The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-09
NATIONAL AFFAIRS.
The PRESIDENTS MESSAGE.
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Report Of the Secretary Of the
Treasury.
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AN N U Al REP OR 7 S
SesretarIes Of the Navy and War Depart
nents, Postmaster General, and tho
General Land once.
OUR FOREIGN RELATIONS.
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The Recent RevulsiOn and the
National Finances.
fHE KANSAS QUESTION.
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THE MORMON WAR.
THE PACIFIC RAILRO
Xhrogation Of the Clayton-Bulwer Treaty, and
More Decisive Measures against
Spain Recommended
THE PRESIDENTS MESSAGE.

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Tn1ow CITIZENS OF THE SENATE
AVID Houss OF REPRESENTATIVES.
N obedience to the command of the constitution, has
now become my duty 80 give 10 Congress information Of
ne state the Unon and recommend to their considcra
Non such measures" judge TO be necessary and cx
pedient"
But FIRST and above ALL thanks due TO Almighty
God for the numerous benefits which he has bestowed
upon this people, and united prayers ought to ascend
% Him that He would continue 10 bless great republic
N time to He has blessed II in time past Since
the adjournment of the last Congress constituents have
enjoyed an unusual degree of health. The earth has
yielded her fruits abundantly and has bountully
vArded the toll Of the husbandman Our great staples
have commanded high prices, and, up till within brief
period, manufacturing mineral and mechanical occu
Daions have largely partken of the general prosperity
We have possessed all elements of material wealth in
yich abundance yet Notwithstanding all these advan
Ages country, in its monetary interests, is at the
present moment in deporable condition In the midst
e unsurpassed plenty in all the productions of agricul
Are and all the elements Of national wealth, We find
Sur manufactures suspended public works retarded
sur private enterprises of different kinds abandoned and
thousands of useful oborers thrown out Of employment
and reduced to want The of the government,
which is chiefly derived from duties on imports from
sns by Congress at It's last session for the current
sscal year are very large in amount.
Under these circumstances loan may be required be-
Arc the close of your present session. but this although
deeply be regretted, would provo TO be only slight
misfortune when compared with the suffering and distress
prevailing among the people. With this the government
cannot fail deeply sympathise though may be with
cot the power 10 extend relief.
nm FINANCIAL REvursioS.
y our duty TO inquire what has produced such unfor
unaie results and whether their be pre-
vented In all former revusons the blame might havo
been fairly attributed variety Of cooperating causes;
bot not 20 upon present occasion apparent that
eur existing msfOrunes have proceeded solely from
extravagan and vicious system OF paper currency and
bank credits exciting the people to wild specuaticns
and gambling in stocks. These revusions must continue
70 recur successive intervals long the amount Of
he paper currency and bank loans and discounts OF the
country shall be left the discretion Of fourteen hundred
irresponsible banking institutions, which from the very
NV Of their consult the interest Of their stock
holders rather than the public welfare
The trainers Of the constitution, when they gave TO Con
sress the power coin money and TO regulate the value
thereof and prohibited the States from coming money,
emitting bills OF credit making anything but gold and
silver tender in payment Of debts, supposed they
lad protected the people against the evils Of an excessive
and rredecmabe paper currency. They not rcspon
sibe for the existing anomaly that government endowed
With the sovereign attribute OF coming money and regu
sing the value thereof should have power 10 prevent
sshers from driving this out Of the country and filling
up The channels Of circulation with paper which does not
represent gold and silver.
one OF the highest and most responsible duties OF
sovcrnmen, 70 insure the people sound circulating
medium the amount Of which ought TO be adapted with
she utmost possible wisdom and skill 10 the Of in
ia ha 9th
greatly above or greatly below the proper standard the
marketable value Of every mans property increased or
diminished in the same proportion and injustice 70 lndi
vduals well a. ncacusbe evils 70 the community are
the consequence.
Unfortunatcy under the construction Of the federal
constitution, which has now prevailed too long TO be
changed this important and delicate duty has been dis
severed from the coming power and virtually transferred
n more than fourteen hundred state banks acting nde
pendeny Of each other and regulating their paper s
sues almost exclusively by regard 10 the present intc
OF their stockholders Exercising the sovereign power
q providing paper currency instead of coin, for tho
country nrs duty which these banks 20 the pub
lc to keep their vaults sufficient amount Of gold
silver the convcrtbty Of their notes into
coin al all times and under all circumstances No bank
ought 10 be chartered without such restrictions on
s business 20 this result All other rcstric
lions arc comparatively vain This Is the only true touch
stone, the only efficient regulator Of paper currency
the only which can guard the public against over Is
sues and bank suspensions As collateral and eventual
security doubtless wise, and In all ought 10 be
required that hanks shall hold Of United States
or state securities equal 70 their notes In circulation and
pledged for their redemption This however, fur
nshes no adequate security against over issues On the
contrary II may be perverted 10 initiate the currency.
indeed IL possible by this all the debts
OF the United states and state governments into bank
poes wthou, reference the specie required 20 redeem
them However valuable these securities may be in
Themselves they cannot be converted into gold and silver
A the moment OF pressure experience teaches
sucient time prevent bank suspensions and the depre
citation OF bank In England, which 10 consider
abe extent paper money country though vastly behind
20 the sc, a. Parliament ef 1884, when wisely separated
shs ssue Of notes from the banking department for the
RAnk Of England always keep on hand gold and silver
oua 10 one third Of ts combined circulation and deposits
mi this nrororton than sufficient " secure the
cnnyerbiiy OF notes, with the whole Of Great Bri
tain and 10 some extent the continent of Europe as Held
for lis circulation rendering almost impossible that
sudden and Immediate 20 dangerous amount should
be upon IT, the same proportion would certainly DC
insufficient under our banking system tach of our four
teen hundred banks Mas but lnGtcd circumference Tor
it's circulation and in the course Of very Few days the
depostors and noteholders might demand from
such q bank sufficient amount Of specie TO
vaults equal 20 one.thrd Of ils immediate Liabilities.
And yet not aware, With the exception o. inc banks
f Louisiana that any state bank throughout the Union
has been required by charter 70 Keep TINS or any oher
proportion Of gold and silver compared with the amount
of t combined circulation and depostes what mas Oeen
he consequence In recent report made by the reasu
~ Depertmcu on the condition OF the banks through
out the different States according 70 returns dated near
est W January, 1857, the aggregate amount o actual
specie IN their vaults s SIS $40 s3s OF their circulation
s214 1882 and Of their depostes $3.50 35 352 Tins
appears that these banks in the aggregate have consd
svaoly less than one dollar in u gold and siv@
compared with their circulation and depOstes. II was
rslrable, therefore, that the very first pressure must
drive them 10 suspension and deprive the people Of
convertible currency with all its consequences