Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1857-12-09
Presidents Message.

Union, and recommend to their consideration
such measures" as judge to be Unnecessary
and expedient."
But first, and above all, our thanks are due
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 abundantly, and has boun-
tfully rewarded the toll of the husbandman.
Our great staples have commended high
prices, and, up till within brief period, our
manufacturing, mineral and mechanical occu-
pations have largely partaken of the general
prosperity. We have possessed all the ele-
ments of material wealth in rich abundance,
and yet, Notwithstanding all these advanta-
ges, our country, in its monetary interests, is
at the present moment in deplorable condi-
ton. In the midst of unsurpassed plenty in
all the productions of agriculture and in all
the elements of national wealth, we find our
manufactures suspended, our public works re-
tarded, our private enterprises of different
kinds abandoned, and thousands of useful la
borers thrown out Of employment and reduced
to want. The revenue of the government,
which is chiefly derived from duties on i'm
ports from abroad, has been greatly reduced,
whilst the appropriations made by Congress
at its last session for the current fiscal year
are very large in amount.
Under these circumstances loan may be
required before the close of your present ses-
sion but this, although deeply to be regret
ted, would prove to be only Sigh mis-
fortune when compared with the suffering and
distress prevailing among the people. With
this the government cannot fail deeply to
sympathise, though it may be without the
power to extend relief,
Its our duty to inquire what has produced
such unfortunate results, and whether their
recurrence can be prevented ? In all former re-
WILSON'S the blame might have been fairly at
tributed to a variety of cooperating causes; but
not SO upon the present occasion. 1t is
apparent that our existing misfortunes have
proceeded solely from our extravagant and
vicious system of paper currency and bank
credits, exciting the people to wild specula-
ions and gambling in stocks. These revul-
sions must continue to recur at successive in
teryals so long as the amount of the paper
c urrency and banks loans and discounts of
the country shall be left to the discretion of
ASNANNSA ASoPOlolbAO III
situations, which from the very law of their
nature will consult the interest oftheir stock
holders rather than the public welfare
The trainers of the constitution, when they
gave to Congress the power ITO coin money
and to regulate the yalue thereof" and pro-
hibited the States from coming money emit
ting bills of credit or making anything but
gold and silver coin tender in payment of
debts, supposed they had protected the PEG.
pie against the evils of an excessive and ire
deemable paper currency. They are not re-
sponsible for the existing anomaly that
government endowed with the sovereign at
tribute of coming money and regulating the
value thereof should have no power to pre-
vent others from driving this coin out of the
country and filling up the channels of circu-
lation with paper which does not represent
gold and silver
tits one of the highest and most response
BILE duties Of government to insure to the
people a sound circulating medium, the
amount Of which ought to be adapted with
the utmost possible wisdom and skill to the
wants of internal trade and foreign exchanges
If this be either greatly above or greatly below
the proper standard, the marketable value of
every mans property is increased or dimin-
ished in the same proportion, and injustice
TO individuals as we'll as incalculable evils to
the community are the consequence.
Unfortunately, under the construction of
the federal constitution, which has now pre-
vailed too long to be changed, this impor-
tant and delicate duty has been discovered
from the coming power and virtually trans
ferred to more than fourteen hundred State
banks, acting Independently of each other, and
regulating their paper issues almost exclu-
sively by regard to the present interests of
their stockholders. Exercising 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 cir
cumstances No bank ought ever to be char
tered without such restrictions its bust ness
as to secure this result. All other restrictions
are comparatively vain. This is the only
true touchstone, the only efficient regulator of
paper currency-the only one which can
guard the public against over issues and bank
suspensions. As collateral and eventual
security it is doubtless wise, and in all cases
ought to be required that banks shall hold an
amount of United States Or State securities
equal to their notes in circulation and pledged
for their redemption. This, however, furnish
es no adequate security against over Issues
On the contrary, it may be perverted to initiate
the currency. Indeed, it is possible by this
means to convert all the debts of the United
States and State governments into bank notes
without reference to the specie required to
redeem them. However valuable these secu-
rites may be in themselves, they cannot be
converted into godand silver at the moment
of pressure, as our experience teaches, in suf-
hcient time TO prevent bank suspensions
and the depreciation of bank notes.
In England, which is to a considerable
extent a paper money country, though
vastly behind our own in this respect, It was
deemed advisable, anterior to the act of Par
lament of 1874, which wisely separated the
issue Of notes from the banking department.
for the Bank Of England always to keep on
hand gold and silver equal to one-third of its
combined circulation and deposits If this
proportion vas no more than sufficient to Sc
cure the convertibiity of its notes, with the
whole Of Great Britain, and to some extent
the continent of Europe, as field for its cir
culation, rendering it almost impossible that
sudden and immediate run to dangerous
amount should be made upon it, the same
proportion would certainly be insufficient UNI
der our banking system. Each of our four
teen hundred banks has bnt limited circum-
ference for its circulation, and in the course
Of very few days the depositors and note
noteholders might demand from such bank
sufficient amount of specie to compel it to
suspend, even although it had coin in its vaults
equal to one-third of its immediate liabilities.
And yet am not aware, with the exception
Of the banks of Louisiana, that any State
a.. 4. ~. ~