Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1857-12-12
Ihe StaNeare.
PRESIDENTS MESSAGE.

ftGotc- CHt-eAs ~ tNt >tNdfS
and HouSs II Representatives:
In obedience the command of the Constitution, has
row become my duty "'o give to Congress Information ot
the the Uncn and recommend to their cnsdera
Won such measures judge TO be necessary and expe-
COMMERCIAL AND MONETARY.
But first and above all. thanks due To Almighty
God for the numerous benefits which lie has bestowed
spon this pce and united prayers ought ascend
Him that lie would continue bless great Republic in
time to He has blessed it in time past since the
adjournment Of the last Congress constituents have en-
her fruits abundAnIly and has bounully rewarded the
toll Of the husbandman Our great staples have com
manded high prices and up I'LL within brief period our
manufacturing, mineral, and mechanical occupations have
largely Partssen of the general prosperity We have pos
dance and yet notwithstanding all these advantages our
country monetary interests Al the present moment
in depornble condition In the midst oi unsurpassed
plenty in all productions of agriculture and in all the
elements Of national wealth, find our manufactures sis
psnded public works retarded our private enterprises
Of different kinds abandoned and thousands oil useful la
borers thrown Of employment and reduced 10 want
The Of the Government, which is chiefly derived
from duties imports from abroad has been greatly re-
duced, whilst the appropriations made by Congress nj IT'S
last session for the current fiscal year are very large IN
amount
Under these circumstances a loan may be required be-
fore the close of your present session but this although
deeply TO be regretted weuld prove to be only slight
misfortune when compared with The suffering and distress
prevailing among the people With this the Government
cannot fail deeply to sympathze, though it may be without
the power To extend relief
Its duty inquire what has produced such unfor
tunae results and whether their recurrence can be pre-
venteul In AL former feNuIslnhs DlUle Usht
been fairly attributed TO variety OF cooperating causes
but up the present occasion 1t is apparent that
existing misforunes have proceeded solely from
exiavagan and vicious of paper currency and bank
credits exciting the people 10 wild pecua,ons apd gam
bling in stocks These revusons must continue TO recur
at successive intervals long the amount OF the paper
and bank loans and discounts Of the country shall
be left TO the discretion Of fourteen hundred irresponsible
banking institutions which, the very law Of their
ture will consult the interest OF their Stockholders rather
than the public welfare.
The trainers of the Constitution when they gave Con.
he IN nd ia
thereof" and pro lifted the States from coming money,
emitting bills Of credit making anything bu, gold and
silver coin tender in payment Of debts supposed they
had protected the people against the evils OF excessive
and rredeemabe paper currency They no, RESPONSE,
bic for the existing anomaly that Government endowed
with the sovereign attribute at coming money and REGULATE
ing the value thereof should have power TO prevent 9th
from driving this coin out of the country aud hng
the channels of circulation with paper which does not rep
resent gold and silver.
IL one of the highest and most responsible duties of
Government insure TO the people sound circulating
medium the amount of which ought to be adapted with
the umcs possible wisdom and skill to the wants Of in-
tera trade and foreign exchanges this be either greatly
above greatly below the proper standard the markea.
Bile value Of every mans property Incl eased or dinish-
well nccuabe evils TO the community are the conse-
quence.
Constitution which has prevailed too long be chang
cd this important and delicate duty has been discovered
than fourteen hundred State Banks, acting independently
of each other and regulating their paper issues almost
cinsvey by regard 10 the present interest Of their stock
per currency instead Of for the country. the first duty
which these banks to the public is 10 keep in their
vaults sufficient amount of gold and silver to insure the
eonrerilby OF their notes INTO com at all tunes ana IN
der all No bank ought to be chartered
without such restrictions its business 10 secure this
result All other restrictions are comparatively VAIN THIS
is the only true touchsOne the only efficient regulator ot
paper currency-he only which guard the public
against oyer-!ssues and bank SUSPENSIONS As collateral
and eventual security is doubtless wise and in all cases
ought to be required that banks shall hold amount OF
United States or State securities equal To their notes in cir
culaiiop, and pledged for their redemption This however
furnishes adequate security against over issues On the
contrary il be perverted initiate the currency. In
deed il possible by this all the debts Of
the United States ana State governments into bank notes
without reference the specie required redeem them
However valuable these securities be themselves
they cannot be converted into gold aud silver at the mo-
meut OF pressure as our experience teaches in sufficient
time 10 prevent bank suspensions and the depreciation OF
bank notes In England which is to considerable extent
papermoney country, though vastly behind our own in
this respect deemed advisable anterior TO the act Of
Parliament Of 1874 which wisely separated the issue Of
from the banking department for the Bank Of Eng
land always to keep on hand gold and silver equal TO one
third Of its combined circulation and deposits II this
proportion than sufficient 10 secure the con-
veribiiiy of its notes. with the whole OF Great Britain
and 10 extent the continent OF Europe as field for
its circulation, rendering almost impossible that tud
den and immediate run to dangerous amount should be
made upon IT, the same proportion would certainty be IN
sufficient under banking system. Each Of fourteen
hundred banks has but limited circumference for its cir
cuation and in the ci very few days the deposit
ors and nuIe-hoders might demand from such bank subj
cient amount specie to compel it to suspend, al
immediate liabilities And yet am aware, with the
exception of the banks of louisiana that State Bank
Throughout the Union has been required by IT'S charter 10
keep this any other proportion Of gold and silver
pared with the amount OF lis combined circulation aud de-
poss What has been the consequence In recent re-
port made by the Treasury Department on the condition of
The banks throughout the different States, according TO
dated nearest 10 January ls the aggregate amount
Of actual specie in their vaults is Sjs34ys3S Of their cir
culaor S.5i,77ss22; aud of their deposits 1852.
Thus appears that these banks in The aggregate, have
conderaby less than doar OF gold and sill
ve compared with their circulation aud deposits. II
ppabe, therefore that the very first pressure must drive
Them suspension and deprive the people OF convertible
currency with al its disastrous consequences II is truly
wonderful that they should have long continued To pre-
their credit when demand for the payment of ono
seventh of their immediate liabilities would have driven
them into insolvency. Aud this is the condition Of the
banks notwithstanding that four hundred millions of gold
from California have flowed in upon us within the last
eight years, aud the tide still continues to flow. Indeed
such has been the extravaganza OF bank credits that The
banks hold considerable less amount Of Specie either
in proportion their capital their circulation and de
posts combined than they did before the discovery of gold
portion their capital than equal dollar
for four and half 1851 does not amount to dollar
for every six dollars and thr y,hrce cents of their capital
In the 1918 the specie equal within very small
fraction, to dollar IN five of their circulation and Dc
posts in 1857 it not equa to one dollar in seven and
half OF their circulation and deposits.
From this statement it is easy account for inan
cial history for the last forty years 1t has been hsor,
Of extavagan expansions IN the business OF the country
followed by runous conmciohs AT successive intervals
the best and most enterprsng men have been tenpie'
their ruin by esve bank loans of mere paper credit
exciting ,hem 10 extnvaenn mpora,dns OF ign goods
wild spscuaton and runons and denoralinng stock gam
bling When the crisis arrives as arrive 1t must the sans
can extend relief to-the people In vain struggle tt
redeem their liabilities in specie they commpeed Il
contract their loans and their issues and at last in thu
hour of Distress when their assistance needed they
and their debtors together sink into insolvency.
II is this paper system OF cxtravagan expansion, raising
the nominal price Of every article far beyond its real value
when compared with the o similar articles in countries
whose circulation wisely regulated which has prevenic,
us ulh competing in own markets with foreign mann
actur.rs has produced exvagan inportaions, and hn
the effect Of the rge incidental protection
afforded domestic manufactures by the present reve
RYtfpr tIaht pt inTf
composed of materials the production Of our owl
country-such cotton, iron, and wooden ,abricswou
not only have acquired aaps' exclusive possession of tn
home market but wUld have created for themselves for
cign market throughout the world.