Daily Iowa State Democrat. [volume] (Davenport, Iowa) 1856-1859, 1857-12-12
PREsIDCNT'S MESSAGE.
rHyRTY-f FIFTH CONGRESS.


.t;tution. Il has now become my duty to
give To Congress information Of the state Of
the JTnon. and recommend to their consid-
Grafton such measures as ! judge to be
necessary and cxpedient."
Rut first. and above all, our thanks are
due to Almighty God for the numerous
benefit, which lie has bestowed upon tins
people ; and our united prayers ought to as
reni To Him that lie would continue to
bless our great republic in time to come ~
lie ha, blessed it in times past. Since the
adjournment of the last Congress our consti-
tnents have enjoyed an unusual degree Of
health. The earth has yielded her fruits
abnndantly, and has bountifully rewarded
the toll Of the husbandman. Our great sta
pies have commanded high prices, aud, up
till within brief period, our manufacturing,
mineral, and mechanical OCCUPATIONS nave
largely partaken Of the general prosperity.
NATIONAL LOAN.
We have possessed all the elements OF
material wealth in rich abundance, and yet,
Notwithstanding all these advantages, our
country, in its monetary interests, Is at the
present moment in deplorable condition.
In the midst Of unsurpassed plenty III all
the productions of agriculture and IN 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 uselni
Iaborers thrown cut Of employment and re-
duced to want. The revenue OF the govern
ment, which is chiefly derived from duties
on imports from abroad, has been greatly
reduced, whilst the appropriations made by
Congress 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 yonr present
session but this, although deeply to be re-
GREETED, would prove to he only ia slight
misfortune when compared with the suffer
ing and distress prevailing among the people.
With this the government cannot iaii deep
ly to sympathize, though it may be without
the power to extend relief.
THE FINANCIAL REvULsION.
It is our duty to inquire what has pro-
duccd such unfortunate results, and whcth-
err their recurrence can be prevented In
all former rcvulsions the blame might have
been fairly attributed to variety OF CO.
operating causes but not so upon the pres
ent occasion. 1t is apparent that our exist
ing misiortunes have proceeded solely from
our extravagant and vicious system of paper
currency aud bank credits, exciting the peo-
pie to wild speculatons and gambling in
stocks. These revulsMls must continue to
recur ut successive intervals SO long rs the
amount Of the paper currency and bank loans
and discounts of the country shall 10 left to
the discretion of fourteen hundred irrespon-
sble banking institutions, which, from the
very law of their nature, will consult the in
tercst Of their stockholders rather than the
public welfare.
CURRENCY AND THE BANks.
The iramers of the constitution, when
they gave To Congress the power to com
money and to regulate the value thereof
and prohibited the states from coming mon
cy, emitting bill, of credit, OF making any
thing but gold and silver coin tender in
payment of debts, supposed they had pro
tected the people against the evils of an cx-
cessivc and Irredeemable paper currency.
They are not responsible Cor the existing
anomaly that government, endowed with
the sovereign attribute of coming money and
regulating the value thereof should have no
power to prevent Others from driving this
coin out Of the country and filling up the
channel, Of circulation with paper which
II i, one Of the highest and most respon-
slble duties OF government to insure to the
people sound circulating medium, the
amount Of which ought to he adapted with
the utmost possible wisdom and skill to the
wants Of internal trade and foreign Exchanges
II this be either greatly above or greatly
below the proper standard, the markable
value OF every mans property is increased
or diminished IN the same proportion, and
injustice to individuals as well as incalcula-
BILE evils to the community are the conse-
quences.
Unfortunately, under the construction of
the federal constitution, which has now
prevailed too long to be changed, this i'm
portant and delicate duty has been d,sev-
cred from the coming power and virtually
transferred to more than fourteen hundred
State banks, acting independently of each
other, and regulating their paper issues al
most exclusively by regard to the present
interests OF their stockholders. Exercising
the sovereign power Of providing a paper
currency, instead Of coin, for the country, the
first duty which these banks owe to the
pnbllc is to keep in their vaults sufficient
amount Of gold and silver to insure the CON
virtibllty of their notes into coin at all
times and under al! circumstances.
No bank ought ever to be chartered with
out such restrictions on its business as to
secure this result All other restrictions
are comparatively vain. This is the only
true tsuchstonc the only efficient regulator
OF paper currsncy-ths only one which
will guard the public against over issues
and bank suspensions. As . collateral and
eventual security it is doubtless wise, and
in all cases ought to be required, that banks
shall hold IN amount Of United States or
State securities equal to their notes in cir
culation, and pledged for their redemption.
This, hawever, furnishes no adequate securi-
ty against over issues. On hhe contrary
1t may be perverted to initiate the currency
Indeed, it is possible by this means to CON
vert all the debts Of the United States and
State governments into bank notes. without
reference to the specie required to redeem
them.
However valuable these securities may
be in themselves, they connot be converted
into gold and silver ct the moment Of pres
sure, as our experience teaches, in sufficient
time to prevent suspension and the dopre-
cation OF bank nctss. In England, which
is to considerable extent paper money
country, though vastly behind our own in
this respect, it wss deemed advisable, an
terror to the sst Of Parliament of 1874,
which wisely separated the issue Of notes
from the banking department, for the Bank
Of England always to keep on hand gold
aud silver equal to one-third Of its combn-
ed circulation and deposits.
If this proportion was no more than suf-