The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1873-11-11

condition Of things remained, we were de.
veloping our resources, stimulating immi.
| grafton, constructing and importing ma
chinery together with akilled workmen TO
manage It, and impelling and quiekening
all those agencies by steam and electricity.
We could then afford to build "prema-
tnre" railroads, and thus develop the min
eral and agricultural resources Of new Sec
lions Of our country, and were on the
road TO manufacturing and commercial
supremacy, which would make otra the
country In which the worlds balances
would have been settled, as theynoW are
10 London-but unwise counsels pre-
vailed. iS.ts'ia. S,l6
M'cULLocH's M1sTAKEs AND THEIR RE
Suits. Sc ~ '''S'
The compound interest. notes matured
and were paid of, which was Q material
contraction Of the currency. The seven.
thirties matured and were paid, still
further contracting the currency. Score.
tary McCulloch had issued his Fort
Wayne letter, promising that we should
resume specie payments before the last Of
these obligations would mature, which,
letter cost the country hundreds Of mill
ions by the paralysis II inflicted upon our
productive industries. II resumption was
10 he brought about thus rapidly no
prudent man wanted TO be caught with
Incomplete enterprises uponVhh hands, or
to manufacture goods to be sold In o rap
idly failing market. But WORSE thanlall
this, having compelled the banks to hold
greenbacks instead Of compound interest
notes or seven.thirties, Congress absurdly
permitted Mr.. McCulloch toiretire Hour
millions Of greenbaeks for eleven consecu.
tive months, making reduction oleleyen.
per cent OF the entire amount, What
was the result? Money became scarce
and dear, and the rate Of interest went up
90 high that It was no longer matter Of
profit or convenience to enterprising
Americans to hold our bonds. They had
to sell them in order to escape ruinous
rates OF interest, and the only market Tor
them was abroad. But deluded by the
fact that we were paying our debt OF the
rate OF one hundred millions year, and
the belief that we must therefore be
approaching specie payments, another
measure of contraction to the extent OF
seventy, millions was contaminated > at
the cost of doubling the rate OF interest on
that amount OF the debt. The three-per-
cents, were in the nature OF q call loan,
but they never would have been called,
because our banks held and used them as
part of their reserve, and were thus re-
ceiving three per cent on that part Of their
reserve which was composed Of these cir.
tificates. As the banks would have TO
supply the vacuum created by retiring
part Of their greenbacks which were not
interest.bearing, but BY loaniDg which
they were receiving six per cent, they
never would have called for their pay
ment. II the seventy millions oil dollars
with which the three.per. cents were re-
deemed had been applied to the redemp-
ton of six.per. cents, our interest account
would have been one million five hundred
thousand gold annually less than 1t now
Is, and the interest would have been paid
10 Americans instead Of the increased
amount being paid to foreigners. Thus
1t has come to pass that all our bonds, ,ex:
cept those held by the national banks and
savings banks, are now held by foreign
ers, and our payments OF interest in gold
to foreigners, from the Government and
on gold. bearing bonds or corporations, Is
more than one hundred millions OF dol
liars annually, or forty millions mort. than
the annual product Of our mines.
TIE ABspRDtrY ora PROPOSITION DEMON,
&c & STATED. =, ~ \
Nobody now complains that the Treas!
ury keeps hundred millions useless gold,
but everybody is glad TO know that Il
probably holds fifty millions, The abb
|surdity OF the, proposition that sthe way
10 resumption Is TO resume Is demon.
strated by the fact that II the Treasury
were to- announce that Il. would pay
specie for greenbacks, the national banks,
prelerring to hold their reserve in gold
rather. than greenbacks, wonld present
bills for one hundred and twenty.eight
millions, or zone hundred and fifty per
cent more than the gold held by the
Treasury. And having exhausted, the
Treasury no man could call upon them for
dollar, inasmuch as their notes are re-
deemable In greenbacks and not in gold.
The attempt 10 resume would result sim.
ply and solely in transfer OF coin from
the vaults Of the Treasury TO those ot<tne
blanks. It's range Of circulation would
have no greater extentthan this. =.
NJ s5TWosrATHs TO REsuMpTIoN. j
u But YOU ask, Are we never to come to
resumptions ] answer, Yes, there are
two paths to it. One, and the longer one,
Is to struggle on until, by the progress q
o long series Of years, orr exports ahal
come to steadily exceed our3imports, and
foreigners, In payment Of balances, shall
send Us back our gold bearing bonds, and
| then settle balances in gold. But he who
looks for specie payments by this process
looks through "a egety long Vista, The
other process isto secure the transfer Of
our bonds to our own people by making
money cheap, or, in other words, BY ex-
Ipanding our currency and issuing bonds
payable principal and interest In lawful
money, and thus reducing the rate Of In.
terest to APPOINT, aslow or lower than 1t
Twas beiore we insanely entered into Fore
| ing our bonds on foreign markets by CON
traction. To accomplish this, l think the
banking law should he 60 MOI ided as 70
make die payment or receipt d Interest
by national bank cause Of forfeiture Of
lcharter, and TO prohibit, under seriops
penalties, the certifying bynstioaal banks
OF any check which did not represent an
actual deposit IN the vaults Of the bank.
This In itself would be o measure Of con-
traction. { / would therefore trelieye the
banks from maintaining o reserve TO 90.
cure either their circulation or deposits.
Here let me pause 70 say why l would
Iabolish the reserves: Primarily TO ,in-
1crease the volume Of currency to ccun.
'Iteract the contraction; secondly, to re-
move restraint from banks that are
conscientiously managed, but which are
disorganized BY those managed by unsctu.
pulouss Spectators; Bal, again. Woulddo
| II hncarisa atch reserYe aa security Tor the