as they are, to take
them as he finds them, to supply deficiencies and to prune excesses as
far as in him lies. The task of furnishing a corrective for derangements
of the paper medium with us is almost inexpressibly great. The power
exerted by the States to charter banking corporations, and which, having
been carried to a great excess, has filled the country with, in most of
the States, an irredeemable paper medium, is an evil which in some way
or other requires a corrective. The rates at which bills of exchange
are negotiated between different parts of the country furnish an index
of the value of the local substitute for gold and silver, which is in
many parts so far depreciated as not to be received except at a large
discount in payment of debts or in the purchase of produce. It could
earnestly be desired that every bank not possessing the means of
resumption should follow the example of the late United States Bank of
Pennsylvania and go into liquidation rather than by refusing to do so
to continue embarrassments in the way of solvent institutions, thereby
augmenting the difficulties incident to the present condition of things.
Whether this Government, with due regard to the rights of the States,
has any power to constrain the banks either to resume specie payments
or to force them into liquidation, is an inquiry which will not fail
to claim your consideration. In view of the great advantages which are
allowed the corporators, not among the least of which is the authority
contained in most of their charters to make loans to three times the
amount of their capital, thereby often deriving three times as much
interest on the same amount of money as any individual is permitted by
law to receive, no sufficient apology can be urged for a long-continued
suspension of specie payments. Such suspension is productive of the
greatest detriment to the public by expelling from circulation the
precious metals and seriously hazarding the success of any effort that
this Government can make to increase commercial facilities and to
advance the public interests.

This is the more to be regretted and the indispensable necessity for
a sound currency becomes the more manifest when we reflect on the vast
amount of the internal commerce of the country. Of this we have no
statistics nor just data for forming adequate opinions. But there can
be no doubt but that the amount of transportation coastwise by sea, and
the transportation inland by r