Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1857-12-16

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subsequent issue.
PRESIDENTS MESSAGE.
Fslloo- Oitizsns Of the Senate and House Of Rep
resentatipes
In obedience to the command of the constitu-
tion, it has now become my duty ITO give to
Congress information of the state of the Union,
and recommend to their consideration such
measures" as Judge to be necessary and expe-
dientn
But first, and above all, our thanks are due to
Almighty God for the numerous benefits which
He has bestowed upon this people; and our uni
ted prayers ought to ascend to Him that He
would continue to bless our great republic in time
to come as He has blessed it in time past. Since
the adjournment of the last Congress our con-
stituents have enjoyed an unusual degree OF
health. The earth has yielded her fruits abun-
dainty, and has bountifuly 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-
ical occupations have largely partaken of the
general prosperity. 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 in all the pro-
ductions of agriculture and in all the elements OF
national wealth, we find our manufactures sus-
pended, our public works retarded, our private
enterprises of different kinds abandoned, and
thousands of useful laborers thrown out OF en-
ployment and reduced to want The revenue Of
the government, which is chiefly derived from
duties on imports from abroad, has been greatly
reduced, whilst the appropriations made by Con-
gress at its last session for the current fiscal year
are very large in amount.
Under these circumstances q 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 sympathze, 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 re-
currence can be prevented2 In all former re-
vulsious the blame might have been fairly at
tributed to variety of cooperating causes; but
not so upon the present occasion. tbs apparent
that our existing msfortunes have proceeded
solely from our extravagant and vicious system
of paper currency and bank credits, exciting the
people to wild speculations and gambling in
stock. These revulsiOns must continue to recur
at successive intervals as long as the amount OF
the paper currency and bank loans and discounts
OF the country shall be left to the discretion Of
fourteen hundred irresponsible banking institu-
tions, which from the very law of their nature
will consult the interest of their stockholders
rather than the public welfare.
The trainers fthe constitution, when they gave
to Congress the power ito coin money and to
regulate the value thereof" and prohibited the
States from coming money, emitting bills OF
credit, 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 irredeemsble paper currency
They are not responsible for the existing anoma-
ly that government endowed with the soyer-
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
sound circulating medium, the amount of which
ought to be 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
creased or diminished in the same proportion,
aud injustice to individuals as well as incalcula-
BILE 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 deli
cate duty has been discovered from the coming
power and virtually transferred to more than
fourteen hundred state banks, acting indepen-
IDENTIFY of each other, and regulating their paper
issues almost exclusively by regard to the pres
ent interest of their stockholders. Exercising
the sovereign power of providing paper cur
rency instead of coin, for the country, the first
duty which these banks owe to the public is to
keep in their vaults q sufficient amount ot gold
and silver to insure the convertlblllty OF their
notes into coin at all times and under all clrcum-
stances No bank ought ever to be chartered
without such restrictions on its business as to Sc
cure this result. All other restrictions are COM
pa-atvely vain This is the only true touch
stone, the only efficient regulator OF paper cur
rency-the only one which can guard the public
against over issues and bank suspensions. As a
collateral and eventual security it is doubtless
wise, and in all cases ought to be required, that
banks shall hold an amount of United States or
State securities equal to their notes in circulation
and pledged for their redemption. This, how
ever, furnishes no adequate security against over
issues. On the contrary, it may be perverted to
initiate the currency. Indeed, it is possible by
this means to convert all the debt of the United
States and State governments into bank notes,
without reference to the specie required to re-
deem them. However valuable these securities
may be in themselves, they cannot be converted
into gold and silver at the moment of pressure,
as our experience teaches, in sufficient time to
prevent bank suspensions and the depreciation
of bank notes. In England, which is to a con-
siderable extent paper-money country, though
vastly behind our own in this respect, it was
deemed advisable, anterior to the act of Parlia-
ment of 1874, which wisely separated the issue
OF notes from the banking department, for the
Bank of England always to keep ON hand gold
and silver equal to one-third of its combined cir
oulation and deposites. 1t this proportion was
no more than sufficient to secure the convertible
ity of its notes, with the whole of Great Britain,
and to some extent the continent of Europe, as
field for its circulation, rendering it almost i'm
possible that sudden and immediate run to
Dangerous amount should be made upon it, the
same proportion would certainly be insufficient
under our banking system. Each OF our four
teen hundred banks has but limited circum-
ference for its circulation, and in the course of
very few days the depositors and note holders
,o;cht demand from such bank q sufficient a.