The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-12-09

a
history OF the last Bank Of the United states abup
asntty proves the truth of this assertion. Such A
srss,s sosia ~ m, " y wonld regaiate the Issues aud
manner as to prevent the fuinoiIs expansieus and
eoii.iactons In our currency, which afflicted the
country throughout tho existence Of the late hank
or secure Us against future suspense ns In 1926 an
mort Was maize by the Bank Of England 4, eustail
sns ISSUES oi the country banks under the favo
raDie circumssaDees- The paper currency had been
expanded 10 ruinous extent, and the bank mr.,
Iofh az Us power 10 contract it. in order 10 reduce
prices and restore the equilibrium OF tho foreign 4
changes IT aceortlinsly commenced q systsm Of eur
tainento OF Its loans I'D issues in the vain hope that
Tue l9',t stock AMI private banks Of the kingdom
eond DE compelled to follow its example. 1t toand
however. that as tcontracted they expanded aud at
the .nd OF the process, TO employ the language Of
vsry nigh Official authority, whatever reduction of
ths paper circulation eff. ct-d by the Bank OF
England Tin fs25) more than made np b n the is
sues of the country banksn
Bnt Bank of the United States would not If IN
Could restrain the issues aud loaBs of lie stte banks
pocause ta duty as regulator of the currency must
ot DC IN direct conflict with the immediate int rest
oi MS stockholders Ii We expect agent TO re-
strain or control another, their interests must at
ters u Bank of the United states would feel the
same interest and same inclination with the direc-
Tors OF the state banks to expand the currency to
aecommodate their Iayortes and friends with loans
and TO declare large dividends. Such has been our
experience in regard to the last hank.
After all, We must mainly rely upon the patriot
ism and wisdom Of the States for the prevention
and redress of the evil. If they will afford us u
rear specie basis for our paper circulation by in
cfeasing the denomination of bank rotse, first to
twenty, and afterwards to fifty dollars; if they
VIII 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 depos-
ties; and IT they will provide by selfexecuting
enactment, which nothing eau arrest, that the mo-
ment tney suspend trey shall 60 into liquidation.
believe that such provisions, with a weekly pab-
lication by each bank Of statement of its condi
tion would 20 far to secure us against future sus
pensions Of specie payments.
Congress, in my opinion, possesses the power to
pass uaiform bankrupt law applicable to all
banking institutions throughout tim United States
and strongly reconmed its exercise. This would
make It the irrese.s.ble org lew of each banks
existence, ttat suspension Of specie payments
sh.i produce its civil death. The instinct of self
preservation would then compel it to perform its
ditfes In such manner as to escape the penalty
and preserve its life.
The existence of banks and the circulation of
bank paper identified with the habits of our
people, that they eanrot at this day be Auddenly
ABOLISHED without mnch Immediate injury to the
country. If We could confine them to their ap-
propriate sphere. and prevent them from admins
ing 70 the spiit Of wild and reckless speculation
by extravagant loans and issues, they might be
continued with advantage to the public.
But this say, after long and much reflection; il
sxpel fence shall prove it to be impossible to enjoy
the facilities which well-regulated banks might
afford, without at the same time suffering the ca
Families which the sxcesses 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 paper currency and confine
them to the fuactions of banks of deposte anu
discount
Our relations with foreign governments are, upon
the whole, III satisfactory condition.
The diplomatic difficulties which existed be-
tween The government of the United States and
that of Great Britain at the adjournment of the
last Congress have beon happily terminated by the
appointment of IA British minister to this country
who has been cordially received
Whilst it is greatly TO the interest as l am con-
yirced it is the sincere desire. Of the governments
and people of the two countries to be terms OF
in Innate friendship with each other it has been
our misfortune almost always to have had some ir
riiatlng. II not dangerous, outstanding question
with Great Britain.
Since the origin of the government we have been
employed in negotiation treaties with that power
and afterwards in discussing their true intent and
meaning. In this respect. the convention Of April
10, 1850, commonly called the Clay ton and Buwer
treaty, has been the most unfortunate of all; be
aus the two governments place directly opposite
and contradictory constructions upon is first and
most important article. Whilst, in the niteu
States, we believed that this treaty would place
both powers upon AN exact equality by the stipu
latiuns that neither viii "occuIy. or fortfy
colJnize, or assume or exercise any dominion,
overt any part OF central America it is coniended
by the British governmenttha the true constt uc
tion Of this languag has left them in the rightfu
possession of all that portion of Central America
which was III their occupancy at the date of the
treaty; in fact, that the treaty is virtual recog
milton the part of the United States of the RICH
of Great Br,ta n, either owner protector, Il
the whole extensive coasts OF Central America
sweeping round from the Rio Hondo to the por
and harbor Of San Juan de Nicaragua together
with the adjacent Bay Islands except the compare
lively small portion of this between the SArstoor
and Cape Honduras. According TO their construc
ton, the treaty does no more than simply prohbi
them from extending their possessions in Centra
Anna hay fha iD.ifa ia tnf
much to assert, That if in the United States the
| treaty had been considered susceptible of such d
construction it never would have been negotiated
under the authority of the President nor would Il
have received the appreciation OF the Senate. Tht
universal conviction in the United States was tha
when our government consented TO violate its ira
ditional and timehonored policy, and to stipulat
with foreign government never to occupy terrific
ry in the Central American portion of our own con
tueut, the consideration for tins sacrlnce was tina
Great Britain should, in this respect at least, b.
placed in the same position with ourselves. Whiis
~e have no right to doubt the sincerity of tn
British government in their construction of th
treaty, it is at the same time my deliberate con
viction that this construction is in opposition boil
| to its letter aud its spirit.
Under the late administration negotiations wer
instituted between the two governIDe Is for the pun
pose if p,s.ible, of removing these difficulties; and
trt aiy having this laudsbie obj in sigue
at London on the l7th of October 1886 and was sui
miited by The President TO the senats ON the follow
iu ITS ORIGINAL amended form, would have acccof
piished the oh ect intended without giving birth t
| new and embarrassing complications between til
TWO governments. may. perhaps well Ne questioned
certain it is heweyer, it was rendered much less OF
| jectionsbleby the different amendments made to
10y the Senate. The treaty, "a amended was rattle
10y me on the 18th March 1851 and was transn,itte
TO London for ratification by the British Governuen
That government expressed It's Willingness TO concu
in all the amendments made by the Senate, with th
suge except on of the clause relating Ruatan al,
the other islands in the Bay of Honduras. The art
Gle IN the original treaty. subm tied t. the senai
after +, citing that these islands and their inhab
tants having been by acouyenio ion bearing date III
9th day Of August ls56. between her Britannia Nj
Jeety AMI the republic of Honduras constituted an
lecai ed free territory under the sovereign nty
the said republic of Honduras stipulated that ih
| two contracting parties do hereby mutually ensag
recognise and respect III all future time the in L
pendence ant rights OF the said free territory as
| part OF the republic of Honduras"
Upon examination of this convention betwee
| Great Britain and Honduras of the 27th Angus
1856, it was found that, whist declaring the Bay L
lands 10 be free territory under the sovereignty
of hts ithout which its sovereignty over thei
could scarcely be said EXIT 1t divided them frol
the remainder Of Honduras, and gave to their nhal
glslatfye executive, and judicial officers elected
| themselves. Ii deprived the government of Hondi
OF the taxing power in every form, and exempte
| the people of the islands Fl ON the performance
military duty, except for their oan exclusive defence
1t also prohibited that republic from erecting fortif
cations upon them for the protection--thu
leaving tnem opel to invasion from any quarter;
finally, 1t provided That slavery shall not AT an
time hereafter be permitted 10 exist therein"
Had Honduras ratified this convention. she woul
have ratified the establishment of Stats substat
TALLY independent within her own limits and stat
at all times subject to British Influence aud contro
Moreover. had the United States ratified the treat
with Great Britain in its original form, We shout
have been bound to rscoen!za and respect in a.
future time" these stipuations to the prejudice
Honduras. Being in dire>t opposition 10 the spir
and meaning OF the Clayton and Buiwer treaty. a
unders TODD in the nited states the Senate rlecte
the entire clause and substituted In its stead IN
pie recognition Of the sovereign right Of Honduras
To- these islands in the following language: Th
two contracting parties do hereby mutually engag
to recognize and respect the islands OF Ruatan, bt
naco Utila Barbaretta, Helena and Mefat. situate
the Hay of Honduras, and off the coast of ihs repnt
| lie of Honduras as under the sovereignty and u
| part of the said republic of Honduras"
Great Britain rejected this amendment, as.ignin
as the only reason that the ratestions of the cor
yention of the 21th August, is6, between her an
Honduras had no, been "eXchang nged. owing to tn
t-:s. -. 1x1,srar nn,..r,t IIad