Carroll free press. [volume] (Carrollton [Ohio]) 1834-1861, 1857-12-17


o Tue ,udipeu lent treasury, the govern
nens has not suspended payment, as it
was compelled so do By the failure Of the
banks 10 1887. Is win continue to dis
charge its liabilities 10 the people IN
gold and silver. Its disbursements 10
coin will pass into eircriatieo. aud ma
ierially assist in restoring a sound cur
reneY. From its hisa credit, should we
be compelled to make a temporary loan
{ can Be eFested on advantageous terms.
Thus, hOSever, shall, if possible, be a.
vo,ded but il not, then ths amount sh all |
be limited to the lowest practicable sum. |
l have therefore, determined that Whist |
NJ usua. government works in progres !
shall be suspended, new works, not al.
ready commenced, will be posponed, if
this can be done without Injury 10 the
country. Those necessary for its de-
fence shall proceed as though there had
been no crisis in our monetary affairs.
But the federal government cannot do
much to provide against a recurrence Of
existing evils. EVeI il insurmountable
constitunal objections lid not exist again
the creation Of a national bank, this
would furnish no adequate preventive
securily.-The history Of the last Bank
of the United States abundantly proves
the truth of the assertion. Such bank
could not, if it would, regulate the issues
and credits of fourteen hundred State
banks 10 such a manner as to prevent
the ruinous expansions aud contraclions
in our currency which afflicted the eoun.
try tbrougOut the ezistance of the late
bank, to secure US against future sus-
pensions.
Iu 1852 an effort was made BY the
Bank of England to curtail tho issue of
the country banks under the most favor.
able circumstances. The pa2or currency
had been expanded to ruinous extent and
the Bank put forth all its power, to con.
tract it 10 order to reduce prices and Cd. .
tore the equilibrium of the foreign ex-
changes. 1t accordingly commended a
System Of curtailment of its loans and is.
sue, in the vain hope that the joint stock
aud private banks of the kingdom would
be compelled to follow its example. 1t
found, however, that as it contracted
they expanded, aud at the end of the
process, to employ the language of a
very high official authority, "whateVer
reduction of paper circulation was effect
ed by the Bank of England fin 1881
was more than made up by the issues of
the country banks"
But q Bank of tho United States
would not, if it could, restrain the issue
aud loans Of the State b1nks, because its
duty as regulator of the currency must
often be in direct conflict with tho i'm
mediate interest of its stockholders. II
we eqpect one agent to re strain ar con>
troll another their interests must, at least
in some degree; be 0ntagonistic. But
the nlrectors at Bank of tho United
States would fcol the same interest and
the same inclination with the directors
OF the State banks to ezpeni the curren
cy, TO accommodate their favoritos 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 o.
wills. If they will afford us real specie
basis for our paper circulation by increas
ing the denomination of bank notes, first
to twenty, aud afterwards to fifty dollars
if they will require that tie banks shall
at all times Feep on hand Mt least Que
dollar in gold and silver for every three
dollars of their circulation and deposits:
and if they will provide By solf-cxocu'
ting eua,tmeut, which nothing en- ar.
rest, that tho moment they suspend they
shalkgo into liquidation. believe thai
such provisions, with weekly publica'
ton by each bank OF statement of its
condition would go far to secure us a
gainst future suspensions of specie pay
ments.
Cougross, in my opinion, possess th,
power to pass uniform bankrupt Law
= applicable to all banking institution
, throughout the United States, and
: strongly recommend its exercise. Thi
: would IN AXE it tho irrovorsble orgaLi
, law of each banks existence, that gu
$ pension of specie payments shall produc
! its civi! death. The instinct of self. pres
: ervation would then compe, it to per
: form its duties in such manner q
to escape the penalty and preserve it
/, lifl.
/ The existence of banks and tho cir
s culation Of bank paper are so identified
0 with the habits of our people, that the,
3 canuOt to this day be suddenly abolished
Y without much immediate injury to th
j country, Ifw9 could confne them tt
f thOir appropriate sphere, and prcyou
{ them from administering to the spirit t,
: wild aud reckless speculation by extrav
agant lanes and issues, they might b.
/ continued with advantage to the pub
f lie.
B But this I say, after long and matur
r reflection, if experience shall prove i
5 to DO impossible to enjoy The facilitie
T. which will regulated banks might affor,
D without at the Same time suffering th
3 calamities which the oxccsses of tn
] banks have hitherto Inflicted upon th
0 country, it would thea be Ear the losse
r evil to deprive them altogether of th
t powCr to isspe q paper currency, an,
o confna thpm IN tne funcl;nps of n h,ni