The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1873-12-05

banks at their pleasure, either in whole or in
part, by returning their own bills for caucela-
| ton to an amount equal TO the face of the
bonds withdrawn would further suggest
for your consideration the propriety Of author
| izing national banks 90 diminish their stand
ing issue at pleasure by re urnng for cancella-
| ton their own bills and Withdrawing so many
United States bonds as are pledged for the
| bills returned. In view OF the great actual
contraction that has taken place in the cur
rency, and the comparative contraction con-
stantly going on, due to the increase of popu-
lation, increase OF manufactures and all the
! Industries | do not believe that there ia too
much of it now for the dullest period of the year.
| Indeed, if clearinghouse should be estab-
| lished, thus forcing redemption, it is ques-
ton for consideration 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
national banks and further step toward the
redemption of specie payment, invite your
| attention to a consideration of the propriety
OF exacting from them the retention, as part
of their reserve OF either the whole or part of
the gold interest accruing upon the bonds
! pledged az security for their issue. | have not
reelected enough on the bearing this might
have in producing n scarcity of coin with
which to pay duties on imports, to give it my
positive recommendation, but your attention
is invited to the subject. During the last
four years the currency has been con-
tracted directly by the withdrawal
of per cent. certificates composed of interest
notes and 7-30 bonds outstanding Oh the 4th
of March, 1869, all of which took the place of
| legal tenders in the bank reserves to the eX-
tent of sixty-three millions Of dollars. Dur
ing the same period there has been much
larger comparative contraction in the currency
The population of the country has largely in
creased; more than %, 900 miles of railroad
have been built, requiring the active use Of
nj 10 tl...stN - Of
land have been opened to cultivation, requir-
ing capital to remove the products: manufac-
tories have multiplied beyond all precedent in
the same period of time, requiring capital
weekly for the payment of wages and for the
purchase of material, and, probably the larg-
est of all, the comparative contraction arising
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 carried in the pocket
or boarded till required for use.
These suggestions are thrown ont
recommendation that they shall be adopt
ed literally, but hoping that the best method
may be arrived at to secure such an elasticity
of the currency az will keep employed all the
industries of the country and prevent such an
imitation as will put off indefinitely the re-
sumption of specie payment, an object deyOut-
ly to be wished for by ALL and by none more
earnestly than the class Of people most direct
~ Observation-Disclosures who earn their bread by
the sweat OF their brow. The decision of Con-
gress on this subject will have the hearty
support of the Executive.
IN previous messages l have called alton
ton to the decline in American ship-building
! recommend such legislation as would secure
10 the United States our portion Of the carry
ing trade. Stimulated by higher rates and the
abundance of freight, the progress for the last
yearin ship-buildng has been very satisfactory.
There has been an increase OF about three
per cent i'm the amount transported in Anne ri
can vessels over the amount of last year.
With the reduced cost Of material
which has takon place. il may reasonably
be hoped that this change VIII be maintained
aud even increased. However, az We pay
about $50, 600, 900 per annum toforeign vessels
for the transportation Of our surplus pro-
ducts to a market thus increased, the balance
of trade is against us TO this amount. The
subjects il one worthy OF your serious consd-
Grafton. Cheap transportation is subject
that has attracted the attention Of both pro-
ducers and consumers for the past few years,
aud has contributed to. if it has not been the
direct cause Of. the recent panic and strin-
Concy. As Congress. at its last session. APP
pointed special committee to investigate this
whole subject during the vacation, and report
al this session, have nothing TO recommend
until their report Is ready.
There is one work. however. of a national
character, in which the greater portion of the
East and The West. the North and the
South. are equally interested. to which
will invite your attention. The State of
! New York has canal connecting Lake
Erie with Underwater on the Hudson river.
The State of Illinois has similar one con-
Meeting Lake Michigan with the naviCable
| waters on the Illinois river. thus making
water communication inland between the East
! and the West and the South. These great
| artificial water courses are the property Of the
States through which they pass and pay toll
/ to those States Would it not be wise states
| manship to pledge these States ;hat if they
! will open these canals for the passage of
/ large vessels the Government viii look after
! and keep in navigabie condition the great
| public highways with which they connect to-
/ wit The over-slough on the Hudson, the
st. Clair flats and the Illinois and Mississippi
rivers This would be a national work. one
! of great value TO the producers of the West
and South. in giving them cheap transporta-
ton for their produce TO the seaboard, and a
market TO the consumers in the East, in Civ
/ ing them cheaper food, particularly Of those
articles OF food which DO not find a foreign
market and the prices of which. therefore,
are not regulated by foreign demand. The
advantages of such work are too obvious for
argument. | submit the subject to you,
! therefore. without further comment.
In further connection with the Treasury
Department. | would recommend a revision
! and cOdlncatlOn OF the tarln laws ana the
opening of more mints for coming money,
with authority 20 coin for such nations as may
apply.
The attention of Congress is invited to the
recommendations OF the Secretary of Wai
/ herewith accompanying The apparent great
cost of supporting the Academy il fully OK
planned in the report and it will receive youI
attention. While inviting your attention to
all the recommendations made by the Secretary
of War. there are two which | would especially
invite you to consider. First, the importance
of preparing for war in time of peace by pro.
yidinS for proper armament fer our sea-coast
defenses. Proper armament is Of vastly more
Importance than Notifications. The latter car
be supplied very speedily for temporary pur
poses when needed the former cannot The
second IL the necessity Of reOpening promo
ton in the staff corps of the army PaItcu
larly is this necessity felt in the medical, pa,
and ordnance departments At this time 1t ii
necessary TO employ hy contract, surgeons
to supply the necessary medical attention
required DO the army With the present
| force of the Pay Department, it is now diff
cult to make the payments 10 troops provided
for By law. Long delays in payments are pro.
| ductyc OF descrtlopS and decentralization. anC
the law prohibits the payment OF troops by
| other than regular army paymaster5. There
are now sixteen vacancies in the Ordnaust
Department, thus leaving that branch Of tht
service without sufficient officers to conduc
| the business of the different arsenals on