Quasqueton guardian. (Quasqueton, Buchanan County, Iowa) 1856-1858, 1857-12-17

to coin at all times, and under all circum-
stances. No bank ought ever to be
chartered without such restrictions on its
business as to secure this result. Our
financial history for the past 40 years has
been history of extravagant expansions
in the business of the country, followed
by ruinous contractions at successive in
tervals. The best and most enterprising
men have been tempted to their ruin by
excessive bank loans of mere paper cred
it, exciting them to extravagant impor-
tations of foreign goods, wild specula-
tons, and ruinous and demoralizing
stock gambling. When the crisis ar
rives, as arrive it must, the banks can
extend no relief to the people in vain
struggle to redeem their liabilities in
specie. They are compelled to contract
their loans and their issues, and at last,
in the hour of distress, when their assist
ance is most needed, they and their debt
ors sink together into insolvency.
In the meantime, it is the duty of the
Government, by all proper means within
its power, to aid in alleviating the suffer-
ings of the people occasioned by the sus-
pension of the banks, and to provide
against the recurrence of the same cal
amity. Unfortunately, in either aspect
of the case, it can do but little. Thanks
to the independent treasury, the govern
ment has not suspended payment as it
was compelled to by the failure of the
banks in 1887 1t will continue to dis
charge its liabilities to the people in gold
and silver.
Its disbursements in coin will pass in
to circulation and materially assist in re-
storing 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, there.
fore, determined that whilst no useful
government works in progress shall be
suspended, new works not already com.
menced will be postponed, if this can be
done without injury to the country.
Those necessary for its defence shall
proceed as though there had been nc
crisis in any monetary affairs; but the
federal government can do much to pro-
vide against recurrence of existing
evils, even if insurmountable constitu
lional objections did not exist against the
creation of national bank, this woulC
furnish no adequate preventative securi
ty, the history of the U. S. Bank prove:
the truth of this assertion. After all We
must mainly rely upon the patriotism anc
wisdom of the states for the prevention
and redress of the evil, if they will afford
us real specie basis for our paper circu
lation by increasing the dimension o
bank notes, first to go and afterwards tt
SO dollars. If they will require that thu
banks shall at all times keep on hand a
least one dollar of gold for every three
dollars Of their circulation and deposits
and if they will provide by a self-execu
ting enactment which nothing can ar
rest, that the moment they suspend they
shall go into liquidatio believe tha
such provisions, with a weekly publica
cation by each bank of statement of iii
condition, would go far to secure us
against future suspension of specie pay
ment. Congress, in my opinion, possess
es the power to pass uniform bankrup
law applicable to all banking institution.
throughout the United States, and strong
ly recommends its exercise, and thu.
would make it the irrevocable organic
law of each bank i'm existence, that
suspension of specie payment shall pro
duce its civil death.
i The existence of banks and the circu
lation of bank paper are SO identified witt
the habits of our people that they canno
at this day, be suddenly abolished with
out much immediate injury to the coun
try. If we would conform them to thei
appropriate sphere, and prevent them
from administering to the spirit of wild
reckless speculation, by extravagant loan.
and uses, they might be contrived will
advantage to the public; but this mucl
| say, after long and much reflection,
experience shall prove it to be impossible
to enjoy the facilities which well-regula.
ed banks might afford, without at tn,
same time suffering the calamities which
the excesses of the banks have hithert,
inflicted on this country. it will then b.
far the lesser evil to deprive them alto
gether of the power to issue paper cur