the banks to forfeit to the
| Government, say four per cent of the
interest aGcrulng on the bonds so pledged
during the time they remain with the
| Treasurer as security for the increased
CIRCULATION; the bonds so pledged be
redeemable by the banks at their pleas
ure, either in whole or in part, by re-
turning their own for cancellation to an
amount equal to the face of the bonds
withdrawn. IwOuld further suggest for
your consideration the prOpriety of au-
/ thOrizing national banks to diminish
their standing issue at pleasure by re-
turning for cancellation their own bills