Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1836-12-22
From the Philadelphia National Gazette.
Mr.. Biddlc 10 John Quincy
Adams.
PHILADELPHIA, Nov. IL, 1886.

/, Ny Dear Sir:-I proceed to the second
subject of our conversation:---the present
state of the currency; which shall treat dis
passionately, as an abstract question Of mere
finance.
Z Our pecuniury condition seems to be n
strange anomaly. When Congress adjourn
ed, it left the country with abundant crops
and high prices for them-wiII every branch
of industry flourishiDg-witl more specie
than we ever possessed before-with all the
elements Of universal prosperity. Not one
of these has undergone the slightest change,
yet after few months Congress will re-as-
senble and find the whole country suffering
intense pecuniary distress. The occasion of
this, and the remedy for il, may well occupy
our thoughts.
In my Judgment, the main cause Of it is the
mis- management ofthe observation-disclosures
agemcnt in two respects the mode OF cxecu-
ting the Distribution law, and the order re-
quIring specie for the Public Lands.
Ist. The Distribution Law.
In July, 1886, Congress declared tina. the
surplus in the Treasury on The first of Janua.
ry, 1882, should be divided among the States.
That it might be done as gently as possible,
the payments were to be made, not at once
OH the first 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 millions.
To prepare for this, the Treasury has IN hand
forty or fifty mlions-it would receive IN the
course Of the operation thirty or forty millions
of revenue more-and Us there was probably
money in every State, and payments also to
make in every State, the operation was so
simple and easy that it ought not to have oc-
casioned the slightest pressure either on pub
lie or private interests, and the whole might
have been accomplished without any de-
F, irangement Of trade and without the move
ment of single dollar in specie. That this
not only conld be done but hos actually been
, done, you will find in the public documents
| of 1893.
/ In that wear the new administration of Mr.
Jackson anxious to appropriate every dlsposa-
| able dollar of the revenue to the reduction OF
:hc public debt sought and obtained the aid
of the Bank Of the u. States. Notice was
accordingly given on the 3lst of March, lS0
that on the first ofJuly, the debt and interest
amounting to $S,7I5, ,I62,s7 would be paid
At the period of the notice, the whole availa-
BILE means of the Treasury were only SIN
millions, scattered throughout the United
States, and these, with the accruing revenue
in the interval, were, at a notice OF ninety
days, to be collected, to pay nearly nine mil
! lions. So closely was the Government pres
scd, that after paying these sums the actual
balance in the Treasury throughout the whole
! u. States, was reduced to the sum OF Sl6i,-
3G5,04 The Bank however, undertook the
| arrangement. with what success may be seen
| in the following part OF the message OF Mr..
! Jackson to Congress in December, lSGh-
/ ll..vINl. ~ liz fnh
made on the first of July last, was SS,7l5,-
452.s7. K,cas npprchendcd that The sudden
,cithdra,cai of so large a sum from The Banks
in ,rhich ii ,cas deposited at t,n'e 81 unusual
pressure IN the money market, might cause
much injury TO the interests dependent on Banh
accommodations. But this era ,ras ,rhotty q.
reried by an early anticipation oi 1t al the Irea
sury, aided by The judicious arrangement Of th'
Officers of lie Bank Of The United States.-
The respective shares Of the bank and the
Treasury may be conjectured from the Sec
retary's letter OF the IIth July, 1929, in which
he takes occasion to express "the great sat
isfaction Of the Treasury Department in the
preparation for the heavy payment OF the pub
| lie debt on the first instant-tchich has been
effected Ly means Of the prudent arrangement
or uom Board at a time Of serere depression
on all Me productive empioyments Of the coun-
Itry, withom causing amy sensible addition TO
The pressure, or epen risible effect upon the Or
dinarv operations Of the State Banks"
n If then nine millions. being almost the las,
dollar in the Treasury, could be thus distribu-
lted-two millions Of it to foreigners-at q
time of unusual pressure, how happens it thai
with funds equal to fifty millions, and witt
six months notice, nine millions cannot now
be distributed-exclusively among our owl
people-at time of great abundance, with
out hazardinc convulsiop! The answer is t.
be found in the different modes Of ofconductlnl
the operation This may be seen by contrast
ing what the Secretary might have done, e,wltl
what he has done.
The distribution law assigned to him tw'
duties, both simple and both easy-the dlvls
ion Of the funds among the Banks and the d.
vision among the States. AS to the firsf nc
wns TO "select as soon as may be practicable
and employ rs the repositories OF the money
Ilof the United States, such Of the Banks os
NAV be located at. adjacent, or convenient tc
the points or places at which the revenue.
NAV be collected or ,lisbursed"-"provided
D thai NJ least one such Bank shall be located
in cacb State or Terrnory"-"ana that Ds
Bank shall have on deposit more than three
! fourths Of its capital"
\ Here is no authority whatever to distribute
the money from the Banks Of one State to th'
Banks Of another State. On the contrary,b!
the twelfth section,all transfers for "any 9th
or purposes whatever except to facilitate tb,
public disbursements and to comply will
: the provisions Of this act, ore hereby probibi
7 ted and declared TO be Illegal" and sin case
where transfers shall be required for purpo
ses Of equalization under the provisions o
this act in consequence Of too great an accu
mutation Of dcposites in any Bank--sncl
transfers shall be made to the nearest Drpos
IL Banks which are considered safe and SC