Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1873-12-09

for a liked term. Renee, no matter now much
currency there might be In the country it would
be absorbed prices keeping pace with the volume,
and panics, stringency, and disasters would ever
be recurring with the autumn. Elasticity in our
monetary 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
in stock 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 re-
curing them to hold their reserves in their own
vaults, and by forcing them into resumption
though it would only be in legal-tender notes.
For this purpose l would suggest the establish
nent of clearing houses for your consideration
To secure the former many plans have been sug-
gested, most 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, With
out corresponding benefits, upon the surplus
funds of the country during the seasons when
otherwise unemployed. L submit for your con-
sideration whether this difficulty might not be
overcome by authorizing the Secretary OF the
Treasury to issue, at any time to national DanKs
of issue any amount of their own notes below
fxed percentage of their issue-say forty per
cent.Eupon the banks depositing with the Trea-
surer of the United States an amount OF Govern
ment bonds equal to the amount of notes demand
ed the banks to forfeit to the Government bonds
eonal TO the amount of notes demanded, the
hanks to forfeit to the Government say four per
cent. of the interest accruing on the bonds pedg-
Cd during the time they remain with the Urea
surer as security for the increased circulation
the bonds so pledged to be redeemable by the
hanks at their pleasure, either in whole or IN
mart. by returning their own bills for cancella-
ton to an amount equal to the face OF the bonds
withdrawn I would further suggest for your
consideration the proprlety OF authorizing ma
tional 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 bills returned.
In view of the great actual contraction that has
taken place in the currency, and the comparative
contraction continuously going on, due to the
increase of population, increase of manufacturies
and all the industries, | do not believe there is
too much of it now for the duilest period OF the
wear Indeed, if clearing houses should be esta-
Rlished. thus forcing redemption, it is question
for vour consideration whether banking should
not be made free, retaining all the safeguards
now REQUIRED to secure bill-holders. In any
modification of the present laws regulating ma
tional banks, as a further step towards preparing
for resumption of specie payments, invite your
attention to a consideration of the propriety of
exacting from the retention as part of their re-
serve either the whole or part ofthe gold-lnter-
est accruing upon the bonds pledged as security
for their issue: have not reflected enough on
the bearing this might have in producing a
scarcity of coin with which to pay duties on i'm
>norts 10 give it my positive recommendation, but
your attention is invited to the subject
During the last four years the currency has
been contracted directly by the withdrawal OF
three per cent. certificates, compOund-interest
notes, and seven-thirty bonds outstanding on the
4th of March, 1869, all of which took the place
of legal-tenders in the bank reserves to the eX-
tent of sixty-three millions of dollars. During
the same period there has been a much larger
comparative contraction of the currency. The
population of the country has largely increased.
More than twenty-five thousand miles of railroad
have been built requiring the active of capital
to operate them. Millions OF acres OF land have
been opened to cultivation, requiring capital to
move the products. Manufactures have de.
yeoped beyond all precedent in the same period
of time, requiring capital weekly for the payment
of wages and for the purchase of material. Ano
probably the largest of all comparative contrac-
ton arises from the organization of free labor in
the South. Now every laborer there receives his
wages and for want of savings banks the great
er part of such wages is carried in the pocket OF
boarded until required for USE These sugges
tious are thrown out for your consideration with
out any recommendation that they shall be a.
dopted literally, but hoping that the best method
may be arrived at to secure such an elasticity O.
the currency as will keep employed all the in
dustries of the country, and prevent such an in
fation as will put off indefinitely the resumption
of specie payments-an object so devoutly to b.
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 fthei
brew The decisions OF Congress on this subjec
will have the hearty support of the Executive.
INCREASE IN sHIP-BUILDNG.
to the decline in American ship-building, and re
commended such legislation as would secure t,
us our proportion of the carrying trade. Stimu
lated by high rates and abundance of freight, tn
progress for the last year in ship building ha
been very satisfactory. There has been an in
crease of about three per cent. in the amour
transported in American vessels overthe amour
of last year. With the reduced cost of materia
which has taken place, it may reasonably b
hoped that this progress will be maintained an,
even increased. However, as we pay abou
eighty million dollars per annum to foreign yes
sells for the transportation of our surplus product
to market, thus increasing the balance of trad
against us to this amount the subject is on
worthy of your serious consideration.
CHEAP TRANSPORTATION
is subject that has attracted the attention Q
both producers and consumers for the past fey
years, and has contributed to, if it has not bee
the direct cause of. the recent panic and strin
gency. AS Congress at its last session app POINT
ed a special committee to investigate thi
subject during the vacation and report at thi
session, have nothing to recommend until thei
report is read. There is one work, however c
a national character in which the greater porto
of the East and the West, the North, and tn
South, are equally interested, to which l will in
Vite your attention.
The State Of Jew York has canal connectn
Lake Erie with tide-water on the Hudson river
The State of Illinois has a similar work connect
ing Lake Michigan with navigable water on tn
ton inland between the East and the West an
South. These great artificial water-courses ar
the property of the States through which the
pass and pay toll to those States. Would it nc
be wise craftsmanship to pledge these States tina
if they will open these canals for the passage O
large vessels the General Government will loo
after and keep in navigable condition the grea
public highways with which they connect-t
wit: the overslaugh on the Hudson, the ST. Clai
fats, and the Illinois and Mississippi river? Thi
would be national work, and one of great vaiu
to the producers of the " est and South in givin
them cheap transportation for their produce t
the seaboard and market, and to the consumer
in the East in giving them cheaper food, part
cularly of those articles of food which do not fin
foreign market and the prices of which there
fore are regulated by foreign demand. The ad
vantages of such work are too obvious for argu
ment. [ submit the subject to you, therefore
without further comment.
In attempting to regain our lost commerce an
carrying trade have heretofore called attention
to the States south of US as offering a field wher
much might be accomplished. To further thi
object suggest that a small appropriation
made accompanied with authority for the Sec
rotary of the Navy to tit out naval vessel to as
cend the Amazon river to the mouth of the Ma
deira; thence to explore that river and its tri
butaries into Bolivia, and to report to Congress
at It's next session, or as soon practicable, tn
accessibility of the country by water, its re
sources, and the population so reached. Sue
an exploration will cost but little. 1t can do n
harm, and may result in establishing a trade O
value to both nations.
In further connection with the Treasury De
partment | would recommend a revision an
codifcation of the tariff laws and the opening c
more minis for coming money, with authority t
coin for such nations as may apply.
WAR DEPARTMENT.
The attention of Congress is invited to the re
in Al,