The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1873-12-18

the other, creating condition eff things
in which borrowers On call ars also una
Bile to respond. The banks have hor-
rsw I'd their money of dspssisors on call.
They have loaned it on call to specula
tors, whs, by its use, have eeatltbutsd to
initiate thepricss Of atccks or merchan-
disc which have been the subject Of their
speculations. The spsculator wants it
to carry -stocks till he can dispose Of
them without less. This he 10 Enable
to dc ia stringent money market. The
banks, their depositors, and borrowers
all want it at the same time, and Of
course, Strisgency Is developed which
spreads distress throughout the country.
The system creates an immense amount
Of debts payable on demand, all Of
which thus suddenly and unexpectedly
nature At the frst shock of financial or
commercial embarrassment in the country
and at the very time when most needed
by the debtors, and when they are least
able to respond THERE'S no safety for
corporations or individuals whogs capital
employed is wholly or mostly borrowed
on call Many savinRs banks were
protected from ruin in the recent hnsncial
excitement by avalling themselves of :hs
provisions in their rules requiring sixty
dayl or other periods OF nstics before
paying dsspositors, thus making ell their
deposits payable on rlme. Every cau-
tious aAd well-managed savings institu-
ton has such rule among its by laws.
Without attributiag the Stringency in the
monoJ market, which is experiences
every autumn, and occasionally at other
seasons of the year, solely to this practice
of paying interest upon deposits in large
cities, it is evident that when money is
less nesdsd in legitimate Business the
practice encourages over.tradisg and
speculation, always detrimental to the
best Interests Of the country, and the bad
effects Of which upon these interests be-
come Morc apparent and disaster more
widespread when necessary contraction
begins to be felt. I recommend that
National Bank be prevented from paying
Interest on deposits, or that they DO
restricted and limited therin either by
direct prohibition, by discriminating
taxation, or Otherwise. While legisla
ton by Congress cannot prevent State
banks and private bankers from csntinu'
Tag the practice, 1t can prevent National
Banks from becoming involved in and
instrumental in producing embarrassment
and difficulties to which IL necessarily
LEADS National Banks, organizedIby law
of Congress, aad having relations with
the Government in the issue Of circulat-
ing notes, ought to be the most cautiouI
and safe banking institutions of th'
country, and should DO kept alsof from
all hazardous business, which it is not
pessible.to prevent sanguins,. ventaresom.
and speculative individuals from sngag-
ing in, at the risk of their capital and
their credit. With fixed amount OF
circulation of bank-notes, and OF United
States !eRal-tsndsr notes, not redSsmAble
IN coin, and with geld obOVe par in curr-
ency, there must BIO each year timss ot
redundancy and times Of scarcity oil
currency, depending wholly on the dem
aud, no msthed existing for increaaina
the supply with circulating medium
redeemabIe in coin. A redundancy il
corrected by export, and scarcity by
import, of specie. There is prevailing
sentiment til at mere elasticity should b.
given to tho volume Of curr cncy, so .ha1
the amount in circulation might increase
aad diminish according to TIA 9 nscsssitioG
OF the business of the country; but tn,
difference Of opinion ON the subject il 40
great, and the real difficulties Attending
its solution are so numerous, shat,
without discussing any of the multitude
of plans which have been presented tc
tho public, through the press and ether
wise, l EARNESTLY commend to the wisdem
OF Congress careful and thorough con,
siderasion of this.Important subject, rcn
dSred more obviously important by the
present embarrassed condition of the
large business interests which h&ve