Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1857-12-19

4
casion us speedily to forget the lesson which
they have taught.
In the meantime it is She duty of the
government, by all proper moaus within its
! power, to aid in alleviating the suffering of
| the people, occasioned by the suspension of
the banks, and TO provide against rccur-
renee of the same calamity. Unfortunate
\ ~, in either aspect of the case it can do
but little. Thanks to the independent
treasury, the government has not suspend
ed payment, as it was compelled to do BY
the failure of the banks in 1881 1t will
continue todischargc its liabilities to the
! people in gold and silver. It's disburse-
mcnts in coin will pass into circulation, and
materially assist in restoring sound cur
reney, From its high credit, should We he
compelled to make temporary loan, itcan
be effected on advantageous terms. This,
however, shall, if possible, be avoided but
/ If not, then the amount shall be limited to
the lowest practicable sum.
Itt L have, therefore, determined that whilst
no useful government works already in
progress shall be suspended, new works, not
already commenced, will be postponed, if
/ this can be done without injury to the coun-
4 try. Those necessary for its defence shall
proceed as though there had been no crisis
In our monetary affairs. ..te
But the federal government cannot do
much to provide against recurrence of ex,
listing evils. Even if inSurmountablc con-
stitutional objections did not exist against
the creation of a National Bank, this you'd
furnish no adequate preventive sccul.ty,--
The history of the last bank of the United
States abundantly proves the truth of this
assertion, Such bank could not, if it
would, regulate the credit and Issues of four
teen hundred State banks in such a man
ner as to prevent the ruinous expansions
and cOntractions in our currency which af-
hlctedthe country throughout the existence
iOt the late banli, or secure us against future
suspensions. In1S25 an effort was made
by the Bank of England to curtail the is
sues OF the country banks under the most
favorable circumstances, The paper cur
rency had been expanded to rGnous eX-
tent, and the Bank put forth all its power
to contract it in order to reduce prices and
restore the equilibrium of the foreign ex-
7changes. it accordingly commenced dasys-
tenn of curtaimont of its loans and issues,
in the vain hOpc that the Joint stock and
private banks of the Kingdom would be
compelled to follow its example ltfound,
however, that as it contracted they expand
ed, and at the end of the cprocess, to employ
the language ola very high official outIori-
ty, whatever reduction of the paper circu-
latiot vas effected by the Bank Of England
Gin 1920 was moro than made up by the
tissues of the country banks. D. s,l,,
f. But Bank of the United States would
Pnoty if 1T could, restrain tho issues and loans
tof the State banks because its duty as areg-
sulators of the currency must ofteu be in di-
rect conflict with the immediate interest of
its stockholders, five expect one, agent
to restrain or control another, their interests
must, at least in some degree, be antagon
istic. But the directors of a Bank of tho
! United States would feel the sauie interest
and the same inclination with the directors
LOT tho State banks to expand the currency
to accommodate their fayorite$ and friends
with loans, and o,declare large dividends
Such. has been our eHpcricace in regard to
| the last bank. 7,si I;f s bgirsnfeS ',i u
f. AfteraD, VIC must.mainly rely upon the
patriotism and wisdom of the States for
1.-The prevention and redress of the evil. If
they will afford us a real speeia basis for
our paper circulation by increasing the dc
anonllnation of bank notes, first 20 twenty,
end Afterwards to ififtydollars If they will
trequire.thatt the banks shall at all times keen
ION hand at least one dollarof gold and sill
yer for every three dollars of their circula-
ton and deposjtes and if, they win pro-
vide by @self- f-executing enactment, which
nothing can arrest, that the moment they
tsuspend theysghall go into liquidation, /
Ebelieye that such provisions, with weekly
ppblicatioa'byieoch bank ola Statements Of
its condition, would go far to secure as
against future suspensions of specie pay
mants. ~ sfs lpilgt.3la 5.fstf -
Congress, sinamy opinion, possesses the
! power, to pass aylhifofla bankrupt law ap.
lplicablet0 all banking institutions through
out tho United states, dnd / Istronely fe-
eommend Its sexefeiae, This would make
Iitthe eirpeyetsible organic law of feaclfbank's
l,eNiatenee. tbat,a susDension of specie naS-
megits shall pyo,,uce sbeiyiI death THE
binstipct sefi aedfpresefgatioit would then
compel ito perform its Duties inslcll a
imanner astolescape the fpenaIty.afd pre-
sorye ito lifeDfs Es{ fS9ils 8 4, ,1istt =
The cxiHteneo Of banks and the eiFsula-
ten Of bank apapcr So itlentifed with
the habits Of oilis people, lithat.tllcy caanot
at this day be suddenly abolished withddt
lsgpeh 5iiphlediate iujufy totha country If
woeoald conGne them tos their sIpprop,iate
lspiqte, aad prevent them from aainihistcf5
iog % the spiriko oG Hild aud r6cls slsds spec-
ttlatiop by extrayagant loans aud issuSb,