Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1857-12-17
NO. T..

the mon has been reqhIeu y. Ieo 'ha .e' W A''P
hi. or any other proportion of gold and silver com
t,.r.l yitj, tn, amount of it, combined circulation
ana dcposts What has been the consequence =
In recent r,.;,ort made lax the Treasury Depart
u,cnt ON the condition of the banks throughout the
different Stlscs, according to returns dated nearest
ia Jannary. 81, the aggregate amount OF actual
,orie IN thpir vault, i. S.S 3i9 S.Ss. of their enc
lstion. S2l4.77r.s22 and of their deposits $3.50.
35I 352 Thus it appears that these banks ia the
aggregate hlyc considerably less than one dollar
in seven Of gold and silver compared with the c'r-
caation and deposits.
|, v.,s n,lpihe. therefore. that the very first
,,,,n ,nusi drive them to SUSPENSION, and deprive
,bc nconle of \ convertible currency, with all It's
l;s,,,,,, consequence IL Is truly wonderful that
thry shoudhaye - long continued to Preserye their
credit when a demand for the payment o, one
seventh of t!lcir immediate Liabilities w"a,d ave
driven them int Insolvency. Ana thls Is 'He con
di;ion of the banks nptwithst 'nlinS that four nun
dr. 4 r;llio,,s of cold from California have towea
in ulon us within the last eight years, ana tie t.ae
still continues t. fl bw. lnlced. such has been te
/ cxtyayarance OF bank credits that the banks h'i'
now \ -iier,!y less amount oi specie, eitner ih
,roporton to their capital, or To Their circuiau'n
ami teposits combined. than they dd before the
discovery of gold in California. While IN The year
Isis tlrr .,,eric In proportion ia their capital was
more than equal to one dollar ior every iour anu
half in 1851 it does not am punt 10 one dollar ioe
every six dollars and thirty three cents oi thor
| q initial. In the wear lNft 't''
within 4 very sm Ill fraction. to one dollar III hVe
of teir circulation anl deposits; IN leo' IL WAS not
cnu,l "a one dollar in seven and halt OF their CIR
cuation and deposits.
From ,l,;s statement il Is easy to account Tor our
financial history for the last forty years IL mas
been a hi,tory of cxtrava@aN eAp''ls.on ~ '"0
lnsines of the country, followed 10y ruinous con
,r,ction. AZ successive intervals the best anu
,,',., on,n,,risiur men have been tempted TO their
ruin by excessive bank loans of me- paper creui''
exciting them 10 extravagant iini"ft""hS oi iI
eign eoods wild spccuations, anu run'ouS anu NC
inoralizing stock gambling men 'le c'Iss :"
riyes. ,s arrive it must. the banks can extend no
rol;r "a the r.eople In vain struggle u reueehh
ther liabilities in specie thcv are comeilcu 10 co
trlc Their loans and their issues; aii Al LAST " ~
hour distress, when their assistance Is most necS
ed they and their debtors together sihA ihuo ii'o'
r Currency and the Tarif.
IL; manor system of extravagant expansion.
r,isnr the nominal price OF every article lar beyond
its real value when compared with the cos, Oh .'"i'
M articles in countries whose circulation Is Wisely
7 regulated which has prevented Us from competing
in our own markets with foreign manufacturers las
,,-lnaed cxtravacant importations, and has c"'i'
- 49,. ,r.t f the large incidental protection
f;,riol T., or domestic manufacturers 10y the pres
!; ,,, ,.cnue tariff But for this, the branches OF
/. uur manufactures composed ol raw nateria's' l'e
Y nrodurion of our own country, such as cotton iron
e and woollen .brics-would no' "ui. ha'c 'Sl
n n,o.t exclusive posse sson o the home market Du'
4, would have created Tor thchisci' 70 = ''i' o ~
: throughout the world.
e. D,S,lora,,e however, may be our lrecn' ii''a"
cal condition. may yet indulge III nr"' Holc,
It iii the future. No other nation mas ever eA's'
+ which could have endured such violent expansions
,s ,,,,,,riious of paper credits without lasting
= ;ur. -, the huovancy of youth. the energies oi
$. o,r ,r,,nlaton and the spirit which never qnAiis y
- fore difficulties. will snible us soon !" recover
from our present financial embarrassment ana NAV
d even occasion Us speedily to forget ne iessc' WHICH
:, they have taught.
20 In the meantime it is the duty of the government
g nv Al, roncr means within its power, to aid III ave
e. yja,in the suiirr:ngs of the people occas"ned py
TO The ion of the banks, and To provide
to :. recurrence OF the same calamity!
in either aspect of the clse, II can 90 ru' "''ie-
Thanks to the independent treasury 'he so''
n mont has not suspended payment, ID IL NM con,
I'LL - ,l bv the failure of the banks IN 1881 4
49, u II g., t;nue io discharge its liat"- - tie y Quo
r. i'm cold and silver it, disbursements IN com VIZ
20 ms, into c;rcation and materially assist III rcs'or
- ing so:nd currency. From lts high crsd'' s,lou
x We be compelled to make temporary io"i = 49, ~
"a be Effected on ads outrageous terms inis' now
>, r shall if poSsihlc be avoided; but, II not 'n''
p The amount shall be- limited TO the lowest lracuca
=, hc .uo. have therefore determined that WINS
I u ,,.etill government works IN progress shah ~
IN susneulci new works not alread, connnehcen' WI
la. ran- -rsaDDp If this can bc upnt hAhe"e
of the country Those necessary for It's defence sH'
n proceed as though there han oee" i'' e'''' '
monetary affairs.
n, LEGISLATION oa the Currency.
re Eut the federal government cannot q" mueh ''
IL ,ro,;,,. AGAINST 1 recurrence of existing e'is-
cs Even If insurmounta''e Constitutional e'seGt'"n'
a d ma, exist against the creation ola Natiora iahA
in this would furnish adequate securi,t- INC "'
,e tory of he last Bunk of the United states aDuhd
r- aptiy nroycs the truth of this assertion Such
n Rink c,ud not II il would reIlate the ISSUES anu
it credits of fourteen hundred State Birks IN snch
~ manner as to prevent the ruinous expansions an
III contlactions in our currency which aiiicten 'ne
n countr, throughout the existence oi tie iae oa"A
Ie or secure us against future suspensions.
ot I'm 1895 An effort was m ldc by the BANK of Eng
land to cu,tai the issues of the country banks un
u der the most favorable circumstances. Inc rape
nj currency had been expanded to ru'hous extent
10 and the Bank put forth all It, power 10 c"h'fs' II "
nj order TO reduce prices and restore the equilibrium
X OF foreign exchanges. Ii accordingly! commences
~ system of cutamont of its loans and ISSUES. 10
of the vain hope that the Joint stock and private bank
in of the kingdom would be compelled to follow it'
As example. Ii found however, that a. IL cohrac'eu
he they expanded, and at the end OF the process, /"
employ the language of very high official authority
d "whataycr reduction of the paper currency IN CIR
NJ cnation was effected by the Bank OF England r
aS ls5) was more than mlde upby The issues o' TUG
IL country banks. . -.
lie Ruf a Rink OF the United Stattr Nouiu hot, u A.
- co,l restrain the issues and loans of the State
Banks because its duty regulator OF the curren
cy must often be in direct conflict with the Interests
n of its stockholders. five expect one agent to re-
he strain or control another, their interests must, a
to least in some degree, lac antaeonistic But the d
nd rcctors ola Bank of the United States would fee
the same interest and the inclination with thu
directors of the State Banks TO expand the curren
ch cv to accommodate their ayoriteS and friends viii
- loans. and to declare large dividends. Such la:
us been our experience in regard To the last bank
a Al.cr all, must mainly rely upon the patriot
M ism and wisdom of the States for the prevention
5 and redress of the evil. III they will afford US
IL real specie basis for specie circulation 10y increas
ing the denomination of hank notes. hrst to t~eft,
Ell and afterwards To Fifty dollars if they will require
n that the banks shall at all times keep on hand al
IS least one dollar of gold and silver foF ever, three
- of their circulation and deposits and II they VII
rd provide bv self executing enactmctt, winch moth
y in" can arrest that the they suspend hey
rG shall go into liquidation, believe that such lrovis
h ions. With weekly publication by each hank OF 4
a. state cmcnt of it, condition, would 20 far to secure
N us against future suspensions OF specie payments.
~ bankrupt Law.
n Congress. in my opinion, possesses the power "a
= pass uniform bankrupt Law applicable 20 all bank
% n. inst a.,s tnroue hout the I'ni,el States and