Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1857-12-12

Clements.ol national wealth, we nnd our manu- |
factures suspended, our public works retarded
our private enterprise Of different kinds aban.
boned, and thousands Of useful aborers
thrown out OF employment and reduced to
want. The revenue of the government, which
is chiefly derived from duties on imports from
abroad, has been greatly reduced, whilst the
appropriations made by Congress at its last
session for the current fiscal year are very
large in amount.
Uader these circumstances o loan may be
required before the close OF your present ses-
sion but this, although deeply to be regret
ted would prove to be only slight misfor-
tune, when compared with the suffering and
distress prevailing among the people. With
this the government cannot fall deeply to
Fympathze, though it may be without the
power to extend relief.
1t IS our duty to inquire what has produced
such unfortunate results, and whether their
recurrence can be prevented In all our for
mer revulsiops the blame might have been
fairly attributed to q variety of cooperating
causes; but not SO on the present occasion
1t is apparent that our existing misfortunes
have proceeded solely from our extravagant
and vicious system OF paper currency and
bank credits, exciting the people to wild spo-
cula.ions and gambling in stocks.
These Ievulsions must continue to recur at
successive intervals so long as the amount oil
the paper currency and dbank loans and dis
counts of the country, shall be left to the dis
tiou of fourteen hundred irresponsible bauk-
ing Institutions, 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 "to coin money
and to regulate the value thereof" and pro-
bibited the States from coming money, emit
ting bills Of credit, or making anything but
gold and silver coin tender in payment OF
debts, supposed they had protected the peo-
pie against the evils of an excessive and irre-
deemable paper currency. They are not re-
sponsible for the existing anomaly that 60
yernment endowed with o sovereign attribute
Of coming money and regulating the value
thereof should have no power to prevent 9TH
ers from driving this coin out Of the country
and filling up the channels OF circulation with
paper which does not represent gold and sill
yer.
1t is one Of the highest and most RESPONSE
BILE duties Of government to insure TO the peo-
pie sound circulating medium, the amount
Of which ought to be adapted with the ut
most possible wisdom and skill to the wants
of internal trade and foreign exchanges. II
this be either greatly above or greatly below
the proper standard, the marketable value OF
every mans property is increased or dimin-
ished 10 the same proportion and injustice 10
individuals as we'll as incalculable evils to the
community are the consequence.
Unfortunately, under the construction oi
the federal constitution, which has now pre-.
vailed too long to be changed this important
and delicate duty has been discovered from
the coinage power, and virtually transferred
to more than fourteen hundred State banks
acting Independently Of each other, and regu
lating their paper issues almost exclusively
by q regard to the present interest OF tbeil
stockholders. Exercising the sovereign pow
sr of providing paper currency. instead o
coin, for the country, the first duty which
these banks owe to the public is to keep il
their vaults o sufficient amount Of gold anC
silver to insure the convertlbiiity of thei
notes into coin ut all times and under all cir
cumstances.
No bank ought ever to be chartered with
out such restrictions on its business as TO Sc
cure this result. All other restrictions ar
comparatively vain. This is the only tru
touchstone, the only efficient regulator of
paper currency--the only one which cal
guard the public against over issues and banl
suspensions. As q collateral and eventua
security it is doubtless wise, and in all case
ought 10 be required, that banks shall bol
an amount OF United States or State securi
ties equal to their notes in circs,ution AM
pledged for their redemption. This, howeve
furnishes no adequate security against over
issues.
On the contrary it may be perverted I
initiate the currency. Indeed, it is possbl
by this means TO convert all the debts of th
United States and State governments int
bank notes, without reference to the speci
reyuired to redeem them. However valuabl
these securities may be in themselves, the
cannot be converted into gold and silver a
the moment Of pressure, as our experienc
teaches, in sufficient time to prevent ban
suspensions and the depreciation Of bon
notes.
10 England, which is to considerable e,
tent paper-money country, though vast
behind our own in this respect. it was decmo
advisable. anterior to the act of ParliameI
OF 1874, which wisely separated the issue
notes from the banking department, for Il
Bank of England always to keep on hand 60
and silver equal TO one third of its combin,
circulation and deposits. If this proportic
was no more than sufficient TO secure the co
vertibility Of its notes, with the whole
Great Britain, and to some extent the con-
psnt OF Europe as field for q circulatio
rendering it almost impossible that sudd,
and immediate rnn to q dangerous amou
should be made upon it, the same proporti'
would certainly be insufficient under o
banking system.
Each Of our fourteen hundred banks b
but limited circumference for its cireulati
and in the course OF very few days the .
positors and note e-holders might demand frc
such bank q sufficient amount in specie
compel it to suspend even although it b
coin 10 its vaults equal to one.third OF its ]
mediate liabilities. And yet ] am not ava
with the exception OF the banks OF LousiaI
that any State bank Throughout The Uni
has been required by ts charter to keep q
or any other proportion Of gold aud silly
compared with the amount of its combin
circulation and deposits. What has been
consequence
In recent report made by the Treasr
Department ON the condition OF the bar
throughout the different States, according
returns dated nearest to January, 1857,
aggregate amount of actual specie In tn
vaults is s59,349,s3s, of their circulate
s2i4,7ss,s22. aud of their deposits $3.50 30
352. Thus IL appears that these banks
the aggregate have considerably less than G
dollar in seven OF gold and silver compaI
with their circulation and dePosits, II