The Winchester weekly appeal. [volume] (Winchester, Tenn.) 1856-1856, 1856-12-17

afforded to our domestic manufactures by the nre
sent revenue tariff. But for this The branches of
our manufactures composed of raw materials the
production Of our own country-such as cotton
iron and woolen fabrics-would not onlv have ac
quired almost exclusive possession of the home
market, but would have created for themselves a
foreign market throught the world
Depiorabie, however, as may be our present f.
nahciai condition, we may yet indulge in bright
hopes OF the future. No other nation has ever
existed which could have endured such violent
expansions and contractions of paper credit with.
out lasting injury; yet the bouyancy of youth
the energies OF our population, and the spirit
whch never quals before difficulties will enabl.
US soon TO recover from our present fnanciol en-
oarrassInent, and may even occasion US speedily
to forget the lesson which they have taught.
III the meantime it is the duty of the govern
ment Dy all proper means within its power to aid
IN alternating the sufferngs of the people, occa-
stoned by the suspension of banks. and to provide
against recurrence of the same calamity Unfor-
tunateiy in either aspect of the case it can do but
little. Thanks to the independent treasury. the
government has not suspended payments, as it was
compelled to do by the failure of the banks in s37
1t will continue to discharge its liabilities to the
people in gold and silver Its disbursements in
coin will pass into circulation and materially assist
IN restoring sound currency. From its hieh'cred.
it, should we be compelled to make Temporary
loan, it can be effected on advantageous terms.
Ihis, however, shall, if possible, be avoided but
lowest practicable sum.
have, therefore, determined that whilst no Use.
ful government works already in progress shall be
suspended, new works not already commenced. will
be postponed if this be done without injury to
the country. Those necessary for its defence shall
proceed as though there had been no crisis in our
monetary affairs.
But the Federal Government cannot do much to
provide against recurrence of existing evils. Even
II insurmountable constitutional objections did not
exist against the creation of National Bank this
would furnish no adequate preventive security The
history OF the last bank of the United States abun
dainty the truth Of this assertion Such bank
could not, it it would, regulate the issues and
credits OF 400 state banks in such a manner
to prevent the ruinous expansions and contractions
IN our state banks which afflicted the country during
the existence of the late bank or secure US against
future suspensions. In 1925 an effort was made by
the Bank OF England to curtail the issues OF the
country banks under the most favorable circum.
stances.
The paper currency had been expanded to s ru.
nous extent, and the bank put forth all its power
to contract 1t in order TO reduce prices and restore
the equilibrium of foreign exchanges. 1t accord
mgiy commenced a system of curtailment of its
loans and issues, in the vain hope that the joint
stock and private banks OF the country would be
compelled to follow its example. 1t found, howev-
err that as II contracted they expanded and at the
end Of the process, to employ the language of
very hgn official authority, "whatever reduction of
the paper currency was effected by the bank of
England in 1925 was more than made up by the is.
sues OF the country banks"
But the Bank of the United States would not, if
it could, restrain the losses and loans of the State
banks, because its duty as regulator of the cur
rency must often be in direct conflict with the i'm
mediate interests OF its stockholders. If We
pect one agent to restrain control another their
interest must at least in some degree, be anagons
tic. But the directors of Bank of the United
States would feel the same interest and the same in.
clinaton with the directors of the State Banks to
expand the currency to accommodate their avorites
and friends with loans and to declare large divi-
dends. Such has been our experience in regard to
the last Bank
After ALL we must mainly depend upon the patri-
otism and wisdom of the States for the prevention
and redress of the evil If they will afford us
specie basis for our paper circulation by increas
ing the denomination of bank notes. first to twenty
and afterwards TO fifty dollars if they will require
that the banks shall at all times keep hand at
least one dollar in gold or silver for every three
dollars of their circulation and deposites and if
they will provide by seif-executing enactment,
which nothing arrest, that the moment they
pend they shall 60 into liquidation, believe these
provisions, with weekly publication by each bank
of statement of its condition, would go far to Sc
cure us against future suspensions of specie pay
meuts.
Congress, in my opinion, possesses the power to
pass uniform bankrupt law. applicable to all bank
strongly recommend its exercise. This would make
it the rreversibe organic law of each banks exist
ence, that suspension of specie payments shall
produce its civil death. The instinct of self preser
vation would then compel it to perform its duties in
such manner to escape the penalty and preserve
its life.
The existence of banks and the circulation of
bank paper are so identical with the habits of our
people, that they cannot at this day be suddenly
abolished without much immediate injury to the
tn
pirate sphere, and prevent them from administering
to the spirit of wild and reckless speculation by
travagant loans and issues. they might be continued
with advantage to the public.
But this say, after long and much reflection: it
experience shall prove it to be impossible to en- Joy
the facilities which well regulated banks might af-
ford, without at the same time suffering the calami
ties which the of the banks have hitherto
Inflicted upon the country, it would then be far the
lesser evil to deprive them altogether of the power
to issue a paper currency and confne them to the
functions OF banks of deposit and discount.
Our relations with foreign governments are, upon
the whole, in a satisfactory condition.
The diplomatic difficulties which existed between
the government of the United States and that OF
Great Britain at the adjournment OF the last Con-
gress have been happily terminated by the appoint
OF a British minister to this country, who has
been cordially received.
Whilst it is greatly to the interest, as am con-
vinced is the sincere desire of the governments
of Intimate friendship with each other, it has been
our misfortune almost always to have had some rri-
tating, if not dangerous outstanding question with
Great Britain.
Since t. origin of the government We have been
employed in negotiating treaties with that power.
and afterwards in discussing their true intent and
meaning. In this respect the convention of April
l9, 1850, commonly called the Clayton and Bulwer
treaty, has been the most unfortunate OF all; be
cause the two governments place directly opposite
end contradictory constructions upon its first and
most important article.
Whilst, in the United States, we believed that
this treaty would place both powers upon an ex-
act equality by the stipulation that neither will ever
occupy forfeit, coonize, or assume or exer-
else any dominion" over any part OF Central Ameri-
ca it is contended by the British Government that
the true construction of this language has left them
in the rghtu possession of all that portion OF Cen
trail America which was in their occupancy at the
date of the treaty. in fact that the treaty is vir.
tual recognition the part of the United States OF
the right of Great Britain, either as owner or pro-
tector, to the whole extensive coast of Central
America, sweeping round from the Rio HondO to
the port and harbor of San Juan del Nicaragua, to-
gether with the adjacent Bay Islands, except the
comparatively small portion OF this between the
Sarstoon and Cape Honduras. According to their
construction, the treaty does no more than simply
prohibit them from extending their possessions.in
Central America beyond the presents limits. 1t is
not too much to assert that if in the United States
the treaty had been considered susceptible of such
a construction, it never would have been negotiated
under tee authority of the President. nor would it
have received the appreciation of the Senate.
The universal conviction in the United States
was that when our government consented to vio-
late its traditional aud time honored policy, and to
stpnlate with foreign government never to occu-
py or acquire territory in the Central American por
ton of continent, the consideration for this
sacrifice was that Great Britain should in this res
pect at least be placed in the same position with
ourselves. Whilst we have no right to doubt the
sincerity of the British government in their con-
struction of the treaty it is at the same time my
deliberate conviction that this construction is in op
| position both to its letter and its spirit.
Under the late administration negotiations were