Columbia Democrat and Bloomsburg general advertiser. [volume] (Bloomsburg, Pa.) 1850-1866, 1857-12-19

almost exclusive possession OF the nome
market. but would have created for them
selves foreign market throughout the
world,
Dcplorable, however, as may be our
present fnanci i condition, we may yet in
dulgc in bright hopes for the future. No
other nation has ever existed, which could
have endured such violont expansions and
contractions of paper credits without last
ing injury; yet the buoyancy Of youth, the
energies of our population, and the spirit
VIII ch never quails before difficulties, will
enable us soon to recover from our present
financial embarrassment, and may even
occasion US speedily to forget the lesson
which they have taught,
In the meantime it is the duty of the
Government, by all proper means within its
power, to aid in aleviating the sufferings
of the people occasoned by the suspension
Of the banks, and to provide against a re-
currencc of the same calamity. Unlortu-
nately, 10 either respect of the case, it can
do but little. Thanks to the Independent
treasury, the Government has not suspend
ed payment, as it was compelled to do by
the failure OF the banks in 1887. 1t will
continue to discharge its liabilities to the
people in gold and silver. Its disburse-
ments in coin will pass into circulation,
and materia ly assist in restoring a sound
currency. From its high credit, should
We be compelled to make temporary loan,
it can be affected on advantageous terms.
This, however, snail, if possible he avoid.
ed but, il not, then the amount shall be
T limited to the lowest practicable sum.
have therefore determined that whilst
no useful government works already in
progress shall be suspe nded new works,
not already commenced, will be postponed
if This can be done without injury to the
country. Those necessary for its defence
shall proceed as though there had been nc
crisis in our monetary affairs.
But the Federal Government cannot dc
, much 10 provide against a recurrence O.
I existing evil. Even if insurmountablc
t constitutional objections did not exis
against the creation of a National bank
5 this would furnish no adequate preventive
security, The history of the last Bank o
, the United States abundantly proves thu
t truth of this assertion. Such bank coult
5 not if il would, regulate tho issues anc
5 credits Of fourteen hundred State Banks il
= such a manner as to prevent the ruinou
4 expansions and contractions in our currenc,
n which afflicted the country throughout TIL
c existence of the late bank, or secure u
= against future suspense ms. In 1925, Al
1t effort was made by the Bank Of ENGLAND
st to curtail the issues Of the country bank
1t under the most favorable circumstances
: The paper currency had been expanded
i ruinous extent, and the Bank put fort
it all its power to contract it in order to re
C ducc prices and restore the equi ibrium {
n the foreign exchanges. 1t accordingl
h commenced a system of curtailmert of il
Is loans and issues, in the vain hope that tn
st joint stock and private banks Of the king
Il, dom would be compelled to follow its e2
lie ample. 1t found, however that as it cor
n tracted they expanded, and at the end
ID the process, to employ the language of
il very high official authority "whatever r.
of duction of the paper circulation was eilec
,s ed by the Blnk of England (n 1920 wi
. more than made up by the issue of tt
S, country banks"
ns But the Bank of the United States woul
in not, if it could, restrain tho issues and loal
I'd of the State banks, because duty as reg
d, lator of the curren y must often be in dire
* conflict with the immediate interest of i
L. stockholders. II we expect one agent
in restrain or control another, their interest
r must, at least, in some degree, be antagc
,y nistic. But the directors of a Bank of ii
T. United States would feel the same intcre,
ie and the same inclination with the dirccto
IN of the State banks to expand the currenc
in to accommodate their favortes and frient
or with loans, and to declare large dividend
of Such has been our experience in regard
,ie the last bank.
to After all, we must mainly rely upon Il
nd patriotism and wisdom of the st tcs f
ne the prevention and redress of the evil
Ia they will offoId US real specie basis f
our paper circulation by increasing 4
int denomination of bank notes, first to twent
rty and afterwards to fifty dollars if tn,
"a. will require that the banks shall at all tim
he keep on hand at least one dollar of gold a
ms, silver for every three dollars of their c
est culation and deposits and if they w
to provide by selt-exccuting enactmei
ere which nothing can arrest, that the nome
INT they suspend they shall 60 into liquidatic
GU would 60 far to secure us against futu
'ck suspensions Of specie payments.
as Congress, in my opinion, possess t
no power to pass uniform bankrupt law a
to plicable to all banking institutions thropg
are out the United States, and | strong
eir recommend its exercise. This woI
'ss, make ii the irreversiblo organic laa
ley each banks existence, that suspension
OIL snpcie paymcnt, shall produce its ci
death. The instinct of self.preservati
INT would then compel it to perform its duti
of in such manner as to escape the penal
len and preserve its life.
les The existence of banks and the circul
ely ton of bank paper are SO identified W
ON the habits of our people, that they canr
gn at this day be suddenly abolished withc
INT much immediate injury to the country.
Ell We could conGne them TO their apprOprir
nj ,rbo,o ,,J Lan m, fron, n dn,; eto