The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1857-12-12
PRESIDENTS MESSAGE.

In obedience to the command Of the con-
sti.ution, it has now become my duty ito
give Congress information of the state OF the
Union. and recommend to their considera-
ton such measures" as judge to be me
cessary and expedieIt."
But first. and above all, our thanks are
due TO Almighty God for the numerous be-
n, fits which lie has bestowed upon this PEG
pie: and our united prayers ought TO ascend
To- Him that He would continue to bless our
great republic in time to come as ne has
blessed it in time past Since the ADJOURN
raent Of the last Congress eur constituents
have enjoyed an unusual degree Of health
The earth has yielded her fruit abundantly,
End has bountifully rewarded the toll of the
husbandman. Our great staples have COM
handed high prices, and, up till within 4
brief period, our manufacturing, mineral.
and mechanical occupations have largely
partaken of tie general prosperity We
have possessed ali the elements of inaterlai
wealth in rich abundance, and vet, notwIt'i-
standing all these advantages, our country,
in its monetary interests, IS ut the present
moment in deplorab!e condition In the
midst Of unsurpassed plenty IN al the pro-
dGctioEs Of agriculture and IN al tie e!e
1uent, of national wealth, We find our rnInu-
features suspended, our public works re-
tarIed, oar private enterprises OF different
kinds abandoned, and thousands OF useful
labOrers thrown out Of employment and re-
Guced to want. The revenue Of the govern
rneut, which Is chiefly derived from duties
ON imports from abroad, has been greatly
reduced, whilst the appropriations made by
Congress at lis last session Tor the current
fiscal year are very large in amount
Under these circumstances, loan may DC
4. tta ok nt
session-but this, although deeply TO be re-
s.so,d, would prove to To- only s!ight ms,
fortur. vi.r Impaired TO the suffering and
distress prevailing among the people. With
TINS the government cannot fail deeply to
sympathiZe, though it may be without the
power to extend relief
IL is our duty TO inquire what has pro-
Guced such unfortunate results, and whether
their recurrence can be prevented? In all
former revulsions the blame might have
been fairly attributed TO a variety of co ope
rating causes; but not so upon tie present
occasion. IL Is apparent that our existing
n.islortunes have proceeded solely from an
extravagant and vicious system of paper
currency and bank credits, exciting the peO-
pie to wild speculatiOns and gambling in
stocks. These reyuisiyns must continue 20
recur at successive intervals so long as the
amount If paper currency and bank loans
and discounts OF the country shall he left 10
the discretion of fourteen hundred irrespon-
sIble banking Institutions, which from the
very law Of their nature will consult the in
terest Of their own stockholders rather than
the public welfare.
The trainers of the Constitution, when
they gave to Congress the power Ito coin
money and to regulate the value thereof"
tal th.
Eey, emitting bills of credit, or making any,
thing but gold and silver coin tender in
payment OF debts, supp sed they had pro-
tected the people against the evils of an ex-
ces>.ve and irreGeema5lc paper currency
Tnry are not responsible for the existing
anomaly, that a government endowed with
the sovereign attribute of coming money and
regulating the valne thereof, should have no
power 70 prevent others from driving this
coin out of the country and filling up the
channels of circulation with paper which
docs not represent gold ard silver.
II Is one of the highest and most respons;-
be duties of government TO insure 10 the
people a sound circulating medium, the
amount Of which ought to be adapted with
the utmost possible wisdom and skill 10 the
wants Of internal trade and foreign exchanges
Ii this be either greatly above or greatly be-
.ow the proper standard, the marketable va
lue o. every mans property is increased or
diminished in the same proportion, and in
justice TO individuals, as well as incalcuiable
evils TO the community, are the consequent
CeS.
Unfortunately, under the construction IF
the federal constitution, which has now pre-
vailed too long to be changed, this impOr-
tant aud delicate duty has been discovered
frt..f N...s nd frfs
ierred 20 more than fourteen hundred State
banks, acting independently of each other,
and regulating their paper issues almost ex-
ciusively by regard to the present interest
of their stockholders. Exercising the sove-
reign power of providing Il paper currency,
instead Of coin, for the country, the first du
" which these banks owe TO the public is TO
keep IN their vaults sufficient amount of
gold and silver TO insure the convertib lily of
their notes into coin at all times and under
al circumstances. No bank ought ever to
DC chartered without such restrictions on its
business as te secure this result. I'll other
restrictions are comparatively vain. This is
the only true tombstone, the only efficient
regulator OF paper currency-the only one
wuich can guard the public asoinst over-is
sues and bank suspensions. rs collateral
and eventual security, it is doubtless wise,
and IN all cases Onght 10 DC required, that
banks shall hold on amount OF | uited States
or state securities equal to their notes in
circulation, and pledged for their rcdemp-
tiun. This, however, furnishes no adequate
security against over issues. On the contra
~, il may be perverted to initiate the cur
rcucy. Indeed, it Is possible by this means
to convert 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 Sc
Qualities may DC IN themselves, they cannot
be converted into gold and ii yer at the mo-
ncnt OF pressure, aS our experience teaches,
IN sufficient time TO prevent bank suSpen-
sions and the depreciation Of bank notes.
In England, which il to n considerable ex-
tent n paper money country. though vastly
behind cur own in this respect. IL was deem
ed advisable, anterior TO the act Of Parlia-
ms Mt Of ISL, which wisely separated the
issue Of notes from the banking d. partment,
for the Bank of England always TO keep on
hand gold and silver equal to one-third Of its
combined circulation and deposits. II this
proportion was no more than Efficient TO Sc
cure the coHveitibiliIy Of its notes, with the
whole % Great Britain, aud 70 some extent
the continent Of Europe, as field for its
rendering il almost impossible
that a sudden and immediate run to a dan
EerOus amount should be made upon II, the |
same proportion would certainly be INSULT .
cicnt under our banking system. Each OF
our fourteen hundred banks has but 4 limit !
cd circumference for its circulation, and in \
the course of 4 very few days the depostors /
and note holders might demand from such a .
bank a sufficient amount of specie to compel .
It to suspend, even although it had coin ir
lis vaults equal TO one third Of It's immediate
liabilities And yet am not aware, with
the exception Of the banks of Louisiana. that
any State bank throughout the Union has
been required by its charter to keep this or
any other proportion of gold and silver com
pared with the amount of its combined cir
rulatinn and Icnnsifs What has heen fhn |