The New York herald., 1873-12-03

greatly EXTENDED and the legitimate effect thereof m
avoided By any amolnt OF currency Which might be
Be- eoasd only by the slow
ana ne Of bg %
conducting business on hrner basis with less imitation
There can be doubt !hat the praetiee by banks Of
on o on es
and lender well as 10 the general business
Deposits payable on demand should be limited to that
na ny p o @ SsF w ey
an income such deposits are comparatively staple IN
Ing within proper limits which prudent bank
But ndepost accounts are employed temporary in
ves,mens the interest attracts large amount OF money
sons when as much profit thereon cannot BE- secured
eopHrdlse in thei5 sudden withdrawai ne Whole
tors on he hand by excitement and dstrus and
on call are also Unable to s RESPOND The banks
have borrowed their money Of depositors on eaI rney
sSy sssa s 70 Hae The s the n sefks or
tions The speculator wants IL to carry the stocks till he
can sPose Q them without loss This y unable 70 DO
or and The borrowers all want il at the same time and
The system creates immense amount OF debts payable
on demand, ali OF which thus suddenly and unexpectedly
mature At the irst shock q hnaneal or conmercal
when most needed by debtors and when they are least
There safety for corporations individuals whose
san,tal employed Is wholly or mostly borrowed on call
recent nnascs excitement By AWAITING themselves Of
periods OF notice before pasins deposor thns max Ing
az payane On mme hysry eanes e aa
ket which experienced every autumn and OCCASION
aS at other Of The year solely 70 this practice
evident that, when money is less needed IN legitimate
iaion always detrimental to the best interests OF the
country and the bad effects Of which upon those IN.
widespread when the Necessary contraction begins to be
recommend that national banks be prevented from
ays p eh ensr S or si & be i @
cr,m5ating ,,pa taxation {, or otherwise s.o
banks and svate bankers contnSns the practice,
il can prevent national banls rom becoming involved
nm md raa to %hc e if eaa
having rssons win soyerdmsn in SHSsss he ssue e1S q
% Sug q S 20 &c @ % ns ,o5 ana sale
aooi from all hazardous business which posi-
indydnals from engaging in At The risk OF their capital
With liked amount Of circulation Of bank notes and
OF United states legal tender noses not redeemahie IN
be each year tunes Of redundancy and tines Of scarcity
hod er we M spp on Se
With acirculating medium nm rodeemable in coin a re-
the import Of specis from other countries. .,.
should be- IS m ~ ha mat Sr
the = y 4, might increase and diminish
aa an The he ds1ean ea 81 9n on s f. L 80 m great S
ot plans which have been presented to the public
the wdc% onsrss and oFoush cSnsS
ens BY the
large business Interests which suffered by the recent
uriheI The issue o. sgsl tender
attaned-namely permanent return % the sound basis
hs @ sde lGd @ eaa be m 9s s
aim.
Hons snd 9 ME wod aord soa
pirit stain Ia n He'd IN MI Mt NIL
and al sEe Sen az
the laws Of trade and business which are stronger
than legislative cnactments and cannot be overthrown
cities famed III the bankins law, which are the great
sfeaainoss and safety they were aathSrised through
properly constituted boards Or committees q their
reserves in the rate Of interest be be charged de
other msttrs Within limits scribed By law anu
hSuS be Ss dsmsa 70
great emergency provision may lie made TO permit the
lmred extent TO increase their note circulation ~ a
pledge o. United nj stsas bGa @ while
upon the circulating thereon or upon such
the notes and reaeem the bonds al The earliest
day after the pressure and their necessities should have
sIut any large augmentation Of the issue Of United
be departure from that "declasaton Of public policy
ns 5aSf s Of
5 fss ~ & % ws as o %
tho tho pToyn % A. The earliest
ns esG but w91a u the sy q specie %
unrs unsos condenee in our naiional ID nd
be serious detriment TO pubic credit at home aud
There be no doubt that during the eight years
among the people to restore the paper circulation to
specie standard aud thai steps taken accomplish
1t is not possible TO resume and maintain specie pay
and so small an amount Of gold in the counry rhc vol
o q currency mns be REDUCED Or that Of Son greatly
selling the coin received By them as interest upon bonds
Of ns ana notes payable ID Gop as congrfs might @ pre-
the banks which oud do something towards preparing
sRo fe"Py WITH o IN
woua ere LONG lead at to the desired result when other
ments should become favorable.
and MsrsS ssi i osesSor sahofize s' the issue ss
payment Of temporary loan deposits and the Act Of June
ever exceed ID 9ooooo and sneh additional sum not
the redemption Of ten porary loan"
acts having reeemed @ me maxaum
or Be- aGss se HSa n 90as N'
Between the slst Of August 1875 when The amour, Of
i,ss ISS sSruar st here sFFadua
h act FaSaay M ssoa 10 not
within The then ext six months and thereafter not more
ars 1855 Congress passed an act suspendng nrtor re-
ai @ 's now he nam m
o. issue Bn the law auinorzing the issue Of the mast
uniformly been held by the Treasury Department and
the law officers thereof TO he in full force. In
view OF the uncertainty which exists in public sent
men as to the right Of the secretary Of the Treasury
issue United states notes in OF the minimum, and
the conflict OF opinion to the policy OF doing
cedng that he has that right under the law, respect
fully recommend that Congress shall these questions
at rest by distinct enactment.
Insl lat IL done, whenever there IL strngcDcy in
the money market there will continue To be pressure
the Treasury Department by those who favor
icy OF expansion 10 increase the issue Of to the
maximum by the purchase OF bonds otherwise;
while, the other hand those who conceive that the
public interests will be better served thereby will bring
equal TO keep the Issue down minimum
Assuming that it is The settled policy Congress- de-
clared in the of June so 1864 above cited that
total OF United states issued and bessued
shall never exceed $500 0000l of opinion that IL
would he unwise require the amount In actual cir.
cuisron to be kept up to the maximum TO any
above the present minimum Thc Treasury, depending
principally upon the receipts from customs and internal
taxation without the power OF borrowing otherwise
increasing its resources with liabilities created
gressional appropriations which must be met In cur
ex nearly 500 OO0OO0 a wear ought