Carson daily appeal. [volume] (Carson City, Nev.) 1873-1877, 1873-12-05

ve.ored by lis appreciation during the
panic and makes some wise Suggestions
regarding the manner of dealing with
the national banks. To meet temporary
needs of an increased volume Of money
he suggests the following plan:
submit for your consideration. how
| ever. whether this difficulty might not
be overcome by authorizing the Secre-
tary of the Treasury to Issue at any
time to the national banks of issue any
| amount of their notes below a fixed per-
centage of their issue, say forty per
cent. upon the bank tiepositing with the
| Treasurer of the United States an
amount of Government bonds equal to
the amount of notes demanded, the
banls to forfeit to the Government say
four per cent. on the interest accruing
on tie bonds so pledged during the time
| they remain with the Treasury as secur-
| ity for the increased circulation, the
bonds 50 pledged to be redeemable by
the banks ut their pleasure, either in
whole or in part. by returning their own
bills for cancellation 10 an amount equal
| on the face to the bonds Withdrawn. l
wol:i3 further suggest for yoJIr consider
alton the propTiety of authorizing ma
.ional banks to diminish their outstand
ing Issue 1T their pleasure, by returning
for cancellation their own bills and
withdrawing So many United States
bonds as are pledged for the bills re-
turned.
OF the all-importait and highly inter
ssting question OF the contraction of the
currency and its canscs the following
views are given:
In view of the great contraction that
has taken place in the currency and the
comparative contraction constantly So
ing on, due to the increase of manufac-
tuIes and all the Industries. do no. be-
iieve that there is too much Of it now for
the dullest period of the year. Indeed,
if the Clearinghouse should be ests.b-
lishel, thus forcing redemption, it is a
question for consideration whether bank
ing should not be made free. retaining
all the safeguards now required to secure
bill-holleTs. In any modification of
of present laws regulating National
Banks and a further step toward resump-
ton of specie payment. l invite your at
tention to consideration of the propri-
ETY. of eyacting from the banks, as part
of their reserve, either the whole or
part OF the gold-interest accruing upon
the bonds pledged as security for their
issue. l have not reflected enough on
the bearing this might have i'll producing
a scarcity of coin with which to pay dyl-
ties On imports TO give it my positive |
but your attention is
invited to the subject. During the last |
four years the currency has been con-
tracted decidedly by the withdrawal Of |
the 3-per cent certificates, compound IL
terest notes and 80 bonds, outstanding |
Oh the 9Th of March, 1869, all of which
took the place of legal tenders in the
bank reserves to the extent OF sos 600,
l0o. Daring the same period there las
been Z Eluch larger comparative coatrac-
ton OF currency; the population OF the
has largely increased; more than
., 600 miles of railroad have been bUilt,
occurring the active use OF capital to
operate them; millions Of acres of land
nave been opened TO cultivation. reqUi--
ns capital to remove the products. Man
!factnrcs have multiplied beyond all
precedent in the same period OF time,
occurring capital weekly for the payment
If wages and fer the purchase of mate
'ial, and, probably. the largest Of an,the
contraction arising from the
organization of free labor in the South.
Now every laborsr there receives his
wages, and for the want of Savings
Banks the greater part of such wages is
'arried in the pocket, or boarded till re-
Iuired for use. These suggestions are
brown out for your consideration, with
>Iit any recommendation that they shall
De adopted literally, but hoping that the
,est method may be arrived at to secure
N elasticity of currency as will keep en-
D!oyed all the Industries of the country.
md prevent snch initiation as will put off
the resumption of specie
object devoutiy to be
wished for by all, and by none more
than that class of people most
iirectly interested-those who earn their
,read by the sweat of their brow. The
Of Congress on this subject
viii have the hearty support Of the Ex-
cutive.
Considerable progress has been made
Il American ship-5uilding. but as We are
aging $4,000, 900 per annum to for
ign bottoms fer transportation of
-eights it is thought that Congress had
alter NV. earnest attention to tIie mat. !
# of iurthc: encouragement &c :hat
ranch Of i,,,tustry.