The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1857-12-16

language of very high official authori-
ty, "whatever reduction of the paper cir
culatioA was effected by the Bank of En-
gland in 1925, was more than made up
by the issues of the country banks"
But the Bank of the United States
would not, if it could, restrain the issues
and loans of the State Banks, because its
duty as q regulator Of the currency must
often be in direct conflict with the imme-
diate interest of its stockholders If we
expect one agent to restrain or control
another, their interests must, at least, in
some degree, be antagonistic. But the
directors of a Bank of the United States
would feel the same interest and the same
inclination with the directors of the State
Banks to expand the currency, to accom-
modate their favorites and friends with
loans, and to declare large dividends.
Such has been our experience in regard to
the last Bank.
After all, we must mainly rely upon the
patriotism and wisdom of the States for
the prevention and redress of the evil. Ifl
they will afford US a real specie basis for
eur paper circulation by increasing 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 on hand at least one dollar of gold
and silver for every three dollars of their
circulation and deposites; and if they will
provide by self-executing enactment,
which nothing can arrest that the moment
they suspend they shall go into liquida-
:ion, I believe that such provisions, with
weekly publication by each bank of q
statement of its condition, would go far
to secure us against future suspensions of
specie payments.
Congress, in my opinion, possess the
power to pass uniform bankrupt law ap-
plicable to all banking institutions through
!; out the United States, and strongly rec
ommend it's exercise This would make
it the irrevcrsible organic law of each
banks's existence, that suspension of
, specie payments shall produce its death.
:. The instinct of selfpreservation would
: then compel it to perform its duties in
, such manner as to escape the penalty
e and preserve its life. taa .saa@af.f = j. ia
s Tue existence of banks and the circu-
: lation Of bank paper are so identified with
the habits of onr people, that they canno,
t at this day be suddenly abolished without
# much immediate injury to the country
9 If we could confine them to their appro
r pirate sphere, and prevent them from ad
is ministering to the spirit of wild and reck
IS less speculation by extravagant loans ant
h issues, they might be continued with ad
: vantage to the public.
r But this l say, after long aud muc'
al reflection; if experience shall prove it t.
l. be impossible to enjoy the facilities whic
1t well regulated banks might afford, withou
IS at the same time suffering the calamitie
= which the excesses of the banks have hith
n. erto inflicted upon the country, it woul
ly then be far the lesser evil to deprive the'
IN altogether of the power to issue pape
e. currency and co fine them to the functio,
ct of banks of deposite and discount
Our relations with foreign government
ar are, upon the whole in satisfactory COZ
ct dition.
e. The diplomatic difficulties which exis
ch ed between the government of the Unite
ms States and that of Great Britain at tt
ut adjournment of the last Congress ha'
ii, been happily terminated by the appoin
he ment of British minister to this couutr
al who has been cordially received.
'm Whilst it is greatly to the interest, as
II ist n no OF of
ret governments and people of the two cou
tries to he on terms of intimate friendsh
he with each other, it has been our misfO
lin tune almost always to have had some irl
er- ta,ing, if not dangerous outstanding que
u.s. tion with Great Britain.
oe Since the origin of the government ,
~ have been employed in negotiating tire
'ne ties with that power, and afterwards
me discussing their true intent and meanin
las In this respect the convention of Ap
m 10. 1850, commonly called the Clayt
iks and Bulwer treaty, has been the most u
Fge fortunate of all, because the two COVER
Sill ments place directly opposite and contl
ass dictory constructions upon its first a
IN most important article. Whilst, in
its United States, we believed that this trea
70 would place both powers upon an exc
'eo equality by the stipulation that neitf
'er' will ever "occupy, or fortify, or coloni
'ot' or assume or exercise any dominion" o,
the any part of Central America, it is &C
tended by the British Government Il
nile the true construction of this language
in left them in the rightful possession of
ks, that portion of Central America VIII
led, was in their occupancy at the date of
the treaty; in fact, that the treaty is Writ
ace recognition on the part of the Unit
no States of the right of Great Britain, eitl
+ as owner or protector, to the whole ext
do sive coast of Central America, sweepi
, Of round from the Rio Hondo to the por,
bile San Juan de Nicaragua, together with
xist adjacent Bay Islands, except the comp
INK, atively small portion Of this between
tive Sarstoon and Cape Honduras.
ank According to their construction,