The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-12-09
PRESIDENT S MESSA GE.
Itse.r c'si'tns q e S,iate and Hosss et Rsvs.sn

/ judge to be necessary aud expedient . -
nut hrst aud above all, our thanks are due to
Alna,gnty dod ior the numerous benefits which He
mas bestowed upon this peopie and our united
prayers ought to ascend to Him that He woula
oonIinue To bless our great REPUBLIC in time To-
eone as lilo has blessed 1t In time past Since the
aaloarhaent OF tiie last Congress constituents
nave enjoyed an unusual degree of health The
| earth has yielded her fruits abundautly and has
bouniifelly rewarded the toll Of the husba ndman
our great staples have commanded high prices,
ahd, up tii within brief period. our niannfsctu-
| ring. mineral, and mechanical occupations have
| largely psrtakon of the general prosperity We
nave possessed all the elements Of material wealth
IN rich abundance, and yet notwithstanding all
these advantages, our country, in its monetary i-
terests, Is at the present moment in a epioyable
condition Ia the midst of unsurpassed plenty in
all the product tons Of agriculture and i'm ALI the
eieinehts OF national wealth, we lind cur manufac-
| feres suspended, our public works retarded. our
private enterprises of different kinds abandoned
and thousands Of useful iaborers thrown out of
employment and rednced to want. The revenue
| OF tue goyernment, which is chiefly derived from,
duties on imports from abroad, has been greatly
| reduced, whist the appropriations made by Con
gress at ts last session Tor the current fiscal year
| are very large in amount.
Under these circumstances loan NAV he re-
qured before the close OF your prese sess,on but
this although deeply to be regretted, would pro se
| To lie only slight misfortune when compared with
the suffering and distress prevailing among the
people. With this the government cannot fail
| deeply TO sympathise, though IL may be without
| the pwer to extend relief
1t is our duty to inqur, 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 a va
| riety OF cooperating causes; but not so uRon the
present occasion. Ii s aupaien@ that our existing
misfortune have process 81 solely from our extrav
agant ana vicious system Of par currency and
bank Gre dts exciting the people to wild specula,
lat ons End gambling in stocks. These revuIssops
must to recur at successive intervals long
| as the amount OF the paper currency and bank
loans and discounts OF the country shall be left to
the discretion OF fourteen hundred irresponsible
banking institutions, which frouI the ve.y law of
| tteir 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 aud to reg
ulate the value thereof, and prohi ibted the States
from coming mocey emitting bills of credit, or
making anything but gold and silver coin ten
der ln payment OF debts, supposed they had pro-
fected the peop'" against the evils of excessive
a II ed allie paper currency. They are not
| ieSpens oie tUi ,Ie e1Isting anomaly that gov
| erumeDt endowed with the sovereign attribute of
| coining money and regulating the value thereof
| should have no power TO prevent others from dTv-
| ing this coin out of the country and filling up the
| channels of circulation with paper which does lot
| repTesen, gold and silver.
1t is one OF the highes..and most responsible du
ties of government TO insure to the people sound
| circulating medium, the amount of which ought
to be adapted with the utm ost possible wisdom and
|
changes. If this be either greatly above or greatly
below the proper standard, the ketable value of
| every mans property is increased or diminished
in the proportion, and injustice to individuals
as well rs ucalculable evils to the community are
the consequence.
Unfortunately under the constr uction of the fede
raj conStiution which has prevailed too long to
changed this important and dellcate duty has been
discovered from the coming power. and virtually
| transferred to more than fourteen luud, ed State
banks at ting independently of each other and reg
lstnk their paper issues almost exclusively by
gard to the present interest Of hei Tx
erclanR the soye eiSu poaer OF providing p.pc,
sency instead OF CON- or the country the first duI,
| which these banks owe To the public To keep III
their vaults u sufficient amount OF gold and .ly.r ~
| insure the c0nvertbty uf their notes into coin AZ
| all times and under all circumstances No bank
ought ever to be chartered without such restriction
ou its buines@ to this result All other re-
icroIls are s1mplratiy.ly vain. This is the only
Irue touchsto, tue ol ly efficient rrguiAtvr OF
| paper currency - the only one which can guard
the public against over issues and bank suspen-
! sirDs AS collateral and eventual security it is
| y0ubtless Use, anu i'll all cases eught TO be TO
quTed, that banks shall hold amount of Unites
State equal to their u1tes in cir
eulatlon and pledged Tor their redemption: This,
however, furnishes no adequate security against our
issues On the contrary. 1t may be perN 10 i'll
hate the currency; INDEED, 1t is possible BY this
and state governments into bank notes. without re-
ference to abe specie required to r.deem them How
ever valuable these securities may De in thems ives,
they cannot be converted INTO gold and silver at the
rionlrnt of pressure. IS our experience teaches IN
sufficient time prevent bank suspensions and the
| depreciation of bank notes. In Englsnd which is
| to considerable extent paper-lnoney country
thoush vastly behind our own in this respect il was
| deemed advisable, anterior to the act sfParamrnt
| Of lS44, which wisely separated the issue OF notes
| from the banking department., for the Bank oi
| snGiaId afwaj To Keep hand gold and silver
| equal one-thrd OF lis combinea circulation and
duposites. Ii this proportion was no more than
| sufficient TO secure the convertibty of it,
notes. with the whole of Great Britain and
| to extent the continent of Europe, az
held orlts cirt uiaion rendering IL almost Impos
BILE that sudden AMI immediate run to dangercus
| amount should he made upon IT, tue same propol l.
ton would certainly be insufficient under our bank
ing system Ehch oi cur fourteen hundrtd d bank.
has but ed circumt- IT'S circulation and
The course If very f.w.dsys the depositors and
nOtt holders might demand from such tank u suifi-
crnt amount in sp Gle to compel il to pend ev
though H had coln IN Its vaults equal to cnetnird
| its Immediate liabilities. And yet am not aware.
with the exception of the baks of Louisiana that any
State bank throughout the Union has been required
by its charter to Keep this or any other proportion
OF god and silver compared with the amount of its
combined circulation and depos,tes. What has been
the consequence IN recent report made by the
Treasury department the condition of the
banks throughout the different States, according
70 returns dated nearest TO January. 1857 the ae-
gregste amount TO actual specie in their wants
Is $5s $40 oSS, OF their circulation $2l4 77S Sy2
and If their depostes S23i ,35l ,352 Thus it ap-
Considerably les, than one dollar in seven OF gold ani
silver compared with their circulation and deposits
1t WAS palpabe. therefore that the very first pressure
ust drive them to SUSPENSION and deprive the peo-
pie Of convertible currency with all its disastrous
consequences 1t il tray wcnderfu that they should
SO long continued TO reserve Their Credit when
demand for the pay ment OF one-seventh OF their
immediate liabilities would have driven them Into
insolvency. And this is the condition Of the banks
notwithstanding that fur hundred millions OF guld
rom California have flowed in upon us within the
last eight year., and the tle sill continues to flow
credits that the banks Low hold considerably less
unit of specie either i'll proportion to their sap
tai their circulation and deposits combined
than Ia did before the discovery of gold in Cali
fna While in the year Is4S their specie in proper
ton t. their capi'al was more than equal TO one dol
lar fu .and hall, il 1857 it does hot amount to
dol a. or every six dollars and thirty three cents
asr sRa yerT ns s' to lhe one dollar IN
We their circulation and deposts in 1851 it is
not equal TO dollar in teven and half of their
circulation and deposites
| From this statement it is easy to account for our
financial history for the last forty 1t has been
history OF extrayagant expansions in the business
of the country. followed by run0us contractlsns.-
At successive Intervals the best aud most enterpri
sing men have been tempted to their ruin by exces
| extrayagant importatiQns of foreign goods, wild
speculations, and runous and demoralizng stock
gambling When the Crisis arrives as arrive 1t must
the banks can extend no rerf to the people. In a
vain stru gle TO redeem their Liabilities in specie
issues and at last in the hour of distress, when their
assistance is most needed, they and their debtors to-
gether sink into insolvency.
raising the nominal price OF every article far beyond
its real value when compared with the cost OF smi-
lar articles in countries whose circulation is wisely
regulated which has prevented us from competing
in O lr Un markets with foreign manufacturers has
produced extravagant importtions, and has coun-
teracted the elk ct of the ars incidental protection
Afforded to domestic manufactures by the pres
ent revenue tariff. But for this the branches OF our
manufacture composed OF raw materials, the pro
duction of our country-sueh us cot't ton, iron
and woolea fabrcs-woud not osly have acquired
almost exclusive of The home market, bat
would have created for themselves foreign market
throug hout the woild.
| Depl rable, however, as may be our present hnan.
cial condition we may yet indulge in bright hope,
for the future. No other nation has ever existed
which could have endured such violent expansions
and conractons OF paper credits without lasting I'D
| yatfh fh,b a4C
nonuation and the spirit which never quails before
5,fficulties will enable to recover ON our
nresent financial endorsements, and may even oc
casion us speedily TO forget the lesson which they
have taught.