, 1873-12-03

ticr n,lmcron .leporltra whn begnn to hc ALARMED,
and at there duscloc an Gx;cMad run ifol 'nosa
sastrr t. na strsss. Te L "!so iortu oar Ta9k
MID clteeicd tlr GENERAL nfa to homo extent Dlst
tho os" Of connlccc iii thy v.n of rsas a,.ii
Tho fatiiiro Of blinking houses coccle with in:
Iebte corporations, o is.,st or thv M hoysnfy ss ~ nf
firms an.l individuals woeo hninssa wan supposed 10
10 greatly cstendu nn e lcKnae occt thaFeot 's.,t
~ ~ dstnr Tbs nsenf 6" Of s en'1 ,yen sa sh
cond5s',ss wss' @ 10 70 ps oSsniSay rsssssi oaly
ssln,g ga no'tes ttsE knovcao I Of Ssruo val nk
ig inveat,nenta necosiE1y and ny s1nc,g 20 !, na, b'"
mess On rer eass on" "r aa To ,9 no o 5
thu Practice by bska Of nflowng intorest on darosiss
lnyalo oil demand, IN l'crsioa an.l irH,igl,s WIN
well Us To general lnRicER tnfer1H. DcI'R1ta 1myape
on ;sn.ana ailonld lo limited to tint snr';!s Witch H.
and part II that from which cy expect m income.
amonntd, mud constitute hesithy asIs for banking
knnw how TO lctetninc. But, IT deposit Acrotlts arc
on'ployee as temporary
tercst is l1, mud wero speculation Ia most active,
a seasons w|len III much. profit thereon en1not Io
m VII o t pv
irawa lilo vl.oo lasnesa of iho banks, loth affect
disiun Of things III which borrowers oil cAll nra alao
noney of ,!cositors Oh ca Thcy hsvs oanesl il Of,
cnll 10 Rrecnators wo by It's usc, Lave contributed
to tato tho prices Of atoeka or merchandise which
havo been tho subject Of tacir alcculationB. Tho
speenlntor wants 1t to carry stocks TIL he dis
poao Of then, without lSss. rha Ao ia unable
opositosa and borrowers all want It at tho sumo TING,
an, Of conrAe, Bsdngcncy ia faeyolorcd which spreads
s sbIs st Ssraa Ts 81 5ss s
Of which thus suddenly and unexpectedly natur1 ut
tin tlrat shock Of financial commercial en,'arraas
needed by tho obtors and when they least nhlu to
respond. There Is no safoy for corporations or tndt.
o ea sapn s sas e
from ruin in tho recent financial excitement by avn-
Ing themselves Of tho provisions in their rales renr-
Ing sixty days Or othcr periods of notice
seis s'S'' tos:i's rsSss nsyase q t%s 81.
las auch rule amoug it's by-laws. Without at.rlhut-
ing Tho atrngency ~ tho money narot Wticl ts ox-
d Ills Of :" py
Interest nron deposn fl fnrEe ces It ia evident TINT
Whom money is less needed in legitimate b7'sincsa tho
ways detrimental tu thu bost intUrcas Of tho country,
aud The bad efrocts Of which upon tloao interoats be.
como moro aprarent aud dsaater moro widespread
whc necessity contraction begns 10 be- folt. recon-
nond that Nasionnl Banks bo prevented from 1aying
on oposs tnnt 0y 9S fSscte ted an
ton BY Congress- cannot prevent sa:o DanAa
can prevent National Banks from becoming Involved
dinct,tieu to which # necessarily leads. National
Danks orgauzod by law Of Congress, and having rca-
tios with tho Government in tho tsa1e Of circnlnug
uoeH, ought to DO tho noA cautious md eafa ba,lsnV
from ul hazardous busness Which 1t ia not possible
to rayunt sangasfne, cntufesoe, and speculative iu
div!ii,as from eng'gmg tn at the risk Of THUR capital
Of baunotes, and Of Unitc STATES lcgAtenor notes,
mt retoon'abo,, In coin, aud with gold al,oVe par
redundancy and times Of scarcity currency, depcnd-
isy wholly on tho toniand, Ito method existing for i'll
cseaaing tho surpy With circulating medium redeem;
scarcity by import, of specie. There ~ prevailing
Hontinunt that more lsticit yahoul 10 given tho
might increaso aud diminish according to tic neccss
es Of tho business Of tho country but the Inference
Ct o'ion on the aubJect s f. 90 erea and he real
that without discussing my Of the multitude Of plans
which hAye been presented to tho public, through
a sassson % Ss pa ;a9sn sasess ien
ee conon ae lsrge business s ateress
which have suffered BY tile recent financial crsis aud
thAt in such inquiry, ayo.1lng further innation Of
notes, not tho tho most Desirable of . III ans,l-
ella, results tobo obsalnca nacly permanent return
to sound n e9a =. Of sResS a ri goa
value shall! DO tho aim TO allow National banks to
uxe part Of their At Seasons Of goacss pres
ii G.ais, Il ii saaaoaa md il ah PLACED ai!te,
oi trade and business. which aro
hrsy It e
redemption citcs nA.ncd In tbs Banking law, which
great controlling centres Of business, might DO
much to give steadi,esa md safety, It they
thorzel though properly constituted boards OF COM
iccs Of their own oiccrs to oxcrctso large dsscre
on III the Of her reserves IN to rate of interest
to DO churged at dilerent scEsona ad lor different
circumstances md i other nattors within The limits
prescribed by law. Should 1t bc dccmed necessary
expedient to temporarily enlarge apcr money circula-
nude mud II 10 Permit Stioual Dsks nndsr corsa s cirsan
eirs eironssion b by rese Of United ue states
bearing 10 interest While 50 pledged subject
Inc banks to special taxation upon circulating notes
obtained thereon upon sch ether ternB that 1t
would bo for their Interest to recall tho notes aud
deem tho bonds ut tho earliest possible lay after tho
but my large augmentation Of he ipsuo Of United
6tates lcgatcnder uutes In no Of peace would mt
on BE- fr1 eat deearaoa M Of public
amount Of such notea shall uuver exceed $4o0 0oo
tSe nrst acs Of tAo Fdrty.lrss Congress,
ITO mako, provision Of tie esreas practicahle
oa foF xas tas a 81 sss
aud render It difficult to attain. n the distaut
future, unsettlo confidence In national finances,
| aud be Eerioua detrment to tho public cr0ltt ut
| homo and abroad. .
| ePEC1H pAr11ENT.
Thoro can DO 10 doubt that, during tho eight years
since the Rohsllion there bus boom growing desire
specie standard and that auy stops tatoA 10 accous-
rish that object will 10 received with general favor.
1t Ia not possible TO rca1'mo and maintain specie pay
laents With 50 1arge, m anount o. notes ~ u
country. The volume OF currency nl1at bo
reduced, or that OF cotn greatly increased.
Should National Banks be prohibited from
sotug the coin received by them ia Interest upo,
bouls pledges to Etcuro circulation, retaining the
sau,o % whole or in part IN reserve, loaning It
III tho dtscount Of bills and noen payable III Con a.
Congress n!Kht prescrbe tlora would DO graded
eumnlatton Of gold IN bauka whieh would do rome.
thing towurau preparing for resumption. THE, with
constant increase Of coin In tie Treasury, uudeE-
taken With the approval of cougreas, would era long
lead to tho desired resu when other conditions
auirea for maintenance Of specie p2ymeuts should
| become favorable.
| LEGAL TE,FpERB.
Tho acts Of Cougrass Of Feb. o5 1869, July II. 1864
anh March y, lHG3, together uutuoriza the isatb
Of uuItel satsa notcs III addition to $50 900
the prompt payment VI temporary loan dopoalta, and
the act Of June 80 1ac4, contan thcse worta MOI
shall Ito total amonn ot Unlto Statea notes Issued
or to bo ieauc4, ever uxcosl $l0p, ,o00uo0 and sur
JN rRnr