The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1857-12-24

ttNUNF III iVots " wiz w
discharge it's liabilities to the people
in gold and silver. It's disbursements
In coin will pass into circulation and
materially assist restoring u sound
currency. From its high credit,
should we be- compelled to make IL
temporary loan, it can he effected on
advantageous terms. This. however,
shall, If possible. be avoided; hut, il
not, then the amour, shall hc limited
to the lowest practicable sum,
have, therefore, determined that
whilst no useful government works
already in progress shall be suspcn-
dcd, new works, not already com.
mcnccd, will be postponed, if this
can be done without injury to the
country. Those necessary for its dc.
fence shall proceed as though there
had been no crisis in our monetary
affairs.
But the federal government can.
not do much to provide against re.
currcncc Of existing evils. Even if
insurmountablc constitutional objcc.
tons did not exist against the crca.
ton of national bank, this would
furnish no adequate preventative Sc
curity. The history Of the last Bank
Of the United States ahuadantly
proves the truth Of this assertion. -
Such bank could not, IL il would,
regulate the credit and issues Of
fourteen hundred State banks in such
IA manner as 10 prevent the ruinous
expansions and centractious in our
currency which afflicted the country
throughout the existence of the late
bank, or secure us against future
suspensions. In 1928, an effort was
made by the Bank OF England to cur
tail the issues of the country bank
under the most favorable circam.
stances.
The paper currency had been OK.
banded 10 "A ruinous extent, and the
Bank put forth all its power 10 con-
tract il in order Ia reduce prices and
restore the equilibrium of the foreign
exchanges. II accordingly com.
mcnced "a system of curtailmcDt OF
it's loans and issues, in the vain hope
that the Joint stock and private
banks Of the kingdom would hc com
PEELED to follow its example. II
found, however, that as il contracted
they expanded, and at the end Of the
process, to employ the language Of
very high official authority, what.
ever reduction OF the paper circula-
tion was Effected by the Bank #
England lin 1895 was more than
made mp by the issues Of the country
banks"
But q Bank Of the United States
would not, if il could, restrain tho
issues and loans Of the State banks,
because its duty AZ regulator Of
the currency must often be- in direct
conflict with the immediate interest
Of it's stockholders If we expect
one agent b. restrain or control
another, their interests must, at least
in some degree, be antagonistic. But
the Directors Of Bank OF the United
States would feel the same interest
and the same inclination with the
directors Of the State banks "a cx-
psnd the currency, 10 accommodate
ibcir favorites and their friends with
loans, and to declare large dividends
such has been our experience III
regard 10 the last bank. After
all we must mainly rely upon the
patriotism and wisdom If the states
for the prevention and redress Of the
evil. II they will afford us a real
specie basis for our paper circulation
by increasing the denomination Of
bank notes, first to twenty. and after
wards to fifty dollars ; If they will
require that the banks shall At all
times keep on hand at least one dol
lar 81 gold and silver for every three
dollars Of their circulation and de.
posites and if they will provide, by
a seli-executing enactment, which
nothing can arrest. That the moment
they suspend they shall go into liqui-
dation. believe that such provisions,
with weekly publication by each
bank Of a statement Of its condition,
would 20 far 10 secure US against ia.
ture suspensions of specie payments
Congress, ia my opinion, Possesses
the power to pass uniform bank
rupt law, applicable Ia all banking
institutions throughout the United
States, and strongly recommend its
exercise. This would make it the
irreyersable organic Law Of each