Republican vindicator. [volume] (Staunton, Va.) 1849-1857, 1857-12-12
PRESIDENTS MESSAGE.

In obedience to the command of the eonStitu-
ton, 1t has how become my duty "to give to
Congress information of the state of the Union,
and recommend to their consideration such
measures as judge to be necessary and expe-
dent
But first, and above all, our thanks are due to
Almighty God for the numerous benefits which
He has bestowed upon this people; and oar uni
ted prayers ought 10 ascend to Him that lie
would continue to bless our great republic in time
TO come as He has blessed it in time past Since
tho adjournment Of the last Congress our con-
stituenis have erinyed an unusual degree of
health. The earth has yielded her fruits abun-
dainty and has beautifully rewarded the toll of
the husbaudman. Our great staples have COM
manaed high prices, and, mp 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 yet, notwithstanding all these advantages
our country, in lis monetary Interests, is at the
present moment in 'depiorable condition. In
the midst of unsurpassed plentv in eall the pro-
auctions af agriculture aal in allsthe elements Of
national wealth we find our manufactures sns-
peaded 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. II hereEenue Of
the government, which is chiefly derived from
duties on imports from abroad, has been greatly
reduced, whilst tho appropriations made by Con-
gress at its last session for the current fiscal year
IRE very large in amount
Under these circumstances q loan may be re-
CURED 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 ard 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 prodgeed
such unfortunate results, and whether their re-
eurrence can he prevented In all former re-
WILSON'S the blame might have Geen fairly at
tributed to variety OF CO operating causes but
not 50 upen the present occasion. ~ is apparent
that our existing msfor.unes haze proceeded
solely from our extravagant and vieioas system
Of paper currency and bank credits, exciting the
people to wild specnlations and gambling 4in
stock. These reYulsien5. must eontnue to reeur
ct successive intervals as long as tie amount Of
the paper currency and beuk loaGs and discounts
OF the country shall be left to the discretion of
fourteen hundred irresponsible banking institu-
TONS, which frem the very law Of their nature
viii consult The interest Of their stockholders
rather than the public welfare
The trainers ofthe constitution, W an they gave
to Congress the power ito coin money aud to
regulate the value thereof aud prohibited the
States from coming money, emitting bills Of
credit, or making anything out gold and silver
feoin tender in payment OF debts, supposed they
had protected the people against the evils Of az
excessive and irredeemabie paper currency
! They ere not responsible for the existing anoma-
l. that government endowed with the sover-
eign attribute Of coming money aud regulating
the value thereof shonld have no power 10 pre-
vent others from driving this coin out ef the
country and filing up the channels Of circulation
with paper which deos not represent geld and
silver.
1t is one OF the highest and most responsible
duties OF government to insure TO the people q
sound circulating medium, the amount of which
ought To be adapted with the utinest 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, tie
marketable value of every mans property isin-
creased or diminished in the same proportion,
and injustice to individuals as well as inealcula-
be 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 severed from the coming
power and virtually transferred to more than
fourteen hundred State banks, acting indepen-
IDENTIFY OF each other, aud regulating their paper
issues almost excnsivelyby Il regard to the pres
ent interest of their stockholders. Exercising
the sovereign power Of providing paper cur.
rency, instead Of con, for the country, the first
+ duty which these hanks owe to the public is to
keep i'll their Yants sufficient amount OF gold
and silYer to insure the eenvef,iblitv. of their
Notes lato coin AZ ali times and nnder all ciroum-
stances. No bank ought ever to be chartered
without such restrictions en its business rs 70 Sc
cure this result All other restrictions are COM
pa:atively vain. This is tie only true touol,-
efa no 0rri1fg or n
rency-the only one which can guard the public
against over issues antl bank SUSPENSIONS As a
collateral and eyentual security it is doubtless
wise, and in I'll cases ought to hssreqnired. that
banks shall hold an asaoant 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
issnes ON the contrary, It may be perverted to
inilate the currency. la3eed, it is possible by
this means to convert all tie debt of the Enited
States and State governments into bank notes.
without reference to the specie required to re-
deem the,a. However valuable these securities
may be in themselves, they eaHnot be concerted
into geld 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 nga'd, which IS to a con-
siderable extent paper-ineney country, though
vastly behind our own in this respect, it was
ment of 1914, 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-thfd Of its combined cir
culation and deposites. Ii this proportion was
10 more than sufficient to secure the Convertible
ity OF its notes, with the whole u Great Britain,
and to some extent the continent Of Europe, as n
field for its circulation, rendering it almost i'm
possible that sudden and immediate run to a
dangerous amount should be made upon it, the
same proportion woald certainly be insufficient
under cur banking system. Each of our four
teen hundred banks has but limited circum-
ference for its circulation, ana in the course OF a
very few days the depositors and note holders
might demand from such n bank sufficient a.
mount In specie to compel ii to suspend, even al
though it had cola inits vaults equal to one-third
of its immediate liabilities. And yet eta not
aware, with the exception of the banks of Lou
isiana, that any State bank throughout the tInien
has been required by It's charter to keep this, or
any other proportion of gold and silver compared
with the amount Of its combined circulation and
deposites What has been the consequence a.
IN Il recent report made by the Treasury Depart
ment Oh the condition Of the banks throughout
the different States, according to returns dated