The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1873-12-11

difficulty might not be overcome by
authorizing the secretary of the treasu-
~ to issue at one time to the national
banks of issue any amount of their
notes below a fixed per centage of their
issue, say forty per cent. upon tie
banks depositing with the treasurer of
the United States an amount of govern
ment bonds equal to the amount of notes
demanded, the banks to forfeit to the
government say four per cent. on the
interest ACQUIRING on the bonds so
pledged, during the time they remain
with the treasury, as security for the
increase of circulation the bonds so
pledged to be redeemable by the banks
at their pleasure, either In whole or in
part, by returning their own bills for
cancellation to an amount equsl to the
face of the bonds withdrawn ] would
further suggest for your consideration
the propriety of authorizing the Ma
tiOnal banks to diminish their standing
issue at pleasure, by returning for can
collation. their own bills, Withdrawing
so many United States bonds as are
pledged for the bills returned.
FREE BANKNG-sPEoIE RESERVES.
In view of the great actual contrae-
tion that has taken place in the curren-
cy, and the comparative contraction
constantly going on, due to the increase
of speculation, the increase of manu-
factures and all the industries, I don't be-
heve that there is too much of It now
for the dullest period of the year. In
deed if clearing houses should be es-
tablished, thus forcing redemption, it is
question for consideration whether
banking should not be made free, re-
tanning all the safeguards now required
to secure bill holders IN any modifca-
tion of present laws regulating the ma
tional banks; and as a further step to-
wards paying the way for resumption of
specie payments, I invite your attention
to the consideration of the proprietv
of exacting from them the retention,
as a part of their reserve, either the
whole or part of the gold interest ae-
cruing upon the bonds pledged as secu-
rity for their issue. have
NOT REFLECTED ENOUGH
on the bearing this might have in pro-
ducing scarcity of coin with which to
pay duties on imports, TO give it my
positive recommendation, but your at
tentiOn Is invited to the subject.
INVERSE CONTRACTION.
During the last four years the curren-
of three per cent. certif-
Gates, compound interest notes and 7:2O
bonds outstanding on the 4th of March,
1869, all of which took the place OF le-
gal tenders in the bank reserves to the
extent of S63, 100000. During the same
period there has been a much larger
contraction of the curren-
cy. The population of the country has
largely increased. More than twenty
five thousand miles of railroads have
been built, requiring the active use of
capital to operate them. Millions of
acres of land have been opened to culti-
vatiOn, requiring capital to move the
products. Manufactures have multi
piled beyond all precedent in the same
period of time, requiring capital week
" for the payment of wages and for the
purchase of material, and probably the
largest of all was the comparative con-
traction arising from the organization of
free labor in the south. Now, every Ia
borer there receives his wages, and for
want of savings banks the greater part
of such wages is carried in the pocket
Or boarded till required for use.
These suggestions are thrown out for
your consideration without any recon-
nendation that they shall be adopted
literally, but hoping that the best meth
ID may be arrived at TO secure such an
of the currency as will keep
all the industries of the
country, and prevent such an imitation
Is will put off indefinitely the resump-
ion of specie payment, an object de-
7outly to be wished for by all, and none
more earnestly than the class of people !
most directly interested, those who earn
heir bread by the sweat of their brow. !
The decision of congress on this subject /
will have the hearty support of the ex-
cutive.
OUR MYTHICAL MARINE.
In previous messages L have called |
ttention to the decline in American /
hip building and recommended such |
egislation as would secure to us our
ropOrtion of the carrying trade. Stim-
lated by high rates and abundance of
reight, the progress for the last year
q ship building has been very eatisfac-
OrY. There has been an increase of
bout three per cent. in the amount
in American vessels over
be amount of last year. With the re-
uced cost of material which has taken
lace, it may reasonably be hoped that
his change will be maintained and even
lcreased. However, as we pay about
IaHTY MILLION DOLLARS PER ANSUH
, foreign vessels for the transporta-
oil of our surplus products to g mar
ct, thus increasing the balance Of trade
gainst us to that amount, the subieo is
ne worthy of your serious considera-
on.
CHEAP TRANSPORTATION
a subject that has attracted the atten-
on of both producers and consumers
u the past few years and has contri-
uted to, if it has not been the direct
luse of, the recent panic an stringen-
2. As congress at its last session ap-
ointed a special committee to inves-
gate this whole subject during the va
alton and report at this session, 1 have
othing to recommend until their re-
ort is ready.
NALL FAvORs THANKFULLY RECEIVED.
There is one work, however, of a ma
Onal character in which the greater
ortion of the east and west. the north
nd south are equally interested, 70
hich I will invite your attention.
he state of New York has q canal con-
scting lake Erie with tide water on the
-udson river. The state of Illinois has
similar one connecting lake Michigan
ith navigable water on the Illinois |
yer, thus making water oOmmuniea-
ON inland between the east and the
est and south. These great artificial
ster coureas are the property of the
ates through which they pass and pay
III to those states. Would il not be
ise statesmanship to pledge these
ates that if they viii open these ca {
ais for the passage of large vessels
le government viii look after and keep
navigable condition the great
1blic highways with which they
,nnect, to wit: the OverslouRh
4 the Hudson, the st. Clair
ats and the Illinois and Mississippi {
vers? This would be a national work
Id one Of great value to the producers
the west and south IN giving them |
leap transportation for their produce I
the seaboard, and q market 20 the ]
lnsumers IN the east, ia giving them 4
leaper delivery Of those articles OF
cd which do not find foreign mar !
4, and the prices Of which, therefore,
Q not regulated by foreign demand.
be advantages OF such a work are too 7
,Yious for argument. I submit the 7
biect to you, therefore, without fur !
er comment.
NAVIGATING THE AMAZON.
In attempting TO regain our lost com {
= .