The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1873-12-04

dunn, and just enough of it to transact le-
glumate business of the country and to keeI
| all industries employed, is what Is most Il
| be desired. Exact medium is specie the rec
ognlzed medium OF exchange the world over
| mat obtained, We shallt have a currency OF
an exact degree of elasticity; if there be-
too much of 1t for the legitimate purposes OF
| trade and commerce, il will flow out of the
country; II too little. the reverse will be the
| result. To hold what we have and to appre.
ciate our currency to that standard is a u oh.
| lem deserving OF the most serious considera-
| ton 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, is the best that has ever been
devised. Usually in times of such trials eur.
| rency has become worthless, or so much de-
| preclated in value, as to initiate the values OF
/ all the necessaries of life as com pared with
| currency. Every one holding il has been
| anxious for it oh any terms. Now we wit.
/ ness the reverse. Holders of currency hoard
| 1t as they did gold in 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 theI fall and winter
| months, when vast crops are being removed
| More than at any other period of the wear,
| with our present system, the amount in the
| country remains the same throughout the
| entire year, resulting in the accumulation OF
| all surplus capital of the country
in few centers when not employed in the
| moving of 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 scalp, it
| cannot be leaned, only at par, and at best to
| merchants or manufacturers for a fixed term.
| Hence, no matter how much currency there
might be in the country. il would be alb
| sorbed, prices keeping pace with volume,
and panics, strlngency and disasters would
| ever be recurring with the autumn. Elias
| ITCHY in our money system, therefore, is the
| object to be obtained. First, and next to
| that, as far as possible, prevention of the
use of other peoples money, 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 requiring
| them to hold their revenues IN their own
vaults and by forcing them into RESUMPTION
| though it be only in legal tender notes. + or
| this purpose | would suggest the establish
| ment Of clearing houses for your considera-
| tisn. To cure the former, many plans have
| been suggested, last, if not all of which look
| to me more like initiation on the one hand, or
| compelling the government on the other, to
pay interest without corresponding benefits
| upon the surplus funds of the country du-
| ring the seasons when OtherWl unemployed.
| / submit for your consideration whether
| this difficulty might not be overcome by au-
thoriZing the secretary of the treasury to issue
| at any time to the national banks of issue
any amount OF their own notes below Il
| fixed per centage OF their issue, say forty
per cent. upon the banks depOsiting 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 four per cent.
of the interest accruing on the bonds so
pledged during the time they remain with
| the treasurer as security for the increased
circulation. The bonds so pledged to be
redeemed by the banks at their pleasure,
either in whole or in part, by returning
| their own bills for cancellation to the
| amount equal to the face of the bonds with
| drawn. would further suggest for your
consideration, the proprietv of authorizing
the national banks to diminish their
standing issue at pleasure by returning
| for cancellation their own bills, and with
drawing so many United States bonds as are
pledged for the bills returned. In view of
the great actual contraction that has taken in
the currency, and the contraction continu
ally going on, is due to the increase of popu-
lation, increase of manufactures and all the
Industries. do not believe there Is too much
of il for the dullest period of the year. In
deed, If clearing houses should be establish
ed, thus forcing redemption, it is ques ton
for your consideration whether banking
should not be made free, retaining all the
safeguards now req rired to secure bill hol-
ders. In any manifestation of the present
laws, regulating national banks As further
step towards preparing for a re-
sumption of specie payments. l in
Vite your attention TO consideration
of the propriety of eXarting from them
tentiOn a part of their reserve, either part
or whole, Cf gold, interest accruing upon
bonds pledged as security for their issue l
have not reflected enough on the bearing TINS
might have in producing scarcity of coin
v ith which to paw duties on import, TO 5ivv
it my pOsitsve Recommendations: but your at
tention is invited to the subject. During the
last four years currency has been contracted
directly by withdrawal of three per cent Ger.
tificates on compound interest notes, and
seYen-thirty bonds outstanding on the 4th OF
March 1865, all of which took the place OF legal
tenders in the bank reserves to the extent of
So, 900, 600. During same period, there
has been 4 much larger comparative
contraction of currency. The population of
the country has largely increased. More
than $500 miles OF railroads have been built,
requiring the active Use Of capital to operate
them. Millions of acres of land have been
opened to cultivation, requiring capital t., to
multiplied beyond all precedent in the same
period OF time, requiring capital weekly for
payment Of wages, and for purchase of ma
terial; and probably the largest of all corpo-
ratiVe contraction arises from the organizing
of free labor in the South; now every labOrer
there receives his wages, and for the want OF
wages is carried in their pocket or
boarded until required for use. These
suggestions are thrown out for your
consideration, owithOut any recommend
alton that they III all be adopted, but hoping
that the best method may he arrived at to Sc
cure such an elasticity of currency as Will
keep employed all industries of countries,
and prevent such an imitation as Will put oil
an object devoutly to be wished for by all,
and by none more earnestly 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 hearty approval Of the execu-
tive. In previous messages, have called at
tention to the decline in American ship
building, and recommended such !
legislation as would secure to Us
our propo: ton of the carrying of |
trade stimulated by high rates and abund- |
anee OF freight. The progress for the last
year in ship building has been very satisfac- |
tory. There has been an increase of about |
three per cent. in the amount transported in |
American vessels over last year, with re-
duced cost of material, which has taken |
place, and it may reasonably be supposed |
this progress will be maintained and even |
increased. However, as we pay about $780,
OO0, 600 per annum to foreign vessel for trans
portationOf our surplus products TO market,
this increasing balance OF trade is against this
amount. The subject is worthy your serious
Cheap transportation is a SUBJ
lect that has attracted the attention of both
producer and consumer for the past
wear, and has contributed to, if it has not
been the direct cause of the recent panic and
stringency. As Congress at its last session
appointed a special committee to investi-
gate this whole subject during the vaca-
ton and report at this session, L have
nOthi 70 to recommend until their report is
read. There is one work, however, of a
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