The weekly Minnesotian. [volume] (Saint Paul, Minn. Territory) 1852-1858, 1857-12-19
SYNOPSIS OF THE
PRESIDENTS MESSAGE.
WASHINGTON, December 8.

returning thanks to the Almighty for the nu-
merous benefits he has bestowed on this peo-
pie. 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 a deplorable condition
In the midst OF unsurpassed plenty in all the
productions Of agriculture and all the ele-
ments Of national wealth, we find our manu-
features suspended, our public works retard-
ed, our private enterprises ct different KINDS
abandoned, and thousands Of useful laborers
thrown out of employment and reduced to
want. The revenue of the government when
is chiefly derived from duties on imports from
abroad has been greatly reduced, whilst tne
appropriations made by Congress at Its last
session for the current fiscal year are very
large tn amount. Under these clrcumstan
ces loan may be required before the close OF
YOUR present session. But this, though deep
" to be regretted, will prove to be only
slight misfortune when compared to the SUI
fering and distress prevailing among the peo-
ple. With this the Government cannot 1all
to deeply sympathise, though it may be with
out the power to extend relief, the inquiry Is
what has produced these unfortunate results,
and whether their recurrence can be proven
ted. 1t is apparent that they have proceed
ed solely from our extravagant and VICIOUS
system of paper currency and bank credits,
inciting the people to wild speculation and
gambling in stocks. These revulsiOns must
continue to recur at successive intervals so
long as the amount of paper currency and
bank loans and discounts in the country shall
be left to the discretion of 400 correspond
ing banking institutions, which, from the very
law of nature will consult the interest OF
their stockholders rather than the public
welfare. Exercising the sovereign power of
providing paper currency, instead OF COIN
for the country, the first duty which these
banks owe to the public is to keep III their
vaults sufficient amount of gold and silver
to insure the convertibility of their notes H.
to coin at all times and under all circumstan-
ces. No bank ought ever to be chartered
without such restrictions on its business as to
secure this result. Our financial history for
the last forty years has been history OF ex-
travagant expansions in the business OF the
country, followed by ruinous CONTRADICTIONS
at intervals the best and most enterprlsing
men have been tempted to their ruin by ex-
cessive bank loans of mere paper credit, ex-
citing them to extravagant importations OF
foreign goods, wild speculatons and ruinous
and demoralizing stock gambling. When
the crisis arrived, as arrive it must, the banks
can extend no relief to the people. In a
vain struggle to redeem their liabilities in spe-
Gle they are compelled to contract their loans
and their issues and at last in the hour OF dis
tress when their assistance is most needed
they and their debtors sink together into in
solvency. In the meantime it is the duty OF
the Government by all proper means within
it's power to aid in alleviating the sufferings
of the people occasioned by the suspension
Of the banks, and to provide against the re-
currence CT the same calamity. Unfortunate
ly in either aspect of the case it can do but
very little
Thanks to the Independent Treasury, the
Government has not suspended payment as
it was compelled to by the failure of the
banks in the year 1887. 1t will continue to
discharge its liabilities to the people in gold
and silver its disbursements in coin will pass
into circulation and materially assist in re-
storing sound currency From its high
credit, should we be compelled to make
temporary lean, it can be effected on advan-
tageous terms This. however, shall, if pos
sible, be avoided; but If not, then the
amount shall be limited to the lowest practi-
cable sum. 1 have, therefore, determined
that while no useful government works in
progress shall be suspended, new works not
already commenced will be postponed, if this
can be done without injury to the country.
Those necessary to its defence shall proceed
as though there had been no crisis in
our monetary affairs.
But the Federal Government can do much
to provide against recurrence OF existing
evils. Even if insulmountable constitutional
objections did not exist against the creation
of national bank, this would furnish no adj
equate preventive security. The history OF
the last Bank of the United States abundant
" proves the truth of this assertion.
After all, we must mainly rely on the pa
tr. oGism and wisdom of the States for the
preyenties and redress of the evil. If they
will afford us q real specie basis for our pa
per circulation by increasing the denomina-
ton of bank notes first to 500 and after
wards to $50 if they will require that the
banks shall at all times keep on hand at least
one dollar of gold and silver for every three
dollars of their circulation and deposits and
if they will provide by q self executing en-
actment which nothing can arrest, that the
moment they suspend they will 60 into liqui-
dation, | believe that such provisions, with a
weekly publication by each bank of a state-
ment of lis condition, would 60 far to secure
us against future suspensions of specie pay
ments. Congress, 40 my opinion, possesses
the power to pass UNIFORM bankrupt law
applicable to all banking instituticns through
out the United States, and strongly recon-
mend its exercise, This would make it the
irrevocable organic law of each banks exist
ence that a suspension Of cpecie payments
shall produce its civil death. The existence
of banks and the circulation of bank paper
are so dentifie with the habits of our peo-
pie that they cannot at this day be suddenly
abolished without much Immediate injury to
the country. If we could conform them to
their appropriate sphere and prevent them
from administering to the spread Of wild and
reckless speculation by extravagant loans and
issues, they might be continued with advan.
tage to the public; bnt this say, after long
and much reflection, if experience shall prove
it to be impossible to ENJOY the facilities
which well regulated banks might afford
without, at the same time suffering the ca
lamties which the excuses of the banks
have hitherto inflicted on the country, it will
then be far the lesser evil to deprive them al
together of the power to issue paper cur
rency, and eonfine them to the functions Of
banks Of deposit.
Our relations with foreign governments are
on the whole in satisfactory condition. The
diplomatic difficulties which existed between
the Government of the United States and
Great Britain at the adjournment Of the last
Congress have been happily terminated by
the appointment of British Minister to this
country, who has been cordially received.
The President whilst saying we have nc
right to doubt the sincerity of the British
Government in their construction of the Clay
ton Bnlwer Treaty, at the same time express
ses his deliberate conviction that this cou-