The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-05
LETTER TO SECRETARY RICHARDSON.
Practical Views ON Banking, Currency
and the National Debt.

Practical Views ON Banking, Currency
and the National Debt.
BOSTON. Dec. 20, 1873
To the Hon. WILLIAM A. RICHARDSON, Secretary
OF the Treasury, Warrington
SIR desire to present to your consideration
some thoughts and conclusions on the financial
questions before the country.
Assuming that the national debt at the present
time amounts to So $50, O0O, 900, 1t becomes mat
ter Of great importance to the whole country that
this debt should be funded at a rate OF interest
not exceeding four per cent, on long period OF
time and disposed OF In such way as to form a
basis for the whole circulating medium OF the
country. This may be done. provided we take
advantage OF past experience, retaining so much
OF the banking system as has proved itself useful
and rejecting all that has been proved to be
hurtful.
Banks OF discount and deposit are essential and
useful in ali commercial, manufacturing and farm
ing communities, and should be made by general
law free for all to engage in who may be able TO
comply with its provisions. But they should be
prohibited from lending or using in any manner
except as specifically defined by law, any moneys
lett with them on deposit.
The use OF these deposits without security to the
depositors has heretofore oeen begotten in spirit
OF speculation by officers ana principal stock
holders seeking to acquire the largest possible
gains; and by this means they have created,
stimulated and fed a like spirit OF speculation in
financial circles which, as experience proves, must
necessarily eliminate in a panic, the severest
effects of which fan upon those not responsible for
the cause. Custom has sanctioned the use of these
deposits only on the alleged ground that the
business OF banking could not otherwise
the bills herewith submitted, should they
become laws, will entirely obvate this objection.
They will furnish, by secured use OF the deposits.
immediate and reliable means for the funding OF
the national debt without imitation, and Will In
splre the community with entire confidence in our
banking institutions. AS q result OF this deposits
VIII be largely increased, and at the same time the
banks will derive an assured profit from their de-
pOsits and acquire means &C all times TO lnmedl-
ately discharge their deposit indebtedness. They
Will also furnish the country with UNIFORM rena-
BILE and elastic currency. AS another result there
will arise an immediate reduction In the annual
interest account OF the government and OF the an
nual payments on the public debt, and the DIS
missal of all the internal revenue officers, with
their attendant expenses-an end much desired
by all taxpayers Our nation Is at the
present time a large producer OF the precious
metals, and there 10 every prospect for Its
duction grown that god and silver now form as
regular articles OF commerce as any other great
staples A great need Is lelt by our mining CON-
munities for some method OF converting the
at once easily attainable, safe, reliable aud
portable. This end, think, may be attained
by adopting the provisions contained In the
"Act to secure to the people uniform cur
OF this bill, while 1t retires the present rae
tiOnal currency, makes provision for the issue OF
one redeemable at all times IN gold and silver. thus
enabling the people to use specie IN their transac.
tions without beng Durdened with the weight OF
the precious metals Yours rf ES%xRD CRANE