Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1857-12-19

in coin will pass into circulation, and mate.
rally assist in restoring a sound currency.
From is high credit, should we be COMPEL
ed to make a temporary loan, it can be eff
fected on advantageous terms. This, how
ever, 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
eminent works in progress shall be sus-
pended, new works, not already commenc-
ed, will be postponed, if this ear be done
without injury to the country. Those nee
esSarp for It's defence shall proceed as tho
there had been no crisis in our monetary
affairs.
NO LEGISLATION ON THE CURRENCY.
But the federal government cannot do
mnch to provide against recurrence Of ex-
listing evils. Even if insurmountable Con
stitutional objections, did not exist against
the creation of a National Bank, this void
furnish no adequate security. The history
of the last Bank of the United States a
bundantly proves the truth of this asser-
ton. Such a Bank could not, if it would
regulate the issues and credits of fourteen
hundred State Banks in such a manner as
to prevent the ruinous expansions aud con-
ira tons in our currency which afflicted the
country throughout the existence Of the
late bank, or secure us against future sus,
pensions.
In 1925 an effort was made by the Bank
of England to %curtail the issues of the coun
try Banks under the most favorable cir
cumstances The paper currency had been
expanded to a ruinous extent, and the
Bank put porth all its power to contract it
in order to re duce prices and restore the
equilibrium of the foreign exchanges. 1t
accordingly commenced a system of cur
tailment of its loans and issues, in the vain
hope that the joint stock and private banks
Of the kingdom would be compelled to fol
low its example. 1t found, however, tina;
as it contracted they expanded, and at the
end of the process, to employ the language
of a very high official authority, ''whatevei
reduction of the paper currency in %circula-
ton was effected by the Bank of England
Gin 1929 was more than made up by the
issues of the country banks"
But a bank of the United States would
not, if it could, restrain the issues and loans
of the State Banks, because it's duty as a
regulator of the currency must often be in
direct conflict with the interests of its stock
holders. If we expect one agent to restrain
or control another. tn air interests must, a.
least in some degree, be sntagonistic.-
But the directors of a Bank of tho United
States, would feel the same interest and
the same inclination with the directors Of
the State Banks to expand the currency, to
accommodate their favorites 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 evil. If
they will afford us a real specie basis for
our specie circulation by increasing the de-
nomin ton 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 dollars OF
their circulation and deposits; and if they
will provide by a selfexecuting enactment,
which nothing can arrest, that the mo
ment they suspend they shall
90 into liquidation, | believe that such
provisions, with a weekly publication By
leach bank of a statement of its condition
, would 90 far to secure us aginst future sus
5 pensions Of specie payments.
BANKRUPT LAW.
Congress in my opinion possesses th
!, power to pass an uniform bankrupt law
applicable to all banking institution
throughout the United States, and | strong
" recommend its exercise. This woul'
make it the irreversable organic law 0
each banks existence that a suspension 0
r specie payments shall produce its civi
de tn. The instinct of self preservation
would then compel it to perform its dutie,
in such a manner as TO escape the penalty
aad preserve its life.
The existence of banks and circulation
Of bank paper are SO identified with the
habits of the people, that they cannot, al
this day, be suddenly abolished without
much immediate lnJu y to the country
If we could confne them to their appro.
pirate sphere and prevent them from adj
ministering to the spirit of wild and reck-
less speculation, by extravagant loans and
issues, they might. be continued with ad-
vantage 10 the public.
But this | say, after long and much re-
Election, if experience shall prove it to be
{ impossible to enjoy the facilities which well
regulated banks might afford, without al
the same time suffering the calamitles
which the exesses Of the banks have hither
to inflicted on the country it will then be
far the lesser evil to deprive them alto
} gether of the power to issue a paper cur
rency and conform them to functions Of
banks Of deposit and discount.
FOREIGN RELATIONS.
j Our relations with foreign government;
are, on the whole, in a satisfactory condi
ton. THE diplomatic difficulties which
/ existed between the government Of the
/ United States and Great Britain at the
J adjournment Of the last Congress, have
been happilv terminated by the appoint.