Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1857-12-16

assist IN restoring sound currency -
From its high credit, should we be ccm-
PEELED to make temporary loan, it can
be effected on advantageous terms s.
This, however, shall, if possible,
be avoided; but, if not, then the amount
shall be limited to the lowest practicable
sum.
1 have therefore, determined that
whilst no usefu. government works already
in progress shall be suspended. new
works not already commenced, will be
postponed. if this can be done without
injury 10 the country. Those necessary y
for its defence shall proceed as though
there had been no crisis in our monetary
affairs.
But The Federal Government cannot do
much to provide against recurrence of
existing evils Even if insurmountabIe
constitutional objections did not exist
against the creation of a National Bank,
this would furnish no adequate proven
tive security. The history OF the last
Bank of the United States abundantly
proves the truth of this assertion. Sucn
bank could not, if it would, regulate
the issues and credits of fourteen hundred
State banks in such a manner as 10 pre-
vent the Iuinous expansions and con.
fractions in our currency which inflicted
the country throughout the existence of
the late bank, or secure us against future
suspensions. In 1925, an effort was
made by the Bank OF England to curtail
The issues of the country banks under
the most favorable circumstances. The
paper currency had been expanded TO
rainous extent, and the Bank put forth
all lis power 10 contract il, lii order TO
reduce prices and restore the equilibrium
of the foreign exchanges. 1t taccOrding
ly commenced a system of curtailment
of its loans and issues. in the vain hope
that the joint stock and private banks OF
the kingdom would be compelled 10 fol-
low It's example. IL found, however.
that as il contracted they expanded;
and at the end of the process, TO employ
the language of very high official au
Ihcrity, "whatever reduction of the pa
per circulation was effected by the Bank
Of England lin ls25) was more than
made up by The issues OF the country
banks"
Bat the Bank of the United States
would not, if it could, restrain the issues
Of the slate banks, because lis duty as a
regulator of the currency must often be
in direct conflict with the immediate in
teresIs of It's stockholders. Ii We ex
pect our agents TO restrain or control
another, their interests must, al least, in
some degree, be antagOnsiic. But the
directors of Bank of the United States
would feel the same interest and the
same inclination with the directors Of The
States banks 10 expand the currency, to
accommodate their favoriles and friends
with loans, and 10 declare large dividends.
Such has been our experience in regard
10 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. |
Ii they will afford us real specie basis
for our paper circulation. by increasing
the denomination of bank notes, first TO |
twenty, and afterwards TO fifty dollars;
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 1
dollars of their circulation and deposits;
and il they will provide by seli-execuil
ing 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 is condi-
Iion, would go far 10 secure US against
future suspensions of specie payments
Congress. in my opinion. possesses
he power 10 pass a unifoi nj bankrupt
aw applicable TO all banking Institutions
throughout the United States, and strong
y recommend its exercise. This would
make it the irrcversibie organic law If
zach banks exis ence, that suspension
1f specie payments shall produce its
civil death. The instinct of self i-preser
Tation would then compel it TO perform
Is duties in such manner as to escape
ne penalty and preserve its life.
The existence of banks and the circu
alton of bank paper, are SO identified
With the habits of eur people, that they
;annot at lhis day be suddenly abolished
Without much immediate injury TO the
:ountry. If we could confne them 10 ,
heir appropriate sphere. and prevent .
hem from administering to the spirit of
Wild and reckless speculation by extrav-
isant loans and issues. they might be ;
with advantage 10 the public ,
But this l say, after long and much
efiection; if experience shall prove it to
'e impossible to enjoy the facilities
which well regulated banks might afford,
without at the same time suffering the
slamities which the excesses of the {
'auks have inflicted upon the county,
t would then be far The lesser evil t. 5
eprive them altog of the power to {
ssue paper currency and confine them i
o the functions of banks Of deposit and S
iecount
Our relation with foreign governments, t
re upon the whole, la a satisfactory
ondiiion.
The diplomatic difficulties which ex- 1
sted between the government of the c
United States and that of Great Britain, {
1 the adjournment of the last Congress, a
ave been happily terminated by the ap- |
of British Minister 10 this E
ountry, who has been cordially receiv. a
d. r
Whilst il is greatly TO the interests, as f
am convinced it is the sincere desire, of il
be governments and people of the two L
ountries TO be on terms of intimate 1
riendship with each other, it has been Il
ur misfortune almost always TO have /
ad some irritating. il not dangerous p
question with Great Britain. r.