New Orleans daily crescent., 1857-12-15

tactions IL our currency which aicted tie country
thr6ng the existence Of the late bank secure
y sgainlt future nspensicns. In 1925 an effort was
By the Bank Of England to curtail the issues Of
the country banks under the most favorable crcum-
stances. The paper currency had been expanded to
rninous extent and the bank put forth all Its power
to contract it. in order to reduce prices and restore
nSiy Commenced syasm Il curtailment Of It's loans
and issues n the vsin hope that the joint stock and
private banks Of the kingdom would Be compelled to
follow its example. slt found, however, that % it
consr.cted they sxpsnsd and g TIE end of The pTo,
authority, whatever reduction of the paper crcu-
ation was effected BY the Bank Of England (in 1825)
was ore than made up BY the issues Of the country
But Bank Of tie United States would not, il il
could ftAn TIE issues and losns Of the State banks
becsuss Ia dnty as regulator of the currency must
often b In direct conflict with the immediate interest
n ~ stock II M expect one agent 70 re-
Iii pome degree v antagonistic But the directors Of
bank or The United States would feel the same in
ters and the inclination with the directors Of
The State banks TO expand the currency to accommo
dae their av0Ttes and friends with loans and to de-
oare large dividends. Such has been experience
Ii regard ID the last bank.
After al, We must mainly rely upon the patriotism
and wisdom Of the States for the prevention and re-
basa for onr paper circulation BY increasing the de-
nomination of bank notes, first to twenty, and after
wArds to ffty dollars II they will require that the
banks shall at sll times keep on hand at least one
~ circulation and deposits and it they win pro
vide BY selfexecnting enactment, which nothing
can arrest, that the moment they suspend they shall
So into liquidation. 4 believe that such provisions,
With weekly publication By each bank Of state
against future suspensions Of specie payments,
V Congress, Iii n,y opinion, possesses the power to
pas uniform bankrupt law applicable to all bank
ing instit1tions throughout the United 6tates and
strongly recommend its exercise This would make
It ths ireversble organic law Of each banks exist
ence that suspension Of specie payments shall pro-
duce its civil DEATH The instinct of sefpreseryation
would then compel it to perform ts duties In such
msnner To escape the penalty and preserve its fe
The existence of banks and the circulation of bank
paper are % identical with the habits Of our people,
that they cannot at this day be suddenly abolished
without much immediate injury to the country. If
We could confns them to their appropriate sphere,
and prevent them from administering to the spirit Of
wild and reckless speculation by extravagant loans
and losses they might be continued with advantage
to the public
But this, Isay, after long and much reflection; If
experience sha prove it to be impossible to enjoy
the facilities which welregulated banks might al
ford without at the same time suffering the calalni
ties which the excess Of the banks have hitherto in
iicted upon the country, it would then be far the
lesser evil 70 deprive them altogether Of the power to
issue paper currency and confne them to the func-
tipns Of banks Of deposit and discount.
Our relations with foreign governments are, upon
the whole, in satisfactory condition.
The diplomatic difficulties which existed between
the government OF the United States and that of
Great Britain at the adjournment Of the last Con-
gress have been most happily terminated by the ap-
pointment Of British minister to this country, who
has been cordially received q
Whilst it is greatly to the interest, as am con.
ynced it Is the sincere DESIRE of the government and
people of the two countries to be terms Of intimate
friendship with each other it has been misfortune
almost always to have had some irritating If not dan
gerous, outstanding question with Great Britain.
Since the origin Of the government we have been
employed in negotiating treaties with that power,
and afterwards In discussing their true intent and
meaning. In this respect, the convention of April
~, 1850, commonly called the Clayton and Bulwer
treaty, has been the most unfortunate Of all because
the TWO governments place directly opposite and CON
Trajectory constructions upon its first and most i'm
portant article.
Whilst, ii the United States, we believed that this
ity by the stipulation that neither will ever occupy,
or forty, colonize assume or exercise any do
mnion over any part of Central America it is con.
tended by the British Government that the true
strueton Of this language has left them n the right
ul possession Of all that portion Of Central America
which was in their occupancy at the date of the
treaty in fact that the treaty is virtual recogni-
ton on the part Of the Uned States Of the right of
Great Britain, either as owner or protector to the
whole extensive coast Of Central America, sweeping
ronnd from the Rio Hondo to the port and harbor Of
San Juan de Nicaragua, together with the adjacent
Bay Islands, except the comparatively small portion
Of this between the Sarstoon and Cape Honduras,
According to their construction the treaty does no
more than simply prohibit them from extending their
possessions in Central America beyond the present
limits. It is not too much to assert that if n the
United States tbs treaty had been considered suscep
tibe of such construction 1t never would have been
negotiated under the authority Of the President nor
would It have received the appreciation Of the Senate
The universal conviction of the United States was,
that when our Government consented to violate its
traditional and timehonored policy, and to stpulate
wlth foreign government never to occupy acquire
territory in the Central American portion of our own
continent, the consideration for this sacrifice was
that Great Britain should in this respect at least be
placed in the same position with ourselves. Whilst
we have no right to doubt the sincerity Of the British
Government in their construction Of the treaty. ii is
at the same time my deliberate conviction that this
construction Is in opposition both to it's letterand spirit
Under the late administration negotiations were in
stituted between the two governments for the pur.
pose, il possible Of removing these difficulties and
treaty having this laudable object in view was signed
at London on the 18th October, 1856, and was sub
mitted by the President to the Senate the following
10th December. Whether this treaty, either in its
original or amended form, would have accomplished
the object intended without giving birth to new and
embarrassing complications between the two govern
ments, may perhaps be well questioned. Certain 1t
is, however, 1t was rendered much less Objectionable
by the different amendments made to it by the Senate
The treaty, as amended, was ratified BY me on the
lzth March, 1857, and was transmitted to London for
ratification by the British Government That govern
ment expressed its willingness to concur In ali the
amendments made by the Senate with the single ex-
cepton of the clause relating to uatan and the other
islands in the Bay Of Honduras, The article in the
original treaty. submitted to the Senate after reci-
ting that these islands and their inhabitants having
been by a convention bearing date the 9th day Of
August 1856, between her Britannia Majesty and the
republic of Honduras, constituted and declared free
territory under the sovereignty Of the said republic
Of Honduras, stipulated that the two contracting
parties do hereby mutually engage to recognize and
respect in all future time the independence and rights
Of the said free territory as part Of the republic of
Hondurasf a} 3.l..
Upon an examination of this convention between
Great Britain and Honduras Of the 9th August,
1856, it was found that, whilst declaring the Bay
Islands to be free territory, under the sovereignty
Of the republic of Honduras it deprived that repub
lie Of rights without which its sovereignty over them
could scarcely be said to exist 1t divided them from
the remainder OF Honduras, and gave to their inhab
tants separate government of their own with egis-
iatlve, executive and judicial officers elected by them
serves. 1t deprived the government of Honduras of
tne taxing power in every form, and exempted the
people OF the islands from the performance oil military
duty except for their exclusive defense. It also
prohibited that republic from erecting forthcatons
upon them for their protection = thus leaving them
open 10 invasion from any quarter; and finally, IL
provided that slavery shall not any time hereafter
be permitted to exist therein"
Had Honduras ratified this convention. she wonld
have ratified the establishment of State substanti
ally independent within her own limits, and a State
at all times subject to British influence and control
Moreover had the United States ratified the treaty
with Great Britain in its original form we shoud
nave been bound to recognize and respect in all u-