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

banks in 1887. Ii will continue to
discharge its liabilities to the people
in gold and silver. Its disbursements
in coin will pass into circulation and
materially assist in restoring "A sound
currency, From lis high credit,
should We be compelled To make "a
temporary loan, it can he effected on
advantageous terms. This, however,
shall, il possible. he avoided; hut, If
not, then the amount shall bc limited
to the lowest practicable sum,
have, therefore, determined that
whilst no useful government works
already in progress shall be suspeE-
dcd, new works, not already com.
menced, will be postponed. if this
can he 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
insurmountable constitutional objcc-
tions 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 abuRdantly
proves the truth vf this assertion. -
Such bank could not, IL il would,
regulate the credit aud issues Of
fourteen hundred State banks in such
manner as 10 prevent the ruinous
expansions and contractions 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 circum.
stances.
Tho paper currency had been ex-
panded to "A ruinous extent. and the
Bank put forth oil its power 10 con
tract il in order to reduce prices and
restore the equilibrium Of the foreign
exchanges. II accordingly com
mcnced system Of curtailmcnt Of
its loans and issues, ia the vain hope
that the joint stock and private
banks Of the kingdom would bc com.
PEELED to follow its example. It
found, however, that AZ il contracted
they expanded, and at the end Of the
process, TO employ the language Of
a very high official authority, what
ever reduction OF the paper circula-
tion was effected by the Bank #
England lin 1890 was more than
made np 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 Az Il regulator of
the currency must often be IN direct
conflict with the immediate interest
Of it's stockholders If we expect
one agent to restrain OF control
another, their interests must, at least
in some degree, be antagonistic. But
the Directors of "A Bank oi the nitcd
States would feel the same interest
and the same inclination with The
directors Of the State banks 10 OK.
pand the currency, 10 accOmmOdat"
their favorites and their friends with
loans, and ~ 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 rs real
specie basis for our paper circulation
by increasing the denomination Of
bank notes. first ~ 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 Of gold and silver for every three
dollars Of their circulation aud de.
posi,es and if they will provide, by
a seli-executing enactment, which
nothing can arrest, that the moment
they suspend they shall go into liqni-
da,ion, believe that snch provisions,
with a weekly publication by each
bank 81 a statement 81 lis condition.
would go far 10 secure us against fu-
tnre suspensions Of specie payments.
Congress, in my opinion, posscsses
the power 10 pass uniform bank
rup, law, applicable 10 all banking
Institutions throughou, the United
states. and strongly recommend It's
exercise. This would make il the
irreycrsable organic law of each