Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-13

ment has not suspended payments, as II was COM
PEELED to do by the failure of the banks in 1881
1t win continue tc discharge its liabilities to the
people in gold and silver It's disbursements in coin
will pass into circulation and materially assist in
restoring sound currency. From its high credit,
should we be compelled TO make Temporary loan,
il can be effected on advantageous terms. This,
however, shall If possible, be avoided; but if not,
then the amount shall be limited to the lowest prac-
ticable sum.
l have, therefore determined that whilst no use
full government works already in progress shall be
suspended. ne works not already commenced, viii
be postponed, if this be done without injury to
the country. Those necessary for its defence shal
proceed as though there had been crisis in oul
monetary affairs. u
But the Federal Government cannot do much ia
provide against q recurrence of existing evils
Even if insurmouutable constitutional objection:
did not exist against the creation Of a National
Bank, this would furnish no adequate preventive
security. The history Of the last Bank of the
United States sbundanIly proves the truth Of THU
assertion. Such q bank could not, if 1t would, re-
gulate the issues sud credits of fourteen hundred
state banks N such manner as to prevent the ruin
Gus expansions and cOntractions in our currency
which afflicted throughout the existence of the late
bank, or secure against future suspensions. In
1925 an effort was made by the Bank of England
to eurta the issues of the country banks under the
most favorable circumstances.
The paper cuersLcy had Oeen expanded to q ru
nous extent, aud t Bank put forth all its powell
u cootrbe: it in orce5 to redacs prices and restore
the equilibrium of fcregu exchanges. 1t accord
ingly commeuced q s stem of cWtailment of it;
ans aud Issues, Ia tue vain hope that the Join
stock and private banks OF the kingdom would be
compelled to follow its example. II found, how.
sger, that IS it contracted they expanded, aud 81
i the end of the process, 70 employ the language o.
very high Official authority, 'whstever reduction
of the paper circulation wa effected by the Bank
OF Eng and il 1925 was more than made up by The
lsne5 Of the cJuntry bsuks."'
But the Bank of the United STA es would not
# It could, restrain the losses and loans Of the
State banks, because its duty as 8 regulator of the
currency must often be in direct conflict with the
imme late interests OF its stockholders. Il We
* eec one agent to restrain or control another
ber interest must at least in some degree, be al.
tagdnistic But the directors of q bank Of the Uni
ed States would feel the same interest and the
same inclination with the directors Of the State
bsuks 10 exps5d the currency to accommodate
Oh ir favorites aud friends with loans, and to de
clare large dividends. Such has been our expert
Q ace in regard to the last bank
after all, we must msny rely upon the patriot.
ism and wisdom OF the States for the prevention
aud redress of tae evil. If they will tfjrd US a
specie basis for our paper cir ;ulston by increasing
Lflb O6uUnlUELlUu d DAuk u JtSc, uTSL W IW6ubys
and afterwards 10 fifty dollars; if they will require
that the banks shall st ali times keep on hand at
least one dollar of gold and silver for every three
dollars of their circulation and deposits and if
hey will provide by a self-executing actment,
which nothing can arrest, that the moment they
Suspend they shall go into liquidation believe
that such proVisous with weekly publication by
each bank, OF & statement of its condition, would
90 far to secure US against future suspensions Of
specie payments.
Congress, in my opinion, possesses the power to
pass uniform bankrupt law applicable to all bank
ing institutions throughout the United States, and
strongly recommend its exercise. This would make
it the rreversible organic law Of each banks exist
ence, that suspension of specie payments shall
produce its civil DEATH The instinct OF self-preser-
walton would then compel it to perform its duties in
such manner as to escape the penalty and preserve
its life.
The existence of banks and the circulation of bank
paper identical with the habits of our people
that they cannot at this day be suddenly abolished
without much immediate injury TO the country. If
we confne them TO their appropriate sphere and
prevent them from administering to the spirit of
wild and reckless speculation, by extravagant loans
and is sues, they might be continued with advantage
TO The public.
But this l say, after long and much reflection if
experience shall prove it to be impossible 10 enjoy
the facilities which well regulated banks might at
ford, without at the time suffering the calami
Ties which the excuses Of the banks have hitherto
inflicted upon the country, 1t would then be far the
lesser evil to deprive them altogether of the power
to issue paper currency and confne them to the
functions OF banks of deposit and discount.
Our relations with foreign governments are, upon
the whole, in a satisfactory condition
The diplomatic difficulties which existed between
the Government of the United States and that Of
Great Britain at the adjournment of the last Con-
gress have been happily terminated by the appoint
ment of British minister TO this country, who has
been cordially received
Whilst 1t is greatly TO the interest, as l am con-
WINGED 1t is the sincere desire, of the governments
and the people of the two countries to be terms
of intimate friendship with each other, it has been
our misfortune almost always to hace had some irr
tatlng, If not dangerous outstanding question with
Great Britain
Since the origin of the government we have been
employed in negotiating treaties with that power,
and afterwards in discussing their true intent and
meaning. In this respect, the convention Of April
-, 1917, commonly called the Clayton and Bulwer
treaty, has been the most unfortunate Of all; be-
cause the two governments place dire,tly opposite
and contradictory constructions upon its first and
most important article.
Whilst in the United States we believed that this
treaty would place both powers upon exact equal
iy by the stipulation that neither will ever OCCUPY
or fortiiy, COLOMBO, or assume or exercise any
dominion over any part of Central America, it is
con ended by the British Government that the true
construction of this language has left them in the
RICH ful possession of all that portion of Central
America which was in their occupancy at the date
OF the treaty; in fact, that the treaty is virtual
recognition on the part of the United States Of the
ght Of Great Britain, either or protector
10 the whole extensive coast of Central America,
sweeping round from the Rio HOndO to the port and
harbOr OF San Juan del Nicarauga together with the
adjacent Bay Islands, except the comparatively small
portion Of this between the Sarstoon and Cape Hon
durac According to their construction, the treaty
does no more than simply prohibit them from ex-
tending their possessions in Central America be-
you'd the present limits 1t is not too much to assert
th6t if in the United States the treaty had been
sdered susceptible Of such construction, it never
would have been negotiated under the authority Of
the President, would it have received the appro
baton of the Senate. The universal conviction in
the United States was, that when our government
consented to violate its trad Dna and time honOred
policy, and TO stipulate with foreign government
never to occupy acquire territory in the Central
American portion of our own continent the consid-
GRAFTON for this sacrifice was that Great Britain
should in this respect at least be placed in the
position with ourselves. Whilst we have no right
10 doubt the sincerity of the British government in
their construction of the treaty, il is st the same
time my deliberate conviction that this construction
is in opposition both to its letter and its spirit.
instituted between the two governments for the
purpose, if possible, of removing these difficulties
and treaty having this laUdable object in view,
was signed ondon on the 18th of October, 1856,
aud was submitted by the President to the Senate
on the following 10Th of Dec. Whether this treaty
either in its original amended form, would have
accomplished the object intended without giving |
birth TO new embarrassing complication between |
he two governments, may, perhaps, be well ques-
toned. Certain it is, however, it was rendered |
much less Objectionable by the different amend |
nents made TO it by the Senate.
The treaty, as amended, was ratified by me on |
he 18th of March, 1857, and was transmitted to
London for ratihca ion by the British government
That government expressed its willingness to con-
,ur in all the amendments made by the Senate, with
he single exception of the clause relating to Ruaton
md the other islands in the Bay of Honduras. The
article in the original treaty as submitted to the
Seuate, after recIung that these islands and their
inhabitants "haviug been by a convention bearing |
iaie The 9th day Of August 1856, between her |
Britannia Majesty and the republic of Honduras, |
constituted and declared free territory under the
sovereignty of the said republic of Honduras |
stipulated that the two contracting powers do /
hereby mutually engage to recognize and respect in