Muscatine weekly journal. [volume] (Muscatine, Iowa) 185?-1890, 1857-12-12

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returning thanks to the Almighty for the
numerous beneAts he has bestowed on this
people. We have possessed all the elements
Of material wealth in rich abundance, and
yet notwithstanding Gil these advantages,
our country in its monetary interests is at
the present moment in deplorable condi-
ton. In the midst Of unsurpassed plenty
in all the productions of agriculture and all
the elements of national wealth, we find our
manufactures suspended, our public works
retarded, our private enterprises of different
kinds abandoned, and thousands of useful
laborers thrown out of employment and re-
duced to want. The revenue Of the govern
ment which IL chiefly derived from duties on
imports from abroad has been greatly redu-
ced, whilst the appropriations made by Con-
gress at its last session for the current fiscal
year are very large in amount. Under these
circumstances a loan may be required before
the close of your present session. But this,
though deeply to be regretted, will prove to
be only slight misfortune when compared
to the suffering and distress prevailing
among the people. With this the Govern
ment cannot fail to deeply sympathize,
though it may be without the power to ex-
tend relief; the inquiry is what has produced
these unfortunate results, and whether their
recurrence can be prevented. 1t is apparent
that they have proceeded solely from our
extravagant and vicious system of paper
currency and bank credits, melting the peo-
pie to wild speculation and gambling in
stocks. These revulsions must continue to
recur at successive intervals so long as the
amount of paper currency and bank loans
and discounts in the country shall be left to
the discretion Of 400 corresponding bank
ing institutions, which, from the very law
of the nature will consult the interest of
their stockholders rather than the public
welfare. Exercising the sovereign power of
providing paper currency, instead If coin
for the country, the first duty which these
banks owe to the public is to keep in their
vaults a sufficient amount of gold and silver
to insure the conyertability of their notes
into coin at all times and under all circum-
stances. No bank ought ever to be charter
ed without such restrictions on its business
as to secure this result. Our financial hiss
tory for the last forty years has been his
tory of extravagant expansions in the bust
ness of the country, followed by ruinous
contractions-at intervals the best and most
enterprising men have been tempted to their
ruin by excessive bank loans of mere paper
credit, exciting them to extravagant impor-
tations of foreign goods, wild speculations
and ruinous and demoralizing stock gamb-
ling. When the crisis arrives as arrive it
people: In vain struggle to redeem their
liabilities in specie they are compelled to
contract their loans and their issues and at
ance is most needed they and their debtors
-, s~ko To-
time it is the duty of the Government by all
proper means within its power to aid in al
leviating the sufferings Of the people occa-
stoned by the suspension of the banks, and
to provide agaist the recurrence of the same
calamity. unfortunately in either aspect
of the case it can do but very little.
Thanks to the Independent treasury, the
Government has not suspended payment rs
it was compelled to by the failure of the
banks in the year 1887. 1t 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 sound currency. From its
high credit, should we be compelled to make
temporary loan, it can be effected on ad-
vantageous terms. This, however, shall, if
possible, be avoided; but if not, then the
amount shall be limited to the lowest prac-
ticable sum. have, therefore, determined
that while no useful government works in
progress shall be suspended, new works not
already commenced will be postponed, if this
can be done without injury to the country.
Those necessary to its defence shall proceed
as though there had been no crisis in our
monetary affairs.
But the Federal Government can do much
to provide against a recurrence of existing
evils. Even if insurmountablc constitution.
al objections did not exist against the crea-
ton of a national bank, this would furnish
no adequate preventive security The his
tory Of the last Bank of the United States
abundantly proves the truth of this asser-
ton.
After all, we must mainly rely on the pat
riotism and wisdom of the States for the
prevention and redress of the evil. If they
will afford us real specie basis for our pa
per circulation by increasing the denomina-
ton Of bank notes first to $40 and after
wards to $50; if they will require that the
banks shall at all times keep on had at least
one dollar of gold and silver for every three
dollars of their circulation and deposits
and if they will provide by self executing
enactment which nothing can arrest, that
the moment they suspend they will 20 into
liqu dation, believe that such provisions,
with weekly publication by each bank of a
statement Of its condition, would 60 far to
secure US against future suspensions of spe-
Gle payments. Congress, in my opinion,
possesses the power to pass uniform bank
rupt law applicable to all banking institu-
tons throughout the United States, and l
strongly recommend its exercise. This
would make it the irrevocable organic law
of each banks existence that q suspension
of specie payments shall produce its civil
death The existence Of banks and the cir.
culation of bank paper are SO identified with
the habits of our people that they cannot at
this day be suddenly abolished without much
immediate injury to the country. If we
could conform them to their appropriate
sphere and prevent them from administer
ing to the spread of wild and reckless spec
ulation by extravagant loans and issues,
they might be continued with advantage to
the public; but this say, after long and
much reflection, if experience shall prove it
to be impossible to enjoy the facilities which
well regulated banks might afford, without,
at the same time suffering the calamities
which the-excesses Of the banks have hither-
to inflicted on the country, it will then be
far the lesser evil to deprive them altogeth-
er of the power to issue paper currency,
and confine them to the functions of banks
Of deposit. -
Our relations with foreign governments
are on the whole in q satisfactory condition.
The diplomatic difficulties which existed be-
tween the Government of the United States
and Great Britain at the adjournment of the
last Congress have been happily terminated
by the appointment of British minister
to this country, who has been cordially re-
ceived.
The. President whilst saying we have no
right to doubt the. sincerity Of the British
Government in their construction of the
Clayton-Bulwer treaty, at the same time
expresses his. deliberate conviction that this
construction is in opposition both to its let