New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-12-09


session Of the home market, bat would have created
fr themselves foreign narket throughout tue world
Dtp'orsble, however, 90 msy be our present fls1.
Gal onetor. we may yet indulge in bright hopes for
the future. No other nation has ever existed which
COZ ID lave endured such violent expansions and con-
fractions Of paper credits without lasting injury; We,
the bloyarcy Of youth. the energies OF oar p,puls.
.ion an tie spirit which never qsails before d ,ul-
tic will enable us scob 20 recover from our preser.
financial embnras.men's, acd may even occasion us
edy 10 forget the lee which they have taught
In the mean time It lie the Sa,y of the Government
by all proper means within It's po~er to aid il ale
Suspension Of the banks, and to provide against
recurrence Of the same calamity. Cafortunately. in
either aspect Of the case it can DO but little. Thanks
to the Independent Treasury the Governments hss Lot
SUSPENDED payment as Il was compelled 10 do by the
failure of the banks in 1885, 1t will continue TO de
cbsrge its liabilities to the people gold and silver
lis disbursements In coin Will pass into circulation and
materially assist in restoring sound currency. From
ts high ere dit should be compelled 10 make tenn.
porary loan be eff cted on advantageous terms.
THIS. however, shall, if possible, be svoided; but if
rot, then the amount shall be limited to the lowest
pYactica sum.
have. Therefore determined that while no useful
Government works already in progress shall be
ueIced new works, not already commenced, will be
o. s.poneo If this can be done without injury to the
country. Those necessary for its defsnis shall pro
eeed though there had bees no crisis in our none
taIy sffars.
hut the Federal Government cannot do much to pro-
vide against recurrence OF existing evils Even il
insurmountable constitutional objections did not exist
sg,pst the creation OF National Bank, tais wod'd
furnish 10 adequate preventive security The history
Of the lest Bank Of the United States abundsntly
troves Il truth Of this assertion. Such back could
not Il il would, regulate the Issues aud credits OF
fourteen hundred State banks III such msoner 8. -
prevent tt ruinous expansions and contacdons IN our
ctneIcy which afflicted the country Throughout the
1steI c. Ct the late bank sgains. future
suspensiors. In 1925 an ut wss made BY the Bank
Of England 10 curta the issues Of the country baaks
uLder tie most favorable circumstances. Inc paper
currercy TAD been expended IL q runOus extent, aud
the Bank put forth all its power 10 contract 1t 10 order
to reduce prices ard restore the equilibrium OF the
fore On exchanges. IL accordingly commenced sys
ten OF cuIalmeht of its oans and issues in the vain
hore that the joint stock snc private banks Of the
kingdom would be compelled TO follow its example.
II found however that II contracted they expanded,
erd az the md of the process to employ the language
Of very high official authority, whsever reduction
Of the paper circulation effected by the Bank OF
" rgland lin 1925 was mole than made up by the
" issues Of tie country banks'
But a Bark Of the United States would not, 1t 1t
coud strain the issues and loans Of the State banks
cause lie DUTY a. regulator OF the cuIrencV must
often be dir. CT conflict With the immeoiste interest
Of its stockholders. II We expect one agent to restrain
or control another their Interests must al eas 10 some
degree be antagonistic But the Directors OF a Bank
Of the lifted States would feel the same interest and
the same in elm ,ton with the Directors Of the State
banks 10 expand the currency, 10 accommodate their
fsvoItes ard friends with loans, and TO declare large
diyidencs Such has been experience IN regard to
the last bsLk.
After all we must mainly rely upon the pstfio.ism
aud Wisdom of The States for tho prevention and
reeress Of the evil If they will afford US real specie
basis for our paper circulation By increasing the de
domination of bank notes ct to twenty and after
ward 20 fifty dollars if they will require thss the
ban Ike shall at al tines keep hand at sast one dol
lar in gold and silver for every three dollars OF tner
ciroua.ion and deposits; and II they WIN provide oy
IL nent wht
that the moment they suspend they shall go into liqu
dation believe that such provisions, with weekly
publication by each batk of a statement OF its cond
iloD, would go far to secure Us aganst future spen
slOus Of spec,e payments.
CopgIess in my opinion, possess the power 70 pass
uniform bankrupt law applicable to all banking in-
stitutions throughout the United States, and strongly
recommend its exercise. This would ske 1t the r
reversible organic law OF each banks exstencs, that
suspei zion Of specie payments shall produce i,s cVu
6eatb The instinct of selfpreseryation would then
compel il 70 perform its duties in sucn manner a. to
escape its penalty ard preserve its lite.
TIE existence Of bar ks and the circulation Of bank
paper ale 80 identified with the habits Of our people
iLst they cannot at this Gay, BE- suddety abolished
without much immediate injury to the country. Ii
we could coLiue them 70 their appropriate sphere,
and prevent them from administering to the spirit of
wild and reckless speculsi on by eIrsvagant loans
ard s,ues, they might be continued with adv antage
to ths public
But this | cay, after long and much reflection; Il
reLce shall prove it TO be impossible to enjoy tn,
fs eilties which wellregulated banks nigh: afford,
without at the came time Suffering the ca'anitles
Which the excesses Of the bsLks hsve hitherto in
1ictsd upon the country, il would then be far the
lesser evil to deprive them altogether OF the power to
issue paper currency, and cohhae them to the tunc
vtIs Of Dai ks Of cepOs.t and discount.
Our relations With foreign governments are, upon
he whole 10 satisfactory condition.
TIE diplomatic difficulties which existed between
toe Government Of tie UGited States and that Of
G1ea Britain at the soI )unnent Of the last Congress
have been happily terminated by the appointment of
a 8iti.h Minister to this country, who has been cor
cialy received.
While it is greatly to the interest, as convinced
il is the sireere desire Of the Governments ane peo'
p's Of the two countries 10 oe terms OF Intimate
ire, dshp with each other, it has been our misfortune
slrost always to have had irritating if not dan
gerOus outstanding question Sith Crest Britain.
Since the origin Of the Government we have bsen
epucyed IN L, eotating treaties with that po xer and
aft,rgarc IN 6rcussing the true intent aud meaning.
In this respect the convention OF April ~, lSoO, CON
monty called the Clayton and Bulwer treaty, has been
tie p.ost unfortunate OF all because the 1Wo UOVeri-
nents place directly opposite and contradictory con-
etIuctCus upon its FIRST and most important article
While in the United States, we believe that ths
treaty would place both pc upon an exact equaty
BIZ II stipulation that neither will ever occupy, or
"o,,ify or colombo or assume exercise any domin
sion over any part OF Central Amerlcs, II Is con-
tended by the British Government that the true con,
strucon of this language has left them IN the rgntfu
possession IF all that portion OF Central America wnch
was in their occupancy the date ct the treaty 10
tact that the treaty is virtual recognition the part
of the United States Of the right OF Great Britain,
either Is owner protector, to the whole extensive
coast Of Central America, sweeping round from the
Rio Hondo to he port ard ha-bor Of San Jasn de
Nicaragua, together with the adjacent Bay I'and.,
except the comparatively small portion OF this De-
tween the Ss-stoon and Cape Honduras According
% their contraction tie treaty does no more than
Simply prohibit them Gon extending their POSSESSIONS
IN Central America beyond the present limits
1t Is not too much 10 assert that II 10 tue In'ei
States the treaty lad been considered susceptible ct
sueh col structior, it never would have been nego.
tst.d u der the sathorty the President nor would
nd arlnrnhafinn of the Senste Ihe