Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1837-01-03
The Currency.
From The Philadelphia National Gazette.
NICHOLAS BIDDLE TO JOHN QUlN-
CEY ADAMS.
Philadelphia, Nov. IT, 1S'

1cct OF our conversation-the present state ol
lie currcncy-which shall treat dispassion-
otely as an abstract question Of mere finance
Our pccuniary condition seems TO be
strange anomaly. When Congress ADJOURN
ed, II let The country with abundant crops and
high prices Tor lhem-with every branch OF in
dusty flourishng--w more specie than ev-
or we had beiore-with all the elements Of uni
versal prosperity. Not one Of these has I'M
dersone the slightest change, yet after few
months Congress will re- assemble and lind ibe ,
whole country suffering intense pecunlary DIS
tress. The occasion OF this aud the remedy
for It may well occupy our thoughts.
In ny Iud gment, the main cause OF II is the /
Encouragement Of the revcnue-mismanage |
meat in TWO respects the mode of executing
the distribution law, and the other requiring
specie for the public lands.
LIST the Distribution Law.
In Jolly, 1886, Congress declared that the
Surplus IN the Treasury Oh the LIST oil Janua-
~ 1887, should be divided among the States.
L nat 1t might be done as gently as possible,
the pay ments were 10 be mad f., not at once on
'he Let OF january, but quarterly thious bout
the whole year oil 1887 aud as The aggregate
sum 10 be distributed is from lhlrty-slx TO lor-
" mnlons, we may assume the first payment
IN January 10 he about nIue millions. To pre-
pare Tor This, The treasury had IN hand forty or
nifty mIliiUn5-It would receive in the course Of
the operation thirty or forty millions Of reven-
ne nore-and as There was probably money in
every State, and pay lnents 10 make in every
STATE, The operation was so simple and easy
that 1t ought not 10 have occasioned the
slightest pressure either Oh public or private
interests aud the whole might have been &C.
compllshcd without any arrangement OF trade,
and without the movement OF u single dollar
IN specie That this not only could be done
out LAS actually been done, you will find in
the public documents of 1929
In inat year the new administration OF Mr..
Jackson, anxious 10 appropriate every dlspo-
sable dollar of the revenue 10 the reduction of
The public debt, sought aud obtained the aid ol
the Bank of the United States. Notice was
accordingly given on the 3lst of March, 1929,
that on the first of July, the debt and interest,
amounting to SS,7l5 1852 81 would be paid
AT The period Of the notice, the whole ayaia-
Die means of the treasury were only six mill
lions, scattered throughout the United States,
and these with the aocruing revenue in the in
tcrval, were at notice Of ninety days, 10 be
collected 10 pay nearly nine millions. So
closely was the government pressed, that af-
ter paying these sums, the actual balance in
the treasury throughout Ihs whole United
States was reduced TO Sl64,365 o.. The
bank, however, undertook the arrangement,
tn what success may be seen in the follow
ing part of the message OF Mr.. Jackson 10
Congress in 1929. The payment on &C
count Of the public debt, made on the lst Of
July last was IS, 7l5 462 ST. 1t was appre-
hended that The sudden withdra,oaL of so large
a sum from the banks in which it was depo-
slted, at Time of unusual pressure in the mo-
ney market, might cause much injury TO the
interests dependent on bank accommodations
Blu, this evil was wholly averted by an early
anticipation Of II at the treasury aided bya ju-
dicioUS arrang ement Of The Bank Of the United
States"
The respective shares of the bank and the
treasury may be conJectured from the Secre-
tary's letter Of the llth July, 1929, in which
he takes occasion TO express "the great salts
faction of the treasury department in the pre-
paration for the heavy payment of the public
debt on tn lst inst.-wuich has been effected
by means Of the prudent arrangement of your
Board, at time of severe depression on all
the productive employments OF the country,
without any sensible addition 10 the pressure
= or even visible effect upon the ordinary opera
} tons of the State banks.'
II, then, nine millions, being almost the last
dollar IN the Treasury, could be thus distributed
two millions of II 10 ioreisneTs-at lime o
unusual pressure, how happens it with fund:
i. equal 10 fifty millions, and with SIX months no
lice, nine millions cannot now be distributed
,, exclusively among our own people-Rt tim,
! OF great abundance, without hazarding con
! vuslon The answer is 10 be found in
, different mode OF conducting the operations
y ! his may be seen by contrasting what The Sc
:. crctary might have done, with what he ha
u done
v The distribution law assigned 10 him tw,
I duties, both simple and both easy the division
of the funds among the banks and The division
among the States. As TO the first, he was {
"selcct as soon may be practicable, ah
, employ The dcpositor of the money of III
u, United States, such OF the banks as may b
', located al, adjacent, or convenient to the point
u or places al which the revenues may be col
e lccled or dIsbursed"-" provided that at leas
i one such bank shall be located within eac
i State or Territory" and that no bank sha
y have on deposlte more than three-lourths OF ii
q capital"
81 Here is no authority whatever TO dslrihut
j. the money from the banks of one State
If the backs oil another State. On the contrar
= By the twelfth section, all transfers for AN
other purpose whatever except 10 facilitate III
~ public disbursements, and TO comply with tn
= provisions of The act, are hereby prohibited an
~ declared 10 he illegal" ard Sin cases wher
transfers shall be required for purposes Of {
J. EQUALIZATION under the provisions Of this act
!" consequence Of great accumulation Of dc
Is posliGs IN any bank-snch transfers shall 1
u made TO The nearest depOsite banks which al
% considered sale and secure !" and althous
nj the supplement says that nothing shall PR
I'd rent hun from making transfers from State
- State, 1ohen required to prevent large and it
n convenient accumulation IN particular place
n or in order TO produce a due equality and iu
n. ptoPorIon according to the provision OF lhi