Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-12-14
PRESIDENTS MESSAGE,
FeLLOso Citizens Of the Senate,
and House IF Represen tatfves:

and recommend to thei- consideration such
measures" as judge to be necessary and ex-
pedient."
But first, and above all our thanks are dine
TO Almighty God for the numerous benefits
which lie has bestowed upon this people. and
our united prayers ought to ascend to Him that
he would continne to bless our great republic
IN tlrne 10 come as he has blessed it in time
past.
Since the Adjournment Of the last Congress-
our constituents have enjoyed an unusual de-
gree Of health. The earth has Welded bay
fruits abundantly and bouEtifully rewarded the
tol OF the husbandman. Our great staDIes
have commanded high prices, and I'D to with
IN brief period, our manufacturing mineral
and mechanical occupations have LARGELY rspr.
taken Of the general prosperity. We have
possessed all the elements of material wealth
IN rich abundance, and yet, notwithstanding all
these advantages, our country, in its monetary
interests, Is at the present momentum deplor.
able condition.
IN the midst ofunsurpassed plenty in all the
productions of agriculture and in all the ele-
ments OF national wealth, we find our manu-.
lectures suspended, our public works retarded
our private enterprise of different kinds aban-
doned, and thousands Ofuseful IabOrers thrown
out OF employment and reduced to want. The
revenue OF the government which is chiefly
derived from duties on imports from abroad
has been greatly reduced, whilst appropriations
made by Congress at its last session for the
current fiscal year are very large in amount.
Oh.er These circumstances loan NAV be re-
q"HeI OeIoTe me close OF our present session.
OUT DIS although TO be deeply regretted
would prove to be only a SLIGHT rnisfortnne
when compared with the suffering and dis
t,ess prevailing among the people With this
me government cannot fail deeply to svmDa-
thise, though 1t may be without the power to
extend relief
It's our duty TO inquire what has produced
such unfortunate results and whether their
recurrence can be prevented In all former
revulSinns the blame might have been fairly
a'trlonfed I" variety of CO operating caus-
es; hut not so upon The present occasion II
is apparent that onr existing misfortDpes have
proceeded solely from our extravqgan and
Nic'ons system Of paper currency ard hank
credits. exciting the people tn wild eDecnIs
tons ard gnmhEngjn st0rks These revDI-
slo1S iHHsi combine 10 recur at successive in
IerVas' So Iong ~ the amount of the paper
curTercy and hank loans and DISCOUNTS of The
country SHAH he left TO the dscretions of
fourteen hundred irres poUstle banking insti-
buttons which from the very law of their M
ture will consult the interest Of their stock
holders rather than tie public welfare.
The trainers Of the constitutions when thew gave
I" CONGRESS IN" pOw'r - 20 coin money and to re
gu1te The vain" thereof end prohibited the States
rom COMING money, emitting bills of credit or
making anything but gold and silver coin tender
~ payment OF debts, supposed they had protected
the people against the evils Of an excessive and
Irr'd enable paper currency. They are rot res
ponslhIr Tor the existing anomaly that govern
Eent endowed with the sovereign attribute of coin
ing money and regulating the vsIue thereof sborI5
nave u" power TO prev Mt Others from driving this
"a HUF en-
goli and silver o1"'
1t IL ore OF the highest and most responsible du-
's " tn' government 10 insure to the people
Eounh circulating medium, the amount of which
ought 10 BE- adapted with the utmost po.sibIe vic.
com and skill to the wants of internal trade and
for'isn exchanges. II this be either greatly above
or greatly below the proper standard the marketl-
bic lue Of every mans property Is increased or
ON lni-hed IN the sam" proportion and riustice to
ho.l'u Is as well rs II caculabe evils to the com
munIty are the consequence.
Unfortunately, under the construction Of the
Federal Constitution, which has now prevailed too
long 10 be changed, this important and delicate
duty has been disseverei from the coming power
AMI virtually transferred to more than fourteen
hundred state banks, acting Independently of
each other, and regulating their paper issues al
most exclusively by q regard tn the present inter
est OF their stockholders Exercising the sover-
eiSh power OF providing paper currency, instead
OF com, for the country the first duties which
t'ese banks owe to the public is to keep in their
vaults sufficient amount of gold and silver to
insure the cOnvertibitv Of their notes INTO coin
at oil times and under all circumstances No hank
ought ever to ne chartered without such restric-
tons on IT. business rs to secure this result All
Other restr ctions are comparatively vain
lhis IL the Only true tOuchztOne the onIy deffi-
cient regulator OF paper currency-thr only one
which can guard the public against over issues and
bank Suspensions As a collateral and ever tusl
security It is doubtless wise and in all cases ought
10 BE- required, that banks she'll bold an amount of
Onit d States or State securities equal to their
notes In circulation and pledged for their redemp-
ton. This, however furnishes no ad, ouate securi-
ty against oVer-issues. On the contrary il NAV be
perverted to IL fate the currency Indeed. il ia
possible by this means 10 COVERT all d, BITS of the
United States and State Governments into bank
notes, with ut ref, renee to the specie required to
redeem them.
Ho~ever valuable these securities may be In
themselves, they cannot be converted into gold
and silv,r at the moment Of pressure "a opr eTne-
Renee teaches, In sufficient time to prevent bank
suspensions and the depreciation of bank notes
In England, which is to considerable extent pa
per money country, though vastly behind our own
IN thus respect Il was deemed Advisable anterior
10 the act of Parliament of 1914 which wisely
separated the issue OF notes from the banking DE-
osrtmen', for the Bank of England always to keep
1n hand gold and silver equal 10 one third of lis
combined cir ula'ion and depostes.
II this proportion was no more than sufficient
% secure the convertibility of its notes, with
he whole Of Great Britain and to some extent
he continent Of Europe as field for its circula.
ION, rendering it almost impossible shat a sud
len ana immediate run TO dangerous amount
mould be made upon il, the same proportion
would certainly be insufficient under our bank !
hg system. Each OF our fourteen hundred banks /
las but limited circumference Tor it's circula- |
q nfa Agvrg 81.
lePosItors and note holders might demand from
uSn nbhh sumcIent amount in specie to COM
pei 1t to suspend, even although il had coin in |
Us vaults equal TO one-thrd of its immediate IL |
, ana yet am not aware with the exception Of !
tue backs OF Louisiana that any State bank thro'
puS Tue = mon has been required by its charter |
20 Keep thls or any proportion Of gold and silver
CON Pareu win the amount of lis combined cir. |
eu'a''oH SNI deposits What has been the con-
oeq uen ~ III recent report made by the Urea
sury Department on the condition Of the Rants
thIouEhout tue diuerent States according To re-
turns dated nearest TO January 1877 ~. .c,,,re
gaze amount OF actual specie in their vaults is
SjS 349. S3s, Of their circulation s9I4 rs 500
and of their deposits $3.50, ISL $50 Thns - -
pears that these Banks in the aygrecv.,a -
less than one dollar in se,,.r 80
gold anc silver compared with their eireulatjon
and deposits.
/, ~.s y Ipahlr, therefore, that the vs,, a.,
pressure must drive them TO suspension, aud de-.
priv the people Of a convertible currency with al
is disastrous onseQueuces. IL Is woudeTtul tia,
they should have 90 long continued 10 preserv,
heir credit, When d mand fJr the payment Of
Dne-seVrnth OF their immediate liabilities would
pave driven them into insolvency. And this is the
condition Of the banks, Notwithstanding that four
hundred millions Of gold from California have fow-
- in upon within the last eight YEAR; end chs
Tide continues 10 flow. Indeed such has beer Gbe
Fragrance OF the bank credits, ID { tbs banks
low hold Considerably less amount Of specie,