The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1858-01-14

bonus has not only betrayed all the ex
penscs of that session, but will leave
! balance in the Treasury of not less thar
!, thiriy-ive thousand dollars--a result GER
tainly not injurious to the finances Of TIL
Commonwealth.
/ Ny views expressed in former commu
nicatous on the subject of banks ant
banking capital, in their relations to TIT
currency aud general interests of trade
remain unchanged. However diverse oul
opinions may be on this suhjest, it nus
be admitted by all that the banking ana
credit systen.s are SO intimately itcrwo
ven with the business and commerce o
the country, that their sudden separation
or rash nnov alton, would produce con
sequences of fearful magnitude. Thai
the present system of banking is per(ec
is not pretended; that it could be essen
TALLY modified and improved willy not b,
denied. The present arrangement of the
currency may and will suggest the neces
sity of reform, not only in the system it.
self, but in the management of our bank
ing institutions.
Unlimited credits by corporations OF
individuals have, and ever will be an uD.
mittigatcd evil. They contribute to bank
expansions, rash speculations, extrava.
CANT living, and excessive over trading;
always sure to be followed by ruinous re-
vulsions. What the remedy should be
| do not deem it my province, under exis.
ting circumstances, to suggest; but to be
permanent and cffcctual, it must accord
with the natural and necessary laws OF
trade. The currency of country forus
10 exception to these laws, and should he
left to their operation and control, 20 fsr
as may be consistent with the public good
Its, therefore, that system of free bank.
ing, based on undoutted public securities,
and coin in such proportion to circulation
and depotits as may be deemed sufsccbt
to secure their conversion into specie, Oh
demand, with proper Limitations and re-
strirtions, is deemed preferable to the
present system. Its introductioDs would
correct rnany existing abuses Tot only
in the system it.elf but in the present
mode of banking. These questions, how,
ever, with the remedies necessary to pre-
vent recurrence Of the wills under which
We now suffer, together with the nature
snd czteot of the relief, if any, that Gsy
yet be required BY the banks Of the Com-
wousealtk, to enable them to resutae TIE
payment Of their liabilities in specie, are
all referred to the wisdom OF the Lcai-la
ture- They are practical ami important
business questions, and as such should
receive your intelligent consideration
The present condition Of our Con- rson-
wealth and country deserves at least
passing remark. A severe financial re-
vulsson has occurred, inducing a suspen
sion OF specie payment by the banks. not
only of this Con- uonweslth, but Of all the
States OF the Union. .dersngipg the curreD-
cy and affecting disast'ously all the grea,
interests Of commerce and the industrial
pursuits of the citizen. Labor ia without
employ III cnt, and thousands of strong, sc
tive men are now asking for work or
bread. The causes assigned for these e.
vils are almost as variou, As the interests
or prejudices of those who undertake
their explication. To whatever cause or
causes they may be referred, it is nei-
ther just, nor proper, to charge all our
present financial and commercial dis
tress to the banks and their manage
ment. However much they may have
contributed, other causes have operated
still more directly and powerfully to pro
duce these results; and among them first
in Importance and influence is the pres
ent system Of low duties, in connection
with the warchousing system, adopted as
the policy of the General Government
in 1916. The abandonment of the pro-
tective policy, as embodied in the tariff
act of 1912, was resisted by Pennsylva-
MA with unanimity almost uuParallel
led in her history. Her representa-
tives in both branches of the National
Congress strenuously y opposed the repeal
of that act. The evils under which we
are now suffering were predicted, as a
consequence of such repeal. But other
counsels prevailed, the act was repeal
ed, and the industry of the country ex-
posed to runious competition with the
cheap labor Of foreign nations. The dis
astrous effects OF the repeal were pos.pon-
ed by the operation ofcauses well under
stood by every intrli gent citizen. Fam
Inc aboard created an unprecedented de-
mand for our beadstuffs, and the gold of
although it may have added
to the excitement of our progress, and
contributed its full share in producing
existing financial and commercial en-
barrassment, in millions, supplied the
means of paying the overwhelming bal
ances against us on eur foreign impor.
tations. Under the present system OF
low duties, the excess of imprts over ex.
ports has been beyond the IL ost extrav.
agaht wants OF the country. They have
been enormous and ruiuous-destruc.
i've OF domestic industry, and involving
he home maDufacturcr and home labor
n one common ruin. We have impor-
led more than We could pay for, and
much more than We needed. Pennsyl-
'aDia abounds in iron ore. Iron aud its
manufactures are justly regarded as i'm