eriodical revulsions which have existed in our past history must
continue to return at intervals so long as our present unbounded system
of bank credits shall prevail. They will, however, probably be the less
severe in future, because it is not to be expected, at least for many
years to come, that the commercial nations of Europe, with whose
interests our own are so materially involved, will expose themselves to
similar calamities. But this subject was treated so much at large in
my last annual message that I shall not now pursue it further. Still,
I respectfully renew the recommendation in favor of the passage of a
uniform bankrupt law applicable to banking institutions. This is all the
direct power over the subject which I believe the Federal Government
possesses. Such a law would mitigate, though it might not prevent,
the evil. The instinct of self-preservation might produce a wholesome
restraint upon their banking business if they knew in advance that
a suspension of specie payments would inevitably produce their civil
death.

But the effects of the revulsion are now slowly but surely passing away.
The energy and enterprise of our citizens, with our unbounded resources,
will within the period of another year restore a state of wholesome
industry and trade. Capital has again accumulated in our large cities.
The rate of interest is there very low. Confidence is gradually
reviving, and so soon as it is discovered that this capital can be
profitably employed in commercial and manufacturing enterprises and in
the construction of railroads and other works of public and private
improvement prosperity will again smile throughout the land. It is
vain, however, to disguise the fact from ourselves that a speculative
inflation of our currency without a corresponding inflation in other
countries whose manufactures come into competition with our own must
ever produce disastrous results to our domestic manufactures. No tariff
short of absolute prohibition can 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
throughout the country have so reduced the amount of imports from
foreign countries that the revenue has proved inadequate to meet
the necessary expenses of the Government. To supply the deficiency,
Congress, by the act of December 23, 1857, authorized the issue of
$20,000,000 of Treasury notes; and this pr