Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1858-12-15

the different legislatures, decided that great
as-were the evils and Inconvenience of
temporary suspension of specie payments,
they were inconsiderable in comparison with
the widespread ruin they would bring upon
themselves by enforcing the penalty Of the
forfeiture of their charters which the ban ks
had incurred by suspension.
After the lapse of twenty years another
general suspension takes place, and the State
governments-the people of the States
through their representatives in the legisla-
tures-again refuse unanimously to wind up
their banks-their own STATE institutions
Whereupon, this Modern Democrat of
President Gan ancient Federalist,) coolly re-
commends, and repeats the recommendation,
to the Federal Congress to do, or to cause to
be done, in the event Of another suspension,
what the State governments-tbe people of
the States-have again and again, acting
upon their own knowledge and experience,
and after the fullest deliberation, sOlemnly
decided they would not do--namely, wind up
their banks, because of a temporary suspen-
sion of specie payments.
In effect, Mr.. BUCHANAN says to the State
governments:
"YOu had the banks in your power when
they suspended in 1887, but you would not
wind them up. You had them in your power
again last year from the same cause, but you
are still obstinate and will not wind them up.
Now. in view of your persistent determine
ton to manage your own State institutions,
not as recommend. but as you think proper,
we, the Federal Government, will take the
matter in hand. We will pass bankrupt
law, only applicable to banks, under the pro-
visions of which, should another suspension
take place. we will set our Federal Courts to
work-we will put our Federal District At
torneys in motion-we will have our Federal
Marshals on the alert, our Federal receivers
ready, and whatever you may think on the
subject, howmuch soever, with ruin and
dismay before you, you may entreat and pro-
test against our Federal proceedings. we will
sweep with the bosom of destruction, these
your own State institutions, the first time
they suspend"
Such is the true English of Mr.. BUCHANAN's
proposed Federal bank bankrupt law. In the
name of all that is uncomfortable, upon what
strong Federal meats has this modern State
rights Democrat been feeding. that he should
recommend and re-recommend such a meas
ure to Congress? Why, il never could be
carried into effect, if passed! Had such
law been in existence at the time of the late
suspension, it's attempted execution by the
Federal authorities would have been forcibly
resisted by the State Governments, and the
people of the States. 1t would have pro-
duced a state of revolution, which would
have resulted in the overthrow of the Cen
eral Government, if that Government had
persisted in an attempt fOrcibly to carry it
into effect.
This is strong language. but it is the result
of our most earnest and deliberate convic-
tons Mr.. BUCHANAN has evidently shut his
eyes to the truth of history and the lights Of
experience. He has manifestly never re-
feetcd upon what would be the condition Of
this country were it suddenly deprived of any
circulating medium ut ala certain and in
evitable effect which would follow the sudden
sweeping out of existence of the paper cur
rency of the United States by bankrupt
law during period of general suspension.
He appears to be profoundly ignorant of
the important truth, that the paper circula-
porary suspension, is incidentally better than
no currency.
He does not appear to be aware OF the fact
that during the late suspension. the irredeem-
able notes of the great mass of the suspen-
ded banks answered the chief purpose of
currency-a medium of exchange.
He does not appear to recollect that the
Bank of England, by express provision of an
act of Parliament suspended specie payments
in 1897, in consequence of the demand for
coin in the great continental wars then ra-
ging-that for twenty years thereafter the
nation had no other than an irredeemable
paper currency, there being at times hardly
a guinea in the kingdom--that during THU
whole period England prospered in arms in
revenue, credit. agriculture. commerce and
manufactures to an unprecedented degree
that at the close of the war she had above a
million of men in arms in Europe and Asia
had lent fifty-five millions of dollars year
to the continental powers--efieeted a loan in
1914 of one hundred and seventy-five millions
of dollars at a lower rate of interest than
had been paid at the beginning Of the war
in addition to all which above thirty millions
of dollars were annually raised by the volun-
tary contribution of the inhabitants to
mitigate the distresses OF the poor.
Mr.. BUCHANAN seems totally to have forgot
ten that when the great monetary crisis oc-
Cured in England in lS25-when, on that
occasion, the bullion in the Bank of England
had been reduced to S., 900, 000-when persons
worth half a million of dollars could not
command five hundred, to save themselves
from ruin-when in the language Mr.. HUsKIs-
SON, the nation was ain twenty -four hours Of
barter" that is, of no currency at al-that in
this terrific extremity the British Government
applied the only possible remedy which was,
TO ezpand the paper circulation irTepeotue Of he
druin for gold and that the crisis was passed
and the danger surmounted not by any in
crease in the metallic treasure OF the country
hut by great issue--an issue by the Bank Of
England of $4,000, 600 of paper, with no
specie to sustain II
These great historical facts, which seem to
have produced no impression on the mind OF
Mr.. BUCHANAN, seem to show, what be will
not recognize, that an iredeemable paper
currency, of temporary duration. is not the
greatest calamity which can befall country
nav. that under particular circumstances,
which have again and again occurred in the
history of nations, q resort to such currency
may be indispensably necessary TO save
country from certain aud widespread ruin.
From this only resource-this only means
..-,...;o,, from rrtiu under such circuui-