The weekly north Iowa times. [volume] (McGregor, Iowa) 1857-1867, 1857-12-16

Dur Of dit 'ess: xhcn t.o:r assistance is most
cedcod, they and th,ir dcLto,s together sink ,
ito insolvency.
It is this paper system Of extravagant expan.
on, raising the nominal price Of every article
IF beyond its real value, when compared with
he cost of similar articles in countries whose
REGULATION is wisely regulated, which has pre-
cnted us from competing in our own markets
nth foreign manufacturers, his produced cx.
ravagant importations, and has corntcractcd
he effect of the large incidental protection at
orded 10 our domestic manufacturers by the
resent revenue tariff. Bat for this tho branch
q of our manufactures composed OF law mate
ials, the production of our own country-such
Is cotton, iron. and wooden fabrics-N ould not
,nly have acquired almost exclusive possession
IF the home market, hut would have created
for themselves q foreign market throughout the
world.
Dtplorablc. however, as may be our present
financial condition, We may yet indulgein bright
hope for the future. No other nation has ever
existed Which could have endured such violent
expansions and contradictions Of paper credits
without lasting injury; yet the buoyancy OF
youth, the energies of DIR population, and the
enable us soon to recover from our present H.
nancial embarrassment, end may even occasion
us speedily to forget the lesson which they have
taught.
In the meantime it il the duty of the Gov
eminent, by all proper means within i,s powers,
to aid in alternating the suferings Of the people
occasioned by the suspension OF the banks, and
to provide against a recurrence Of the same
calamity. Unfortunately, in either aspect Of
the case, it can do but little. Thanks to the
independent Treasury, the Government has not
suspended payment, ~ it was compelled to do
by the failure of the banks in 1891. 1t will
continue to discharge its liabilities to the peo-
pie in gold and silver. Its disbursements in
coin will pass into circulation. and materially
assist in restoring . sound currency. FIom
its high credit, should we be compelled to make
q temporary loan, it can 10 effected On advan-
tagcous tearms. This, however, shall, if poss-
ible, be avoided !; but, if not, then the amount
shall be limited to the lowest practicable sum.
have, therefore, determined that whilst no
useful Government works already in progress
shall be suspended, new woiks, not already
commenced, will be postponed, if this can he
done without injury to the country. Those
necessary for it's defence shall proceed as though
there had been no crisis in our monetary at
fairs.
BIT the federal government can not do much
to provide against recurrence Of exciting evils.
Even if insurmountable constitutional objcc.
tions did not exist against the creation Of a
National Bank, this would furnish no adequate
preventive security. The history Of the last
Bank of the United States abundantly proves
tho truth Of this assertion. Such bank could
not, If it would, regulate the issues and credits
CT fourteen hundred State banks in such q man
ner as to prevent the ruinous extensions and
contractions in or currency which attic ed 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
Under the mott favorable circumstances. The
paper currency had been expanded 10 runous
extent, and the Bank put forth all its power to
contract it in order to reduce prices and restore
tho equilibrium Of the foreign exchanges. 1t
accordingly commenced ~ stem of curt;.ilme,.t
of its loans and issues, il the vain hope that
the joint stock and private banks Of the king.
dom would be compelled to follow its example.
Il found, however, that as it contracted they
expanded. and at the end Of the process, to en-
ploy the language ola very high official author
ify. "whatever reduction Of the paper civcula-
ton was effected by the Eank Of England lin
1881 was more than made up by the issues Of
the country banks
But Hank of the United States would not,
II it could, restrain the issue and loans of the
State Bank, beca' &c its duty as a regulator to
the currency must often be in direct conflict
with the immediate interest of its stockholders
1t we expect one agent to restrain or control
another, their interests must, at least in some
degree. he antagonistic. Fut the directors of a
Bank Of the United States would feel The same
interest and the same inclination with the d.
rcctors of the State Banks to expand the cur
rcncy, to accommodate their flvoritcs and
friends with loans, and to declare large divi.
| dtnds. Such has been our experience in regard
to the last Bank.
After ALL VIC nrst mainly rely upon the pat
rio'isn and wisdom Of the States for the pre-
| vention and redress of the evil. If they will
afford rs real specie basis for our circulation,
by increasing the denomination Of bank no es,
first to twenty and afterwards TO fly 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 circu-
la'ion and deposits; and if they will rovide,
by self-oxecuting enactment, which nothing
can arrest, that the moment they suspend they
shall 60 into liquidation, believe that such
provisions. with q weekly publication ty each
bank of a statement Of its condition, would 70
far to secure us against future susr ems ons OF
specie payments.
Congress, in my opinion, possesses the powe,
to pass uniform bankrupt law applicable to all
banking institutions throughout the United
States, and l strongly recommend its exercise
This would make it the irreversible organic law
Of each bank g existence, that a suspension O,
sEecie payments shall reduce its civil death
The instinct of self-prescrvation would Their
| compel it to perform its duties in such a man.
ncr as to escape the penalty and preserve it,
The existence of banks and the circulation
! of bank parer are no identified with the habits
OF our people, that they cannot at this day be
| suddenly abolished without much immediate
| injury to the country. II We could continue
them to their appro! rate sphere, and prevent
them from administering to the spirit of wild
and reckless speculation by extravagant loans
and issues, they might be continued with ad
vantage to the public.
But this l say, after long and much reilec
ton if experience shall prove it to be imposs
lble to enjoy the facilities which well regulate.
banks might affard, without at the same tin. {
suffering the calalnities which the excuses Of
the banks have hithel to inflicted upon the coun.
try, 1t would then be far the lesser G, il 10 deprive
them altogether of the power to issue a raper
currency and con6nc them to the functions oil
banks OF deposit and discount
Our relations with foreign governments arc
upon the whole, in satisfactory condition.
The diplomatic difficulties viii, h existed te-
tween the Government of the United States and
that OF Great Britain at the adjournment of the
last Congress have been happily terminated by
the appointment Of British minister TO this
country, who has been cordially received
Whilst it is greatly to the interest, as nm
convinced it is the sincere desire of the Gov.
ernments and people of the two countries to be
on terms OF intimate friendship with each her,
it has been our misfortune almost always to have
had some irritating, if not dangerous, outstand.
ing question with Great Britain.
Since the origin Of the Government We have
been employed in negotiating treaties with that
power, and afterwards in discussing their true
intent and meaning. In this respect, tie Con.
ve"tion of April ~. 1850, commonly called tie
Clayton and Bulwfr treaty. has been the most
unfortunate of all because the two Govern