Arkansas true Democrat., 1857-12-22
PRESIDENTS MESSAGE.
Fclyow- Citizens cf the Senate
 and House of Representatives:

put HTSt anu duONe all, our tnallKS are que to Almighty God for the numerous benefits which He has bestowed upon this people: and our united prayers ought to ascend to Him that He would continue to bless our great republic in time to come, as He has blessed it in time past Since the adjournment of the last Congress our constituents have enjoyed an unusual degree of health. The earth has yielded her fruits abun- dantly, and bountifully rewarded the toll of the husbandman. Our great staples have com manded high prices and up till brief period, our manufacturing, mineral, and mechanical oc- equations have largely partaken of the general prosperity. We have possessed all the elements of material wealth in rich abundance and vet, notwithstanding all these advantages, our coun- try in its monetary interests is at the present moment in deplorable condition. In the midst of unsurpassed plenty in all the produc- tions of agriculture and in all the elements of national wealth, we find our manufactures sus- pended, our public works retarded, our private enterprises of different kinds abandoned, and thousands of useful laborers thrown out of em- ployment and reduced to want. The revenue of the Government, which is chiefly derived from duties on imports from abroad, has been greatly reduced, whilst the appropriations made bv Congress at it's last session for the current fiscal year are very large in amount.
 Under the circumstances loan may be re- quired before the close of your present session; but this, although deeply to be regretted, would prove to be only slight misfortune, when con- pared with the suffering and distress prevailing among the people. With this the Government be without the power to extend relief.
 It is our duty to inquire what has produced such unfortunate results, and whether their re- curranca can he prayantod2 Tn ol1 form ro vulsions the blame might have been fairly at- tributed to variety of cooperating causes; but not 80 upon the present occasion. It is appa rent that our existing misfortunes have proceed ed solely from our extravagant and vicious sys- tenn of paper currency and bank credits exciting the people to wild speculations and gambling in stocks. These revulsions must continue to re- cur at successive intervals so long as the amount of paper currency and bank loans and discounts of the country shall be left to the discretion of fourteen hundred irresponsible banking institu- tions, which, from the very law of their nature, will consult the interest of their stockholders rather than the public wefaer.
 The framcrs of the Constitution, which gave to Congress the "power to coin money and to regulate the value thereof and prohibit States from coining money, emit bills of credit, or making anything but gold and silver coin a ten der in payment of debts, supposed they had pro- tected the people against the evils of an exces- sive and irredeemable paper currency. They are not responsible for the existing anomaly that the Government endowed with the sover- eign attribute of coining money and regulating the value thereof should have no power to prevent others from driving the coin out of the country and filling up the channels of circulation with paper which does not represent gold and silver.
 It is one of the highest and most responsible duties of the Government to insure to the people a sound circulating medium, the amount of which ought to be adapted with the utmost possi ble wisdom and skill to the wants of internal trade and foreign exchanges. If this be either greatly above or greatly below the proper stan- dard, the marketable value of every mans pro- perty is increased or diminished in the same proportion, and injustice to individuals well as incalculable evils to the community are the consequences.
 Unfortunately, under the construction of the | federal constitution, mhich has now prevailed too long to be changed, this important and deli cate duty has been discovered from the coining | power and virtually transferred to more than fourteen hundred State banks, acting indepen- dently of each other, and regulating their paper issues almost exclusively by regard to the present interest of their stock holders. Exercs- ing the sovereign power of providing paper currency, instead of coin for the country, the first duty which these banks owe to the public is to keep in their vaults a sufficient amount of gold and silver to insure the convertibility of their notes into coin at all times and under all circumstances.
 No bank ought ever to be chartered without such restrictions on its business as to secure this result. All other restrictions are comparatively void. This is the only true touchstone, the only efficient regulator of a paper currency-the only one which can guard the public against over-issues and bank suspension As colla teral and eventual security it is doubtless wise, and in all cases provision ought to be made that banks shall hold an amount of United States State securities equal to their notes in circulation and pledged for their demp- tion. This, however, furnishes no adequate security against overissues. On the con trary, it may be perverted to infate the cur rency. Indeed, it is possible by this means to convert all the debts of the United States and State Government into bank notes, without refe- renee to the specie required to redeem them.- However valuable these securities may be in themselves, they cannot be converted into gold and silver at the moment of pressure as our ex- perience teaches, in sufficient time to prevent bank suspensions and the depreciation of bank notes. In England, which IS to a considerable extent paper-money country, though vastly | behind our own in this respect, it was deemed advisable, anterior to the act of Parliament in 1844, which wisely separated the issue of money from the banking department, for the Bank of | of England always to keep on hand geld and silver equal to one- third of its combined circu- lation and deposits.
 If this proportion was no more than sufficient to secure the controvertibility of its notes, with | the whole of Great Britain, and to some exten, | of the continent of Europe, as field for its cir culation, rendering it almost impossible that g sudden and immediate run to a dangerous amount should be made upon it, the same pro. portion would certainly be nj sufficient under oul banking system. Each of Cur fourteen hundred banks has but limited circumference for its circulation, and in the course of few days, the depostors and note holders might demand from such bank sufficient amount in specie tc compel it to suspend, even although it had coin in it's vaults equal to one third of its immediate liabilities. And yet, I am not aware, with the exception of the banks of Louisiana, that any State bank throughout the Union has been re. quired by its charter to keep this or any othe proportion of gold and silver compared with the amount of its combined circulation and de. posits. What has bee then consequence? In recent report made by the Treasury Departmen on the condition of the banks throughout the diff ferent States, according to returns dated neares to January, 1857, the aggregate ountof actua specie in their vaults is $28, ,349, ,838, of the
 circulation $2l4, 4,778,822, and of their deposits $23O, ,351 1852. Thus it appears that thes, banks in the aggregate have consid ,rably les. than one dollar in seven of gold and silver, com pared with their circulation and deposits. Il was palpable, therefore, that the very first pres sure must drive them to suspension, and de prive the people of convertable currency witt all its disastrous consequences.
 It is truly wonderful that they should have so long continued to preserve their credit, wher demand for the payment of one.seventh O their immediate liabilities would have driver them into insolvency. And this is the condi ton of banks, notwithstanding that four hun. dred millions of gold fom California have 1 flowed in upon us within the last eight years and the tide still continues tO flow Inda al