The Cairo bulletin. [volume] (Cairo, Ill.) 1872-1878, 1873-12-03
THE CAIRO DAILY BULLETIN WEDNESDAY, DECEMBER 8, 1878

'OhM DIV " eOsO'
appreciabls acsu mutation Of those metals
10 The country from tho products Of our
mines. 3
',a PRECIOUS METAL1.
The development Of MACS Of pre-
cions metals during the pAst year and tho
prospective Developments Of them for the
year TO come aro gratifying in the ex-
treme. II but ono-half the gold extracted
from our mines DO retained at home, our
advance toward specie payments would
DO RAPID. To increase our exports suill-
cient currency 10 required TO keep all the
industries Of tho country employed with
out this, national as we'll No individual
bankruptcy must ensue. Undue imitation
on the other hand, while II might give
Temporary relief would only lead to in
tistion Of prices, the impossibility OF com
peting in our own markets for the pro-
ducts Of homo skill and labor and re.
pested renewals Of experiences and elias
ticity TO our specializing medium there
fore, just enough iof II 10 transact the To-
climate business of the country and 10
Keep all industries employed 10 what 10
most desired. Tho exact medium Is
specie, the recognized medium Of eI-
| change the world over; that obtained, We
shall have a currency Of an sraot degree
| OF elasticity IL there DO too much Of it
for the legitimate purpoies Of trade and
commerce II will flow out Of the
country, IL too little the reverse will re-
suit to hold what we have and appreciate
our currency. That standard 10 . prob
\ lem deserving Of tho most serious consid-
Grafton OF Congress. Tho experience OF
kAhe present panic has shown that the cur
fency Of the country, based - it 10 on I'll
| credit Of tho country, 10 the best that has
ever been devised Usually in times Of
such trials turfsuHy has became uorthloss,
or SO much deprecated in value 40 TO in
fate the values OF all tho necessaries OF
life a. compared with the currency, and
every one holding ithas Ybssn snIiout 80
disposs os II on any terms. Now We Wit
ness tho reverse. Holders Of currency
hoard II AZ thsy did gold ia former erpe-
Fences Of like nature, 1t 10 patent to
tho most casual observer that much moro
currency or money 10 required 80 transact
tho legitimate trade Of the country during
tho fall and winter whom the vast crops
are being removed, than during the bal
apce Of the year With our present
system the amount In tho country remains
tho same throughout the year, resulting in
the accumulation Of all tho surplus capt.
the moving Of crops, and temp
ted there by offers loans. Being
paid, this .ssurplm capisah must
earn this interest. Paid with n profit
being subject to call, it cannot be
loaned only in part, at best, to the
merchant or manufacturer FOR fixed
term. Hence no matter how much cur
rency there may be In the country, it
would be absorbed, prices keeping
pace with the volume, and panics,
strangency and disasters would ever be
occurring, with the elasticity in our
money system. There is the object to
be obtained FIRST and next as far as
possible, a prevention Of the use Of
money in stocks 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 intereat on deposits,
by requiring them to hold reserves in
their own vaults, and by forcing them
into resumption, though it would be
only in legal tender notes. For this
purpose would suygest tho establish
ment Of clearing houses for your con
sidcration. To secure tho former many
plans have been suggested, most Of
which look to me like imitation on one
hand or compelling the government
on the other to pay interest without
corresponding benefits upon the surplus
funds of the country during the seasons
when otherwise unimployed. 1 submit
for your consideration whether this
difficulty might not be overcome by
authorizing the secretary Of the treas
ury to issue at any time nominal banks
lofissue, any amount Of their notes be-
How first percentage Of their issue,
say forty per cent upon the banks
depositing with the treasury Of the
United States, an amount of govern
ment bonds equal to tho amount OF
notes demanded of the banks to forfeit
to the government, say four per cen,
on the interest accruing on the bonds
pledged, during the time they remair
with the treasury, as security for in
crease Of circulation. The bonds Sc
; pledged to be redeemsble by the banks
At their pleasure, either in whole or in
.. part, by returning their own bills fol
.. collection to an amount equal 10 tn
, face of the bonds Withdrawn. ,u.s
t would further suggest for YOU
consideration the propriety Of authoriz
ing the national banks to diminish the
standing Issue at pleasure, BY return
Z ing for collection their own bills ant
, Withdrawing 30 many United State,
bonds as are pledged for the bills re
! turned. In view Of tho great actua
contraction that has taken place in tn,
currencyand the comparative contrac
ton constantly going on, due to the in
I crease Of speculation, increase Of manu-
. facturers and all the industries, ! d.
o not believe there is too much Of. it 70
. the dullestpcriod ofthe year. Indeed
I, clearing houses should DO established
thus forcing redemption, it is ques
: should not be made free, retaining al
!. safe guards now required to secure bill
holders in any modification of the pres
ent laws regulating national banks an
; further step towards paying for thu
|. resumption Of specie payment. l in
a vito your attention To the consideration