The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1873-12-10

the erection Of good, substantial and
even ornamental buildings By the
Government. wherever such buildings
are needed. In fact, / approve Of
the Government owning its Own
buildings in all seeti0Es Of the c0un-
try. and hope the dav i not far dis
tant when il vii not only possess
them but win erect IN the Capital
suitable resideaces FOR all the persons
who now receive Communication for
quarters for rent n Government cx-
pense and for the Cabinet. thus setting
an example TO the States, which may
induce them 10 erect buildings for
their Senators: bat | w0ald leave
this work 70 be conducted al 8 time
when the revenues Of the country
would abundantly justify it. The
revenues have materially fallen of for
the first FIVE months Of the present
fiscal year from what they were ex-
peeted to produce, owing 10 the
GENERAL PANIC
now prevailing. which commenced
about the middle 0f September last
The full effect of this disaster, if It
shouIdnot prove blessing in disguise,
j. vet to be demonstrated. In either
event it is your duty TO heed the les
son and to prove by wise and well
considered legislation. IS far a. it
lies in vOu- power, against It's recuT
renee, and to take advantage Of al
benefits that NAV have secrGed Nv
own Judgment l.. that however much
individuals NAV have suffered. one
long step has been taken toward spe-
Gle payments, that we can never have
permanent prosperity until a specie
basis is reached, and that = specie ba-
sis cannot be reached and maintained
until our exports. exclusive Of gold,
paw for our imports, interest due
abroad, and other specie obligations
or as nearly so as leave an spprecia-
bic accumulation Of the precious met
ais in the country from the products
Of our mines.
The development Of mines Of prec-
i0us metals during the past year.
and the prospective development Of
them for years 70 come, are crafty
ing in their results. Could bat one
halfof the gold extracted from the
mines be retained at home, our adj
vance toward specie payments would
be rapid To increase our exports,
sufficient currency is required to keep
all the industry OF the country employ
ed. Without this, national as well
as individual bankruptcy must issue
Undue imitation, on the other hand.
while 1t might give temporary relief
would only lead 10 imitation Of prices,
the impraeticeability Of competing in
our markets for the products ofhOme
skill and labor,and repeated renewals
of present experiences Elasticity 10
OEr circulating medium, therefore,
and just enough Of it 10 transact the
legitimate business OF the country,
and to keep all industries employed,
i what Il most to be desired The
exact medium Is specie, the rccogniz-
ed medium Of exchange the world
over That obtained. w&shall have
a currency Of an exact degree Of
elasticity. If there be too much Of il
for the legitimate purpose Of trade
and commerce. It VIII flow out Of the
country IF too little, the reverse
viii result To hold what we have.
and to appreciate our currency to
that standard. i the problem deserv-
ing the most serious consideration
Of Congress. The experience Of the
present panic has proven that the
currency Of the country, based, as 1t
Is, upon the credit CT the country, Is
the best that has ever been devised
Usually in times Of such trials the
currency has decOme worthless, or
so much deprecated in value as 10
initiate the value Of all the necessities
Of life as compared with the currency.
Every one holding it has been anx-
ious to dispose Of it on any terms.
Now, we witness the reverse. Hold
ers of currency hoard it as thev did
gold in former experiencesOf a Ike na-
ture. 1t Is potent to the most casual
observer that much more currency or
Honey Is required to transact the le-
gitimate trade of the country during
the fall and winter months. when the
vast crops are being removed, than
during the balance ofthc year With
our present system, the amount in
the country remains the same through
out the year, resulting in an aceumu-
lation Of all the surplus capital Of the
country in a few centuries. when not
employed in the moving Of crops
tempted by an offer Of interest on call
loans, interest being paid This sur
plus capital must earn this interest,
which is paid with a profit Being
subject to call, it cannot be loaned.
only in part at best, to the merchant
or manufacturer for a fixed time
Hence, no matter how much eurren-
ey there might be in the country, it
would be absurd, prices keeping pace
with the volume, and panies, stringen-
ev and disasters would ever be recur-
ring with autumn. Elasticity in our
monetary system, therefore. is the OBJ
iect to be obtained first And next
to that, as war is possible, preven-
ton Of the use fOtber peoples money
in stock and other species Of specula-
tion. To prevent the latter. it seems
to me that one great step would be
taken by prohibiting the national
banks from paying interest on depos-
its, by requiring 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 | would suggest
the establishment of clearing houses,
for your consideration. To secure
the former, many plans have been
suggested, most, if not all, Of which
look to me more ike imitation on the
one hand. OF compelling the Govern