New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-12-03
currency TO that standard Is problem deserving Of te
most serious consideration OF Congress

most serious consideration Of Congress.
THE BEsr CURRENCY EXISTENCE
The experience OF the present pauic has proved that
the currency OF the country. based as 1t " upon the
credit OF the county is the best that has ever been de-
viscd Usually. times OF such trials, currency mas
become worthless much deprecated ~ value ~ TO
innato the valuos OF all the necessaries OF
life. As compared with tho currency. every one
holding 1t has boon anxious 20 dispose Of IT on any
terms. Now wa witnoas the reverse holders OF cur
roncy hoard IL as they did gold in former experiences
OF a like nature.
Il is patent 10 the most casual observer that much
more currency or money Is required transact the
legitimate trade OF the country during the Fan ana
Winter months when the vast crops heing removed
than during the remainder OF year. with present
system the amount in the country remains the same
throughout the entire year. resulting IN an accumulation
OF all the surplus capital OF the country at few oohte'
when employed In the moving OF crops Ionpten
thereby by Of interest Oh call loans Interest oehS
paid this surpu, capial must earn this interest with
profit Being subject CALI it cannot DO lent or only
In part at best; 70 the merchant manufacturer Tor
fixed term. Hence. no matter how much currency
there might be iu country. ~ would bo absorbed;
prices keeping pace with the volume: and panics
strngency aud disasters would be recurring with
the Autumn Elasticity IN monetary system there
fore s the object TO bs attained Hrs and to that
AZ far AZ possible prevention Of the Of other
peoplos money in STOCK aud other species Of specula
ton preventive latter 1t seems to inc that one great
step would he by prohibiting the National banks
from wing interest deposits by requiring them 20
hold their reserves ia their vaults and by forcing
them into resumption. though 1t would he only in legal
tender notes For this purpose | would suggest the
establishment OF clearing houses FOR your consideration
to secure the former.
MORE NArIoSM BANK CURREScY-FREE BANKING
Many plans have been suggested most II not all OF
which look like imitation on the one hand or
compelling the Government on the other to pay Interest
without corresponding benefits upon the surplus
funds Of tho country during the seasons
when otherwise unemployed would submit
for your consideration whether this difficulty
might not Uy authorizing tho Secretary of
the Treasury 1t anY time TO National Banks or
issue any amount Of their notes below fixed percent
age tboir 55Ic say 40 cent upon the banks de
posting with the Treasurer OF the UIted states an
amount Of Government bonds clnal to the amount Of
notes demanded tho banks forfeit to the Government
say per cent the interest accrung the bonds 80
pledged during the time they remain with tho Treasury
as security for the increased circulation the bonds 40
pledged to reieemaOe By the banks at their pleasure
either in whoe or IN part by returning their bills
for cancellation 10 amount equal 10 the face Of the
bonds Withdrawn. / would further suggest for your
consideration tho prOpriety Of authorizing National
banks diminish their standing issue at pleasure Dy
returning for ncelation thCirOwn bulls and Withdrawing
30 many United States bonds pledged for the bills
returned In view OF the great actual contraction that
has taken place the currency, and the comparative
contraction continuously going on due TO the increase
of popuaton increase OF manufactures and all the in
dusries do not believe that there il too much OF II
now for the duest period OF the Indeed II Clear
ing houses should DO established, thus forcing rcdomp
ton. 10 Is question for your consideration
whether banking should not b. made free retaining all
safeguards BOW rcquiged to secure bloters. In any
notification OF the present laws regulating National
bank as further step Yards preparing for the re-
sumption Of specie payment invite yoJr attention 10
consideration Of the proprety Of cxactinZ from them
tho retention part OF their reserve either the whole
or part Of the gold interest accruins upon the bond,
pledged security for their issue have not reelected
enough on the bearing this might have IN producing
scarcity Of coin with which 20 pay duties on imports.
to give 1t my positive Recommendation. but your atien.
ZION 10 invited ~ the SUBJECT.
1Hs AMOUsr OF CURRENCY SOW COMPARATIVELY
CONTRACTED.
Durng last four years Inc currency has been
tractod directly by the withdrawal Of per GENT certh
Gates compoundIntcrest notes, and seycnhirty bonds
outstanding h Of March, SG9 all OF which took tho
place legal touders the bank reserves to the extent
OF 500 100000 Daring The same period there been
much larger comparative contraction OF the currency
u. population Of the country mas largely increased
More than 5000 miles OF railroad have been built.
curing the active OF capital 70 operate them Mil
lions OF acres land have been opened 10 cultivation
recurring capital 10 the prOducts Manufactures
have multiplied beyond all precedent in the Same pc
Rod of time requiring capital weekly Tor the payment
of wages aud for the purchase Of materials and proba
bly, tue largest of all comparative contraction
arises from tho Organization Of free labor
in tho South. Now, every iaborer receives his
wages and for want savings banks the greater part
OF such wages carried VA the pocket boarded until
required for use.
These suggestions thrown for your consdera-
adopted literally, but hoping that tho best method may
be arrived at to elasticity currency
as viii keep cmpoyei all the industries of the country
and prevent such imitation will put of
indefinitely the resumption OF specie payments
an object deYouty 10 be wished for by all and by
none earnestly than the class OF people most
directly interested. who their bread By tho
OF their brow. The decisions Of Congress sub
ect Will have the hearty support OF the Executive.
PROGRESS IN SHIP BUgLDrsG-CnEAP TRANSPORTATION
In previous messages have called attention TO the
decline III American shp-buildIng, and recon mended
such legislation az would to us our pro
portion OF the carrying-trade. Stimulated by
high rates and abundance OF freight, the
progress Tor tho last year ia ship-buld.ng has
been very Satisfactory There has been Increase OF
about per cent In the amount transported in
lean vessels the amount OF last year With the
ducod cost of material which has taken place. may
reasonably be hoped that this progress VIII DO main.
tanned and increased. However,, We pay about
ssO0DOooo per TO foreign vessels for the
portaton OF surplus products TO market. thus In
creang balance OF trade against this amount
the subject Is worthy Of your serious consideration
Tho want of "cheap transportation" is u sub
feet that has attracted the attention OF both
producers and for tho past few years and has
contributed TO- II 1t has not been the direct cause OF the
recent panic and sringoncy As Congress at its last
session appointed Special Committee to nvestiga to
this subject during the vacation report this
session have nothing to recommend until their report
4. Rad There la one work however. o a natnnal