Bradford reporter. [volume] (Towanda, Pa.) 1844-1884, 1857-12-17


tary affairs.
But the federal government cannot do much
to provide against a recurrence of existing
evils. Even if insurmountable constitutional
objections did not exist against the creation ol
IA National Bank, this would furnish no ade
quate preventive security. The history Of the
last Bank of the United States abGndantly
proves the truth of this assertion. Such a
bank could not. if it would, regulate the issues
aud credits of fourteen hundred State banks
in such manner as to prevent the ruinous ex-
panSIonS aud contractionS in our currency
which afflicted the country throughout the ex-
iStence of the late bank or secure US against
future suspensions Ia 1925 an effort was
made by the Bank of England to curtal the
issues of the country banks under the most ia
yorable circumstances. The paper currency
had been expanded to q ruimous extent, and
the Bank put forth all its power to contract
1t IN order to reduce prices and restore the
equilibrium of the foreign exchanges. 1t ac-
cordingIy commenced a system of curtailment
OF its loaDs and issues, in the vain hope that
the joint stock and private banks of the king
dom would be compelled to follow its exam
pie. 1t found, however, that as it contracted
they expanded, and at the end CT the process,
to employ the language of IA very high official
authority, " whatever reduction of the paper
circulation was effected by the Bank Of Eng
land (in 1920 was more than made up by the
Issues of the country banks"
But Bonk Of the United States would
not if it could, restrain the issue and loans of
the State Banks, because its duty as regu-
lator OF the currency must often be in direct
conflict with the immediate interest of its stock
holders. If we expect one agent TO restrain
or control another their interests must, at least
in some degree, be amtagonstc. But the di.
rectors of Bank of the United States would
feel the same interest and the same inclination
with the directors of the State Banks TO ex-
pand the currency, to accommodate their ia
yorites and friends with loans, aud to declare
large dividends Such has been our expert
ence in regard to the last Bank
After all, We must mainly rely npon the pa
triotsm and wisdom of the States for the pre-
vention and redress of the evil If they will
afford US a real specie basis for our circulation,
by increasing the denomination OF bauk-notes
first TO twenty, and afterwards TO fifty dollars:
il they will require that the banks shall at alt
times keep on hand ct least one dollar Of gold
and silver for every three dollars os their cir
cniatjon ani deposits and If they will provide,
bv a Seit-executlng enactment, which nothing
can arrest. that the moment they suspend they
shall go into liquidation. believe that such
provisions, with a weekly publication by each
bank Of statement OF its condition. wonid 20
far to secure Us against future suspensions of
specie payments,
Congress. in my opinion. possess the power
To pass uniform bankrupt law applicable 10
all banking institutions throughout the United
States, and | strongly recommend its exercise
This would make it the irreversibie organic
Law Of each bauk'S existence, that a suspension
OF specie payments shall produce its civil death.
The instinct of Se'T-preServation would then
compel il 10 perform its duties in such man
her rs TO escape the penalty and deserve its
life.
The exist cnce of banks and the circulation
of bank paper are 50 Identified with the habits
OF our people, that they cannot at this day Ue
Suddenly abolished without mach immediate
injury 10 the countrv. II we could co"tine
them 10 theI. appropriate sphere, and prevent
them fvOn administering 10 the spirit of wild
and reckless speculation by eXtraragaut loans
and issues they might be continued with ad-
vantage 70 the public.
But this say, after long ard much reaec-
ton if experience shall prove il 10 be impos-
sibc TO enjoy the facilities which well regaltt-
ed banks m ght afford, without at the same
me suffering the cala1it;eS which the exces-
e, Of the banks have hitherto inflicted upon
the country, it would then be far the lesser
evil tc deprive them altogether of the power 10
issue y paper currency and couine them 10 the
functions OF banks of deposit and discount.
OnT relations with foreign governments are,
upon the whole, in g satisfactory condition.
The diplomatic difficulties which existed be-
TIVE the Government OF the United States
and that of Great Britain 1t the adjournment
OF the last Congress hare been happily termi-
mated the app ointment of British minister
70 this country, who has been cordially receiy-
ed.
Whilst it IS greatly to the interest, as an
convinced it is The sincere desire, OF the Co.
verameuts and people Of the TWO countries 10
be on terms OF intimate friendship with each
other, il has been our misfortune almost al
ways to have hsd some Irritating, If hot dan
gerous outstanding question with Great BTi-
tain.
Since the origin OF the Government We hare
been employed in negotiating treaties with
that power. and afterwards in discussing their
true intent and meaning In this respect, the
Convention of April l9.lS50. Commonly called
The Claytoa and BuIwer treaty, has been the
most unfortunate of all because the TWO Gor
ernments place directly opposite aud coGtra-
dictory constructions upon it's drSt and most
important article Whilst in the United
States, we telieved that this treaty would
place both powers upon the exact equality by
the stipulation that neither Siil ever " cccEp7
OK fortily or coloniEe, or assume or exercise
any dominion" over any part OF Central Amer.
ica, it is coRt.ndei by the British Government
that the true construction of this language
has left them in the rightful possession OF al
hat portion OF Central America which was in
rha:r n.,-r,r,arrr at the ds.a ~ ths frsr.r IN