The weekly north Iowa times. [volume] (McGregor, Iowa) 1857-1867, 1857-12-16
PRESIDENTS: MEsSAGEl
Fellosc CitiSens Of the Senate

7ellosC Caisens Of the Senate
and House Of Representatives.;
In obedience to the command of the Consti-
ution, it has now become my duty "to give to
Congress information Of the state Of the Union,
ind recommend to their consideration such
measures" as judge to be necessary and ex'
,edient" ....... ..
But first, and above all, our thanks arc due to
Almighty God for the numerous benefits which
He has bestowed upon this people and our
united prayers ought to ascend to Him that He
would continue to bless our great Republic in
time to come 10 He has blessed it in time past
Since the adjournment of the last Congress our
constituents have enjoyed an unusual degree Of
health. The earth has yielded her fruits abund.
antly, and has bountifully rewarded the toll OF
the husbandman. Our great staples have com. |
manded high prices, and, up till within q brief
period, our manufacturing, mineral, and me-
chanial occupations have largely Partaken Of
the general prosperity. We have possessed all
the elements of material wealth in rich album
dance, and yet, notwithstanding all these adj
vantages, our country, in its monetary interests,
is at the present moment deplorablc condition.
In the midst Of unsurpassed plenty in all the
productions Of agriculture and in all the ele.
ments of national wealth, we find our manu-
features suspended, our public works retarded,
our private enterprises Of differs mt kinds aband-
oned, and thousands of useful laborers thrown
out of employment and reduced to want The
revenue Of the Government. which is chiefly
derived from duties on imports from abroad,
has been greatly reduced, whilst the appropri.
atoms made BY Congress at it's last session for
the current fiscal year are very large in
amount.
Under these circumstances a loan may be re-
CURED before the close of your present session;
but this, although deeply to be regretted, would
prove to be only a slight misfortune when COM
pared with the suffering and distress prevailing
among the people. With this the Government
cannot fail to deeply sympathize, though 1t may
be without the power to extend relief.
1t is our duty to inquire what has produced
euch unfortunate results, and whether their re.
currencc can be prevented In all the former
revulsions the b'amo might have been fairly
attributed to a variety of cooperating causes;
but not 80 upon the present occasion. 1t is ap-
parent that our existing mis!ortunes have p o.
ceeded solely from our extravagant and vicious
| system Of paper currency and bank credits. ex.
| citing the people to wild speculations and gamb-
ling in stocks. These rcvulsions must continue
| to recur ut successive intervals 80 long az tn:
amount of the paper currency and bank loans
and discounts Of the country shall be left to the
discretion Of fourteen hundred irresponsible
banking institutions, which from the very law
of their nature will consult the interests of
their stockholders rather than the public wei.
fare.
The trainers of tho Constitution. when they
gave to Congress the power Ito coin money
and to regulate the value thereof" and prohibit
ted States from coming money, emitting bills Of
credit, or making anything but gold and silver
coin tender in payment Of debts, supposed
they had protected the people against the wrongs
of an excessive and irredeemable paper cur
sency. They are not responsible for the exist
ing anonaly that government endowed with
the sovereign attribute Of coming and regula-
| ting the value thereof should have no power to
prevent others from driving this coin out Of the
country and filing up the channels IF circula-
ton with paper which docs not rel resent gold
| and silver
1t 10 one of the highest and most responsible
duties Of Government to insure to the PEOPLE
sound circulating medium, the amount Of which
ought TO be adapted with the utmost possible
wisdom and skill to the wants of internal trade
and foreign exchanges. II this he either great.
ly above or greatly below the proper standard,
the market value Of every man 3 PROF erty is in
creased or diminished in the same proportion,
and injustice to individuals as we'll as iEcalcu.
liable evils to tho community are the conse-
querce.
| Unfortunately, under the construction Of
the federal Constitution which has now prevail
ed too dong to be changed, this important and
delicate duty has been discovered from the coin
ing power and virtually transferred to more than
fourteen hundred State banks, acting indcpend-
emily Of each other, and regulating their paper
issues almost exclusively by q regard to the
present intereetof their stockholders Exer.
cising the sovereign power Of providing paper
currency instead If coin, for the country. the
first duty which these banks owe the public is
to keep in their vaults q sufficient amount OF
gold and silver to insure the convertibility Of
their notes into coin at all times and under oil
circumstances No bank ought ever to he char
cd without such restrictions on it's business as
to secure this result. All other restrictions are
comparatively vain Thisis the only true touch.
stone. the only efficient regulator of a paper
currency-the only one which can guard the
public against over issues and bank suspensions.
As collateral and eventual security it is doubt
less wise, and in all cases ought to be required,
that banks shall hold an amount of United
States or State securities equal 10 their notes in
circulation and pledged for their redemption
This, however, furnishes no adequate security
against over-issues On the contrary, it may be
perverted to initiate the currency. Indeed, it is
possible by this means to convert all the debts
Of the United States and the State Governments
into bank notes, without reference to the specie
required to redeem them.
| However valuable these securities may be in
| themselves, they cannot he converted into gold
and silver at the moment of pressure, as our
experience teaches, in sufficient time to prevent
bank susr ensions, and the depreciation OF notes.
In England, which is to considerable extent
paper-money country, though vastly behind
our own in this respect, it was deemed advis-
abs, anterior to the act Of Parliament of 1874,
which wisely separated the issue of notes from
tho banking department for the Bank of Eng.
land always to keep on hand gold and silver
| equal to one third of its combined circulation
and deposits. If this proportion was no more
than sufficient to secure the converibility of its
notes with the whole of Great Britain, and
some extent the continent Of Europe as fed
for its circulation, rendering it almost imposs-
ible that sudden and immediate run TO dan
| gerous amount should be made upon il, the same
proportion would certainly be insufficient under
our banking system.
Each of our fourteen hundred Banks has but
| limited circumference for its circulation, and
| in the course of q very few days the depositors
and note holders might demand from such q
bank q sufficient amount in specie to compel il
to suspend. even although it had coin in its
vaults equal to one-third Of its immediate liza.
bilities. And yet am not aware, with the ex.
ception Of the banks of Louisiana, that an
state bank throughout the Union has been re-
quired by its charter to keep this or any other
proportion Of gold and silver compared with the
amount of it's combined circulation aud depos.
its. What has been the consequence ? In a
recent report made by the Treasury Department
on the condition Of the banks throughout the
different States according to returns dated near
est to January, 1857. the aggregate amount OF
actual specie in their valuts is SIS, 349, 1898 of
their circulation, $2l4,776, 1892, of their depos-
its, $3.50 ,35l 1852. Thus it appears that these
banks in the aggregate have considerably less
than one dollar in seven of gold and silver com.
pared with their circulation and deposites. 1t
was palpabe, therefore. that the very first press
ure must drive them to suspension, and deprive
the people Of . convertible currency, with all
it's disastrous consequences.