The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1873-12-12

} prices keeping pace with the vol
: Ume, and panics, stringency an,
, disasters would ever be occurring
Elasticity in our money system
; then, is the object to be obtainet
first, and next, as far as possible
: . prevention of the use of monel
IA stocks and other species o
: speculation.
Il To prevent the latter it seems t.
; me that one great step would bt
: taken by prohibiting the nationa
banks from paying interests OF
deposits, by requiring them Il
hold their reserves in their owr
vaults, and by forcing them into
resumption though it would be
only in legal tender notes. Fol
this purpose / would suggest the
establishment of clearing houses
for your consideration. To Sc
cure the former, many plans have
been suggested, most of which
look to me like imitation on one
hand, or compelling the govern.
ment on the other to pay interest,
without corresponding benefits,
upon the surplus funds of the
country during the seasons when
otherwise unemployed. l submit
for your consideration whether
this difficulty might not be over
come by authorizing the Secretary
of the Treasury to issue, at any
time, to National Banks of issue,
any amount of their notes below
q fixed per centage of their issue,
say forty per cent. upon the banks
depositing 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
say four per cent. of the interest
accruing on the bonds pledged
during the time they remain with
the Treasury as security for the
increased circulation, the bonds so
pledged to be redeemably by the
banks at 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the bonds withdrawn.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 consider
alton, the propriety of authoriz-
ing national banks to diminish
their standing issue at pleasure,
by returning for cancellation their
own bills, withdrawing so mauy u.
5. bonds as are pledged for the
bills returned.
In view of the great actual con-
tradiction that has taken place in
the currency and the comparative
contraction constantly going on,
due to the increase of speculation,
increase of manufactures, and of
all the industries, I do not. believe
that there is too much of it now
for the dullest period of the year.
Indeed, if clearing houses should
be established, thus forcing re-
demption, it is question for con-
sideration whether banking should
not be made free, retaining all the
safeguards now required to secure
bill holders. In any modification
of the present laws regulating Ma
tionaI banks, and as a further step
providing for a resumption of
specie payments, 1 invite your at
tention to the consideration OF the
prGcticability of eXacting from
them the retention, as a part oil
their revenue, of either a part or q
whole of the gold interest accruing
upon the bonds pledged as securi-
ty for their Issue. 1 have not re-
fected enough on the bearing this
might have In producing a scarcity |
of coin with which to pay duties
on imports to give it my positive |
recommendation, but your atten-
ton is invited to the subject.
CONTRACTION.
During the last four years the |
currency has been contracted di-
rectly by the withdrawal of three
per cent. certificates, compound in
terest notes and government bonds
outstanding, on the 4th of March,
1869, all of which took the place
of legal tenders, and the bank re-
serve to the extent of $63,OOO,OOO.
During the same period there has
been a much larger comparative
contraction of the currency. The
of the country has
largely increased. More than
twenty-five thousand miles of rail-
roads have been built, requiring
the active use of capital to oper-
ate them. Millions of acres of
land have been opened to cultiva
ton, requiring capital to move the
products. Manufactures have
multiplied beyond all precedent in
the same perio.i Of time, requiring
capital weekly fnr the payment of
wages, and for the purchase of
material, And probably the larg-
est of all comparative contractions
arises from the organizing of free
labor in the South. Now every
laborer there receives his wages,
and for want of Savings Banks the
greater part of such wages is car
ried in the pocket or boarded till |
required for use.
These suggestions are thrown
out for your consideration, with
out any recommendation that they
shall be adopted literally, but hop
ing that the best method may be |
arrived at to secure such an elas- |
ITCHY of the currency as will keep
employed all the Industries of the |
country, and prevent such an in
fiation as will put off indefinitely |
the resumption of specie pay
ments, an object devoutly to be |
wished for by all, and by none
more earnestly than the classes of |
people most directly interested,
those who earn their bread by the |
sweat of their brow. The decis- |
ion of Congress on this subject |
will have the hearty support Of
the Executive.
AMERICAN SHIP BUILDING.
In previous messages / have |
called attention to the decline in |
American ship building, and rec
commended such legislation as
would secure to us our proportion |
of the carrying trade. Stimulated |
by high rates and an abundance
of freight, the progress for the |
for the last year in ship building |
has been very satisfactory. There |
has been an increase of about |
three per cent. in the amount |
transported in American vessels |
over the amount Of last year.
With the reduced cost of material |
which has taken place, it may
reasonably be hoped that this
change will be maintained and
even increased. However, as we |
pay about eighty million dollars
per annum to foreign vessels for
the transportation of our surplus
market fhna inoren ainn Kho hal