Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1837-06-21
GOVERNORS MESSAGE.


GOVERNORS MESA GE.
Fello,c-citisens of the Senate,
and House Of Representatives.;
You have been called together at this time, in
consequences Of the existence of the financial and
commercial embarrassments which at present
disturb the tranquility of tho nation. Happily
the people of our own state, have not, as yet, felt
these embarrassmcnts SO heavily, as those of 9TH
er portions of the Union. But as the recent
| measures adopted in the Atlantic States, cannot
| fail to operate opprossivoly on the western coun-
| try unless promptly met, have with desire 10
| protect the citizens of Michigan, conceived IL
| my duty to consult you, and ASK your counsel
and corporation in tho endeavor to avert the cas-
lamity. feel confident that this cooperation will
be readily extended to me and however great
the Inconvenience resulting to you personally by
| your convocation at this season of the year. and
at so early day after the close of an arduous ses-
| sion, am assured they will weigh little with
you, when balanced with the welfare of the state
and tho prosperity of those who have placed their
interests in your keeping.
The present crisis in the moneyed affairs ofthe
country, is such as should bring us to pause,
| and induce us well to reflect upon the causes
| which have led TO it. It should teach us, altho'
| We may learn lesson of wisdom by sad expert
| cfice to avoid in future the seductive career of
apparent, but unreal prosperity, which the nation
has lately pursued and which has brought us ul-
timately to the very verge Of general bankruptcy.
Let us seek out the true sources from whence
these evils have arisen, and henceforth avoid Them
bearing in mind that like causes if thereafter sane.
toned by the people, must again bring about the
very like calamitous results which we now de-
pore.
BY the universal consent of all nations, gold
and silver has been made the currency and stand
ard of value with the great commercial world.
| But the scarcity of those metals, has compelled
most governments of extensive trade and COM
morcc, to create representative currency to an
swer the mmsdilte purposes of domestic exchan.
gos. In the United States, this representative,
is composed of the paper issues of authorized
banking associations, having metallic basis cre-
atcd and pl dyed for its redemption. The notes
of these associations, are received at home in all
exchanges, and constitute the far greater portion
of the circulating medium of the country. But,
as general rule, in the exchanges and CONNER
cial intercourse with foreign nations, the ordina-
ry bank issues fail to answer the demands of
trade, and resort must be had TO gold and silver
, the products of labor through the medium of ex.
poration.
The debt owed by ono nation to another can.
not be paid but in real effects, either in coin or
commodities. Where both these sources fail, pc.
cuniary endorsements must fall upon the ma.
ton linst which tho balance of trade exists and
tho debt created can only be cancelled by bank
ruptcy. These arc the first principles of CONNER
cial relations, applicable to nearly all nations
and are as invariablo in their operation the laws
of nature.
We may trace, however, in a very great extent
all our present pecuniary endorsements to one
fatal error into which the country has fallen
That error, is to be found in our system Of ovel
banking. The excess of bank facilities and banl
issues, has made the representative of money toe
| m IN lv hrnu in .fs
train the evils of our overtradDg and speculation
the augmentation of prices already high, increas
ed aud unwarrantable investments in unproduc
tive lands and foreign imports beyond the want.
the molnsof the nation. 1t is admitted that the
great enterprise of the American people demands
in greater or less degreo, paper currency, tn,
precious metals not being sufficiently abundant t.
answer all the ends Of the circulating medium re
quired by them ultifarious interests of wide OK
tended and constantly increasing country. Blu,
this paper medium must be limited, and should be
be restricted in its circulation SO as not to exceed
in too greatan amount the metallic bisis which
it is madepartly to represent.
What are the effects of excessive bank issue,
upon community, as proclaimed by the simplest
principles of political economy? They are, tho
depreciation Of bank paper, an increase in price
of all commodities, an extension Of excessive
credits, the neglect of productive labor. and
: country involved in debt. Tie banks are called
s upon for specie to pay the debt of the country
: their specie will not meet their outstanding is
sues, confidence is shaken, runs are mado upon
them, they are compelled to contract their loans
g and call in thlir discounts, and general press
ure, if not bankruptcy, are the inevitable results
that follow. The condition of the United States
at the present time is perfect illustration o.
: those principles. The recorded history of tn,
. different States 8 Wv millions of an incr ase o
I, bank facilities; money or rather its representa-
: tive has been abundant credits have been un
j. pirallelod our land Offices tell of dead capita
Of millions buried in unproductivo lands; ou
custom houses, deducting profits, freight ant
difference of valuation, present balance of trad
Q against us of millions by importation; our cir
o culaling medium has deprecated, or, which i
the same thing, every other exchangeabe com
modify has risen, and Europe has exhibited tn
J. strange phenomenon of undcrsellng us on on
IT own shores in the expectation of her bread stuff
It to America. A revulsion now begins. Ou
debt must be paid to Europe. The banks of tn
D Atlantic cities arc unable TO furnish sufficen
@ goldand silver their issues to meet the demand
l. made upon them, and the result has bcei
a universal pressure and general suspension o
y specie payments in order to prevent as genera
: bankruptcy.
1t may be inquired what remedy has the coun
! try left by which she may be relieved from he
b present embarrassmcnts7 answer, by grad
d ual diminution and absorption of her bank issues
c curtailment of her too-extendod trade, cessa
ton from mad Investments ofcapital in unproduc
tive lands, resort to frugality, and an applica
ton 70 honest industry. For years past we hav
% boon forcing inportations and other department
. of business, too far in advances of tho productive
: labor of tn, country. TIL, nation that falls int
!. this error, must sooner or later, experience a ra
Q vulsion. We must now produce commodities T.
/ mako up the balance of trade against US, and tn
pfic, of those commodities must fall until no 9th
d or nation can compete with us in the great mar
@ ket Of tho commercial world. In few years on
productive labor will bring back the money which
J. must leave the country in payment OF debts, 70
&c the laws Of trade will take it whore the debt is ow
&c ed, and any attempt to prevent il, will prove a
II powerlcss as the command Of that feeble monarch
l. who at upon the beach and forbade tho obbinI
and flowing of the tide.
Is But fellow citizens, let mo direct your attcn
n ton to the immediate question which require
your consideration. You are doubtless aware
that the banks of the Atlantic and southern state
under most unprecedented demand for the re
dcmption of their notes, have been compelled :
d suspend specie payment, and that in New Yor
the proceeding has bccn sanctioned by tho legis
laturc Of that state. Circumstances justify th
conclusion, that tho policy will be adopted by mos
% Of the states in the Union. The intimate fnan