The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-11-03
The C,,rrenov-RSsunptaon.

.b,c neriod for the resumption Of specie
payments. and censures the policy oil Keep
ing on hand a large reserve OF gFeenbaeSs
when needed for the commerce OF the coun-
trv. He contends that contraction now 10
efec. specie payments would be disas-
tro,,s to the country, causing ft1tal de-
nressicn Of values. He advocates the
policy Of securing the transfer OF our ma
ttona bonds to our own people by
"making money cheap, or in other words,
wreduing the rate of interest to- point as
GLOW or lower than it was before we I'M
wisely rushed into the work of contrae-
"tion." .rs..--a -..
To accomplish this lie says he would 80
"modify the banking law as to make the pay
-" ment of Interest Oh deposits by nationai
" banks cause Of forfeiture of their charters
az would prohibit it, under severe penal
" ties. certifying by national banks OIL any
:. check which did not represent an actual
" depost in the vaults Of tue bank. Iwould
" relieve banks from maintaining reserve
"to secure their circulation" .,i".'' Fl.
Mr.. KELLEY ridicues the idea of keeping
a reserve to pay depositors as q deluslon, as
it amounts to but twenty-five per cent. OIL the
deposits, and yet leads the people to believe
there is Il reserve which makes their deposits
safe. He would relieve the banks from re-
striction to increase the volume OF the cur
rency, and remove the restriction upon con-
scientiousy-maraeed banks.
Mr.. KELLEY's principal suggestion is the
system Of exchange Of currency for bonds,
and cice rersa, so earnestly advocated by
the late Mr.. GREELEY. We quote his re-
marks on this proposition:
81 would provide for the issue OF bonds
PAYABLE, principal and interest, IN lawful
money ut the rate Of $500 interest per vi
mum. or ono cent a day, ana make these
bonds interchangeable with 9reellbacks.
How largely such bonds would be taken by
our peorie few are now prepared 10 believe.
There are two periods in each year when
there is but small use for money and bank
credits. when merchants Of good stanGlDg
Fave long balances of unemployed capital,
and when The farmers and tradc.mcn OF thu
interior districts have greater or less sums
for which they can fluid no possible employ
ment.
ibis money is now loaned to bankers and
brokers at a low rate of interest, aud finds it.
way to Wall street, where it IS employed In
making corners in gold, greenbacks and
stock. By these appliances the industries OIL
the country are embarrassed, the people are
swindled and robbed, aud a criiSs like that
which We are Row experiencing, aud that OF
the famous black Friday are brought about.
Take the farmers of the States OF Missouri
Illinois, and Wisconsin, having their few
hundred OF Il thousand dollars for which
they have no employment. They deposit with
the bankers in their respective neighbour
hoods ut low rate of interest. lna>muctl
as these deposits are con call,' these
bankers clnnot loan them On mortgages
or long notes TO their customers, but they
send them to Chicago, st. Louis, or Aiilwau-
kie at low rate Of interest, specua-
ton not being very rife in these western
cities, and the banks there send the money
to New York 'on call at still higher rates
of interest. The money being 'on call :
the banks cannot loan it 10 their commercial
customers at Il reasonable rate Of interest,
and 50 they loan it con call again to the
brokers at high rates to such firms as Jay
Cooke l. Co.. Fisk & Hatch, and Henry
Clews G. Co., who in turn lend it to the
street. at from oLc-half to two and half
per cent day. These are the parties who
get up corners in gold, greenbacks, aud
stocks. Now, here we have the traditional
'row Of bricks
The time comes when the original de-
positors simultaneously want all their money.
They first call Oh The bankers with whom
they deposited. The latter call upon Chi
cayo, 81. Louis. and Milwaukee. Theu comes
the demand upon New York, and so on to
the end of the line, or on the other hand a
great failure occurs III Philadelphia or New
York, as happened on tue 18th Of September,
and every depositor and every bank with
whom money was deposited wants all the
money Standing to their credit with any
other bank or banker. That is just what IS
the matter now. think the issue
IL such Il bond as | have spoken |
3f would efectualIy put d sop 10
Ills whole vicious system. The bonds |
ought TO be issued in small amounts-say |
s35 and $50. The smallest balance of the
arlncr put into such bond would earn him
higher rate of interest than he is in the
habit OF getting from his local banker, with
rood security, besides his money would be
orthconling on demand. So much for the
ountry. Our merchants would adopt these
,onds rs the proper means Of employing
heir loose capital during the dull months of
be year. Capitalists having large sums of
money with which they do net wish to spe-
tllate. but hold for Investment when oppor-
unity offers, would hold il in such bonds,
While the country would thus be protected
sainst tue gold and Safeguarding Of Wall
trcet, and its loose capital would be en-
,loyed. Any bill authorizing the issue OF
UGH bonds should empower the Secretary
f the Treasury to invest the funds thus OBJ
aimed as closely as prudence would permit
n the purchase of the five-twentv gold.bear-
ng bonds, and should require him to hold
ny surplus of gold that might accrue for
be express purpose of ealing overdue
old-bearing bonds. In this way the Ameri-
an people would soon become owners of a
arge share of the Indebtedness of their
ountry, the interest account against the
ountry would be largely reduced. and the
'aance of gold in our favor reduced still
more largely. We would then be on the
highway TO specie resumption, the lion In |
he path to which is, as have said before,
he annual payment to foreigners OF one
hundred millions of gold"
We have thus given Dir. KELLEY's views
n the main feature of bis suggestions. They
re worthy Of earnest consideration. wei
re not, however, yet clearly satisfied OF the
fleet this proposition would have. How
ar the people would be induced to go in eX-
changing currency for 3.65 per cent. con-
,ertipe bonds could only be ascertained'by
,ctual experiment. 1t is, however, a most
plausible theory. sss. -. IN. ~