Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1857-12-11
Congressional.
pRFstnENrIs MESSAGE

IN chcfsncc 10 the command VI the Constitution &
has nov become my duty 90 give 90 Congress iuf1rna
ton & the state ofhc Union. and recommend to thci
ccfsdcraton such measures as Judge TO be noccs
r-yy and cxpcdiont"
mighty God for the bcnchts which De has be-
slowed upon this pcoplc and our united prayers ought
TO ascend TO Him that He would continue to bless
great republic n umc to come as llc has blessed 81 in
time past Since the adjournment n the last Cougrcs,
our constituents have enjoyed an unusual degree OF
health The earth has yielded her fruits abundnufly and
has bountimlly rewarded the toll Of the hushaudmnn
Our great staples have commanded high prices. and ur
til within n brief period our manufacturinp mineral and
mechanical occupations have largely paraken Of the gen
eral prosperity. We have possessed all the elements oil
material wealth in rich abundance, and yet, notwu.
standing All these advantages, our country, In It's
ary interests is at the present in dcplorablc
condition. In the midst Of unsurpassed plenty In all tho
proa9oons OF agriculture and in all the elements Of ma
uonai wealth we Ind our manufactures suspended,
public works retarded private enterprises Of differ
snt kinds abandoned and thousands Of useful aborcr,
hroMn out OF employment and reduced 10 want. IN,
revenue Of the government. which is chiefly derived from
denes on imports from abroad has been greatly reduced.
whilst the appropriations made by Congress at is last
session Tor the current fiscal year very large in
amount
Under these circumstances a loan may be- required be-
ore the close uf the present session bu this although
deeply 10 be regretted, would prove 10 De only slight
misfortune when compared with The suffering and distress
mont cannot fail deeply 10 sympahiso, although it may
be without the power to excnd relief
II is our duty TO inquire what has produced such
fortunate results, and whether their be
prevented In all former revusiuus tho blame might
have been fairly attributed to variety Of cooperating
causes but not sapon the present occasion h Is APP
parent that existing msforunes have proceeded sole
~ from our cxirayglnt and vicious system of paper
r5ney and hank credits exciting The people 90 Wild spec
uhiions and gambling IN stocks. These rc,usious must
continue to rucur at successive intervals so long the
amount OF the paper currency aud bank loans and dis
counts OF inc country shall bc cit 20 the discretion n
IouIteen hundred irresponsible banking institutions,
winch rom The very law " their nature will consult the
fare.
The rimcrl Of the constitution when they gave to
congress the rover coin money and 70 REGULATE the
value thereof md prohibited Tho States nom coinYy
money, emitting bills 81 credit making u,iug bat
gold and silver coin tender ia payment Of debts sup
posed they had protected the people against the evils N
an excessive aud irredccmahlc paper currency. They
arc not responsible for the existing anomal, that poy-
eminent endowed with the sovereign attribute of coming
money aud regulating The vamc thereof should have no
power 10 prevent others from driving This coin ont Of the
country and filing up the channels Of circulation with
paper which docs not represent gold and silver.
II Is ono ~ The highest and most responsible duties Of
government 10 insure to the people sound circulating
medium, the amount Of which ought be adapted with
with the utmost nossihlc wisdom and sil 10 fe wants
Of internal trade and f,rren cxeh,nros If,bis be r
her greatly above greatly below the proper standard
INC maiketalc value Of every mans property is incrcns-
ca or diminished in the same proportion and injustice
individuals MS well as incalnlable evils the connu-
nifty are the consequence.
Unfortunately under the construction of The federal
constitution. which has nnw prevailed too long 20 be-
changed this Important aud delicate duty has been dis
severed rom hc cong power and virtually transferred
TO more than fourteen hundred State banks acting indie
pendeniy Of each other and regulating their paper issue
almost exclusively by regard t. the present interest Of
their stockholders Fxcrri u1 tho .,vcr.i,r ~ ,riJ
ING paper CURRENCY instead Of coin Tor the country
the htst duty which these banks owe TO the public is 10
keep IN their vaults sufficient amount Of gold aud silver
70 insure the conycrihy of their notes into coin at all
vhu uhNe' AZ circumstances. NO bank ought
to be chartered without such restrictions on It's business
p 10 secure tla result All other restrictions
'tauasy VAIN ms Is the only true tombstone, the
DnY eicent regulator q paper curencythe only one
Noh can guard the public against over issues aud bank
suspensions As collateral and eventual security It is
tn lF III
lank. shall hold an amount Of United States or State
erutles equal u their notes in circulation and pledged
OF theii redemption This, however, furnishes no a1c-
luate security against oVer-issucs On the contrary
nay be perverted 20 maltc the currency Indeed h Is
lossioe by This means to all the debts Of the T.
IN stHtes ana state governments into bank notes.
,not reference 70 the specie required redeem them
o ,t saluanie these securities may be in them
u.s. ey elhnot nc converted into gold and silver
ne moment Of pressure. experience teaches in
uhclent time TO prevent bank suspensions and the de-
recitation OF bank notes In England which is to n con-
dcrablo extent paper money country tbough vastly
ehind our own IN this respect il deemed advisable
Interior TO nc act Of Parliament in 1914 which wisely
'pHraed INC issue OF notes from the banking depart
ieit ior the Bank Of England always to keen on hand
od and silver equal to third ofits combined ercula
rhceht to secure the conyertibiy Of its notes. with
e whole Of Great Britain and some extent the con-
hent OF Europe, as field for its circulation rendering
utmost Impossible mat sudden and immediate run 10 o
dangerous amount should he made upon H. the same n
opor'ion would certainly be insuihcont under our {
mixing system Each Of our fourteen hundred banks n
IS bat limited circumference circulation and in
9 course OF very few days the deposors and note
,ne,s might demand from such bank sufficient
cunt OF specie 70 compel II 10 suspend. even although
hau com IN its vaults equal to onc-third of its nlme-
ale liabilities And yet am aware with the cx- o
'pon OF the banks Of louisiana that any State bank \
Union has been required by its charter to
ep nus or any other proportion Of gold and silver
I'PlIea "th the amount Of its combined circulation y
lu ueposits what has been the consequence? In
cent report made by the Treasury Department on the
'ndiuon OF the banks throughout the different States
'eordng to returns dated nearest to January 1887 Tho
in
ys'o, o. thgr circulation S2l7SS22, and of their de
lsltes S23D SOL 1852 a
Thus appears that these bank, in tc o,,,re,o, ,
hseiahly less than one dollar in seven Of gold and o
Net compared with their circulation and deposes 1t O
Ppaoe' therefore that the very rstl pressure
~ .nSh 70 suspension and deprive the people Of q
'n'eube currency with all its disastrous conscauenees
rs sVy wonderful that they should have long con
eu u preserve their credit, when demand for the
iyment OF nne-sevenh Of their immediate liabilities
oua nave driven thcm TO insolvency. Aud this is the
'ndition Of the banks Notwithstanding that fnnr hun
red millions Of gold from California have flowed in non
thn me last eight years, and the tide still continues
l9w. indeed such has been the extravaganza of bank
specie either IN proportion To their capital their
teuauon or depostes combined, than they did before
70 discovery Of gold in California Whilst in the year
no 'helr specie IN proportion 10 their capital more
IAN equal % dollar for fur and half in 1857 il docs
o amount to one dollar for every six dollars aud thirty
lree cents OF their capital In the year SlS the specie
AS equal within very small fraction dollar in
we Of their circulation and deposits in 1857 it is not
qual TO- one dollar In seven and half Of their circula
Ion and deposits.
From this statement il is easy to account for our nan
ia history for the last forty years Ii has been hsto
OF eNtrlvagant expansions In the business Of the
ountry, followed by ruinous contracons At successive
intervals the best and most entcrprsng have been
ePeu 10 their ruin by excessive bank loans Of mere
reut ckeiung them 20 eNtrayagant mDoratons Of for
ign goods Wild specuatons, aud ruin0us and demoral-
eng stock gambling. When the crisis arrives as arrive
must the banks can extend no relief % the neople-
vain struggle to redeem their liabilities in specie
hey are compelled contract their loans and their is
ues and at last in the hour Of distress when their as
istance Is most needed they and their debtors topother
ink into insolvency. o
1t IS this paper system Of oxravagant expansion r
ng the nominal price Of every article far beyond H. real
aue' When compared with the Of similar articles in
ohues whose circulation Is wisely regulated which
rs prevented as from competing in own markets
1th ioregn manufacturers, has produced eNtrayagant
hpoauons and has eounteraeed the effect Of the large
accidental protection afforded our domestic nanuflc-
ures by the present tariff. But for this the
ranches Of our manufactures composed of raw tnateri
IS the production Of our countrysueh as cotton
ron and wooden iabrics-would only have acquired
lnost exclusive possession Of the home market hut
you'd have created for themselves a foreiun market
throughout the world.
Deporablei however as may be our present financial
ondition we may yet indulge In bright hopes for the m
e 70 olher nation has ever existed which could have
nanrs such violent expansions and contractions Of ma
yer credits without lasting injury yet the huoyancv Of
onth the energies Of our population, and the spirit
'hleh never qnails before difficulties will enable rs soon
% recover from present financial embarrassment and
hey have tauRht ~
~ the mean time il is the duty Of the government by
~ PtopeI means within its power 10 aid in allovating
ne suuengs OF the people Occnsi0ned hy the suspension