The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-12-09
PRESIDENTS MESSAGE.

become my duty ito give 70 Congress information
a the state OF the Union and recognend to their
demtion such measures scge to be necessary and
expcdient."
But FIRST, and above all, our thanks are due to Al
mighty God fof the numerous benefits which He has be-
slowed upca CHS people and united prayers ought
TO ascend 10 Him that He would coAtnue hcss our
great yepubc in time to He has Messed it in
dDs past Since the adjournment OF the last Congress
our constituents have enjoyed All unusual degree of
health, The earth has yielded her fruits abundantly
and has bonntfuy rewarded the toll of the husbandan
Dur great staples have commanded high prices and up
CHI within brief period manufacturing, mineral
and mechanical occupations have largely praen of the
general prosperity We have possessed all the elements of
msterial wealth in rich abundance and yet notwthsahd
lng all these advantages, country in its monetary in
terests Is at the present moment il deporable cond
ton In the midst Of unsurpassed plenty in all the pro-
auctions OF agriculture and In all the clements of national
wealth, find manufactures suspended, our public
works retarded private enterprises VI different kinds
abandoned and thousands of useful labofes thrown
OF employment and reduced TO want The revenue of the
government, which Is chiefly derived from duties i'm
ports nom abroad has been greatly reduced whilst the
appropriations made by Congress its last session for the
current hscal year are very large in amount -r.f y.
Usder these circumstances loan may be required be-
fore the close of your present session but this although
deeply to be regretted would prove to be only slight
misfortune when compared with the suffering and dis
tress prevailing among the people. With this the gov
ernnent cannot fail deeply to ympathze though II may
be without the power to extend relief
Is our duty to inquire what has produced such
fortunate results, and whether their recurrence be
prevented In all former revulsons the blame might
have been fairly attributed to variety of cooperating
but not upon the present occasion 1t is APP
parent chat existing msfortunes have proceeded
solely nom our cxtavagant and vicious system of paper
currency and bank credits exciting the people to wild
speculatons aud gambling in stocks These revulsions
must continue to ecur at successive intervals long
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 from the very law of their nature will consult the
interest of their stockholders rather than the public well
fare. r,. . rs
The trainers of the constitution, when they gave to
Congress the power Ito coin money and to regulate the
value thereof and prohibited the States from coming
money, emitting bills of credit making anything but
gold and silver coin tender in payment of debts sup
posed they had protected the people against the evils of
IN excessive and iedeemable paper currency They
not responsible for the existing anomaly that govern
ment endowed with the sovereign attribute of coming
money and regulating the value thereof should have
power to prevent Others from driving this coin out of the
country and filling up the channels of circulation with
paper which does not represent gold and silver.
1t of the highest and most responsible duties of
government to insure to the people sound circulating
medium, the amount of which ought to be adapted with
the utmost possible wisdom and skill to the wants of in
teral trade and foreign exchanges If this be either
greatly above greatly below the proper standard the
marketable value of every mans property is increased
diminished in the proportion and injustice to ind
viuas well ncalculable evils to the community
the consequence. srsat" A .aa *.
Unfortunately under the construction of the federal
constitution, which has prevailed long to be
changed this important and delicate duty has been
discovered from the coming power and virtually
transferred to than fourteen hundred State
banks acting independently of each other and regua
ting their paper issues almost exclusively by regard to
the present interest of their stockholders Exercising
the sovereign power of providing paper currency instead
OF coin for the country the first duty which these banks
owe to the public is to keep i'm their vaults q sufficient
amount to insure the converbity of their
notes into coin at all times and under all circumstances
hopG 10 he,
tons Its business to this result All other re-
strictions comparatively vain This is the only
ouchstone the only efficient regulator of paper curren-
cythe only which guard the public against over
ISSUES and bank suspensions As collateral and event
ua security 1t is doubtless WISE and in all cases ought to
be required that banks shall hold amount of United
States State securities equal to their notes in circua
uon and pledged for their redemption This however
furnishes adequate security against overissues On
the contrary it be perverted initiate the currency
Indeed it is possible by this to all the
debts of the United States and State governments into
bank notes. without reference to the specie required
redeem them However valuable these securities be
in themselves they cannot be converted into gold and
silver at the moment of pressure, experience
teaches in sufficient time to prevent bank suspensions
and the depreciation of bank notes. In England,
which is to considerable extent a paper money
country, though vastly behind in this re-
spect 1t deemed advisable anterior to the act
OF Parliament of 1874 which wisely separated the issue
OF notes from the banking department for the Bank of
England always to keep hand gold and silver equal to
pnc-thru OF Its combined circulation and deposites
this proportion than sufficient to secure the
converblity of its notes. with the whole of Great Brit
ain, and to extent the continent of Europe
as field for its circulation, rendering it almost
impossible that sudden and immediate run to
dangerous amount should be made upon it, the pro-
portion would certainly be insufficient under banking
system Each of fourteen hundred banks has but
limited circumference for its circulation and in the course
OF very few days the deposors and note-hoders might
demand from such bank sufficient amount in specie
to compel 1t to suspend although it had coin in its
vaults equal to third of its immediate liabilities
And yet not aware, with the exception of the banks
OF Louisiana, that State bank throughout the Union
has been required by its charter keep this any other
proportion of gold and silver compared with the amount
of its combined circulation and depostes What has been
the consequence In recent report made by the Treas
ury Department the condition of the banks through
out the different States according returns dated near
est to January 1857 the aggregate amount of actual
specie in their vaults is S5S $685. of their circulation
S2f ST. and of their deposes $3.50 35I 1852 Thus
1t appears that these banks in the aggregate have consd
orably less than dollar in of gold and silver
compared with their circulation and deposites IL was
papable therefore, that the very first pressure must
drive them to suspension, and deprive the people of
convertible currency with all its disastrous consequences
III is truly wonderful that they should have long con
tnued to preserve their credit when demand for the
payment of one-seyenth of their immediate liabilities
would have driven them into insolvency And this is
the condition of the banks notwithstanding that four
hundred millions OF gold from California have flowed in
upon within tho last eight years. and the tide still
continues to flow Indeed such has been the extraya-
gance of bank credits that the banks hold consd
eraby less specie either proportion TO their
capital TO their circulation and deposites combined