The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1873-12-06

ton the propriety of authorizing 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
banks to forfeit to the Government, say 4
per cent on the interest accruing on the
bonds so pledged the time that they remain
with the Treasury as security for the in
crease of circulation, the bonds so pledged
TO be redeemable by the banks at their
pleasure, either in whole or in part by re
turning 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withdrawn | would further suggest for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 author
ling national banks to diminish their out
standing issue at pleasure by returning Tor
canccling their own bills and withdrawing
so many United States bonds as are pledged
for the bills returned In view of the great
actual contraction that has taken place in
the currency and the comparative contrac-
ton constantly going on, owing to the IN
crease of population, increase OF manutac-
lures and ali the industries, ! do not believe
that there is too much of it now for the dull
lest period of the year Indeed II clearing
houses should be established, thus forcing
redemption, it Is a question tor conslucra-
ton whether banking should not be made
free retaining all the safeguards now re
quircd to secure billholdcrs. In any mod
iticaton Of the present laws regulating ma
tiona banks and further step toward the
resumption of specie payment, | invite your
attention to a consideration OF the propricty
of eyactng from them the retention, as u
part of their reserve, of either the whole or
a part of the gold interest aCCruing upon
the bonds pledged as security for their is
sue. | have not reflected enough on the
hearing this might have to produce a sCarCi-
tv of coin with which to pay duties on i'm
ports, to give it my positive recommends
lion. but your attention is invited to the
subject. During the last four years the cur
rency has been contracted directly by the
withdrawal of 3 per cent. certificates com
noscd of interest notes and 1-30 bonds out
standing on the 4th of March 1869, all OF
which took the place OF legal tenders III the
bank reserves to the extent OF slAty-thrtc
millions of dollars. During the same peri
cd there has been much larger compare
tive contraction of the currency. The pop
ulation of the country has largely lncreas.
ed more than $4,000 miles ofrailroad have
been built, requiring the active use Of capt
tai to operate them; millions of acres OF
land have been opened to cultivation, re
curing capital to remove the products;
manufactures have multiplied beyond all
precedent in the same period OF time, re
curing capital weekly for the payment OF
wages and for the purchase OF material,
and, probably the largest otall, the compar-
alive contraction arising from the organl-
ling of free labor in the South. Now, ey-
cry laborer there receives his wages, ana,
for want of savings banks, the greater part
of such wages is carried in the pocket or
boarded till required for use. These suS-
gestions are thrown out for your conSidera-
~. ,.NtNNf.r do if1ra
shall be adopted literally, but hoping that
the best method may be arrived at to secure
such an elasticity Of the currency as will
keep employed all the industries of the
country, and prevent such an imitation as
will put off Indefinitely the resumption OF
specie payment, an object devouty to be
wished for by all, and by none more earn
estly than the class of people most directly
interested-thOse who earn their bread by
the sweat of their brow. The decision of
Congress on this subject will have the hear
ty support of the Executive.
In previous messages, | have called at
tention to the decline in American ship
building recommended such legislation as
would secure to the United States our por
ton of the carrying trade. simulated by
higher rates and the abundance OF freight
the progress for last year In ship-buildlng
HAS Dttll NtlN SdllSItNlDly' Ii'IN los oN'i
an increase of about 3 per cent. in the
amount transported in American vessels
over the amount of last year. With the re.
duced cost of material which has taken
place, it may reasonably be hoped that this
change will DC maintained and even increas-
ed However, as we pay about SSO,OOOOOO
per annum to foreign vessels tor the trans
pOrtatIOn of our surplus products to a mar
ket, thus increased, the balance OF trade Is
against US to this amount. The subject IS
one worthy of your serious consideration.
Cheap transportation is subject that has
attracted the attention of both producers
and consumers for the past few years, and
has contributed to, if it has not been the di-
rect cause of, the recent panic and stringen.
CIV. As Congress, at its last session, appOin-
ted a special committee to investigate this
whole subject during the vacation, and re
port at this session, | have nothing to re
mmend until their report is ready.
There Is one work however, of a nation
al character, in which the greater portion of
the East and the West the North and the
South, are equally interested, to which |
will invite your attention. The State OF
New York has a canal connecting Lake
Erie with tidc-water on the Hudson river.
The State of Illinois has a similar one con
Meeting Lake Michigan with the navigable
waters on the Illinois river, thus making
water communication inland between the |
East and the West and the South These |
great artificial water courses are the prop |
erty of the States through which they pass |
and pay toll to those States. Would it not |
be wise craftsmanship to pledge these |
States that fthey Will open these canals for |
the passage of large vessels, the Government |
will look after and keep in navigable con.
dition the great public highways with
which they connect, to-wit: The over
slough on the Hudson, the St CLAIR flats,
and the Illinois and Mississippi rivers?
This would be a natural work, one of great
value TO the producers of the West and
South, in giving them cheap transportation
for their produce to seaboard, and mar
kct to the consumers in the East, in Civ,
inc them cheaper food, particularly OF
those articles of food which do not ma a
foreign market, and the prices of which,
therefore, are not regulated by foreign de
mand. The advantages of such work are