True American. [volume] (Steubenville [Ohio]) 1855-1861, 1857-12-16

feet of the large incidental protection
afforded to our domestic manufactures by
the present revenue tariff. But for this
the branches of our manufactures con- posed
of raw materials, the production of our
own country-such as cotton, iron, and
wooden fabrics would not only have ac.
quired almost exclusive possession of tho
home market, but would have created for
themselves foreign market throughout
the world.
Deplorable, however, as may be our Tres.
ent financial condition, we may yet indulge
in bright hopes for the future. No other
nation has ever existed, which could have
endured such violent expansions and con,
fractions of paper credits without lasting
injury yet the buoyancy of youth, the
energies of our population, and the spirit
which never quails before di.icul'ps, will
enable us soon to recover from our pres
ent financial embarrassment, and may even
occasion us speedily to forget the lessoa
which they have taught.
In the meantime it is the duty of the
Government, by all proper means within
its power, to aid in alleviating the suffer-
ings of the people occasioned by the sus-
pension Of the banks; and to provide against
a recurrence of the same calamity. Un-
fortunately, il either aspect of the case, it
can do but little. Thanks to the inde.
pendent treasury, the Government has not
suspended payment, as it was compelled to
do by the failure of the banks in 1897
1t will continue to discharge its liabilities
to the people in gold and silver. Its dis,
bursemensin coin will pass into circulation,
and materially assist in restoring a sound
currency. From its high credit, should
we be compelled to make a temporary loan,
it can be effected on advantageous terms -
This, however, shall, if possible, be avoid
ell; but, if not, then the amount shall be
limited to the lowest practicable sum.
[ have, therefore, determined that whilst
no useful government works already in
progress shall be suspended, new works
not already commenced, will be postr oned,
if this can be done without injury to the
country. Those necessary for its defence
shall proceed as though there had been no
crisis in our monetary affairs.
But the Federal Government cannot do
much to provide against a recurrence of
existing evils. Even if insurmountable
constitutional objections did not exist
against the creation of National Bank,
this would furnish no adequate preventive
security. The history of the last Bank Of
the United States abundantly proves the
truth of this assertion. Such bunk
could not, if it would, regulate the issues
and credits OF fourteen hundred State
banks in such manner as to pl event the
ruinous expansions and contractionS in our
currency which inflicted the country
throughout the existence of tho late bank,
or secure US against future suspensions.
In 1925, an effort was made by the Bank
of England to curtal the issues of the
country banks under the most favorable
circumstances. The paper currency had
been expanded to ruinous extent, and
the Bank put forth all its power to con-
tract it, in order to reduce prices and re-
store the the equilibrium of the foreign
exchanges. 1t accordingly commenced a
system Of curtailHent of its loans and
issues, in the vain hope that the joint stock
and private banks of the kingdom would.be
compelled to follow its example. 1t found,
however, that as it contracted they expan-
dcd; and at the end of the process, to
employ the language of very high Off
cial authority, "whatever reduction of the
paper circulation was effected by the Bank
of England Gin 1929 was more than made
up by the Issues of the country banks
But the Bank of the United States
would not, if it could, restrain the issues
of the State banks, because its duty as a
regulator of the currency must often be in
direct conflict with the immediate interest
of its stockholders. If we expect one
agent to 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, to expand the
currency, to accommodate their iavorites
and friends with loans, and to de,lare 'larg:
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 fol
tho prevention and redress of the evil. II
they will afford us real specie basis fol
our paper circulation, by increasing the
denomination of bank notes, first to twenty
and afterwards to fifty dollars; if they vii
require that the banks shall at all times
keep on hand at least one dollar of golc
and silver for every three dollars of theil
circulation and deposits; and if they will
provide by a Self-executing enactment
| which nothing can arrest, that the momen
they suspend they shall go into liquidation
1 believe that such provisions. with a week
ly publication by each bank, Of statemen
Of its condition, would go far to secure vi
against future suspensions Of specie pay
ments.
Congress, in my opinion, possesses th'
power to pass uniform bankrupt law ap
plicable to,all banking institutions through
out the United States, and / strongl,