St. Charles City Republican intelligencer. [volume] (St. Charles City [Charles City], Iowa) 1857-1861, 1857-12-17
Presidents Message.

Owing to the great length of thc
Presidents Message and the late day
un which it was received, we are una
bic to publish it in full, and therefore
have to content ourselves with the fol
Lowing synopsis: The Message com.
mcnccs by returning thanks to the Al
mighty for the numerous benefits he
has bestowed on this people. We
have possessed all the elements of ma
tcrial wealth in rich abundance, and
We. Notwithstanding all these advan-
tages, cur country in its monetary in
terests, is at the present moment in a
deplorablc condition. In the midst of
unsurpassed plenty, in all productions
of agriculture, and all the clements of
national wealth, we find our manu-
factories suspended, our public works
retarded our private enterprises of
different kinds abandoned, and thou
sands of useful laborcrs thrown ont of
employment and reduced to want.
The revenue of the Government, which
is chiefly derived from duties on inn
ports 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. Under these circum
stances, loan may be required before
the close of your present session, but
this, though deeply to be regretted
will prove to be only a slight misfOr-
tune when compared to the suffering
and distress prevailing among the
people. With this the Government
cannot fail to deeply sypathizc, though
it may be without the power to extend
relief.
He inquired what has produced
these unfortunate results, and whether
recurrence can be prevented. 1t is
apparent that they have proceeded
solely from our extravagant and vici
ious system of pa Der currency and banl
credits, exciting the people to wilt
speculation and gambling in stocks
These revulsions must continue to re-
cur at successive intervals as long as
the amount of paper currency and
bank loans discounts on the country
shall be left to the discretion Of l40O
corresponding institutions, which,
from the very law of this nature will
consult the interests of their stock
holders rather than the public welfare,
exercising the sovereign power OF pro
viding paper currency instead Of
coin for the country.
The first duty which these banks
owe to the public is, to keep in their
vaults sufficient amount of gold and
silver to insure the convertibility OF
their notes into coin at all times and
under all circumstances. No bank
ought ever to be chartered without
such restrictions on its business as tc
secure this result. Our financial his
tory for the past forty years has beer
history of eXtravagant expansions IL
the business of the country, followed
by ruinOus contractions. Atsuccessiv,
intervals the best and most enter
prising men have been tempted t.
their ruin by excessive bank loans o
mere paper credit, exciting them t.
extravagant importations Of foreign
goods, wild Spoeulatians. and ruinous
IcWpraliZin@ stock rambling.
When the Crisis arrives, as arrive
must, the banks can extend no relic
to the people. In vain struggle to II
deem their liabilities in specie, the,
are compelled to contract their loans
and their issue, and at last, in the
hour of distress, when their assistance
is most needed, they and their debtors
sink together in insolvency. In the
meantime it is the duty of the govern
ment, by all proper means within its
power, to aid in alleviating the suffer.
ings of the people, occasioned by the
suspension of the banks, and to pro-
vide against the recurrence Of the
same calamity. Unfortunately in
either aspect of the case it can do but
little.
Thanks to the Independent treasury,
the government has not suspended
payment as it was compelled to by
the failures of the banks in 1887: il
will continue to discharge its liabil-
ties to the people in gold and silver.
Its disbursements in coin will pass in
to circulation and materially assist in
restoring a sound currency. From its
high credit, should we be compelled
to make temporary loan, it can be
effected on advantageous terms. This,
however, shall, if possible be avoided,
but if not, then the amount shall be
limited to the lowest practicable sum
l have, therefore, determined, whilst
no useful Government works in pro-
grcss shall be suspended, new work
not already commenced will be post
poned, if this can be done without III
Jury to the country. Those necessary
to its defence shall proceed as though
there had been no crisis in our none
tary affairs. But the Federal Govern
ment can do much to provide against
recurrence of existing evils Even if
lnsurmountable constitutional obiec-
lions did not exist against the creation
VI - -Notiouui pttllh, tlliS "Ouiu ltll ulSll
no adequate preventative security.
The history Of the last bank of the
United States abundantly proves the
truth OF this assertion. After all we
must mainly rely on the patriotism
and wisdom of the States for the pre-
vention and redress of the evil. If they
will afford us real specie basis for
our paper circulation by increasing
the denomination of bank notes, first
to twenty and afterwards to fifty dol
lars; ifthey will require that the banks
shall at all times keep on hand at least
one dollar of gold or silver for every
three dollars of their calculations and
deposits; and if they will provide by a
self-executing enactment, which moth
ing can arrest, that the moment they
suspend they shall go into liquidation,
believe that such provisions, with a
weekly publication by each bank of
statement of its condition, would go
lar to secure us against future suspen-