Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-12-04

ton of all the surplus capital of the country
in a few centers, when not employer LOT
the moving of crops, tempted thereto ny
offers of interest on call loans. Interest be-
ing paid, this surplus capital must earn TINS
interest with profit. Being subject to call,
| it cannot be loaned, only IN part, al pest, 10
1.-The merchant or manufacturer for a nAeu
| time: hence, no matter how much cur
rency there might be in the country, 1t Woulu
| be absorbed, prices keeping pace with the
| volume; and panics, stringency and disasters
would ever be recurring with the autumn
| Elasticity in our monetary system, there I
| fore, is the object to be attained hrst, ana
next, so that as far as possible prevention
of the use of other, peoples money ana
stock, and other species of speculatlons.
HOW TO PREVENT STOCK SPECULATION.
! To prevent the latter, it seems to me that
t one great step would be taken by prohiot-
/ ing the National Banks from paying interest |
on deposits by requiring them to hold their |
reserves in their own vaults, and by forcing |
them into resumption though 1t be only III |
| legal tender notes. ga .1tE- |
| THE PRESIDENTS PLANS.
For this purpose / would suggest the
/ establishment of clearing houses ior your
eons1derati9n sva been snreested. most, if
not ali, of which look to me more like IN
fiation, on the one hand, or competing
| teIest, without corresponding benefits, |
! uuon the surplus funds of the country
| during the seasons when otherwise note
ployed. l would submit for your consld- |
| GRAFTON whether this difficulty might not
| be overcome by authorizing the
secretary of the n dfeosaIy banks sssG of
| issue any amount of their notes below
| fixed per centage of their issue-say about
| 40 per cent.-upon the banks dep0Slhng
| with the Treasurer of the United states
an amount of government bonds equal 10
the amount of notes demanded the banks
to In n nm
per cent. of the interest accru1ng on Jne
| bonds 30 pledged during the time they re-
main with the treasurer, as seeurlIy 1oI
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 cancela-
ton ~ an amount equal to the sum OF the
bonus Withdrawn.
A PLAN FOR AN ELASTIC CURRENCY. .5'
/ would further suggest for your con-
sideraticn the propriety OF authorizing
National Banks to diminish their stand
ing Issue at pleasure by returning for can
collation. their own bills and Withdrawing 4
so many United States bonds as are
pledged for the bills returned. IN view OF
The great actual contraction that has
taken place in currency, and the COM
| parative contraction continually gong
| on, due to the increase OF popula-
ton, increase of manufactures, and
! all the industries. L do not beHeVe
that there is too much of 1t now for the
dullest period of the year. Indeed II clear
mig houses S1lOulu NC cSLdDileHGNJ IHuo JOiN-
ing redemption, it is a question for your
consideration, whether banking should not
be made free, retaining all the safeguards
now required to secure bill-holders,
, HOW TO KEEP THE GOLD IL THE BANKS
In any modification of the present laws
! regulating National banks, as further steps
! towards preparing for the resumption OF
, specie payment, invite your attention 10
consideration OF the property of eXactlng
2 from them the retention, as part Of their
, | reserve, either tile whole or part of the
: ! gold interest acCruing upon bonds pledged
! as security for their issue. have not re-
fected enough on the bearing this might
! have in producing q scarcity of coin with
! which to pay duties on imports, TO give it
4 | my positive recommendation, but your at
: tention is invited 70 the subject. During
: the last four years, the currency has been
f contracted directly by the withdrawal OF
! three per cent certificates compound IA
: rerest notes and 100 bonds outstanding on
: the 4th of March, 1869, all of which
: took the place of the legal tenders IN
f the bank reserves TO the extent OF st3, o00U 00
:. | During the same period there has been q
q. I much larger com paratIYe contraction OF
the currency. The population OF the
= I country has largely Increased. More
- than 25,000 miles OF railroad nave heen
i I buitt, requiring the active use OF capltai
G to operate them, millions of acres OF land
e / have been openedto to cultivation, fequlr-
: / inc. capital TO move the products; manu-
:, / faetoJies. have multiplied beyond all pre-
II |t - ~, ,1,,,ts I'D III time I.eGFir-
u Tag capital weekly for the payment OF
/ III tI1 Ia II - All commemorative
b contraction arises from organizing free
n labor in the South. Now every laboTer
/ there receives his wages and for want Of
T. Savings Banks the greater part of such
Il wages is carried in the pocket or boarded
; nnrii reeuired for use These suggestions
are tkrown out Tor your cohSlaeItlloh Will iI55
oat any recommendation that they should
". auppset. i ,i ~ 1904 q,
=, -the pesi tltktioo may oo "tI,1 - 49,. az
> 10 secure Sucli an elasticity
3 of the currency rs viii Keep employees
V all the industries OF the country and pre-
n vent such an inflatron as will put ffinde-
!, finitety the resumption of specie pay
: lnents an object 50 leVoutly to be wished
e for by all and by none more earnestly
o than the class of people most directly IN
Llt F 100, 90 = s daetsiob ~
n Congress Of This subject will have the
a | hearty support o the executive g.. g..
"a
J. sNflSfACioRi .t i'pSthE 9a - t ii p : -
a. ,-..' t I II
,. In previous messages / have called at
n teRtion to the decline in American ship
e building, and reeomneHaea shch Ieislsi- Ia.
- cLott a. 49, 800 sti,i,1iitaS Nv ire
:. fijftb rates and sbIfndancc Of freight, pro-
% qress for the last. year In ship building
70 has been very satisfactory. There has
1t boen an inereltse OF about 5 per cent in
ie the amount transported m american YES
Is S8is over inc HneGn6 % ,,.I i& tSi T rs
aIai ma, resonalTll be hoped
= Hal MS TTcgie,s Viii ba maintained and
,e even Increased. However, as we pay
); about SSO9g0,C0o per anpum to foreign yea
le sells tor transportation. OF our surplus pro-
l. duets to market. thus Increasing the bal
| ancc OF trade against lts TO that amount
TIE subject is one worthy OF your serious
.osE consideration. --.'-'-. .-.-.f.
r.. ~. ;. ~, ,rto< ~.
- ... CHEAP FRAhstokiAiiSN'
y; ~ C3hesl, characterization Is a subject that
il has attracted the attention or both pro
~ wears aud has contributed to, If IL has not
De been the direct cause OF, the recent panlc
~ session. appointed n special conanlittee te
.4l,e