The Ashland union. [volume] (Ashland, Ashland County, Ohio) 1854-1868, 1857-12-16
NO. %.
I haye therefore determined that whilst

ready commenced, viii be postponed, If
this can be done without injury to the
country. Those necessary to its defense
shall proceed as though there had been
no crisis in our monetary affairs. But
the federal government can not do much
to provide against recurrence of exist
| ing evils Even if iusurmountable Con-
stitptioual objections did not exist against
the creation of a National Bank, this
would furnish no adequate preventive se-
curity. The history of the last Bank of
the United States abundantly proves the
truth of this assertion Such a bank
could not, if it would, regulate The Issues
and credits of fourteen hundred State
banks in such manner as to prevent the
ruinous expansions and contractioue in
our currency which afflicted the country
throughout the existence of the late bank,
or secure US against future suspensions.
In 1925 an effort was made by the Bank
of England to curtail the issues of the
| country banks under the most favorable
circumstances The paper currency had
| been expanded to a ruinous extent, and
ths Bank put forth all its power to- con-
tract it In order to reduce prices and re-
store the equilibrium of the foreign ex-
changes It accordingly commenced
system of curtailment of it's loans and
issues, in the vain hope that the joint
steock and privat banks of the kingdom
would be compelled to follow its example.
It found, however, that as it contracted
they expanded, and at the end of the pro.
cess, to employ the language Of very
high official authority, whatever reduc-
tion of the paper circulation was effected
by the Bank of England Tin 1926 was
more than made up by the issues of the
country hanks. I"
But bank of the United States would
not, if it could, restrain the issue and
loans of the State Banks, because its du-
ty as q regulator of the currency must Of
ten be In direct conflict with the immedi-
ate interest of It's stockholders Hwe.ex-
peet one agent to restrain or control an
other, their interests must, at least in
some degree, be antagonistio But the
directors of a 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 accom-
| nodate their favorites and friends with
loans, and to declare largo dividends--
Such has been our experience in regard to
the last Bank
After all, we must mainly rely on the
patriotism and wisdom of the States for
the prevention and redress of the evil If
thoy viii ford us a real specie basis for
our paper circulation by increasing the
! denomination of bank notes, first to $40
and afterwards to $50, if they will require
that the banks shall at all times keep on
hand at least one dollar in gold and sill
yer for every three dollaos of their circu-
latian and deposits; and if they will pro-
vide by a self executing enactment which
nothing can arrest that the moment they
suspend they shall go into liquidation, I
believe that such provisions, with week
ly publication of each bank of statement
of its condition, would 60 far to secure as
against future suspensions of specie pay
ments Congress, in my opinion, possesses
the pass a uniform Bankrups Law, appli-
cable to all banking institutions throug-
out the United States, and strongly re-
commend its exercise. This would make
it the irreversible organic law of each
banks existence, that suspension Of spe-
Gle payments shall produce its civil death
The instinct of self-preservation would
! then compel it to perform its duties in
such manner as to escape the penalty
and preserve its life The existence of
| Backs and circulation of Bank paper are
/ so identified with the habits of our people
that they cannot at this day be suddenly
abolished without much immediate ipiu-
ry to the country IF we could confne
them to their appropriate sphere and pre-
vent them from administering to the spirit
of wild and recklessspecnIatie by extray-
agant loans aud issues, they might be con-
tinued with advantage to the public But
this I say after long and much reflection,
if experience shall prove it to be impossi-
bic to enjoy the facilities which well.reg-
ulated Banks might afford, without at the
same time suffering the calamities which
the excesscs of the Banks have hitherto
inflicted on the country, it will then be
| time for as to adopt the lesser evil to de-
prive them altogether of the power to issue
paper currency, and confne them to
functions of banks of deposit and discount
| Our relations with foreign Govern
ments, are on the whole, in a satisfactory
condition. The diplomatic difficulties
which existed between the Government of
the United States and Great Bri, ain, at
the adjournment of the last Congress, have
been happily Terminated by the appoint
ment of British Minister to this coun-
try, who has been cordially received
Whilst it is greatly to the interest, as
am convinced it is the sincere desire, of
tht Governments and people of the two
countries..to be on terms of intimate friend
ship with each other, it has been our mis-
fortune almost always to have had some ir-
ritating, If not dangerous, outstanding
question with Great Britain.
Since the origin of the Government We
have been employed in negotiating treat
| les with that power and afterwards in
discussing their true intent and meaning.
In this respect, the Convention of April
l9. 1850, commonly called the Clayton
and Bulwer treaty, has been the most un-
fortunate of all; because the two Govern
ments place directly opposite and contra
| dietory constructions upon its frs. and
most important article. Whilst in the
United States, we believed that this trea-
lty would place both powers upon an exact
equality by the stipulation that neither
will ever occupy, or fortify; or coionize,
or assume or exercise any dominion" over
/ anu mart of Central & marica IL Ia nom