Orleans independent standard. [volume] (Irasburgh, Vt.) 1856-1871, 1857-12-18

In the meantime 1t Is the duty OF the
government, by all proper means within
its power, to aid in alleyiating the suffer-
ings of the people occasioned by the
suspension Of the banks, and to provide
against the recurrence of the same Gala
nifty. Unfortunately, in either aspect of
the case, it can do but little. Thanks to
the Independent Treasury, the govern
ment has not suspended payment, as it
was compelled to do by the failure of the
banks in 1857. 1t will continue to dis
charge its liabilities to the people in gold
and silver. Its disbursements in coin
will pass into circulation, and materially
assist in restoring sound currency
From its high credit, should we be COM
PEELED to make temporary loan, it can
be effected on advantageous terms. This,
however, shall, if possible, be avoided
but if not, then the amount shall be IL
mited to the lowest practicable sum.
have, therefore, determined that
whilst no useful government works al
ready in progress shall be suspended
new works, not already commenced will
be postponed, if this can be done with
out injury to the country. Those neces.
sary for its defense shall proceed a:
though there had been no crisis in oul
monetary affairs.
But the federal government cannot Dc
much TO provide against a recurrence o
existing evils. Even if insurmountable
constitutional objections did not exis
against the creation of national bank
this would furnish no adequate prevent
i've security. The history of the las
Bank of the United States abundantly
prove the truth of this assertion. Suct
a bank could not, if it would, regulate
the issues and credits of fourteen hun
dred State banks in such a manner as tt
protect the ruinous expansions and con
fractions in our currency which afflicted
the country throughout the existence o
the late bank, or secure US against futur,
suspensions. In 1925 an effort was mad
by the Bank of England to curtail thu
issues of the country banks under th,
most favorable circumstances. The pa
per currency had been expanded to
ruinous extent, and the bank putforth al
lis power to contract it in order to reduc
Iprices and restore the equilibrium of th
foreign exchanges. 1t accordingly com
menced system of curtailment of it
loans and issues, III the vain hope tha
the joint stock and private banks of tn
kingdom would be compelled to follo'
its example. 1t found, however, that a
it contracted they expanded, and at th
end of the process, to employ the lar
guage Of a very high official authority
" whatever reduction of the paper cul
rency was effected by the Bank of Ems
land Tin 1920 was more than made u
by the issues of the country banks"
Bnt a bank of the United State
E would not, if it could, restrain the issue
, and loans of the State banks, because i
. duty as a regulator of the currency mu
often be in direct conflict with the imm
diate interest of its stockholders. If "
q expect one agent to restrain or contr
another, their interests must, at least
, some degree, be antagonistic. But Il
Directors of bank of the United Stat
would feel the same interest and the san
;, inclination with the Directors of Il
State Banks to expand the currency,
6 accommodate their favorites and frient
:, with loans, and to declare large dividend
. Such mas been our experience in regal
3 to the last bank.
Il After all, we must mainly rely up
:, the patriotism and wisdom of the Stat
1t for the prevention and redress of Il
If evil. If they will afford Us real sp
Gle basis for our paper circulation
: increasing the denomination of bal
e notes, first to twenty and afterwards
Of fifty dollars if they viii require tt
s. the banks shall at all times keep on ha
l. at least one dollar of gold and silver
,e every three dollars of their circulate
re and deposites and if they will provi
re by self-executing enactment, which I
m thing can arrest, that tie moment til
m suspend they shall go into liquidation
i'd believe that such provisions, with a wet
le ly publication by each bank of sta
Ks ment of its condition, would 90 far to
In cure US against future suspensions Of s.
es Gle payments.
ct Congress, in my opinion, possesses
st, power to pass a uniform bankrupt Ii
IS applicable to all banking institute,
,ir throughout the United States,- and
strongIy recommend its exercise. I
mt would make it the irreversible orga
of law of each banks existence, that a :
lie, pension of specie payments shall prodl
ar its civil death. The instinct of self-I
is servation would then compel it to I
ed form its duties in such a manner a.
cts escape the penalty and preserve its lii
ed The existence of banks and the
IN culation Of bank paper are so identi
tai with the habits of our people, that t
Ia cannot be suddenly abolished with
if. much immediate injury to the country
lu- IF we could confne them to their apI
he pirate sphere, and prevent them from
as ministering to the spirit of wild
lid reckless speculation by extravagant 10
i've and issues, they might be continued '
yh- advantage to the public.
But this say, after long and m
our reflection if experience shall prov
yet to be impossible to enjoy the facili
- which well regulated banks might aft
ich without at the same time suffering
an calamities which the excesses of