National Republican. (Washington City (D.C.)) 1872-1888, 1873-10-31
NATIONAL FINANCES.

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tCcaiinuSd from Fiat PdgsD
their balances shall send rs back our gold-bear-
fnu bonds, aud then settle their accounts IN gold
But he who looks for specie payments by thm
process looks through very long vista. me
o,her process IL 10 secure tho transfer OF our
bonds to our own people by making money
OF cap, or In other words reducing the rate oil
interest 10 point as low or lower than II was
bsfofe we unwlseiy rushed into tho work OF
cnntraction. To accomplish this l would so
N odlfy the banking law as to make the payment
on receipt OF interest by national banks cause OF
forfeiture OF their charters. would prohibit
under severe penalties certifying by national
banks OF any check which did not represent 40
stuAi deposit In the vaults Of the bank ! would
relieve banks from maintaining q reserve to Sc
cure either their circulation or deposit.
Here let me pause to say why would abolish
tie reserve; primarily to increase the volume OF
TIE currency; secondly, to remove restraint from
tie banks that are consclsntlously managed
lut. again. I would do IL, because such reserve
O., security for the rates Is not needed. Tue
1 ,nds secure them and secure them Adequately
ir the rates are only ninety per cent. OF Tue
! zee value OF the goi-bearlng SIX per cents
Which even In this crisis are al neaVy premium.
Tor the Government TO compel the pahAs W
,,a,,taIp a reserve to protect deposltors Is ab-
,unI. IL don't nrotect me In the purchase OF
coat. and don't see how lt protects me IN tue
selection OF bank In which to deposit my money.
II IA st best q deluslou, for u amounts 10 out
,wsnty.lye per cent, OF the deposits, and YET
leads the people TO believe there IS reserve
which makes their deposits safe.
In connection with these notifications OF the
h,nkIup laws, would provide for the issue OF
bonds PAYABLE, principal and interest, In lawful
nancy nj the rate OF &. 65 interest per annum, or
one cent day and make these bonds inter-
rhangeshle with greenbacks. How largely sucn
bonds would be taken By our people few are now
prspared 10 believe. There are two perious IN
each year when there Is butsmall use for money
aud bank credits, when merchants OF Rood s'anu-
ing have long balances OF unemployed capital
aud when the farmers and tradesmen OF tue IN
trrior districts have greater or less sums Tor
which they can Ind no possible employment.
This money Ia now loaned to bankers and
brokers ut a low rate OF interest, and nnds Its
way TO Wall street, where II Is employed In
making corners" In gold, greenbacks and
stocks, BY these appliances the Industries oil
the country are embarrassed, the people arc
swlndled and robbed, and crisis ike that whlcn
we are now experiencing, and that OF the IA
nous .'black Friday" are brought about rake
the farmers OF the States OF missouri, Illinois
and Wisconsin, having their few hundred OF
thousand dollars for which they have no en-
p,oyment. They deposit with the bankers 10
their respective neighborhoods at low rate oil
interest, Inasmuch as these dep Jsts arc ''or
CALI these bankers cannot loan them on mort
cages or long notes to their customers, but they
send them TO Chicago, st. Louis or Milwaukee a
A low rate OF interest, speculation not BEN.
very rife IN these Western cities, and the bank
there send tho money to New York ION caiF
still higher rates OF interest. TIE money beinI
.,u callr the banks cannot loan 1t to their com
mercial customers At q reasonable rate OF 10
terest, and so they loan 1t "on call" again TO IN
brokers at high rates to such Arms as jay COOK
a Co., Fisk 4 Hatch, and Henry Clews Co
who In turn lend 1t to "the street. at from on
half to two and q half per cent. day. Thes
are the parties who get up "corners" In gol'
greenbacks and stocks. Now, here we have N
traditional "row OF bricks
Tho time comes when the original deposito
simultaneously want all their money. The
nrst call on the bankers with whom they d
posited. The latter call upon Chicago, 81. Lou
and Milwaukee. Then comes the demand upo
New York, and so On to the end Of the line, o
on the other hand, great failure occurs In PM
adelphia or New York, as happened on the is'
of September, and every depositor and evel
bank with whom money was deposited wan
ali the money standing to their credit win a.
other bank or banker. That IA just what Is u
matter now. think the issue OF such bond
Ihaye spoken OF would eTectually put stop
this whole vicious system. The bonds ought
lie issued In small amounts, say $25 and y
The smallest balance OF the farmer p
into such bond would earn him higher ra
OF interest than he Is in the habit OF gettil
from his local banker, with good security,
sides his money would be forthcoming on
mand. so much for the country. Our mi
chants would adopt these bonds as the PROF
means Of employing their loose capital DUR
the dull months Of the year. Cspitalists haVi
large sums OF money with which they do !
wish TO speculate, hut hold for Investment wh
opportunity offers. would holi II 10 such hon'
while the country would thus be protect
against the gold and stock gambling OF W
street, and its loose capital would be employ
Any bill authorizing the issue Of such boz
should empower the Secretary OF the Treast
to invest the funds thus obtained as closely
prudence would permit In the purchase OF
nvotwenty goli-bcartng bonds, and should
auire him to hold any surplus OF gold that mli
accrue for the express purpose OF "callins" ov
,lle gold-bearing bonds. In this way tue Am
can people would soon become owners OF q lar
share of the Indebtedness Of their country,
interest account against the country would
largely reduced, and the balance OF gold In Q
favor reduced still more largely. We would IN
he on the highway to specie resumption, the II
IN the path TO which Ia, as have said before,
annual payment to foreigners OF one huuui
millions OF gold.
| have thus given my views very frankly
this uraye question. may add that have
most agreeable conferences on this subject "
the President, the Secretary OF the Treasury
General Spinner, aud have had no suggestic