Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1873-12-11

Il
guise, " is yet to be demonstrated. In either
event it is your duty to heed the lesson and
provide by wise and well-considered
legislation, as far as it lies in your
power, against its recurrence, and to
take advantage of all the benefits that NAV
have accrued. Ny own Judgment is, however
much individuals may have suffered. one long
step has been taken toward specie payments
That we can never have permanent prosperity
until an entirely new basis is reached and
maintained until our exports, exclusive OF
gold pay for our imports interest due abroad
and other speculations so heavy as to leave an
appreciate 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 de-
yelopment of them for years to come, are
gratifying in the extreme could but one-half
of the gold extracted from the mines be re-
tanned at home, our advance toward specie
payments would be rapid. To increase our
exports, sufficient currency is required to keep
all the industries of the country EMPLOYED.
Without this national as well as individual
bankruptcy must ensue. Undue Initiation on
the other hands, while it might give temporary
relief, would only leadto an initiation of prices.
The impossibility of competing in our
own owl, markets for the products of home
newals of experiences give elasticity of
our specializing medium therefore and
just enough of it to transact the legitimate
business of the country ana to keep all the
industries employed is what is desired. The
exact medium is specie, the recognized me-
dunn OF exchange, the world over. That OBJ
tanned, we shall have a currency of an exact
degree OF elasticity. If there be too much of
it for the legitimate purposes of trade and
commerce, 1t will flow ont of the country if
too little of IL the reverse will be the result.
To hold what we have, and to appreciate our
currency to that standard is problem de-
serving of the most serious consideration of
Congress.
The experience of the present panic has
proven that the currency of the country. based
as it is upon the credit of the country. il the
best that has ever been devised. Usually. in
times of such trials. the currency has become
worthless, or go much deprecated in value as
to initiate the value of all the neceesaries 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 it as they did
gold III former experiences of a like nature
1t 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 tho country re-
mains the same throughout the year, result
ing IN the accumulation of all the surplus
capital of the country when not employed in
The moving OF crops, tempted there by offers
OF interest being paid. This surplus capital
must earn this interest paid with profit.
Being subject TO call, it cannot be loaned only
in part, at best, to the merchant or manufac-
turer for 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, stringency
nd ha
the elasticity in our money system. There is
this object to be obtained first, and next, as
Tar as possible, prevention of the Use of
money in stock and other species Of specula- |
ton. To prevent the latter it seems to me
that one great step would be taken by pro-
hibiting the national banks from paying |
Interest on deposits by requiring |
them to hold their reserves in their
own vaults, and by forcing them into resump-
ton, though it would be only in legal tender |
notes. For this purpose 1 would suggest the |
establishment of clearinghouse for your |
consideration. To secure the former, many |
plans have been suggested, most OF which |
look 70 me like imitation on one hand, or COM |
pellmg the Government on the ether 20 pay
interest, without corresponding enetits, upon |
the surplus funds of the county during tho |
seasons when otherwise unemployed. | sub
nit for your consideration whether this diff |
Guilty might not be overcome by authorizing |
time, to nominal banks CT issue, any amount |
Of their notes below fixed percentage of |
their issue, say 80 per cent. upon the banks |
deposlting 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 Government, say, per |
cent. on the interest accruing on the bonds SO !
pledged during the time that they remain with !
the Treasury security for the increase of |
the bonds so pledged to be re-
deemable by the banks at their pleasure, |
either 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 authorizing national banks to
diminish their standing issue at pleasure by |
returning for cancellation their own
bills AID withdrawing many United |
States bonds as are pledged for the
bills returned. In view of the great actual |
that has taken place in the cur |
rency, and the comparative contraction con- |
stantly going on, due to the increase of popu- !
lation, increase of manufactures and all the |
do not believe that there is too /
much of it now for the dullest period of the |
year. Indeed, ii clearinghouse should be |
thus forcing redemption. it is a |
question for consideration whether banking /
should not be made free, retaining all the |
now required to secure bill-hold- |
ers. In any modification of the present laws |
national banks and further step |
toward the resumption of specie payment. /
invite your attention to e consideration of the /
propriety of exacting from them the retention, |
rs part of their reserve, of either the whole |
or a part of the gold interest accruing |
upon the bends pledged as security for their |
issue. l have not reflected enough on the |
bearing this might have in producing |
scarcity of coin with which to pay duties on |
imports, to give it my positive recon-
but your attention is invited |
to the subject. During the last four
years the currency has been con-
tracted directly by the withdrawal of per |
cent. certificates composed of interest notes |
and 100 bonds outstanding on the 4th of |
March, 1862 all of which took the place of |
legal tenders in the bank reserves 20 the ex-
tent of sixty-three millions of dollars. Dur |
ing the same period there has been a much |
larger comparative contraction of the cur |
rency. The population of the country has
largely increased; more than 1000 miles of |
railroad have been built, requiring the active |
use of capital to operate them; millions of |
acres of land have been opened ia cultivation, |
requiring capital to remove the products; |
have multiplied beyond all pre- |
cedent in the same period of time, requiring |
capita, weekly for the payment of wages and /
for the purchase of material, and, probably |
the largest of all, the comparative contraction |
frov, tho oroapi1i,D of FREQ labor i'm |