Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-13

II has become duty give Congress
information of state Of the union, and recon
mend to their consideration such measures" as l
Judge to be necessary and expedient" -7}5-
But first, and above all, our thanks are due to
Almighty God for the numerous benefits which He
has bestowed upon this people, and our united pray
ought to ascend TO Him that He would continue
to bless grsss republic in tine to He has
blessed tin time past.
$50 Since the adjournment of the last Congress our
constituents have enjoyed unusual degree Of
-- health. The earth has yiededh her fruits abundsny
and has bountiluly rewarded the toll of the bus
bsndman Our great staples have commanded high
prices, and, up to within brief period, manu-
featuring, mineral and mechanical occupations have
largely partakenof the general prosperity. Wehave
possessed all the elements of material wealth in rich
abundance, and yet notwithstanding all these ad
vsntages, country in its monetary interests, is
- 2 at the present moment IN deplorable condition.
In the midst of unsurpassed plenty in all the pro-
auctions of agriculture and in ali the elements Of
national wealth, find our manufactures suspend
ed public works retarded, private enterprise
Of different kinds abandoned and thou sands of use
full labOrers thrown out of employment and reduced
to want The revenue of the government which is
chiefly derived from duties on imports from abroad,
has been greatly reduced, whilst appropriations
made by Congress at its last session the current
fiscal year very large in amount.
Under these circumstances loan may be required
before the close of your present season; but this
although to be deeply regretted, would prove be
only slight misfortune when compared with the
suffering and distress prevailing among the people
With this the government fail deeply to
symPathise, though it may be without the power TO
extend relief
1t is our duty to inquire what has produced such
unfortunate results, and whether their recurrence
be prevented In all former reguisiOns the
blame might have been fairly attributed a variety
Of cooperating causes; but SO upon the present
occasion. 1t is apparent that existing Inisfor-
tunes have proceeded solely from exlravagant
and vicious system Of paper currency and bank
credits, exciting the people to wild speculauons and
gambling in stocks. These revusiOns must continue
to successive inerva so long the amount
of the paper currency and bank loans and discounts
of the country shall be left the discretion
hundred irresponsible banking institutions
which from the very law of their will consult
the interest of their stockholders rather than the
public welfare.
The Of the constitution, when they gave
to Congress the power "to coin money and to regu-
late the value thereof" and prohibited the States
from eoninng money, emitting bills Of credit, or
making anything but gold and silver coin a tender
in payment of debts, supposed they had protected
the people against the evils of excessive and ir
redeemable paper currency They not respon
sble for the existing anomaly that government en-
dOWed with the sovereign attribute of coming
ey and regulating the value thereof should have no
power to prevent others from driving this coin out
of the country and filling up the channels of crcu
laion with paper which does not represent gold and
silver.
1t is one of the highest and most responsible du
ties of the government 20 insure TO the people a
sound circulating medium, the of which
ought to be adapted with the utmost possible wisdom
skill to the Of internal trade and foreign
exchanges If this be either greatly above great. |
ly below the proper standard, the marketable value
of every mans property is increased or diminished
in the same proportion and injustice individuals |
well as incalcuable evils to the community are
the consequence
Unfortunately, under the construction of the Fed |
eral Constitution which has prevailed too long |
been discovered from the coming power and virtual
ly transferred TO than fourteen hundred State
banks, acting independently of each other, and reg
uating their paper issues almost exclusively by
regard the present interest of their stockholders
Exercising the sovereign power of providing pa
per currency, instead Of coin for the country, the
first duty which these banks owe to the pubicis to
keep in their vaults sufficient amount OF gold and
silver TO insure The converibity Of their into
coin at all times and under all circumstances No
benk ought ever to be chartered without such re-
strictions its business this result All
other restrictions comparatively vain.
This is the only true tOuchstone the only efficient
regulator Of a paper currency-the only one which
guard the public against issues and bank |
suspensions. As a collateral and eventual security
tits doubtless wise, and in all ought to be re
quired that banks shall hold au amount of United
States securities equal to their notes cir
culaton and pledged for their redemption. This,
however, furnishes adequate security against
issues. On the contrary, it may be perverted
initiate the currency Indeed, il is possible by
this convert all the debts of the United
States and State Governments into bank notes,
without reference 10 the specie required to redeem
them
However valuable these securities may be in
themselves they cannot be converted into gold and
silver at the moment of pressure, experience
teaches, in sufficient time prevent bank suspen-
sions and the depreciation of bank In Eng
land, which is to a considerable extent paper mo-
ney country, though vastly behind in this
respect, it was deemed advisable anterior to the act
Of Parliament of 1874, which wisely separated the
issue Of notes fri m the banking department for the
Bank Of England always to keep on hand gold and
silver equal to onethird OF its combined circulation
and deposits.
secure the cOnveribity of its notes, with the whole
of Great Britain, and TO extent the continent
Of Europe, a fed for its circulation, rendering it
almost impossible that a sudden and immediate
q dangerous amount should be made upon it, the
same proportion would certainly be insufficient
der our banking system. Each of our fourteen hun
bred banks has but a limited circumference for It's
circulation and in the course of very few days
the depositOrs and note holders might demand from
such bank, a sufficient amount in specie com lel
suspend, although it had coin in its vaults
equal one third of its immediate liabilities.
And yet L am not aware, with the exception of the
banks of louisiana that any State bank throughout
the Union, has been required by its charter keep
this any other proportion of gold and silver com
pared with the amount Of its combined circulation
and deposits. What has been the consequence? In
recent report made by the Treasury Department,
on the condition of the banks throughout the differ
States. according TO returns dated nearest Janu-
airy, 1857 the aggregate amount Of actual specie in
their vaults is SOS $40 $685. of their circulation
S2l4 77S 800, and of their deposits S23O, 80, 352.
Thus it appears that these banks in the aggregate,
have considerably less than dollar in seven Of
gold and silver, compared with their circulation and
deposits.
1t was palpsbIe, therefore that toe very f rs
pressure drive them to suspension and de
prive the peopls o. q convertible curreUcy with all
its disastrous consequences 1t is tr ly wonderful
that they should have long coatiuu ID To pre-
serve their credit when demand Tor The pay
ment of one seventh their immediate lab lilies
would have driven them inc uso Vency. A
this is the condition OF the banks, thstsndng
that four hund ed millions Of gold ON Cal foruis
have f)wed in / within he 81 eigh year,
and tie tide still c)Ltruues to fl W Iudee / sue
has BEEN he ,sgsnce Of the osnk c'edls hat
the banks now h. d 8 co.'s d. ab less amount o
SPECIE either il proportion t. their csptsl or 70
their cCu ation 81 daposi.s co nbne5, han they
did before the dscoS erv of god IN Cali ouis.
Whist in the year I84s, theIr spec il rr)po-
ton to their ptal hiu eQul 20 one
dollar to and half; il 1851 il does tauOult
to one del ar for r. six collars lnlrty turee
CeUts Of tni CAPITA. IL The Yea lS48 the spsci /
eqr a within very a "a o. TO one col
lar il five heir ci cula 10 and depoi :; N {
1857 II Is net ,qua 90 seven aud a
hat Of ter i c-l ito AID posts.
From this -tatem p II l. easv scCo mt fer
our FL aaU his ory FIR the ltst fort, YER. Ii
has been a history o. eNt-avs expIusyn, n
the bust ess OF The uutry, f. loved BY ru n JUS
contralt n A. success We IuIr.as the pes
and enterprislns n av- b. tempted
the b. excess We ba K ,a $ OF mere "a
par e ! exi ing tlem q an lmrur-
tauous # for'ign 60 ds, vi spe ~ a I,ns IN
ru oIs and m stock ambl <. Wien
the crisis arrives, trrlTe il INST, tie bl. ks .
can eueui 20 raiiet 10 the peppls Ia p van
srugels u re iesm cir lab S n eCie, they
com e ed to acl II lJaus aud tler
sues an at last, t b. UT dist. IS, wbel
tseir asssta mot ne do, Il ey and their