Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1858-12-08


Eth July following, they made an appropriation
| u defraytbc expenses and compensation Il COM
missioner h, that republic. should the President
deem it proper To make such an appointment
In compliance with these enactnents, have
appointed commissioner, who has proceeded to
Paraguay. with full powers and Instructions to
settle there differences in amicable and r, ace
ful manner. II this he practicable. His expert
ence and di'crction justify the hope. that he may
prove snccessfuiin convincing the Paaguaynn
government. that it is due Both to honor and Ius-
tiee that they voluntarily aud promptly make n
toncment for the wrongs which they have COM
mitted against the United States and indemnify
injured citizens whom they have forcibly dc
spoiled of their property.
Should our commissioner prove unsuccessful.
after sincere and earnest effort to accomplish
the oec. Of his mission, then no alternative will
remain, but the employment Of force to obtain
'.just satisfaction" from Paraguay. In view Of
this contingency the Secretary Of the Navy, un-
der my direction has ftte,i out and despatched n
naval force, to rendezvous near Buenos Ayres
which, it is believed will prove sufficient for the
occasion. 1t is my earnest desire. however, that
it may not be found necessary to resort to this last
alternative.
When Congress met in December last, the La-
siness Of the country had just been crushed, by
one oi those periodical rcyulsions, which are the
inevitable consequence ofour nnsound and extra
VACANT system OF bank credits and inflated cur
rency. With all the elements Of national wealth
in abundance, our manufactures were suspended
our useful pnbic and private enterprises were
arrested, and thousands 0l laborers were depri-
we'd of employment and reduced to want. Uni
vcrsa distress prevailed among the commercial,
manufacturing. and mechanical classes. This
revulsion WINS felt the more severely in the Uni
tel States, because similar causes Ind produced
the like dep!orable effects throughout the
morcial nations of Europe. All were experienc-
ing sad reverscs at the same moment. Cur man
utuctures everywhere suffered severely. not he
cause Of the recent reduction in the tariff of du-
ties on imports, but because there was no demand
Mt ana price for their productions. Tho people
were obliged to restrict themselves. in their pur-
chases, to articles of prime necessity. In the
general prostration of business. the iron manu-
features in different States probably suffered more
than any othcr class. and much restitution
the inevitable consequences, among the great num-
her of wnrknen who had been employed in this
useful branch Of our industry. There could he
no supply whore there was demand To pre-
sent example: there could be no demand for
railroad ron after magnificent system Of rail
roads extending it's benefits to every portion OF the
Union, had been brought tn n dead pause. The
same consequences have resulted from similar
causes to many other branches of useful manufac-
lures. tbs sclfevident that where there is no
ability to purchase manufactured articles, these
cannot he sold,and consequently must cease to be
/ prpduccd
Nogovernment, and especially government or
such limited powers as that of the United States.
could have prevented the late rcvulsion. The
! whole commercial world seemed for years to have
( been rushing to this catastrophe. The same ruin
Gus consequences would have followed in the Uni
ted States, whether the duties upon foreign i'm
! rurtS had remained as they under the tariff
! Of 1916, or had been raised to much higher
! dard. The tariff Of 1857 had no agency in the re-
suit. The general causes existing throughout the
| world, could not have been controlled by the leg
islation ofany particular country.
The periodical revulsions which have existed in
our past history, must continue to return ut inter
! walls, so long our present unb unded system Of
/ bank credits shall prevail They WILL however.
probably be the less in future; because it is
not y be expected at least for many years to come,
thafthc commercial nations of Europe, with whose
interests our own are 80 mattel tally involved, Will
expose themselves to similar culnmitcs. But this
subject treated much at large in my last
annual message that | shall not now pursue it
further. Still, respectfully renew these c"mmcn-
dat"n. in favor Of the passage of a uniform bank
rupt law, applicable to banking institutions. This
is all the direct power the subject which,
believe, the federal government possesses. Such
law would mitigate, though it might not pre-
vent the evil. The instinct of seKpreseryation
might produce wholesome restraint upon their
banking business if they knew in advance, that
suspension of snecie payments would inevitably
produce their civil death.
But the effects Of the revulson are slowly
but surely passing away. The energy and enter
prise Of nur citizens. with our unbounded rcsour-
rcs, VIII. within the period of another year.
store state of wholesome industry nnd trade
Capital has again accumulated in our aro cities.
The rate Of interest is there very low. Conf
dence is gradually reyiying. and soon as it is
discovered that this capital can be proftably en-
poyei i'll commercial and manufacturing enter
prises, and in the construction Of railroads and
other works of public and private improvement,
prosperity will again smile throughout the land.
1t is yan however to disguise the fact from
selves, that speculative imitation Of our rrency.
without corresponding imitation in other cou,-
tries whose manufactures come into competition
with our own. must ever produce disastrous re.
suits to domestic manufactures. No tariff,
short of absolute prohibition, prevent these
evil consequences.
In connection with this subject, it is proper to
REFER to our financial condition. The same causes
which have produced pecuniary distress through
out the country, have reduced the amount Of
imports from foreign countries. that the revenue
has proved inadequate to meet the necessary ex-
psns9 of government. TO supply the deficiency.
authorized the issue of $50, 900 900, of treasury
notes; and, this proving inadequate. they author
ized by the act of June 18th. 1858, n loan Of S20-
| 0ooO0o, "to he applied to the payment Of appr,-
pranns made by law"
No statesman would advise. that we should go
on increasing the national debt to meet the ordi-
nary expenses Of the government This would be
II most ruinous policy. In case Of war, our credit
must be chief resource, at least for the first
year. and this would be greatly impair, by ha,
lug contracted n large debt in time of peace. 1t
is our true policy, t. increase revenue to
equal cur expenditures. 1t would he ruinous to-
continue to borrow. Besides it may be properto
ob~crvc, that the incidental protection, thus al
tordc1 by a revenue tariff would ut the present
In