The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-12-03

tiers. or rent at Government expense,
and for the Cabinet, thus setting an exam
Die to the States which may induce them to
erect buildings for their senators. But ]
would hive this work conducted at time
when the revenues OF the country would
abundantly justify it," =
REvENUEs-TaE cCBREsoY.
The revenues have materially fallen
off for the first five months Of the
present fiscal yelr from what they
were expected to produce, owing TO
the general panic now prevailing, which
commenced about the middle of September.
The full etfec. of this disaster, if it should
not prove a blessing in disguise, is yet to be
demonstrated. In either event it is your
duty to heed the lesson, and to provide by
wise and well-considered legislation, as far as
II hes in YOUR power, against its recurrence,
and TO take advantage Of all benefits that
NAV have accrued. My own Judgment Is
that however much individuals may
nave suffered, one long step has been taken
towards specie payments; that we can
never have permanent prosperity until fair
basis is reached, and that Specie basis can
not be reached and maintained until our ex-
ports, exclusive Of gold, pay for our imports,
interest due abroad, and other specie obliga-
tioo;. or 80 nearly so as to leave an appre'
ciatiVe accumulation Of the precious metal IN
the country from the products of our mines.
The development of the mines of precious
metals during the past year, and the pros
receive DEVELOPMENT of them for years TO
come are gratifying in their results. Could
Int one.half of the gold extracted from the
mines he retained at home our advance TO-
vards snccie payments would be rapid. To
;ncre,se orr exports sufficient currency is
,onu;red TO keep all the industries of the
to1,ntry employed. Without this, national
rs we'll as Individual bankruptcy must
ensue. More imitation, on the other
hand. while it might give temporary
relief. would only lead to Initiation of prices,
the impossibility Of competing in our own
markets for the products of home skill and
labor, and repeated renewals of present ex-
perieucas. Elasticity to our circulating me-
dunn, therefore, and just enough of it to
transact the legitimate business of the coun-
try and to keep all industries employed, IS
what is most to be desired. The exact me-
dunn is specie-thc recognized medium of
exchange the world over. That obtained,
we shall have currency of al exact degree
of elasticity. IF there be too much OF it for
the legitimate purposes of trade and COM
merce it will flow out of the country. II
too little, the reverse will result. To hold
what we have and to appreciate our cur
rency to that standard is problem deSery-
ing Of the most serious consideration of Con-
cress. 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 currency has
become worthless, or so much deprecated in
value as 10 iuiatc the values of all the nc
cessaries of life as compared with the cur
rencv. Every one holding it has been anx-
ious 10 dispose of it on any terms. Now
we witness the reverse. Holders OF cur
reucv hoard it as they did gold in former
experiences Of Il like nature.
it is patent to the most caustlal observer
that much more currency or money Is re-
ouired TO transact the legitimate trade Of
the country during the fall and winter
mouths, when the vast crops arc being re-
moved, than during the balance OF the year.
With our present system the amount IN the
country remains the same throughout the
entire year, resulting in accumulation of all
the surplus capital Of the country in few
centres when not employed in the moving of
crops. tempted there by the offer of interest
on call loans. Interest being paid, this
surplus capital must earn this interest
paid with u profit. Being subject to-
"call," it cannot be loaned, only
in part at least, to the merchant or manufuc-
iurer for a fixed term. Hence, no matter
how much currency there might he in the
country it would be absorbed, prices keep.
ing pace with the volume, and panics, strin-
ucncy, and disasters would ever be recurring
with the autumn. Elasticity in our none.
tary system, therefore, is the object to be OBJ
tanned first, and next to that, as far as posi-
bic. a prevention Of the use Of other peo-
pies. 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 requiring them to
hold their reserves in their own vaults, and
bv forcing them into resumption though it
would only be in lcyal-tcndcr notes, For
this purpose | would suggest the establish
mcnt of clearinghouse for your conSldera-
ton. To secure the former many plans
have been suggested, most il not all OF which
look TO me more like imitation on the one
hand, Or compelling the Government on the
other 10 pay interest, without correspond
ing benefits, upon the surplus funds of the
country during the seasons when otherwise
unemployed. I submit for your considera-
ton whether this difficulty might not be
overcome by authorizing the Secretary of
the Treasury to issue, at any time, to ma
tional banks Of issue, any amount Of
their own notes below fixed per-
centagc OF their iSSue-say forty per cent
upon the banks deposting 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 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 Trea-
surcr as security for the increased clrcula-
ton, the bonds SO pledged TO he rcdcemable
by The banks mt their pleasure, either in
whole or in part, by returning their own
bills for cancellation to an amount equal to
the face Of the bonds withdrawn. would
further suggest for your consideration the
propriety OF authorizing national banks to
diminish their standing issue at pleasure
by returning for cancellation their own bills
and withdrawing so many United States
bonds rs 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 manufactures and all the
industries, I do not believe there is too
much of it now for the dullest period of the
year. Indeed. il clearinghouse should be
established, thus forcing redemption, it is
a question for your consideration whether
banking should not be made free, retaining
all the safeguards now required TO secure
bll-holders. In any modification of the pre-
sent laws regulating national banks, as fur
Lhcr stem tuMarllS nrenlrium for reSIImDtion