The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1857-12-16
PRESIDENTS MESSAGE.
FsllOtO Citizens Of The Senate, and

house OF hetTeSentduUesf
In obedience to the command Of the constitu-
ton, it has now become my duty "to give to
Congress information of the state Of the Union,
and recommend to their consideration such
measures as Judge TO be necessary and expe-
dent"
But first, and above all, our thanks are due
to Almighty Ged for the numerous benefits
which He has bestowed upon this people; and
our united prayers ought to ascend to him that
He would continue to bless our great republic
in time to come, as He has blessed it in time
dast Since the adjournment Of the last Con-
gress our constituents have enjoyed an unusu
al degree ofhealth. The earth has yielded her
fruits abundantly and has bountifully rewarded
the toll of the husbandman. Our great staples
have commanded high prices, and, up till with.
in brief period, our manufacturing mineral
and mechanical occupations have largely parta-
ken Of the general prosperity. We have posses
sed all the elements OF material wealth in rich
abundance, and yet, notwithstanding all these
advantages, our country, in its monetary inter-
ests, is at the present moment in a deplorable
condition. In the midst ofunsurpassed plenty
in all she produces of agriculture and in all the
elements Irrational wealth, we find our maui
actures suspended, our public works retarded
our private enterprises of different kinds aban-
doned, and thousands of useful laborers thrown
out Of employment and reduced to want. The
revenue of the government, which is chiefly de-
rived from duties on imports from abroad, has
been greatly reduced, whilst the appropriations
made by Congress at its last session for the cur
rent fiscal year are very large in amount.
Under these circumstances loan may be re-
quireed before the close your present session.
but this, although deeply to be regretted, would
Io aI,
pared with the suffering and distress among
the people. With this government cannot fail
to deeply sympalhize, though it may be with.
out the power to extend relief
In is our duty TO inquire what has produced
such unfortunate results, and whether their re-
currence can be prevented? In all former re-
vulsons the blame might have been fairly at
tributed to a variety of cooperating causes; but
not so upon the present occasion. 1t is appar-
ent that our existing mistortunes have proceed
ed solely from our extravagant and vicious sys-
TEN Of paper currency and bank credits, exciting
the people to wild speculations and gambling in
stocks. These revulsions must continue to recur
at successive intervals SO long as the amount OF
the paper currency and bank loans and discount
of the country shall be left to the discretion Of
fourteen hundred irresponsible banking institu-
tions, which from the very law Of their 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 and
to regulate the value thereof" and prohibited
the States from coming money, emitting bills of
credit, or making anything but gold and silver
COMA tender in payment fdebts, supposed they
had protected the people against the evils Of an
excessive and interminable paper currency
They are.not responsible for the existing anoma-
ly that a government endowed with the sover-
eign attribute Of coming money and regulating
the value thereof should have no power to pre-
4 vent others from driving his coin out OF the
lcountry and filling up the'channels of circua-
ton with paper which does not represent gold
and silver.
1t is one OF the highest and most responsible
duties OF government to insure to the people a
sound circulating medium, the amount ofwhlch
! ought to be adapted with the utmost possible
wisdom and skill to the wants of internal trade
and foreign exchange. If this be either greatly
above or greatly below the proper standard, the
marketable value Of every mans property is in
creased or diminished in the same proportion,
and injustice to individuals as well as incal
culable evils to the community are the conse-
quences.
NNS
federal constitution, which has new prevailed
too long to be changed, this important and del
icate duty has disseryed from the coming power
and virtually transferred to more than fourteen
hundred State banks, acting independently OF
each other. and regulating their paper issue al
most exclusively by regard to the present in
terest oil their stockholders. Exercising the SOW
ereign power of providing paper currency, in
stead 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 convestblity of their notes
into coin at all times and under all circumstan-
ccs. No bank ought ever to be chartered with
out such restrictions ON its business as to Sc
, cure this result All other restrictions are COM
paratively vain. This is the only true touch
stone, the only efficient regulation Of a paper
, currency---the only one that can guard the pub
( lie against over issues and bank suspensions
As a collateral and eventual security it is doubt
less wise, and in all cases ought to be required
! that banks shall hold an amount of United
States or State securities equal to their notes in
: circulation and pledged for their redemption
This however furnishes no adequate security
against our over issues. On thecontrary it may
be perverted'to initiate the currency. Indeed
it is possible by this means to convert all the
debts of the United States and State govern
ments into bank notes, without reference to the
5 specie required to redeem them. However val
liable these securities may be in themselves
they cannot be converted into gold and sill
yer at the moment Of the pressure, as our ex
perience teaches, in sufficient time to prevent
bank suspensions and the depreciation Of notes
I In England which is to considerable extent a pa
per money country, though vastly behind ou
own in this respect, it was deemed advisable an
J terror the act of Parliament 1874, which wisely
separated the issue of notes from the banking
, department for the bank of England always t.
keep on hand gold and silver equal to one-thrC
of its combined circulation and deposits
II this proportion was no more than sufficien
to secure the convertibility Of its notes, with
the whole of Great Britain, and to some exten
the continent of Europe as field for its crcula
ton rendering it talmostimpossible that sud
den run to dangerous amount should be mad
: on it, the same proportion would certainly b.
. insufficient under our banking system. Each 0
, our fourteen hundred banks has but limitad cir
cumference for their circulation, and in tn,
course ofa very few days, the depositors ant
J note holders might demand from such banl
sufficient amount in specie to compel it to sus
: pend, even although it had coin in its vault
equal to one third Of its immediate liabilities
And yet am not aware, with the exception Q
the bank of Louisiana, that any State banl
; throughout the Union has been required by it
charter to keep this or any other proportion o
gold and silver, compared with the amount oft
combined circulation and deposits. What ha
been the consequence? In a recent report mad
7 by the Treasury Department on the condition Q
! the banks throughout the different State, accor
!, ding to returns dated nearest to January, 1857