Juniata sentinel and Republican. [volume] (Mifflintown, Juniata County, Pa.) 1873-1955, 1873-12-10

tries employed, is what is most to be
desired. The exact medium is specie,
the recognized medium OF specie the
world over. That obtained, We shall
have a currency Of an exact degree of
elasticity. If there be too much Of it
for the legitimate purposes Of trade and
commerce, it will flow out of the coun-
try; If too little, the rcyefse will be
the result. To hold what We have, aud
to appreciate our currency to that stan
dard, Is the problem deserving of the
most serious consideration of Congress.
The experience of :he present panic
has proven that the currency of the
country, based as it is upon the credi,
of the country, is the best that has ever
been devised. Usually, in times Of
such trials, currency has be:ome worth
less, or SO much deprecated in value as
to initiate the value of all the nc .essi-
ties of life as compared with the cur
rency; every one holding 1t has been
anxious to dispose Of it on any terms.
Now we witness the reverse. Holders
Of currency hoard it as they did gold
in former exigencies of a like nature.
Ii is patent to most casual observer
that much more currency or money i.
required to transact the legitimate trade
of the country during the fall and win
ter months, when the vast crops are
being removed, than during the balance
of the year. With our present system
the amount in the country remains the
same throughout the entire year, re-
sulting in the accumulation of all the
surplus capital of the country in few
centres when not employed in the NOV
ing of crops. Tempted there by offers
of interest on call loans, interest being
paid, this surplus capital must earn this
interest paid with profit. Being sub
ject to s'call," j: cannot be loaned, or
only in part at best, to the merchant or
manufacturer for a fixed term. Hence
ne matter how much currency there
might he in the country, it would be
absurd, prices keeping pace with the
volume, and panics, s,ringency, and dis
aster would ever be recurring with the
sutumn Elasticity in our monetary
system, therefore, is the object to be
attsined first, and next to that, as war
is possible, prevention of the use OF
othe, peoples money in stocks and
other species Of speculation. To pre-
vent the latter, it seems to me that one
great step should be taken by prohibit
ing the national banks from paying IN
,erests on deposits, by requiring them
to bold then reserve In their own vaults.
and BY forcing them into resumption,
though it would only be in legal-tender
notes. For this purpose l would sug-
gest the establishment of clearing
houses for your consideration. To Sc
cure the former many plans have been
suggested, most, if not all of which,
look to me more like imitation on the
one hand, or compelling the Govern
ment on the other to give interest with
out corresponding benefit. upon the
surplus funds of the country during
the seasons when otherwise unemployed.
| submit for your consideration whether
this difficulty might not be overcome
by authorizing the Secretary of the
Treasury TO issue at any time to nation
al banks of issue any amour. Of their
notes below three percentage of their
issue, say forty per cent. upon the
banks depositing with the Treasurer of
of the United States an amount of gov
ernment 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 so
pledged during the time they so remain
with the Treasurer as security for the
increased circulation, the bonds so
pledged to be redeemable 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 bonds withdrawn. | would
further suggest for your consideration
the propriety of authorizing national
banks to diminish their standing issue
at pleasure by returning for cancella-
tion their own bills and withdrawing so
maay United States bonds as are pledged
for them. In view of the great actual
contraction that has taken place In the
currency and the comparative contrac-
tion continuously going on, due TO the
increase of population. increase of man
ufactures and all the industries, | do
not believe that there is too much of it
now for the dullest peroid Of the year.
Indeed, If clearing houses should be
established, thus forcing redemption,
it is question for your consideration
whether banking SHOULD not be made
.ree, retaining all the safeguards now
required TO secure bill holders In any
modification of the present laws regu-
lating national banks IS further step
toward preparing for the resumption of
specie payments, l invite your atten-
tion to the consideration of the propri-