Holmes County Republican. [volume] (Millersburg, Holmes County, Ohio) 1856-1865, 1857-12-10
SY YNOPSIS
Presidents Message,
WASHINGTON, Dec. s


numerous benefits he has bestowed on this
people. We have possessed all the ele-
ments Of material wealth in rich abundance
and yet notwithstanding all these adYanta-
ges, our country in its monetary interests
is at the present moment in deplorable
condition. In the midst of unsurpassed
plenty in all the productions of agrieultu-
raj and all the elements of national wealth,
We find our manufactures suspended, our
public works retarded, our private enter
prises of different kinds abandoned, and
thousands of useful laborers thrown out of
employment and reduced to want.
The revenue of the Government which
is chiefly derived from duties on imports
from abroed, has been greatly reduced,
whilst the appropriations made by Con-
gress at its last session for the current fis-
cal year are very large in amount. Under
these circumstances a loan may be required
before the close of your present session !;
but this, although deeply 10 be regretted,
will prove to be only slight misfortune
when compared to the suffering and dis
tress prevailing among the people. With
this the Government cannot fail to deeply
sympathise, though it may be without the
power extend relief. He inquiries what has
produced these unfortunate results and
whether their recurrence can be prevented.
1t is apparent that they have proceeded
solely from our extraragant and vicious
system of paper currency and bank credits,
exciting the people to wild speculation and
gambling in stocks. These revulsions
must continue to recur at successive inter
walls so long as the amount of the paper
currency and bank loans and discounts of
the country shall be left to the discretion
of 140O irresponsible banking institutions,
which, from the very law of their nature
will consult the interest of their stockhold-
ers rather than the public welfare, exercis-
ing the sovereign power of providing pa
per currency instead of coin for the coun-
try. The first duty which these banks owe
to the public, is to keep in their vaults a
sufficient amount of gold and silver to in
sure the convertability of their notes into
coin at all times and under all circumstan-
ces. No bank ought ever to be chartered
without such restrictions on its business
as 10 secure this result
Our financial history for the last 40
years has been history of extrvagant ex-
pansions in the business of the country,
followed by ruinous contractions at success
i've intervals. The best and most enter
prising men have been tempted to their
ruin by excessive bank loans of mere paper
credit, exciting them to extravagant impor-
tations of foreign goods, wild speculations
and ruinous and demoralizing stock gamb-
ling When the crisis arrived, as arrive it
must, the banks can extend no relief to the
people; in vain struggle TO redeem their
liabilities in specie they are compelled to
contract their loans and their issues, and
at last, in the hour of distress, when their
assistance is most needed, they and their
debtors sink together into insolvency, In
the meantime it is the duty of the Gov
ernment, by all proper means within its
power, to aid in alleviating the suferings
of the people occasioned by the suspension
of the banks, and TO provide against the
recurrence of the same calamity. Unfortu-
nately, in either aspect of the case it can
do but little.
Thanks to the Independent Treasury,
the government has not suspended pay
ment as it was compelled 10 do by the fail
ure of the banks in 1887. 1t will contin-
ue to discharge its liabilities to the people
in gold and silver. Its disbursements in
coin will pass into circulation and materi-
ally assist in restoring sound currency
From its high credit, should we be COM
PEELED to make a temporary loan, it can be
effected on advantageous terms. This
however, shall, if possible, be avoided, but
if not then the amount shall be limited to
the lowest practicable sum. | have there
fore determined that whilst no useful Gov
ernment works in progress shall be sus-
pended new works not already commenced
will be postponed, if this can be done with
out injury to the country. Those neces-
sary to its defence shall proceed as though
there had been no crisis in our monetary
affairs, but the Federal Government can do
much to provide against a recurrence of
existing evils even if unsurmountable Con-
stitutiohal objections did not exist against
the creation ola National Bank, this would
furnish no adequate preventive security
The history of the last Bank of the U. S..
abuntantly proves the truth of this assertion
after all we must mainly rely on the patri-
otism and wisdom of the States for the
prevention and redress of the evil if they
will afford us a real specie basis for our
paper circulation by increasing the denom-
ination of bank notes first to 500 and af-
forwards to $50 if they will require that
the banks shall at all times keep on hand
at least one dollar of gold and silver for
every three dodlars of their circulation and
and deposits, and if they will provide by a
selfexecuting enactment, which nothing
can arrest, that the moment they suspend
they shall 60 into liquidation. 1 believe
that such provisions, with weekly public
alton by each bank of statement of its
condition, would 60 far to secure us against
future suspension of specie payments.
Congress, in my opinion, possesses the
power to pass uniform bankrupt law ap-
plicable to all banking institutions through
out the U. S., and strongly. recommends
its exercise. This would make it the ire
versible organic law of each banks exist
ence, that supension of specie payments
shall produce its civil death. The exist
ence of banks, and the circulation of bank
paper, are so identified with the habits of
our people, that they cannot at this day be
suddenly abolished without much imme-