The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1857-12-16

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. 1t ac-
cordingly commenced system of curtail-
ment Of its loans and issues, in the vain
hope that the joint and private banks of the
kingdom would be compelled TO follow its
example. 1t found, however, that as it con-
tracted they expanded, and at the end of the
process, to employ the language of high
official authority. whatever reduction of
the paper circulation was effected BY the
Bank Of England Gin 1920 was more than
made up by the issues Of the country
banks"
But Bank Of the United States would
not, lift could, restrain the issues and loans
Of tie State Banks. because its duty as a regu.
lator OF the currency must often be in direct
conflict with the immediate interest Of its
Stockholders. III we expect one agent toll
restrain or control another. their interests
must, at least in some degree. be antagonistic.
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 acs
commodate their iavorites and friends with
loans. aud to declare large dividends. Such
has been our experience in regard to the last
bank.
After AL. we must mainly rely upon the
patriotism and wisdom Of the States Tor the
prevention aud redress Of the evil. II they
will afford us a real specie basis for our paper
circulation by increasing the denomination OF
hank notes. first TO twenty, aud afterwards TO
fifty dollars; If they will require that the
banks shall at all times keep on baud at least
one dollar Of gold aud silver Tor every three
dollars Of their circulation aud deposites aud
il they will provide BY self-executng en-
actlnent. which noihing can arrest, that that
moment they suspend they shall 90 into liqui-
lation. | believe that such provisions, with
weekly publication BY each bank Of state
ment Of ITS condition. would 90 far To secure
Us against future suspensions In specie
payments.
Congress, in my opinion. pnssess the power
TO pass uniform bankrupt law applicable to
all banking institutions throughout the United
States, and strongly recommend its e xercise.
This would make II the irreyersible organic
law Of each banks existence, that suspension
Of specie payment. shall produce its civil
death. The instinct Of self preservation
would then compel i, To perform is duties IN
such manner as to escape the penalty aud
preserve its lite.
The existence Of banks and the circulation
Of bank paper are So unidentified with the
habit, Of our people. that Ihey cannot at this
,las be suddenly abolished without much i'm.
mediate injury Ia the country. II We could
genuine ID, n 10 Their appropriate sphere, and
prevent them from administering 10 the spirit
Of Wild aud reckless speculation by extraya-
gan; loans and issues, they might be Continued
with advantage 10 the public.
/ Hut this ! saw. alter long aud much rehec-
tieR /: il experience .hall prove i lobe impnsi.
1 leo DahSs mIghr aiimd. without al Tie ssme
time suffering the cslamities which the ~
4 ceases 81 the banks have hitherto inflicted
upon the country, Il would then be far The
lesser evil I. deprive them altogether u the
Po~r- 70 issue paper currency and cnnfne
them 10 the notions Of banks Of deposit aud
Discount.
Orrelaiions with foreign governments are.
upon the Whole, 10 a satisfactory condition.
\ The Diplomatic difficulties which existed
betwren the government nf the United States
and that % Great Britain at the adjournment
81 ihr last Congress have been happily termI.
mated b, the appointment 81 British INNS.
/ ter 10 this country, whJ has been cordially
received.
i Whilst il is greatly TO The interest, as I am
convinced il Is the sincere desire, of the go.
vernments and people 81 the two countries 10
be on terms 81 intimate friendship with zach
other. u la. hcen oUr misfortune almost al.
ways TO have had sumo irritating Il not dan.
gerous. outstanding question with Great
Britain.
Since the origin of tie government we have
been empI"yed 10 negotiating treaties with
tbst power. AID afterwards IN discussing their
true intent and meaning. IN this respeet, the
convention Of April 10. 1850. commonly
called the CLAYTON and Bulwer treaty, ha.
been The most unfortunate &C all because the
two governments place directly opposite and
contrary constructions upon it, first aud
most important article. Whilst, ~ the
United States, we belieye that this treaty
would place both powers upon an exact
/ equ-lfy BY the stipulation thar neither will
ever "sccupy. nr iort'iy. or eulou,ze. or as.
sumo or exercise any dominion aver an, part
oi eniral America" u - commended by the
British government that the true construction
81 this language has left them in the righlfuI
possession 81 al that part of Central Amer.
ca which was 40 their occupancy AZ the date
81 the treaty; 10 TACT. that the treaty Is
virtual recognition op tie part of the Uniied
States % the right u Great Britain, either a.
owner o. prn,rirtor, 20 the whole extensive
coast Of Central America. sweeping round
from the Rio Handp 70 the port aud harbor ~
San Jpau de Nicaragua, together with the
adjacent Bay Islands. except the compare.
lively smaIl poriion of this between the Sars.
tom and Cape Honduras. According 10
their construction, The treaty does no more
than simply prohibit them from extending
\ their possessions Ia Central Amyr;r. ~ v,ud