Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-12-03

| the i,niiroeeiients are OF but little beneht
| to general commerce, and for Notifications.
| There is a still more fruitful source OF eX-
| penditure which will point out later IN
| this message. refer to the easy method
| of manufacturing claims for losses incurred
| In tile suppression of the late rebellion
| | would not be understood as in dpposl-
| tifJn t6 tie erection OF good, substantial or
! even ornamental buildings by the govern
/ ment wherever such buildings are needed.
| In fact. | approve of the government OWL
| inc its own buildings in all sections OF the
| country, and hope the day is not far DIS
tant when it will not only possess tnen'
but viii erect in the capital suitable resi-
| dences for all persons who now receive
Communication for quarters or rental at gov
| rnment eSp pense and for the Cabinet, thus
setting an example for the States, when
may induce them to erect buildings Ior
their Senators. But | would have this
| work conducted at times when the re-
sources of the country would abundanIiy
| Justify it. The resources have materially
fallen off for the last five months of the
present fiscal year from what they were eX-
pected to produce, owing to
| The General Panic
now prevailing, which commenced about
the middle of September last. The full
| effect of this disaster, if it should not prove
| to be blessing in disguise, is yet to be
| demonstrated. In either event it is your
| duty to heed the lesson, and provide by
wise and well considered legislation, as far
as It lies in your power, against its recur-
| renee. and to take advantage Of all the ben
efits that may have accrued. My own judg-
ment is that however much individuals
| NAV have suffered, one long step has been
taken toward specie payments; that we can
| never have permanent prosperity until an
| entire basis is reached, and that a specie
basis cannot be reached and maintained
| until our exports exclusive OF gold) pay
| for our imports, our interest due abroad,
and other specie obligations, so heavy as to
leave an appreciable accumulation OF the
| precious metals in the country from the pro-
| ducts of eur mines. The development OF
| the mines of precious metals during the
past year. and the prospective development
| of them for years to come, are gratifying
| in their results. Could but one
half of the gold extracted from the mines
| be retained at home, our advance towards
| specie paynients would be rapid. To in
crease our exports sufficient currency is re-
ouired to keep all the Industries of the
| country employed. Without this, national
as well as individual bankruptcy must
| ensue. Undue imitation on the otherha
while it might give temporary relief would
only lead to an imitation ofprices, the i'm
| possibility of competing in our markets for
| the products of home skill and labor and
| l. Of nyr10rInnpaS
| Elasticity to our circulating medium there
fore, and just enough OF it to transact the
| legitimate business of the country and
keep all industries employed, is what is
| most desired. The fact is, specie is the re-
| cognized medium of exchange the world
over. That obtained, we shall have
currency of such a degree OF elasticity.
| If there be too much of it for the legltl-
mate purposes of trade and commerce, 1t
will flow out of the country; If too little,
the reverse will result. To hold what we
have and to appreciate our currency to that
| standard is the ~ a
Problem
deserving of the most serious consideration
of Congress. The experience of the pres
ent panic has proven that the currency Of
the country, based as it is upon the credit
of the country, is the best that has eyeI
been devised. Usually in times OF such
trials the currency has become worthless OF
so much depressed in value as to initiate the
values of all the necessarieS of life as com
pared with the currency. Every one hold
ING it has been anxious to dispose OF it OF
any terms. Now, we witness the reverse
The holders of currency hoard it as they die
cold in former experiences of a like nature
1t is patent TO the most casual observe
that much more currency or money is re
ouired TO transact the legitimate trade o
the country during the fall and winte
months when the vast crops ar
being removed than during tn
I.balance of the year. Wit
the present system, the amount IN TIN
country remains the same throughout tn
entire year, and results in an accIlmula
ton of all the surplus of the country i'll
few centres when not employed in tn
moving of crops tempted there by the ole
of interest on call loans. Interest bein
paid. this surplus capital must earn this IL
terest paid with profit. Being subject t
call, it cannot be loaned only in part a
least to the merchant or manufacturer, TO
a fixed loan. Hence, no matter how muc
currency there might be in the country
would be absorbed, prices keeping pac
with the volume, and panicS of stringenc
and disaster would ever be recurring wit
! the autumn. Elasticity in our money sys
2 TEN. therefore, is the object to be obtaine
first, and next to that, as far as possible
, prevention of its use in stock and Otht
; species of speculation. To prevent the la
ter it seems to me that one great ste
| yvOrIld no taken hV
Prohibiting the National Ranks
3 from paving interest on deposits, by requi
! inc them to hold their reserves i'll their ow
: vaults, and by forcing them into resuml
t ton, though it would be only in legal tel
der notes. For this purpose | would su
I gest the establishment of Clearing HOu!
for your consideration.
To Secure Elasticity.
TO secure the former many plans ha'
been suggested most, if not all Of whic
look to me like imitation on the one hal
or compelling the government on the 9th
to paw Interest without corresponding be
, efits upon the surplus funds Of the count
, during the seasons when otherwise UneI
= ploved. | submit for your considerable
: whether this difficulty might not be owe
= come by authorizing the Secretary Of Il
Treasury to issue at netime to the Natio
;, al Banks of issue any amount OF their not
i below a fixed per centage of their issue, So
. forty per cent, upon the banks depOsitiI
L with the Treasurer Of Il
United States an amount
: government bonds equal to the amount
: notes demanded, the banks to forfeit to &
. government say four per cent. on the i
> terest accrling on the bonds so pledge
- during the time they remain with Il
u Treasury, as security for the increase of c
!, culation; the bonds SO pledged to be l
= deemable by the banks at their pleasu1
y either in whole or in part, by returning the
u own bills for cancellation to an amou
= equal to the face of the bonds withdraw
- | would further suggest for your consider
- tiOn the prOpriety of authorizing the n
: tional banks to diminish their standl
issue at pleasure. by returning for CANCEL
=, ton their own bills, Withdrawing SO ma
=, United States bonds as are pledged Tor L
: bills returned. .-..
Free Banl<ing-Specie Reserves
% In view of the great actual contract
- that has taken place in the currency, a
the comparative contraction constantly
- inc on, due to the increase of speculate
the increase of manufactures and all the
= dustries, l don't believe that there is
- much of it now for the dullest period OF /
Tf year. Indeed if clearing houses should
II 4I,,,e foroi,,cr If Il