The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1858-01-21
THE PACIFIC
Commercial Advertiser.


SynePsis 81 shs Presjaens's Message.
The Message opens by returning thanks to AL
mighty God for the numerous benefits he has be-
stowed upon the nation.
Revenue Redrcsd-Loan Hinted I'll.
The Message refers to the commercial and financial
panic which has 30 seriously affected the country.
The revenue Of the Government, which is chiefly
greatly reduced, whilst the appropriations made by
Congress at its last session for the current fiscal year
are very large in amount.
Under these circumstances, a loan may be required
before the close of your present session; but this, al
though deeply to be regretted, would prove to be only
a slight misfortune when compared with the suffering
and distress prevailing among the people. With this
the Government cannot fail deeply to sympathise,
though it may be without the power to extend relief
The Banks.
The banking institutions Of the country are charge
able with the financial evils with which we have been
inflicted. They have inflated credit and increased
speculation In . recent report made by the Treasury
Department on the condition of the banks throughout
the different States, according to returns dated near
est to January, 1857. the aggregate amount of actual
specie in their vaults is S5S. $40, 1873, of their circula-
ton S214. us, S22, and Of their deposits $3.50 $751;
1852. Thus it appears that these banks in the aggre-
gate have considerably less than one dollar in seven
OF gold and silver compared with their circulation
ind deposits. 1t was ~palpable, therefore, that the
very first pressure must drive them to suspension and
deprive the people Of n convertible currency with all
its disastrous consequence. II is truly wonderful
that they should have so long continued to preserve
their credit, when q demand for the payment of one
seventh Of their Immediate liabilities would have
driven them into insolvency. And this is the condi-
ton of the banks, Notwithstanding that four hundred
millions Of gold from California have flowed in upon
us within the last eight years, and the tide still con-
Iinues to now. Indeed. such has been the extrava-
gancc Of bank credits that the banks now hold a con-
.tderably less amount of specie, either in proportion
70 their capital or to their circulation or deposits
cor,hsna1 Tho kLa- HI aSNra <ha Jsc10varv Of nrl1
in California Whilst in the year 1913 their specie
in proportion to their capital was more than equal TO
one dollar for four and a half, in 1857 it does not
amount to one dollar for every six dollars and thirty
three cents Of their capital In the year 1S4S the
specie was equal within a very small fraction t. one
dollar in five OF their circulation and deposits in 1857
II Is not equal to one dollar in seven and q hai2 Of
their circulation and deposits.
A United States Bank is out of the question, as
there are insurmountable constitutional objections
against the establishment OF such an institution. If
a National Bank was possible, it would furnish no
adequate preventive security against over issues by
State banks
Gorsrnnent cannot Alternate the Financial Condi-
ton Of the Country.
II is the duty Of the government, by all proper
means within its power, to aid in alternating the
sufferings Of the people occasioned by the suspension
Of the banks, and to provide against a recurrence of
the same calamity. Unfortunately, in either aspect
Of the case, il can do but little. Thanks to the indie
payment. as it was compelled to do by the failure of
the banks in 1897. 1t will continue to discharge its
liabilities TO the people in gold and silver. Its dis
bursemenfs in coin viii pass into circulation, and
materially assist in restoring n sound currency.
From its high credit, should we be compelled to make
q temporary loan, it can be effected on advantage
Gus terms. This, however, shall, if possible, be avoid
ed; but If not, then the amount shall be limited TO the
lowest practicable sum-.
1 have, therefore, determined that whilst no useful
government works already in progress shall be sus-
pended, new works, not already commenced, will be
postponed, if this can be done without injury to the
country. Those necessary for its defense shall pro-
coed as though there had been no crisis in our none
tary affairs.
But the federal government cannot do much to pro-
vide against a recurrence of existing evils.
Remedies for the Currency Eel.
We must rely upon the patriotism and wisdom of
the States for the prevention and redress OF the bank
ing evil They should increase the denomination Of
hank notes, first to twenty and then to fifty dollars,
snd require the banks at all times to keep on hand
ut least one dollar in gold and silver for every three
dollars Of their circulation and deposits. A uniform
bankrupt law, applicable TO banking Institutions, is
recommended, making the irrevocable law Of each
banks existence that q suspension of specie payments
shall produce its civil death.
Foreign Relations.
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 Congress have
been happily terminated by the appointment of n
British minister to this country, who has been cordi-
ally received.
The dispute in regard to the construction Of the
C1~ayton-Bdlwer Treaty has not yet been settled, but
IL IS hoped the mutual amicable feelings between the
two countries viii produce q happy solution Of that
question
With France our ancient relations Of friendship
still continue to exist. The French government have
in several recent instances which need not be emu
cr.r,fnl nvir-al N zrfr,< 81 GOD Fill onI Efn1noca
towards our country, which l heartily reciprocate-
A remodeiing Of our commercial treaty with France
ia recommended.
Our relations with Russia remain, as they have
aver been, on the most friendly footing. The present
Emperor, as well as his predecessors, have never
failed, when the occasion offered, to manifest their
good viii to our country; and their friendship has
always been highly appreciated by the Government
ard people Of the United States.
With all other European governments, except that
- spain, cur relations are as peaceful as we could
desire. l regret to say that no progress whatever
has been made, since the adjournment of Congress.
towards the settlement Of any of the numerous claims
Of our citizens against the Spanish government.
China .1fairs.
Our Minister has been instructed to occupy a neu-
trail position in reference to the existing hostilities AT
Csnton, but he will cordially cooperate with the
British and French Ministers in all peaceful measures
20 secure by treaty stipulations, those just concessions
70 commerce which the nations of the world l,eve 8
r1gnt 10 expecr, ana WHICH Cnina cannot long ne per-
mitted to withhold. From assurances recei sed, | en-
ferfain no doubt that the three Ministers will act in
harmonious concert to obtain similar commercial
treaties for each Of the powers they represent.
Panama -9fairs.
Under our treaty with New Grenada, of 18th De-
1876, we are bound to guaranty the neutral
iy Of the lsthmus Of Panama, through which the Pa
mama Railroad passes, 'tas well as the rights of
sovereignty and property which New Grenada has
and possesses over the said Territory" This obliga-
ton is founded upon equivalents granted by the trea-
ty to the Government and the people of the United
Under these circumstances, I recommend to Con-
gress the passage Of an act authorizing the President,
in case Of necessity, to employ the land and naval
forces Of the United States to carry into effect this
Of neutrality and protection. 1 also rec
ommend similar legislation for the security Of any
other route across the Isthmus in which we may ac-
quire an interest by treaty.
Fifi5usteT Walker. |
The measures adopted to prevent Walkers return
to Nicaragua are reeapisnlated, and the whole subject