Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1836-12-29
u. STATES BANK AND THE CUR
RENCI.
LETTER II.
PhikndeLnhia. Nor. II. Is
LETTER III.
Leitsr from Jir. Biddie to Er-Prssidsnf
/3dams

My Dear Sir-I proceed TO the second subs
ject OF our conversation-the present state oi
the Currency-whiCh shall treat dispassion
ately as an abstract question of mere finance.
Our pecuniary condition seems 10 be
strange anomaly. When Congress adjourn
ed, il left the country with abundant crops
and high prices for them-with every branch
OF industry hourishing-with more specie
than we ever possessed belure-with all the
elements of universal prosperity. Not one
Of these has undergone the slightest change,
yet siler a few months Congress will re
semble and Gud The " hole country suffering
intense pecuniary distress. The occasion OF
this, and the remedy for it may we'll occupy
our thong hts
In my Judgment, the main cause of il is
the mismanag ement of the Revenue-mis-
management in two respects: the mode Of
executing the Distribution Law, and the or
der requiring specie for the Public Lands.
! l. The Distribution Law.
In July, 1886, Congress declared that the
surplus in the Treasury on the Isl of Janua-
ny, 1897, should ne divided among The States.
/ That it might he done as gently as possible,
The payments were 10 be made, not al unce
on the lst OF January, but quarterly through
out the whole year 1897 and as The aggre-
gate sum to be distributed is from thirty six
TO forty millions, we may assume the first
payment in january To be about nine mil
lions. To prepare for this the Treasury has
/ had in hand forty or fifty milions-it would
I receive in the course Of the operation thirty
or forty millions Of revenue more-and as
there was probably money in every State,
ahd E.ayDients 10 make in every State, the
operation was So simple and easy that il
! ought not 10 have ocCasioned the slightest
pressure either on public or private interests;
and the whole might have been accomplish
ed without any derangemen; of trade, and
without the movement of a single dollar ia
specie.-That this not only could he done,
but has actually been done, you will find in
the public documents of 1929.
la that year the new administration OF
Mr.. Jackson, anxious 10 appropriate every
diSpnsable dollar OF the re, enue 10 the reduc
ton of the public debt, sought and obtained
/ the aid of the Bank of the United Slates.-
! Notice was accordingly given on The 3lst of
March, 1929, that on the lst Of July, the
debt and interest, amounting to IS, lis ,162
81, would be paid At the period of The no
lice, the whole available means of the Trea-
sury were only millions, scattered though
out The United States, and these, with the
aCcruing revenue in the interval, were, al a
notice OF ninety days, 10 Re collected, 10 pay
nearly nine millions. So closely was the
Government pressed, that after paying these
sums, the actual balance in the Treasury
throughout the whole United States, was re-
duced TO SI64 ,365 Oh. The bank howey err
undertook the arrangement, with what sue
cess may be seen in The following part OF The
message Of MIR. jackson 10 Congress in De-
cember, 1929.
"The payment on account Of the public
debt, made ON the lst of July last, was S.
7l5,4C2 81. Ii was apprehendcd that the
sudden withdrawal of so large sum from
the banks in which il was deposited, al a
time of unusual pressure in the money mar
ket, might cause much injury 10 the interests
! dependent on Bank accommodations But
/ this evil was wholly averted by an early an.
/ ticlpation Of ii at the Treasury, aided by the
judicious arrangement of tho officers Of The
/ Bank of the United States
| The respective shares of the Bank and ht
! Treasury may be CuneCtured from the Sec
retary's letter OF tbG llth July, 1929, ir
I which he takes occasion TO express the grca
satisfaction of the Treasury Department il
/ The preparation for The heavy paymen, of The
public debt on the lst instant-which hd:
been effected by means Of the prudent ar,
rangemcnt Of your Board, al IL time Of SC.
/ we're depression ON all the productive employ
meDts OF the country, without causing any
1 sensible addition To The pressure, or even Wis
ible effect upon the ordinary operations Of The
State Banks"
! II then nine millions, being almost The
last dollar in the Treasury, could bc thu;
! dIstribuicd-two millions of il TO foreigners
at time Of unusual pressure, how hap.
pens il that with funds equal 10 fifty millions
and with six months notice, nine millions
cannot now tie distributed exclusively among
af &c -.
dance, without hazdrding convulsion? The
answer is 10 be found in the different mode oil