Lewistown gazette. [volume] (Lewistown, Pa.) 1843-1944, 1857-12-17
THURSDAY, DECEMBER II, 1867.


creation of q National Bank, this would
furnish no adequate preventative security
The history of the last Bank of the United
States abundantly proves the truth of this
assertion. Such a bank could not, 1T II
would, regulate the issues and credits OF
fourteen hundred State banks in such q man.
ner as to prevent the ruinous expansions and
contractions in our currency which afflicted
the country throughout the existence of the
late bank, or secure US against future sus-
pensions. In 1925, an effort was made by
the Bank of England to curtail che issues of
the country banks under the most favorable
circumstances. The paper currency had
been expended to u runous extent, and the
Bank put forth all its power to contract it
I in order to reduce prices and restore the
/ equilibrium of the foreign exchanges 1t
accordingly commenced II system of curtail-
ment Of its loans and issues, in the vain
hope that the joint stock and private banks
Of the kingdom would be compelled to tol'
! low it's example. 1t found, however, that as
it contracted they expanded, and the end of
/ the process, to employ the language of u
very high official authority, whatever re-
duction Of the paper circulation was effected
! by the Bank Of England lin lS25) was more
than made up by the issues Of the country
/ banks"
But the Bank of the United States would
not, IT 1t could, restrain the issues and loans
of the State banks, because its duty rs Il
regulator OF the currency must often be in
direct conflict with the immediate interest
Of its stockholders. If we expect one agent
to restrain or control another their interests
must at least, in some degree, be antagonis-
tic But the directors of II Bank of the
| United States would feel the same interest
and the same inclination with the directors
of the State banks to expand the currency,
to accommodate their favorites and friends
with loans. and to declare large dividends
Such has been our experience in regard to
the last bank.
After all, we must mainly rely upon the
patriotism and wisdom of the States for the
prevention and redress of the evil If they
will afford us real specie basis for our paI
per circulation by increasing the denomina'
ton Of bank notes, first to twenty, and after,
wards to fifty dollars if they will require
that the banks shall at all times keep on
hand one dollar of gold and silver for every
three dollars Ut their circulation and depos,
its aud If they will provide by seHexecu,
ting enactment, which nothing can arrest,
that the moment they suspend they shall &c
into liquidation, | believe that such provisions
with weekly publication by each bank of
statement OF its condition, would 90 far 10
secure US against future suspensions of
specie ayments.
Congress, in my opinion, possess the
power to pass uniform bankrupt law
applicable to all banking institutionsthrough
out the United States, and | strongly recon.
mend its exercise. This would make
il the irreyersible organic law of each
banks existence, that a suspension Of specie
I 4
instinct of self preser alton would then com.
pei it u perform its duties in such manner "a
30 escape the penalty aud preserve It's life
The existence of banks and the circulation
of bank paper Unidentified with the
habits of our people, that they cannot at this
cav he suddenly abolished without much
immediate injury to the country If we
could contine them to their appropriate
sphere, and prevent them from administer.
ing to the spirit of wild and reckless spceula.
ton by extravagant loans and issues they
might be continued with advantage to the
public.
But this say, after long and much rehec
! ton; if experience shall prove it to be i'm
possible to enjoy the facilities which well
/ regulated banks might afford, without at the
same time suffering the calanities which the
/ excesses Of the banks have hitherto inflicted
/ upon the country, it would then be far the
/ lesser evi! to deprive them altogether of the
/ power to issue paper currency and confine
/ them to the functions of banks of deposit
! or discount.
| Our relations with foreign governments
are upon the whole, in satisfactory condi.
! tion.
! The diplomatic difficulties which existed
! betwt cen the Government of the United
|. States and that of Great Britain at the ad
| iournment of the last Congress have been
happily terminated by the appoin ntment of u
British minister to this country, who has
been cordially received.
Whilst it is greatly to the interest, as am
convinced it is the sincere desire of the gov
ernments and people of the two countries to
be on terms of intimate friendship with each
other. it has been our misfortune almost al
ways to have had some irritating, if not
dangerous, outsiding question with Great
Britain.
Since the origin of the government, we
have been employed in negotiating treaties
with that power, and afterwards in discuss
ing their true intent and meaning. In this
respect, the convention of of April 10, 1850,
commonly called the Clayton and Bulwer
treaty, has been the most unfortunate of all
because the two governments place directly
opposite and contradictory constructions up
on its first and most important article
Whilst, in the United States, we believed that
this treaty would place both powers upon an
exact equality by the stipulation that neither
will ever occupy, or fortify, or colonize, or
assume or exercise any dominion" over any
part of Central America, it is contended by
the British government that the true con-
structon Of this language has left them in
the rightful possession of all that portion of
Central America which was in their occu-
pancy at the date o! the treaty in fact, that
the treaty is virtual recognition on the
part Of the United States of the right OF
Great Britain, either as owner or protector,
to the whole extensive coast of Central Amer
ica. sweeping round from the Rio IIondo to