Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1858-01-08

lation Of the States.
In former communication TO the Gen
eral Assembly, while admitting the conve-
nicncc Of a mixed currency of coin and con
vcrtible notes, and the improbability that q
currency entirely of coin will soon be ndop'
ted in the country, expressed my own opin.
ion in favor Of currency of coin for ordi
nary transactions, and of large notes fol
the convenience of commerce, and al the
same time urged tho necessity of the lnost
stringent legislative guards agaist suspension
of specie payments, and against mere pa
per money system.
Subsequent reflection and observation
have confirmed me in these views.
A leading object in all regulation of cur.
rency should DO to secure the interests o.
the masses of the people, by such provisions
as will ensure to labor just compensation il
actual value. This cannot be effected
while the laborcr is paid in paper, subject
to continual tluctuation, and exposed TO all
tho hazards of financial disorder.
Whatever can be constitutionally effected
by State legislation, towards the exclusion
of the smaller denominations of notes for
circulation, and the substitution of coin in
their place, should be earnestly attempted
The quantity of coin in the country is now
so great, and so steadily increasing, that no
injury, and almost no inconvenience could
arise to any interest from judicious legisla-
tion for this object. On the contrary it
seems 10 me certain that the increased cir
culation of coin which will thus be secured,
cannot fail to result in most substantial ben.
efits to all interests, by additional securities
against fluctuation and revulsion. These
benefits seem to mo so obvious that should
hope for the assent of the banks themselves
TO the legislation necessary TO secure them.
Without that assent under tho decision al
ready referred, to, such legislation would
avail nothing, as to tho banks orgaizcd un-
der the act of l845.
The existence of this decision, the uncer-
tainty of obtaining that, the fact that we are
surrounded by states whose banks issue
such notes, aud the practical difficulty of
the notes of these banks from cir
culation in Ohio, created the apprehension
have heretofore expressed that comparative
ly little can be accomplished in The direction
of the proposed reform by State legislation.
These apprehensons yet remain. The
effectual remedy is with the Federal Gov
ernment Looking at the manifest intent
of the Constitution to protect the people
from the evils of paper currency, as well
as to the specific powers granted to Cong
ress, | cannot doubt the power of the Ma
tional Legislature to prohibit the circulation
as money, of any of the substitutes for
coin. Nor can | doubt that the exercise Of
that power by prohibiting notes of the
smaller denominations, would be wise and
salutary. The denial of this power virtual
ly submits tho regulation of commerce in
itsmost important instrumentaiity to the
variable policies of thirty-one States and
defeats one of the main purposes of the
Constitution.
Entertaining these views l have observed
with regret tho recent declaration of the
Chief Magistrate Of the United States, that,
"the Federal Government cannot do much
to provide against the recurrence of exist
ing evils" and that 1--WE must mainly rely
on the patriotism and wisdom of the States
for their prevention and redress Such
declarations, especially when accompanied
with n accommodation of the issue by the
General Government of large addition to
the mass of paper currency in The form of
treasury notes, are calculated to Illustrate the
hopes Of reform which might be otherwise
reasonably entertained. While | do not
doubt that the General Assembly will do
whatever may be within its constitutional
power towards the object proposed respect
fully submit that its whole duty will not be
performed until this matter be commended
to our Senators and Representatives in Con
gress by appropriate resolutions.
An act TO incorporate new banks having
been twice submitted to the people in dif
ferent forms, and having twice failed re
ceiving the popular sanction, it may now b
properly considered as settled that the ma
jority Of the electors do not desire the fur
ther creation Of institutions of tho charac
ter proposed. | see no reason, indeed, cs
pecially, if small notes be onco excluded
from circulation, why the business of bank
ing may not be safely left as open and FIRE,
to all who desire to engage in it, as an,
other kind of business, care being take
that ample securities be given in bonds O
tho State or tho United States, and by tn
provision of an adequate specie fund.- fo
the prompt redemption of all notes in cor
Bank notes circulating MS money are debt
due to the community at large, payable o
demand, and it is the duty of the State
representing the community, to soc tha
these debts are perfectly secured. Sucl
securities are indispensable; and l respect
fully submit to your better judgcmeu
whether the experience of the last fe,
years does not suggest the expediency
providing efficient guards of some kind il
surlng prompt payment of deposits for sal
keeping.
The condition of the State Treasury r
quires prompt attention.
On the 10th of June last, William /
Gibson, the then Treasurer of State di
closed to to the State Auditor the existen,
of deficit in the State Treasury to IL
amount as he stated of about $55l 900, o
casioned, as he alleged, by the defalcation
John G. Breslin, his immediate prcdecessc
At the earliest practicable moment this i
/ formation was communicated 10 me.
Up to this time | had not entertain,
; the least suspicion that Mr.. Breslin hi
failed to pay over to his successor I
whole amount of public mouey which b
como to his hands, except the sums repc