The Kanzas news., 1858-01-02
The Kanzas News.
G.,TURDAY=.::::.::::::JANUARY g, 1858.
The Presidents Message.

The following is that portion of the Pres
dents Message which relates to Kauzas
.sairs, and an abstract of the other parts OF
the document:
The President commences by returning
thanks to the Almighty for the numerous
benefits he has bestowed on this people
We have possessed all the elements of ma
,or;al wealth in rich abundance, and yet not.
outstanding all these advantages, our eoun-
nv in its monetary interests, is at the pres
ent moment in deplorable condition. In
the midst of unsurpassed plenty in all the
productions of agriculture, and all the ele-
ments of national wealth, we find our man
ufactures suspended, our public works re-
tarded, our private enterprises of different
kinds abandoned, and thousands of useful
aborers thrown out of employment and re-
duced to want. The revenue of the govern
ment, which is chiefly derived from duties
on imports from abroad, has been greatly
reduced, whilst the appropriations made by
Congress at its last session for the current
fiscal year are very large in amount. Un-
der these circumstances loan may be re-
Ouired before the close of your present ses-
sion. But this, though deeply to be regret
ted, will prove to be only slight misfortune
when compared to the suffering and distress
prevailing among the people. With this the
Government cannot fail to deeply sympa-
thize, though it may be without the power
to extend relief. The inquiry is, what has
produced these unfortunate results, and
whether their recurrence can be prevented.
1t is apparent that they have proceeded sole
" from our extFavagant and vicious system
of paper currency and bank credits, incit-
ing the people to wild speculation and gam
bling in stocks. These revulsions must con-
tinue to recur at successive intervals so long
as the amount of paper currency and bank
loans and discounts in the country shall be
left to the discretion of 400 corresponding
banking institutions which, from the very
laws of their nature, will consult the inter
est of their stockholders rather than the
public welfare. Exercising the sovereign
power of providing a paper currency, in
stead of coin for the country, the first duty
which these banks owe to the public, is to
keep in their vaults sufficient amount of
gold and silver to insure the convertibility
of their notes into coin at all times and un-
der all circumstances. No bank ought ev-
er to be chartered without such restrictions
on its business as to secure this result. Our
financial history for the last forty years has
been a history or cAss-s---5---. ra nsini.a, in
the business of the country, followed by
ruinous contractioRs. At intervals the best
and most enterprising men have been tempt
ed 70 their ruin by excessive bank loans OF
mere paper credit, exciting them to extrava-
CANT importation of foreign goods, wild
speculations, and ruinous and demoralizing
stock gambling. When the crisis arrives,
as arrive it must, the banks can extend no
relief to the people. In vain struggle to
redeem their liabilities in specie. they are
compelled to contract their loans and their
issues, and at last, in the hour of distress,
when their assistance is most needed, they
and their debtors sink together into insol-
vency.. In the meantime, it is the duty OF
the Government, by all proper means with
in its power, to aid in alleviating the suffer
ings of the people occasioned ey the sus-
pension of the banks, and to provide against
the recurrence of the same calamity I'm
fortunately in either aspect of the case 1t
can do but very little.
Thanks to the Independent Treasury, the
Government has not suspended payment, as
it WAS compelled to by the failure of the
banks in the year 1897. twill continue to
discharge its liabilities to the people in gold
and silver, its disbursements in coin will
pass into circulation and materially assist IN
restoring sound currency. From its high
credit, should we be compelled to make 8
temporary loan, it can be effected on advan-
tageous terms. This, however, shall, i
possible, be avoided; but if not, then the
amount shall be limited to the lowest prac
hcable sum. / have, therefore, determined
that while no useful government works II
progress shall be suspended, new works no
already commenced win be postponed, i
this can be done without injury to the coun
try. Those necessary to its defence shall
proceed as though there had been no crisi
In our monetary affairs.
But the Federal Government can do mucl
to provide against recurrence of existin:
evils. Even if insurmountable constitu
tonal objections did not exist against tn,
creation of national bank, this would fur
nlsh no adequate preventive security. Th'
history of the last Bank of the United State
abundantly proves the truth of this asser
ton.
After all. we must mainly rely on tn
Patriotism and wisdom of the States for th
Prevention and redress of the evil. If the,
viii afford US a real specie basis for our pa
per circulation, by increasing the denomi
nation of bank notes first to SEQ and after
wards to $50; if they will require that tn
Oanks shall at all times keep on hand at leas
one dollar of gold and silver for every thre
Collars of their circulation and deposits; an
IL they viii provide by self-exeeuting en-
Actment which nothing can arrest, that th
moment they suspend they shall go into Ii
4eidation, believe that such provisions
MN weekly publication by each bank of
statement of Its condition, would 60 far t
secure US against future suspensions of spe
ue payments. Congress, in my opinion
raasesses TDs IS the power to pass uniform banl
.uPt law, applicable to all banking institu
uOlS thrnu0ho.rf <ba TTritad Sfatce. end