The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1857-12-16

to the Independent Treasury, the gov
erDment has not suspended payment, a
it was compelled to do by The failure o
the banks in 1897 1t will continue t,
discharge ia liabilities to the people il
gold and silver. It's disbursements il
coin will pass into circulation, and ma
torislly assist 10 restoring n sound cur
rebcy. From its high credit, should W,
be compelled to make temporary loap
it can be effected on advantageous terms
This however. shall il possible, be avoid
cd but If not. then the amount shall, be
limited to the lowest practicable sum.
| have therefore, determined that
whilst no useful government works al.
ready in progress shall be suspended new
works, not already commenced will be
postponed, if this can be done without
injury to the county. Those necessary
for it's defeIce shall proceed as though
there bad been no crisis in our monetary
affairs.
But the federal government cannot do
much TO provide against a recurrence of
existing evils Even if insurmountablc
constitutional objections did not exist
against the creation Of a national bank
this would furnish no adequate preven.
tive security The history Of the last
Bank of the United States abundantly
proves the truth of this assertion Such
n bank could not, If i. would regulate
the Issues and credits of fourteen hun.
dred State bauks 10 such o manUer as to
protect the ruinous expansions and oon-
fractions in our currency which afflicted
the country throughout the existence of
the late bank, or secure US against fu
ture suspensions. 10 1925 an effort was
made by the Bank Of England to curtail
the Issues Of the country banks under
the most favorable circumstances. The
paper currency had bosn expanded to
ruinous extent and tho bank put forth
ell it's power TO contract it in order to
reduce prices and restore the equilibrium
Of the foreign exchanges. 1t according
ly commenced system Of curtailment
Of its loans aud issues in the vain hope
that the joint stock and private banks
Of the kingdom would be compelled to
follow it's example, 1t found, however,
that as II contracted they expanded, and
At the end of the process, to employ the
language Of q very high official authori
ty. whatever reduction of the paper our
ioncy was etfeoteo by tho Bank Of Eug-
land lin le25j was more than made up
BY the issues Of tho country banks."
But a bank Of the United States
would not, il it could, restrain the is
sues and loan. If the State banks. be
oause it's duty as regulator Ct the cur
uercy must often be in direct conflict
with the immediate interests cf it's stock
bolders. II we expect one agent 10 re.
strain another, their interests must, at
least 10 some degree. be antagopistio
But the Directors Of bank Of the Uni
ted States would feel the .amc intetests
and the eame inclinations with the Di
rec,ors CT til State Banks TO expand
the currency, to accommodate their favor
ties and friends with loans and to de
clare large dividends. Such has been
our experience in regard to tho last
bauk.
After all, we must mainly rely upon
the patriotism snd wisdom Of the States
for the prevention aud redress Of the
evil. Ifthey will afford usa real spe
cia basis for our paper circulation, by
increasiugl'he denomiu ton Of bank notes
first to twerty 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 thee dollars Of their circulation
aud deposites; if they will provide by
a selfexecuting enactment, which moth
ing can arrest, that the moment they
suspend they shall 20 into liquidation, /
believe that such provision, with a
weekly publication By each bank of a
statement of its condition, would go far
to secure us against future suspensions
Of specio payments.
Congress, in my opinion, possesses the
power TO pass a uniform bankrupt law,
applicable 10 oil banking institutions
throughout the United States, and I
strongly recommend its exercise This
would make il the iIreversible organic
law Of each banks existence, that Gus.
pension of specie payments shall pro
duce its civil death. The instinct Of
self preservation would then compel it
ts perform it's duties in such q manner
as to escape the penalty and preserve its
life.
The existence Of banks and the circu.
lation Of bank paper are so Identified
with the habits Of our people, that they
cannot be suddenly abolished without
much immediate injury to the country.
II we could copfiue them to their appro
pirate sphere. and prevent thom from
administering to the spirit Of wild and
reckless speculation by cxtravagsnt
loans aud issues, they might be continu
ed with advantage 10 the public.
But this I say, after long and much
rejection If experience shall prove il
to be impossible to enjoy the facilities
which well regulated banks nigh, afford
without al tho samo time suff ring the
calsmities which The sxcesses Of the
banks have hitherto inflicted upon the
country, it would then be far lbe lesser
evil TO deprive them altogether Of the
power to issua paper currency, and
copfne them to the functions Of banks
Of depos,e and discount
Our relations With foreign govern.
Al - l..