The Tipton advertiser. [volume] (Tipton, Cedar Co., Iowa) 1856-1962, 1857-12-19

4
the numerous benefits he has bestowed
on this people. We have possessed all
the elements Of material wealth 10 ficn
abundance, and yet, Notwithstanding ALL
our country, III its monetary inter
ests, is at the present moment IN deplo-
rable condition. In the midst OF unsur-
passed plenty in all productions, aud all
the elements of national wealth, We find
our manufactures suspended, our puoisc
works retarded, our private enterprises
of different kinds abandoned, and thou.
sands of useful laborers thrown out OF
employment and reduced to want
The revenue Of the government, which
is chiefly derived from duties on i'm
ports from abroad, has been greatly re-
duced. whilst the appropriations made by
Congress at its last sessions for the 'iscai
year are very large in amount: onder
these circumstances loan may oe requl-
red before the close of the present session
But this. though deeply to be regretted,
will proye to be only slight misfortune,
when compared to the suffering and dis
tress prevailing among the people. with
this tho government can not fail to SYM
pathise, though it may be without the
power to extend relief.
He inquiries what has produced these
unfortunate results, and whether recur-
renee can be prevented 1t is apparent
that they have proceeded solely from our
extravagant and vicious system of paper
currency and bank credits, exciting the
people to wild speculation and gambling
in stocks. These revolutions must con-
tinue to occur at successive intervals as
long as the amount of oapcr currency
and bank loans, discounts on the country,
shall be left to the discretion Of fourteen
hundred corresponding banking instltu-
tions, which will from the very law and
nature of the case, consult the interest
of their stockholders rather than the
public welfare providing paper curren-
cy instead of coin for the country.
The first duty that these banks owe to
the public is to keep in their vaults
sufficient amount of gold and sITer to
, insure the convertability Of their notes
into coin at all times, and under all cir
cumstances. 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
, bv ruinous contractions at successive
intervals. The best and most enterprls-
ing men have been tempted to their ruin
t bv excessive bank loans of mere paper
D credit; exciting them to extravagant I'M
portations of foreign goods, wild specula-
tions and ruinous and demoralizing stock
i rambling. When the crisis arrives, as
3 arrive it must, the banks can extend nc
0 relief to the people i'll vain struggle tc
redeem their liabilities in specie. They
j, are compelled to contract their loans and
their issues. and at last, in the hour o'
distress, when their assistance il mos'
I, needed. they and their debtors sink to
It gether into insolvency.
IS In the meantime, it is the duty Of th'
. government, by all proper means within
its power, TO aid in alleviating the suffer
inrs of the people occasioned by the gus
;, pension of the banks, and to provid
T. against the recurrence of the same ca
lamitv. Unfortunately, in either aspee
- Of the case, il can do but little. Thank
: to the independent treasury. the govern
rs ment has not suspended payment, as
was compelled to by the failures Of tt
- the banks in 1927 It will continue t
:, discharge its liabilities to the people i
," gold and silver.
re Its disbursements in coiu will pass il
is to circulation, and materially assist In II
i. Storm a sound currency, from It's hig
iva credit. Should we be compelled to max
g a temporary loan, it can be effected
VI advantageous terms This shall, howey
n er, il possible be avoided, but if no
Ie then the amount shall be limited to IL
b. lowest practicable amount. | have Their
fore determined that whilst no useful e
:" yernment works in progress shall he sa
as pepded, new works not already cor
%, menccd will be postponed, if this can
ok done without injury to the country -
N Those necessary for its defense shall pr
" " ceed as though there had been no eris
~ in our monetary affairs.
III But the federal government can {
Ia much to provide against recurrence
", existing evils, even if insurmountah
* constitutional objections did not exl
j. AGAINST the creation Of national ban
this would furnish no adequate prevent
up tive security. The history Of the Ii
ng II. 8. Bauk abundantly proves the tru
Of this assertion. After all we must
siu ly on the patriotism aud wisdom OF
- States for the prevention and redress
r.
'ei- the evil. If they will afford rs r
'er specie basis for our paper circulation
vile increasing the dimension Of bank no
y FIRST to - and afterwards to 30 dolla
# they win require that the banks sh
al al times keep on hand at least one d
lar in gold for every three dollars Of tn
orn circulation and deposits, aud If they Y
rels provide by self-exocutlng enactmf
ing which nothing can arrest, that the l
mcnt they suspend they shall 60 into
ou;dation. I believe that such prov
ion ions, with a weekly publication by e'
of bank Of state Of it's condition, would
lous far To secure us against future suspens
Of specie payment. Congress, IN
on;nion, possesses the power to pa:
ore, uniform bankrupt law applicable TO
over banking institutions throughout the
ous- s, and strongly recommend its exerc
and thus would make it the irrevoc'
organic law of each bank in exister
j., that suspension of specie payment
produce its civil death.
,cc,. The existence of banks and the cire
ton of bank paper are so identified
the habits Of our people that they
with not at this day, be suddenly aho!ls
Tins without much Immediate injury to