Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-12-03

Il
] point out two sources where Il seems 70 me II
4 might commence, to-wit: In the approprla
: tioiis for public buildings in the many cities
E where work has not been commenced, and IN
] the appropriations for river and harbor i'm
$ provement in those localities where the I'M
! pnoyements are OF but little beneht 70 general
commences; aud for fOrtihcations there is a
. still more fruitful source OF expenditure,
: which viii point out later in this message.
refer 70 the easy method OF inanuiacturing
claims for losses incurred IN the suppression
of the late rebellion. 1 would not be
understood rs in opposition to the erection OF
{ good, substantial, or even ornamental build
. ingS, by the government, wherever such
buildings are needed. In fact approve OF
the government owning its own buildings in
all portions OF the country, and hope the day
is not far distant when It VIII not only possess
them, but viii erect In the capital suitable
residences for ali persons who now receive
ment expense, and for the cabinet, thus set
ting an example TO the states which may IN
duee them TO erect buildings for their sena-
tors; but would have this work conducted
at times when the resources OF the country
would abundanty justify II.
THE MONEY PANIC AND SPECIE PAY
MENTS.
The revenues have materially fallen of
for the last five months of the present fiscal
wear. from what they were expected 20 pro-
duce, owing to the general panic now pre-
vailing, which commenced about the mldale
OF september last. The full effect OF TINS dls-
aster, If il should not prove to be blessing
in disguise, is vet to be demonstrated. IN
either event It is your duty 70 heed the lesson,
| and provide, by wise ana well-conSldered leg
islation as far as IL lies IN your power, against
its recurrence, and TO take advantage OF an
the benefits that may have accrued. Ny i OWE
| Judgment is, that however much individuals
! may have supposed, one long step has Deen
| taken toward specie payments. Ihat we can
never have permanent prosperity until an an
entire basis is reached, and that a specie
! basis cannot be reached and maintained until
our exports, exclusive OF gold, pay for our ina
/ ports interest due abroad and other specie
l oD rfqD heavy
| ciable accumulation OF the precious metals
in the country from the produces OF our
mines. The developments OF mines OF
precious metals during ths psst
! year, and the prospective develop
ment OF them for years 70 come are
| gratifying in their results Could but one
| malt Of the gold extracted from the mines be
! retained at home, our advance toward specie
payment would be rapid. To Increase our
! exports sufficient currency Is required to keep
| ali the industries of the country employed.
| Without this, national as well Bs individual
bankruptcy must ensne. Unaue lnnation, on
the other hand, while IL might give temporary
! relief, would only lead 10 imitation OF prices.
| The impossibiliJy Of competing In our mar
kets for the products Of home Skin and
| experiences, elasticity 70 our circulating
medium therefore, and just enough OF IL to
| transact the legitimate business OF the
country, and keep all the industries en-
| ployed, is what is most desired. The TACT
medium is specie, the recognized medlufn OF
] exchange the world over. That OBTAINED,
! we shall have a currency for each degree OF
| elasticity. II there be too much OF it Tor the
legitimate purposes Of trade and commercet
| IL Will flow out Of the country: II too little Of
1t, the reverse Will result To hold
| what we have, and appreciate our
currency to that standard Is prob
| consideration of congress. The experience OF
the present panic has shown that the currency
Of the country, based, as it IS, upon the credit
| of the country, is to be the best that has ever
! been devised. Usually, in times Of such trials,
the currency has become worthless, or so
much deprecated in value as 70 initiate the
value of all the necessaries OF life. As COM
I pared with the currency, every one holding
I II has been anxious to dispose Of iton any
terms. Now, we witness an increase IN hold
| ers OF currency, who hoard 1t as they did their
/ gold in former experiences of a like nature.
| NATIONAL BANKS AND THE CURRENCY
-RECOMMENDATION
| Il is patent TO the most casual observer that
much more currency or money Is required 70
transact the legitimate trade OF the country
during the fan and winter months, when the
vast crops are being moved, than during the
balance of the year; and without the present
| the same throughout the entire year, and re-
suits IN the accumulation Of all the surplus
capital of the country in few cities when
not employed in the moving Of the crops, and
l is tempted there by the offer Of interest on
| call-loans and the interest being paid. This
surplus capital must earn the interest paid
with a profit. Being subje to call, II cannot
be loaned, in part at least, 10 the merchant
or manufacturer for fixed term. Hence, no
matter how much currency there might be in
the country, it would be absorbed, the process
keeping pace with the volume, and panics,
stringency and disasters would ever be recur-
ring with the autumn. Elasticity in our
money system, therefore, is the object TO be
obtained first, and after that, as far as posi-
ble, a prevention OF the use Of other peoples
NOR, eV in stock and other species of Specula-
ton. To prevent the latter, II seems to me
that one grest step would be taken
BY prOhi biting the national bank from pay
ing interests on deposits, by requiring them
to hold their reserves In their own vaults, and
by forcing them into resumption, though
IL would only be in legal-tencer notes. For
this purpose l would suggest The establish
ment of clearinghouse 10 your cOnsidera-
ton. To secure the former many plans have
been suggested; most, If not all of which,
look to me like imitation on the one hand, or
compelling the government on the
other to pay interest, without CORE
spending benefits, upon the surplus
funds of the country during the
seasons when otherwise unemployed. I SUBJ
init. for YOUR consideration, whether this dill
fic,1ltw oi,ght NOT TO he overcome bv authOriz-
ing the secretary Of the treasury 10 issue, at
any time, 70 national banks, Of the issue, any
amount Of these notes below fixed per cent
age of their issue, say forty per cent. upon the
banks depOsiting with the treasurer OF the
United states an amount OF government
bonds equal 10 the amount of notes demand
ed, the banks 10 forfeit to the government say
four per cent on the interest accruing on the
bonds SO pledged, during the time they re-
main with the treasurer security for
the increase of circulation, the bonds
50 pledged TO be redeemable by the banks
by returning their own bills for cancellation,
| to an amount equal to the face Of the bonds
withdrawn. l would further suggest for your
| the national banks TO diminish their stand
ing issue al pleasure by returning for cancella-
| tiOn their own bills and withdrawing 50 many
| United states bonds as are pledged for the
! bills returned. In view OF the great actual
contraction that has taken place in the cur
! rency, and the comparative contraction con-
stantly going on, due to the increase Of specu-
| laton, the increase Of manufactures and Of all
| the Industries, 1 do not believe that there is
/ too much of il now for the dullest period of
| the year. Indeed, II clearing g-houSes should
| be eStablished-thus forcing redemption-it is
| a question for consideration whether banking
safeguards now required to secure bill-hOlders
/ in any modification of the present laws
| regulating national banks, and a fur
/ ther step toward paying for resumption
| Of specie payment, invite your attention to
| the consideration OF the propriety Of exacting
/ from them the retention, as part of their re-
! serve, either the whole or a 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 in
| producing a scarcity OF coin with which TO
| pay the duties on imports, to give il my posi-
tive recommendation, but your attention is
i invited to the subject. During the last four
/ years the currency has contracted directly by
| the withdrawal Of three per cent. certificates,
/ com pound interest notes and Seyen-thirty
/ 1863, all of which took the place of legal
/ tenders in the bond reserves, TO the
/ extent Of slXty-three millions of dollars
| During the same period there has been large
increase of the population Of the country.
/ More than twenty-five thousand miles of rail-
road have been built, requiring the active use
| of capital to operate them. Millions of acres
| Of land have been opened to cultivation, re-
cuiring capital to move the products. Manu-
| factories have multiplied beyond all prece-
/ dent in the same periOd OF time, requiring
! capital weekly for the payment of wages and
! for the purchase Of material, and probably
| the largest Of all comparative contraction
ayf Of 11faf
| the south. Now every labOrer there receives
! his wages, and for want OF savings banks the
/ in the pocket or nOarded 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 an elasticity of the currency
as viii keep employed all the industries Ofthe
| country, and prevent sucn an initiation as
| will put of Indefinitely the resumption Of
| specie payment, an object devoutedly to be
wished Tor by all, and by none more earnestly
| than the class Of people most directly interest
| ed, those who earn their bread by the sweat OF
| their brow. The decisions Of congress ON this
subject viii have The hearty support OF the
| executive.
CHEAP TRANSPORTATION.
| In previous messages Ihave called attention
/ to the decline in American ship-building,
| and recommended such legislation as would
] secure 10 Us our proportion Of the carrying
| trade, stimulated by high rates and abun-
dance OF freight. The progress for the last
year in ship-buildtng has been very saiisiac-
/ tory. 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 it may reasonably be
hoped that this change will be maintained
and ever increased. However, we pay
about eighty million dollars per annum TO
! foreign vessels for the transportation Of our
surplus products TO market,tt thus increased
| the balance Of trade amongst as TO this
amount. The subject Is one worthy of your
/ serious consideration. Cheap transfer is a
\ subject that has attracted the attention OF
/ both producers and consumers for the past
few years, and has contributed to, If IL has not
been the direct cause, OF the recent panic and
stringency. As congress, at It's last session,
| appointed special committee TO investigate
I this whole subject during the vacation, and
report at this session, have nothing to re-
commend until their report is read.