The Winchester weekly appeal. [volume] (Winchester, Tenn.) 1856-1856, 1856-12-17
Thursday, Dec. 18th.
PRESIDENTS MESSAGE.

ana OF tne dOuSe OJ hepJeSc"tospe"'
In obedience to the command OF the Constitution'
il has now become my duty "to give to Congress
information of the state of the Union, and recon-
mend to their consideration such measures as
judge to be necessary and expedient"
But first. and above all, our thanks are due 70
Almighty God for the numerous Dement'S when ne
has bestowed upon this people, and our united
prayers ought to ascend to him that he would con-
tinue TO bless great republic in time to come as
He has blessed it in time past
Since the adjournment of the last Congress our
constituents have enjoyed an unusual degree OF
Of health. The earth has yielded her fruits aoun-
dainty and has bountfuly rewarded the toll OF the
husbandman. Our great staples have commanded
high prices, and, up to within brief period. our
manufacturing mineral and mechanical occupa-
tons have largely partaken Of the general pros
perity. We have possessed all the elements OF ma
terial wealth in rich abundance, and yet, notwith-
standing all these advantages, our country, IN ITS
monetary interests, is at the present moment in a
depiorable condition.
In the midst of unsurpassed plenty in all the pro-
ductions of agriculture and in all the elements OF
national wealth, we find our manufactures suspend
ed, our public works retarded our private enter
prise OF different kinds abandoned and thousands
Of useful laborers thrown out of employment ana
reduced to want. The revenue of the government,
which is chiefly derived from duties imports from
abroad has been greatly reduced, whilst appropria-
tons made by Congress at its last session Tor the
Under these circumstances loan may be requir-
ed before the close OF your present session; but
this, although to be deeply regretted, would prove
to be only slight misfortune when compared with
the suffering and distress prevailing among the peo-
pie. With this the government cannot fail to deep
ly symphatize, though it may be without the power
to extend relief
1t is our duty to enquire what has produced such
unfortunate results and whether their recurrence
can be prevented In all former revulsions the
blame might have been fairly attributed to varie-
" Of cooperating causes; but not upon the pres
ent occasion 1t is apparent that our existing mis-
fortunes have proceeded solely from our extraVa-
CANT and vicious system OF paper currency and BANK
credits, exciting the people to wild specnlations
and gambling in stocks These revulsions must
continue to at successive intervals 30 long as
the amount of paper currency and bank loans and
discounts Of the country shall be left to the discre-
ton Of fourteen hundred irresponsible banking insti
tutOns which from the very law of their nature will
consult the interest Of their stockholders rather than
the public welfare.
The trainers of the Constitution, when they gave
to Congress the power ITO coin money and to regu-
late the value thereof" and prohibited the States
from coming money, emitting bills Of credit, or ma
king anything but gold and silver coin atender in
payment of debts, supposed they had protected the
people against the evils of excessive and ire
deemable paper currency. They are not RESPONSE
BILE for an existing anomaly that government en-.
ey and regulating the value thereof should have no
power to prevent others from driving this coin out
Of the country and filling up the channels Of circu-
lston with paper which does not represent gold and
silver.
1t is one of the highest and most responsible du-
ties of the government to insure to the people
sound circulating medium, the amount OF which
ought to be adapted with the utmost possible wis
dom and skill to the wants of the Internal trade and
foreign exchanges If this be either greatly above
k.IN. shn Data
BILE value OF every mans property is increased or
diminished in the same proportion, and injustice to
individuals well incalculable evils to the COM
munity are the consequences.
Unfortunately, under the construction of the
Federal Constitution, which has now prevailed too
long to be changed this important and delicate du
ty.has been discovered from the coming pow, and
virtually transferred to than fourteen hundred
State banks, acting independently of each other,
and regulating their paper issues almost exclusive
by regard to the present interest Of their stock
ho ders Exercising the sovereign power OF pro-
vidng paper currency, instead of coin, for the
country, the first duty which these banks owe to
the public is to keep in their vaults sufficient
amount of gold and silver to insure the convertible
~ of their notes into coin at all times and under all
circumstances. No bank ought ever to be charter
ed without such restrictions on its business as to Sc
cure this result AL other restrictions compar
ativey vain.
This is the only true touchstone, the only eff
cient regulator Of paper currency-the only one
which can guard the public against over issues and
bank suspensions As a collateral and eventual Sc
curiy is doubtless wise and in all cases onght to
be required, that banks shall hold amount of
United States State securities equal to their notes
In circulation and pledged for their redemption.-
This, however, furnishes adequate security
against over-issues. On the contrary, it may be
perverted TO initiate the currency. Indeed u is pos
sible by this means to convert all the debts of the
United States and State Governments into bank
notes, without reference to the specie required to
redeem them.
However valuable these securities may be in
themselves, they cannot be converted into gold and
silver at the moment of pressnre as our experience
teaches, in sufficient time to prevent bank suspen-
sions and the depreciation of bank notes. In Eng
land, which is to considerable extent paper mon-
ey country, though vastly behind our in this
respect it was deemed advisable, anterior to the
act OF Parliament Of lS44, which wisely separated
the issue of notes from the banking department, for
the Bank Of England always to keep on hand gold
and silver equal to one-third of its combined crcu-
htiou and deposits.
III the proposition was no more than sufficient to
secure the convertbty OF its notes, with the whole
VI Sreat Britain, and to some extent the continent
ot Europe as q field for its circulation, rendering 1t
almost impossible that sudden and immediate run
70 dangerous amount should be made upon it, the
same proportion would certainly be insufficient un-
Ger our banking system. Each of our fourteen
-
ts circulation, and in the course of very few days
sne depostors and note holders might demand from
such bank sufficient amount in specie to compel
suspend, even although it had coin in its vaults
equai 10 one-third Of its immediate liabilities.
Aad yet am not aware, with the exception OF
soe banks OF louisiana that any State bank through
Sus the Union has been required by its charter to
Secp ms or any other proportion Of gold and silver
vompared with the amount of its combined circula-
9on and deposits What has been the consequences?
ID sh.T nan p.
mens on the condition of the Banks throughout the
9uerent States according to returns dated January,
,oo'' ehe aggregate amount OF actual specie IN
sneir vaults is S5S. .S49, ,s3S, of their circulation
xs4,i7S,S22, and Of their deposits $3.50, 1851 1852.
Ihus appears that these banks in the aggregate
nave considerably less than one dollar in of
deposits
1t was probable, therefore, that the very first
pressure must drive them to suspension, and de-
prse the people OF a convertible currency with all
.S disastrous consequences. 1t is truly wonderful
they should have continued to preserve their
creor when a demand for the payment OF one
seventh OF their immediate liabilities would have
Irven them into insolvency. And that is the con-
o!aon OF the banks, Notwithstanding that four hun
ared millions of gold taom California have flowed in
upon US within the last eight years. and the tide still
continues to how. Indeed, such has been the ex
eravagance OF the bank credits that the banks now
1Did considerably less amount of specie, either in
poportion to their capital their circulation and
deposits combined than they did before the discov
cry Of gold in California
Whilst in the year ls4s their specie in proper
ton to their capital was than equal to one dol
iarfor four and halfSin 1857 it does not amount
tooue dollar for every six dollars and thirty-three
csuta OF their capital In the year ls4s the specie
rs equal within very small fraction to one dollar
hive OF their circuston and deposits; in 1857 il
not equal to one dolAr in seven and half of thei
xcuiation and deposite.
From this statement it's easy to account for oul
6sucial history for the la forty wears. 1t has beer
shistosy Of extravagant exansions in the bushes.
O the country, followed by ruinous contractions
Assaceessivs intervals the BET and most enterpris
ing men have been tempted ttheir ruin by exces
sise hank loans Of mere paper sedit, exciting then
to.vt,.v,yant inportations of -, Goods vii,