Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1857-12-18


ven il surmounntable constitutional OBJ 4
,ctions did not exist against the creation of n
National Bank, this would furnish no ad- S
quate preventive security. The history of C
he last Bank of the United States abund- v
ntly proves the truth Of the assertion I
such bank could not, if it would, regu- 7
ate tho issues and credits of fourteen hun
Ired State banks in such manner as TO
,revent the ruinous expansions and contrac-
ions in our currency which afflicted the
ountry throughout tho existence of the lato
,ank, or secure us against furthersuspensions.
In 1852 an effort was made by the Bank
# England 10 curtail the issues of the
country banks under the most favorable cir
The paper currency had been
to a ruinous extent, and the bank
put forth all its power to contract it in or
der to reduce prices and restore the equili- !
brium of the foreign exchanges. It accor-
dinghy commenced system of curtsilment
of its loans and issues, in the vain hope
of the kingdom would be compelled to fol-
low its example. 1t found, however, that
as it contracted they expanded, and at the
end Of tho process, to employ the language
of very high official authority, "whatever
reduction of paper circulation was effected
by the Bank of England lin 1881 was
more than made up by the issues Of the
country banks"
But Bank of the United States would
not, if it could, restrain the issues and loans
Of the State banks, because its duty as
regulator of the currency must often be in
direct conflict with the immediate interest
of its stockholders. If we expect one agent
to restrain or control another their interests
must at least in some degree, be antagonis-
tic. But the directors of Bank Of the
United States would feel the same interest
and the inclination with the directors, of the
State banks to expand the currency, TO ac-
commodate 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 real specie basis for our pa
per circulation by increasing the denomina-
tion of bank notes, first TO twenty, and af-
forwards to fifty dollars; if they will require
that the banks shall at all times keep on
hand at least one dollar of gold or silver
for every three dollars of their circulation
and deposits; and if they will provide by a
self-exccuting enactment, which nothing can
arrest, that the moment they suspend they
shall go into liquidation. l believe that
such provisions, with a weekly publication
by each bank of a statement of its condi-
ton, would go far to secure us against fu-
turc suspensions of specie payments.
Congress, in my opinion, possesses the
power to pass uniform bankrupt law APP
plicable to all banking institutions through
out the United States, and l strongly rec
ommend its exercise. This would mako il
the irreversable organic law of each bank
existence, that suspension of specie pay
ments shall produce its civil death. Th'
instinct of self-preservation would thcl
compel it to perform its duties in such
manner as to escape the penalty and pre-
serve its life.
The existence of banks and the the DIR
culation of bank paper are so unidentified
with the habits of our people, that they can
} not at this day be suddenly abolished with
out much immediate injury to the country
, If we could confino them to their appropri
ate sphere, and prevent them from admins
tering to the spirit of wild and reckless spec
: ulation by extravagant loans and issues
: they might be continued with advantage t,
the public.
But this l say, after long and mature re
= Election, if experience shall prove it to b
: impossible to enjoy the facilities which we
q regulated banks might afford. without q
: the same time suffering the calamitics whic
: the cxccsscs of the banks have hitherto il
: ficted upon the country, it would then
: far the lesser evil to deprive them altogetL
t er of the power TO issue paper currency
{ of discount. rc
f Our relations with foreign government
: are, upon the whole, in satisfactory cond
. ton.
The diplomatic difficulties which existe
9 between the government of the Unite
j States and that Of Great Britain at the az
: journment of the last Congress, have bee
happily terminated by the appointment
+ a British ministry to this country, who ha,
Q been cordially received.
r Whilst it is greatly to the interest, as
Q am convinced It is the sincere desire of tL
: governments and people of the two coul
/; tries to be on intimate terms with each otl
# er, 1t has been our misfortune almost alwa,
n to have had some irritating, if not dang
n Gus outstanding question with Great Britai
r Since the origin of the government v
y have been employed in negotiating treati
I. with that power and afterwards in diseussiI
y their true intent and meaning. In this I
p spect the convention of April 10, ls5
10 commonly called the Clayton and Bulw
70 treaty, has been the most unfortunate of a
. because the two governments place direct
N opposite and contradictory constructions II
t. on its first and most important article
y, Whilst in the United States VIC belle
y that this treaty would place both pows
'e upon an exact equality by the stipulaii
D. that neither will ever ''oceupy, or fortify,
D. colonize, or assume, or exercise any domi
Is ion" over any part of Central America,
O. is contended by the British government tn
y. the true construction Of this language b
u left them in rightful possession Of all tn
+ portion Of Central America which was
v their occupancy at the recognition of /
If treaty; in fact that the treaty is virt.'
le roco0nition on iha mart of tha ITnitad C,a.