Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1857-12-18
President RuChannn's
FIRST ANNUAL MESSAGE.
Fc1iow Citizens ofthe Senate and House of
Rcpi eScH{diiCCS -

en'utlOn. II nus now become my DUTY "tO
give to Congress information Of the state
OF the Union md recommend tn their consi.
deratiun such measures" AS Judge to be
necessary and expedient."
But first and above all, our thanks arc
due to Almighty & ID for the numerous be-
n f's which he has bestowed upon this peo-
pie and our united prayers ought to as.
cend to Him that lIs would continue to
bless our great republic IN time to come as
lie has lessed it IN time past. Since the
adj 'urnment of the last Congress our con-
stituents have enj,ved an ususuLl degree of
health. The earth has yielded her fruits
ebundantly, and has bountfully rev irded
the toll of tne husbandmtn. Our great
ctapl's have commanded high prices and. up
till within brief periOd, our IN tnufactu.
ring, mineral and mechanical occupations
have largely partaken of the general pros.
p'rity. We have possessed all the elements
Of IN teri Il wealth IN rich Abundance, and
yet, Notwithstanding all th.s1 adv images,
our country, in its monetary interests, sat
the present moment IN deplOrahle con-
dltIJn. In the midst oG un .urp s"d plen-
ty in all the productions Of agriculture and
in all the elements OF NATIONAL wealth, we
find our manufactures suspended. our pub.
lie works retarded, our private en- erprises
oi different kinds abandoned, and thousands
0! useful labUrers thrown out Of employ
ment and reduced to want. The revenue OF
the government, which is chi,f fly derived
from duties on imports from abroad. ha.
been greatly reduced, whilst the appropri.
atiOns made by Congress at its last session
for the current fiscal year are very large in
amount.
nder these circumstances a loan may
10 p. fptrpd hninra IN nlpsa pf
session but this. although deeply TO be re-
GREETED, would prove TO be only slight
misfortune when Compared with the suf-
tering aud distress prevailing among the
people. With this the government cannot
fail deeply to sympathize. though it may b.
without Tie power to extend relief.
IS our duty to enquire what has pro-
duced such unfortunate result, and whe-
tasr their recurrence can be prevented In
all iOrmer revulsions the blame might have
been fairly attributed to d variety of CO
up rating causes but not 50 upon the pre-
sent occasion. 1t app ircnt that our ex-
listing uislOrtunes have procee led solely
from our extrLvdgint and vicious system
ci paper currency and bank credits, excit-
ing the people - wild speculatiOns and
gambling in stocks. These revulsious cou-
tInue to Tecur at successive intervals, 30
long as the amount OF paper currency and
btnG loans and disc 'uuts of the country
shall be left to the dl l,cretion OF fourteen
hundred lrresp pJnslble banking Istltut!ons,
which from the very law Of tho'r nature
VIII consult the int rest oil their stock
hOlIsrs rather then the public welfare.
The trainers ot the constitution, when
they gave to Congress the power TO coin
money and to regulate the value thereof.
end prohibited the States from coming
lnoney, emitting bills OF credit, or making
any tnlng but god and silver coin a tender
IN payment ot debts, supposed they had
Protected the people usalu't the evils OF an
,xc ssIve and lrreleemtole p tper currency.
1hey are not responsible iur the existing
nuuu,4ly that u governm .nt endowed with
the sovereign attribute of coming money
aal regu atlng the value thereof should
have no power u prevent others from dri-
Wing this coin out OF the country and tlliny
up tie channels OF circulation with paper
winch does not represent gIld ami silver.
II Is one OF the highest and mCst respon-
.Ib!e duties Of gOvernm mt to insure To the
people sound circu lating medium, the
amount Ut which ought To be adapted with
the utmost possible wisdom and skill tO
the wants OF Internal trade and foreign ex
changes. If this be either greatly above
or g eatly below the proper standard. the
marketable value OF every mans property is
lncT, ased OF diminished In the same pro-
portion, and Injustice to individuals dc well
Us lnCalculah!e evils 10 the community
are the consequence.
Unfortunately, under the construction oil
the federal constitution, which has now
prevailed toU long to be changed, this i'm.
yortant and delicate duty has been disseve.
red IRON the coming power and virtually
trans. erred TO more than fourteen hundred
State bunk, acting Independently Of each
-;hcr, and regu lating their paper issues al
70 ~ exclusively by IA regard TO the present
inter- st5 Of their stockholders. Exercis
Ing the sovereign power OF providing pa
J. = currency instead Of coin, for the ooun-
Try. the first duty which these banks owe
T. the public is to keep in their vaults u
su'hcieut amount OF gold and silver 10 insurc
the convcrtlDllity ot their notes into coir
tt all times and under all circumstances
No bdni ought ever to be chartered wit -
cut such restrictions on Its business as to
e.-ure this result. All other restrictions are
comparatively vain This is the only tru'
touehstone, the only ihcient regulator o
paper currency-the only one which can
guard the public against over issues ant
bunk Suspensions. As a collateral anc
eventual security it is doubtless wis, anc
IN all ctses ought to be required, that bank
s'all hold AN amount OF United States o
slate securities equal to their notes in cir
cuhuon and pledged for their redemption
This, however, furnishes no ad, quate Sc
Guilty against over Issues. On the con
triry, il may he perverted to inatte tn
currency Indeed it is possible by thi
means to cOnv' TT ! the debts Of the Unite
States and State governments into ban
notes, without reference to the specie re
qlired 10 redeem them. However valu
uhc these securities may be in Themselves
they lnnOt be converted INTO gold and 81
yer at the moment Of pressure, as our I,
Terience teaches in sufficient time I
prevent bark su-pensions and the deprec
alton Of bank notes. la E1gland, which
to considerable mt II paper none
country, though vastly behind our own
this respect, il WAS deemed advisable, AT
terror TO the act OF Parliament Of lSi+
which wisely separated the issue. of not
from the banking department, for the b IN
Ot England always to keep on hand 60
and silver equal to one third Of its cor
bined circulation and deposits. If III
proportion was no more than sufficient
secure the convertibility of its nptes, vii
the whole of Great Britain, and TO son
extent the continent Of Europe, as a field Il
its circulation, rendering 1t almost impos
bl1 that sudden and immediate run to
dangerous amount should he made upon
the same proportion would be insufhcie
under our banklug system.
E!ch of our fourte n hundred banks h
but limited circumference for it's circul
lion, and in the course Of few days I
depositors and notebolders might dena
from such a bank u sufficient amount
specie 70 compel it to suspend, even
though it had coin in its vaults equal
one.third Of its liabilities. And yet {
not aware, with the exception Of the ban
oil Louisiana. that any State hank tLIoug
out the Union has been required by
charter to keep this or any other prop
ton Of gold silver compired with |
amount Of its combined circulation and {
pOsits, What has been the oonsrquenc
In recent report made by the Trsasu
n. ...rN,. l.. IA. - . ~.