White Cloud Kansas chief. [volume] (White Cloud, Kan.) 1857-1872, 1857-12-31
WHITE CLOUD, KANSAS THURSDAY, DECEMBER 81, 1857.

did not exist against the creation of Nationa
Bank, this would furnish no adequate preventive
security. The history of the last Bank of tht
United States abundantly- proves the truth o.
this assertion. Such Bank could not, If Il
would, regulate the issues and credits of four
teen hundred State Banks in such manner as to
prevent the ruinous expansions and contrac
tons in our curency which afflicted the country
throughout the existence of the late Bank. o.
secure rs against future suspensions. In 1895 an
effort was made by the Bank of England to cur.
tail the issue of the country Banks under the
most favorable circumstances. The paper cur.
rency had been expanded to ruinous extent,
and the Bank put forth all its power to contract
it in order to reduce prices and restore the equi-
librium of the foreign exchanges. ItaccOrding-
ly commenced system of curtailment 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. It found,
however, that as it contracted they expanded,
and at the end of the process, to employ the
language Of a very high official authority, "what
ever reduction of the paper circulation was eff
fected by the Bank of England lin 1925 was
more than made up by the issue of the country
banks"
But Bank of the United States would not, if
it could, restrain the issues and loans 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 torestrain or contOl an
other their interests must, at least in some de-
gree, be antagonistic. But the directors of a
Bank.of the United States would feel the same
interest and the same inclination with the direc-
tors of the State Banks to expand the currency,
to accommodate their favorites and friends with
loans, and to declare largo dividends. Such has
been our experience in regard to the last back.
After all, We must mainly rely upon the patri-
otism and wisdom of the States for the proven
ton and redress of the evils. If they will afford
US real specie basis for our paper circulation by
increasing the denomination of bank notes, first
to twenty and afterwards to fifty dollars if they
will require that the banks shall at all times keep
on hand at least dollar of gold and silver for
every three dollars of their circulation and de-
pOsites; and if they will provide by selfexecu-
ting enactment, which nothing can arrest, that
the moment they suspend they shall go into
liquidation, believe that such provisions, with
a weekly publication by each Bank of state
ment oft condition, would 60 far to secure us
against future suspensions of specie payments.
Congress, in my opinion, possess the power to
pass uniform bankrupt law applicable to all
banking institutions throughout the United
States, and strongly recommended its e1er-
else. This would make it the irreversible or
ganic law of each Banks existence, that sus-
pension ofspecie payments shall produce its civ
il death. The instinct of selfpreservaticn would
then compel it to perform its duties in such
manner as to escape the penalty and preserve its
life. t
The existence of Banks and the circulationo of
Bank paper are so identified with the habits of
our people, that they cannot at this day be sud-
denly abolished without much immediate injury
to the country. If we could confne them to
their appropriate sphere, and prevent themfrom
administering to the spirit of wild and reckless
speculation by extravagant loans and issues,
they might be continued with advantage to the
public. ..-.-fg-b d..
But this say, after long and much reflection:
ifexperence shall prove it to impossible to en-
ioy the facilities which well regulated Banks
might afford, without at the same time suffering
the calamities which the excuses Of the Banks
have hitherto inflicted upon the country, itwould
then be far the lesser evil to deprive them alto
gether of the power to issue a paper currency
and confne them to the functions Of Banks of
deposite and discount. t-4aa7e g.E
Our relations with foreign governments are,
upon the whole, in a satisfactory condition.
The diplomatic difficulties which existed be-
tween the government of the United States and
that of 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 received.
Whilst it is greatly to the interest, as am
convinced it is the sincere desire, of the gov
ernments and people of the two countries to be
on terms of intimate friendship wssh eaehother,
il has been our misfortune alnostalwa to have
had some irritating, if not dangerous, outstand.
ing question with great Britain. g ilseI1iasg.
Since the origin of the government We have
been employed in negotiating treaties with that
power, and afterwards in discussing their true
intent and meaning. In this respect, the con.
vention of April I9, 1850, commonly called the
Clayton and Bulwer treaty, has been the most
unfortunate Of all; because the two government:
place directly opposite and contradictory con.
structions upon its first and most important ar.
ticle. Whilst, in the United States, We believed
that this treaty would place both powers upon
an exact equality by the stipulation that neither
will ever occupy, or fortify. or colombo, or as
sumo, or exercise any dominion over, any part
of Central America, it is commended by the Brit
ish Government that the true construction O.
this language has left them in the nghtful pos
session of all that portion Of Central Americ1
which was in their occupancy at the date of the
treaty; in fact, that the treaty is a virtual rec
ognition on the part of the United States of tbs
right of Great Britain, either as owner or pro
tector, to the whole extensive coast of .Centra
America, sweeping around from the Rio HOndc
to the port and harbOr of San Juan de Nicura
qua, together with the adjacent Bay Islands ex
cept the comparatively small portion of thisbe
tween the Sarstoon and Cape Honduras.
According to their construction, the treaty
docs M mora than eiunIv nrohibit them from