White Cloud Kansas chief. [volume] (White Cloud, Kan.) 1857-1872, 1857-12-31
PRESIDENTS MESSAGE.
R.rlnss;e.n, Of tie Senate

n obedience to the command Of the consi-
.,,;or !, has now become my duty ito giveto
conrress information Of the state ofthe Union,
IA recommend to their consideration such
measures " as judge to be ' necessary and exT
pedient." -
Rut first, and above all, our thanks are due
to AImighty God forthe numerous benefits which
He has bestowed upon this people; and our uni
ted prayers ought to ascend to Him that de
xould continue to bless our great republic in
time to come as He has blessed il in time past.
Since the adjournment of the last Congress our
constituents have enjoyed an unusual degree of
health. The earth has yielded her fruits album
dainty, and has beautifully rewarded the toll of
the husbandman. Our great staples have COM
manded high prices, and, up till within brief
period, our manufacturing, mineral and mechan-
zeal occupations have largely partaken of the
general prosperity. We have possessed all the
elements of material wealth in rich abundance,
and vet, Notwithstanding all these advantages,
our country, in its monetary interests, is at the
present moment in deplorable condition. In
the midst of unsurpassed plenty in all the pro-
auctions of agriculture and in all the elements
of national wealth, we find our manufactures
suspended, our public works retarded, our pri-
vate enterprises of different kinds abandoned,
and thousands of useful labOrers thrown out of
employment and reduced to want. The revenue
of the government, which is chiefly derived
from duties on imports from abroad, has been
greatly reduced, while the appropriations made
BY Congress at its last session for the current
fiscal year are very large in amount.
Under these circumstances loan may be re-
quired before the close of your present session;
but this, although deeply to be regretted, would
prove to be only slight misfortune when com
pared with the suffering and distress prevailing
among the people. With this the government
cannot fail deeply to sympathize, though it may
be without the power to extend relief.
1t is our duty to inquire what has produced
such unfortunate results, and whether their recur-
renee can be prevented In all formerrevulsions
the blame might have been fairly attributed to
variety Incorporating causes; but not so upon
the present occasion. 1t is apparent that our
existing misfortunes have proceeded solely from
our extravagan: and vicious system of paper
currency and bank credits, exciting the people to
wild speculations and gambling in stocks. These
revulsions must continue to recur at successive
intervals so long as the amount Of the paper cur
rency and bank loans and discounts of their
country shall be left to the discretion of fourteen
hundred irresponsible banking institutions, which
from the verJ law Of their nature will consult
the interest of their stockholders rather than
the public welfare.
The trainers of the constitution, when they
gave to Congress the power "to coin money and
to regulate the value thereof and prohibit the
State from coming money, emitting bills offered
it or making anything but gold and silver coin
tender in payment of debts, supposed they
had protected the people against the evils Of an
excessive and irredeemable paper currency
They are not responsible for the existing anom-
ally that a government endowed with the sover-
eign attribute of coming money and regulating
the value thereof should have no power to pre-
vent others from driving this coin out of the
country and filling up the channels of circulation
with paper which does not represent gold and
silver.
1t is one Of the highest and most responsible
duties Of government to insure to the people a
sound circulating medium, the amount Of which
ought to be adapted with the utmost possible
Wisdsm and skill to the wants internal trade aud
foreign exchanges. If this be either greatly
above or greatly below the proper standard, the
marketable value of every mans property is IN
creased or diminished in the same proportion,
and injustice to individuals as well as incalcul'
able evils to the community are the consequence
Unfortunately, under the construction of the
federal constitution, which has now prevailed
too long to be changed, this important and del
icate duty has been discovered from the coming
power and virtually transferred to more thar
fourteen hundred State banks, acting independ
emily of each other, and regulating their papel
issues almost exclusively by regard to the
present interest of their stockholders. E1erci
sing the sovereign power of providing papel
currency, instead Of coin, for the country, tbs
first duty which these banks owe to the publ,
is to keep in their vaults sufficient amount O
gold and silver to insure the convertibility o
their notes into coin at all times and under al
circumstances. No bank ought ever to be char
tered without such restrictions on its business a.
70 secure this result. All other restrictions ar,
comparatively vain. This is the only tru,
touch-stOne, the only efficient regulator Of a pa
per currency-the only one which can guard tn,
public against oye-issues and bank suspensions
As a collateral and eventual security it is doubt
less wise and in all cases ought to be required
that banks shall hold an amount of u nited State
or State securities equal to their notes in circu
lation, and pledged for their redemption.
This, hswever, furnishes no adequate securit,
against over-issues. On the contrary, it may b,
perverted to initiate the currency. Indeed, it j
possible by this means TO convert all the debt
Of the United States and State governments in
TO bank notes, without reference to the speci
required to redeem them. However valuable
these securities may be in themselves, they can
not be converted into gold and silver at the mo
nent Of pressure, as our experience teaches, il
sufficient time to prevent bank suspensions an'
the depreciation Of bank notes. In England
which is to a considerable extent paper none.
country, though vastly behind our own in thi
respect, 1t was deemed advisable, anterior b
the act OF Parliament of 1874, which wisely sep
aFated the issue of notes from the banking de