The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-12-09

the production OF countrsuch az cotton iron,
and woollen fabrcswould not only have acquired al
most exclusive possession Of the home market but would
have created FOR themselves foreign market throughout
the world.
Deplorabfc, however, as may be present financial
condition. may yet indulge in bright hopes for the fu
tare No other nation has existed which could
have endured such violent expansions and oontacons Of
paper credits without lasting injury yet the buoyancy OF
youth the energies of our popaatidp and the spirit
which never auails before dculties viii enable US soon
TO rom our present financial embarrassment and
may even occasion us speedily TO forget the lesson which
they have taught. Ai7a sn#tLt - n -sfE
In the time it is the duty of the government, by
all proper means within its power to aid in alternating
the suerngs of the people occsioned by the suspension
of the banks and 10 provide against recurrence of
the calamity Unfortunately In either aspect of
the case, 1t do but little Thanks to the ndepend
ent treasury the government has not suspended payment
II compelled 10 do by the failure of the banks in
1887 1t will continue TO discharge its liabilities TO the
people in gold and silver It's 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 oan it be effected
advantageous terms. This, however, SHALL if posi-
be be avoided but If not, then the amount shall be
limited TO the lowest practicable sum. a.
have, therefore, determined that whilst no useful
government works already in progress shall be suspended,
works, not already commenced will be postponed If
this cah be done without injury to the country Those
necessary for its defence shall proceed though there
had been no crisis in our monetary affairs.
But the federal government cannot do much to provide
against recurrence of existing evils Even If ins,r-
mounabe constitutional objections did not exist against
the creation of National Bank this wonld furnish no
adequate preventive security The history of the last
Bank of the United States abndanty proves the truth of
this assertion Such bank could not ii il would rcgu
late the issues and credits of fourteen hundred State banks
in such manner to prevent the runous expansions
and contncons in currency which afflicted the
try throughout the existence of the late bank
us against future suspensions In 1925 effort was
made by the Bank of England TO cura the issues of the
ks he m favor anCes
The paper currency had been expanded to ruinous
tent, and the Bank put forth all its power to contract it
in order to reduce prices and restore the equilibrium of
the foreign exchanges. 1t accordingly commenced sys-
tenn of cutament of its loans and issues in the vain hope
that the jointstock and private banks of the kingdom
would be compelled to follow its example. 1t found
however that it contracted they expanded and at the
end of the process to employ the language of very high
official authority, whatever reduction of the paper cir
culation effected by the Bank of England lin 1920
was more than made up by the issues of the country
banks .',ss " r.""e
But Bank of the United States would not if it could
restrain the issues and loans of the State banks because
its duty regulator of the currency must often be in
direct conflict with the immediate interest of its stock
holders. If we expect agent to restrain control
another their interests must at least in degree be
antagonisc But the directors of Bank of the United
States would feel the interest and the ncna
ton with the directors of the State banks to expand the
currency, to accommodate their favortes and friends
with loans and to declare large dividends. Such has
been our experience In regard to the last bank.
After ALL we must mainly rely upon the patriotism and
wisdom of the States for the prevention and redress of the
evil II they will afford us real specie basis for
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
hand at least dollar gold and silver for every
three dollars of their circulation and depostcs and if
they will provide by self-executing enactment which
nothing arrest that the moment they suspend they
shall go into liquidation believe that such provisions
with weekly publication by each bank of statement of
pO far a fin
suspensions of specie payments. #aN
Congress, in my opinion possess the power to pass
uniform bankrupt law applicable to all banking nstu
ons throughout the United States, and strongly
ommend its exercise This would make it the irrevers
bic organic law of each banks existence that suspension
of specie payments shall produce its civil death The in
snct of sepeservation would then compel it to perform
its duties in such manner to escape the penalty aud
preserve its life.
The existence of banks and the circulation of bank
paper identified with the habits of people, that
they cannot at this day be suddenly abolished without
much immediate injury to the country. If could
fine them to their appropriate sphere and prevent them
from administering to the spirit of wild and reckless
speculation by extravagan loans and issues they might
be continued with advantage to the public. .
But this say, after long and much reflection: if expe-
rence shall prove it to be impossible to enjoy the aili
ties which llreguated banks might afford without at
the same time suffering the calanties which the
of the banks have hitherto inflicted upon the country
would then be far the lesser evil to deprive them alto
gcther of the power to issue paper currency and cone
them to the functions of banks of depose and discount
Our relations with foreign governments are upon the
whole, in satisfactory condition. ~ ..@
The diplomatic difficulties which existed between the
government of the United States and that of Great Brit
ain at the adjournment of the last Congress have been
happily terminated by the appointment of British min
lister to this country who has been cordially received
Whilst it is greatly to the interest convinced
is the sincere desire, of the governments and people
of the two countries to be terms of intimate friend
ship with each other it has been misfortune almost
always to have had some irritating If not dangerous out
standing question with Great Britain t'
Since the origin of the government we have been en-
poyed in negotiating treaties with that power and after
wards in discussing their true intent and meaning In
this respect the convention of April 49, 1885, commonly
called the Clayton and Buwer treaty has been the most
unfortunate of all because the two governments place
directly opposite and contradictory constructions upon its
first and most important article Whilst, in the United
States believed that this treaty would place both
powers upon an exact equality by the stipulation that
neither will ever occupy, fortify, colonize,
assume exercise any dominion over any part of
Central America, it is contended by the British govern
mcnt that the true construction of this language has
left them in the rghtful possession of all that portion
of Central America which in their occupancy the
date of the treaty in fact that the treaty virtual reco
milton the part of the United States of the right of
Great Britain, either protector to the whole
extensive coast of Central America sweeping round from
the Rio Hondo to the port and harbor of San Juan de Mica
together with the adjacent Bay Islands, except the
comparatively small portion Of this between the Srstoon
and Cape Honduras According to their construction
the treaty does than simply prohibit them
extending their possessions in Central America beyond
the present limits 1t Is not too much to assert that if
in the United States the treaty had been considered
cepble of such construction it would have been
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