Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1873-12-05

except with great economy on the part Of Congress
In making appropriations, and the same economy
in the Administration in administering the various
departments OF the Government the revenues will
not fall short OF making the annual expenses, IN
Guiding the Interest on the public debt j COM
mend to Congress such economy and point out two
sources where II seems to me II might commence,
to-wit: In the appropriations for public buildings
in the many cities where work has not been com
menced In the appropriations Tor river ana M narGOr
provcmonts arc Of but little benefit to general
commerce and fortihcations. There
Of eHpendiiure which @OTe will t point out SieT later
In this message. l refer 10 the easy method or
manufacturing claims for losses incurred in the
suppression OF The late rebellion.
would not be understood here as opposing the
erection of good, substantial. and even ornamental
buildings by the Government, wherever such build
ings are needed. In fact, approve Of the Govern.
ment owning It's own buildings IN all sections OF
when II will not only possess them, but Will erect
in the Capital suitable residences for persons VINO
now receive Communication for quarters or rent at
the Governments expense, and for the Cabinet,
thus setting an example to the States which may
induce them 10 erect buildings for their Senators;
but | would have this work conducted at times
when the revenues OF the country would abundant
" justify II!
THE PANIC AND SPECIE PAYMENTS,
The revenues have naturally fallen of FOR the
last Ave months Of the present fiscal year, from
what they were expected to produce, owing to the
general panic now prevailing, which commenced
about the sniddlc of September last. The full ef-
fecs OF tk diaastor, II Il should not prove to be
"a blessing in disguise" is yet to be demonstrated
In either event 1t Il your duty TO heed the lesson
and provide by wise and wel-cOnsdered legisa-
currence and to take advantage of all the benefits
that may have accrued. My own Judgment Is that
however much individuals may have suffered, one
long step has been taken towards specie payments;
that we never can have permanent prosperity until
an entirely new basis is reached and main
tained-until our exports, exclusive OF gold, pay
for our imports, interest due abroad, and other
speculations so heavy to leave an apprecinble
accumulation of these metals In the country from
the products Of our mines. The development OF
mines OF precious metals during the past year, and
the prospective development OF them Tor years 10
come, are gratifying in the extremes could but
one-hnf the gold extracted from the mines be re-
tanned at home, our advance toward specie pay
ments would be rapid. To increase our exports,
sufficient currency is required to keep all the in
dustries Of the country employed. without THIS,
national as well individual bankruptcy must en-
sue. Undue imitation, on the other hand, while II
might give temporary relief, would only lead to an
imitation Of prices. The impossbity Of competing
in our own markets fir the products of home skill
and labor, and the repeated renewals OF cxpan-
sions give elasticity to our circulating medium.
therefore, and just enough OF II TO transact the
legitimate business Of the country and to keep all
the industries employed, is what is most desired.
The exact medium is specie, the recognized medium
Of exchange, the world over. That obtained, we
shall have currency OF an exact degree OF elasti-
city. II there be too much Of 1t for the legitimate
purposes Of trade and commerce, IL will flow ont
ot the country; II too little Of it, tie reverse will
be the result To hold what we have, and TO ap-
preciate our currency TO that standard, If prob
lem deserving Of the most serious consideration
OF Congress.
THE CURRENCY.
The experience Of the present panic has proven
that the currency Of the country, based as 1t is
upon the credit of the country IL the best that has
ever been devised. Usually, in times Of such
trials. the currency has become worthless, or so
much deprecia,edin in value as TO initiate the values
of all the necessaries of life as compared with the
currency. Every one holding il has been anxious
to dispose OF i on any terms. Now we i witness !.
they did gold in former experiences Of u like
nature 1t IL patent TO the most casual observer
that much more currency or money Is required 10
transact the legitimate trade Of the country during
the fall and winter months, when the vast crops
are being removed, than during the balance of the
year. Under the present system, the
throughout the year, resulting in
an accumulation Of all the surplus capital OF the
country when not employed in the moving of crops,
tempted there by offers OF interest being paid
This surplus capital must earn this interest paid
with profit. Being subject to call, 1t cannot be
loaned only In part, at peat, to the merchant OF
manufacturer for fixed term Hence, no matter
how much currency there might be in the country
IL would be absorbed, prices keeping pace with
the VOLUME; and panics, strngency and disasters
would be recurring with the elasticity in our
money system. There is this object to be oh.
tanned first and next, as far as possible, preyen
tion of the use of money in stock and other
seems to me that one great step would be
taken by prohibiting the national banks
from paying interest ON deposits, by requiring
them 10 hold their reserves in their own vaults and
by forcing them into redemption, though ii would
be only in legal tender notes For this purpose
would suggest the establishment Of clearing houses
for your consideration. To secure the former
many plans have been suggested, most Of which
look 10 me like imitation, on one hand, or compel
ling the Government, on the other 10 pay interest,
without corresponding benefits, upon the surplus
funds of the 1urinR the when
otherwise unemployed. submit for your consid-
Grafton whether this difficulty might not be
overcome by authorizing the Secretary OF
the Treasury to issue, at any time, 10
nominal banks Of issue, any amount OF
their notes below fixed percentage Of their issue,
say ~ per cent, upon the banks deposiung with
Government bonds equal to the amount of notes
demanded, the banks TO forfeit to the Govern
ment, say, per cent. ofthe interest accEffng on
the bonds so pledged during the time that they
remain with the Treasury as security for me IN.
crease OF circulation, the bonds so pledged TO be
redeemable by'the hauks az their pleasure, either
for cancellation TO an amount equal TO the face of
the bonds WithdreWn,soI would further suggest
for your consideration the propriety OF authoriZ-
ing national banks to diminish their standing issue
at pleasure by returning for cancellation their
owR bills and Withdrawing so many United
States bonds as are pledged for the
traction that has taken place In the currency, and
the comparative contraction constantly going on,
due to the increase Of population, in
crease of manufactures and all the in
dustres, do not believe that there is too much OF
II now for the dullest period of the year. Indeed,
n clearing houses should be established thus fore
ing redemption, 1t is a question for consideration
whether banking should not be made
free retaining all the safeguards now required TO
secure blll'hOlders. In any modification of the
present laws regulating national banks and fur
her step toward the resumption OF specie payment,
| invite your attention to a consideration Of the
propriety OF exacting from them retention as a
part OF their reserve, either the whole or part OF
the gold interest accruing upon the bonds pledged
as security for their issue | have not reflected
enough on the bearing this might have in prOduc-
ing scarcity OF coin with which to pay duties
on Imports, To give IL my positive recommends
ton, but your attention Is invited TO the subject.
During the last four years the currency has been
contracted directly by the withdrawal OF per
cent certificates composed of interest notes and
7-30 bonds outstanding on the 4h Of March, 1869,
all OF which took the place Of lega-tenders in the
bank reserves to the extent Of sixty three millions
been much larger comparative contraction OF
country has largely increased; more
than 5000 miles OF railroad have been
built, requiring the active use of capital TO oper-
ate them; millions Of acres Of land have beer
opened TO cultivation, requiring capital to remove
the products; manufactures have multiplied be-
yond all precedent in the same period Of time,
quirilg capital weekly for the payment Of wages
and for the purchase Of material, and, probably
the largest OF all, the comparative contraction
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 out for your
consideration, without any recommendation that
they shall be adopted literally, but hoping that
the best method may be arrived at TO secure such
elasticity OF the currency will keep employed
all the industries Of the country, and prevent such
an imitation as will put of indefinitely the re
sumption Of specie payment an object devOutly
to be wished for by ALL and by none more ear
nesly than the class OF people most directly inter-
ested- those who earn their bread by the sweat OF
the brow. The decision of Congress on this sub
ject will have the hearty support OF the Executive.
AMERICAN sHIP-BUILDNG.
In previous messages have called attention TO
the decline In American ship building, and recon-
mended such legislation as would secure to the
United States our portion OF the carrying trade.
Stimulated by higher rates and the abundance of
freight the progress for the last year In ship build
ing mas been very satisfactory. There has been an
increase Of about three per cent. in the amount
transported In American vessels over the amount
OF last year. With the reduced cost OF
material which has taken place, II may reasonably
be hoped that this change will be mainiane and
even increased However, as we pay about $780,.
OO0000 per annum to foreign vessels for the trans
portatiGn OF our surplus products TO market, thus
Increasing the balance Of trade against us to this
amount, the subject is one worthy OF your serious