The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1839-12-31

oragc Of the amount in his hands at any one
time is from one 10 one and half nillions bat
say one m'iG0h His honla to government are
$500, 600, lcaying an excess Of $1,000 0 10 be
! deposited IN bNn* for SGfckecpiag. Al pres.
cnt this excess is deposited in his own name
II stands upon The books OF the bank in the
hume Of jesse IIoyt, aud it is distracted by
he drafts Of jesse H0yt. Aud will il be grave.
" argued that the pWhc deposits are s'cr in
| The hands of individual agents who, whether
they shall deposit it as does the collector Of
New York or in iron safes Of which they
mold the keys can at any time abstract the
amount and place themselves beyond the
reach OF law, than if deposited with such in.
sLI'"'lons ms 'ho Girard Bank and the Mcr
chants Bank of Boston, which in addition to
their capital stock, shall have pledged collut,
eral security to government
b'l', SIR, pass to the question Of Economy.--
10y the charter of the United States Bank, that
institution was required to receive the funds Of
me government NJ any Of its branches mud 10
I's'lrse them at any point or place in the Union
/ free of erpensc
by the arrangement with the Lepoaite Banks
! they were required to "rcnder to the government
the services now performed Ivy The Bank Of the
u. -" And furtber-''said Bank agrees To-
trhsIer any portion of the depo>iteS 10 any other
Bank or Banks employed 10y the government,
within the L. >. whenever thc secretary Of the
treasury may require it without charge to the
government for transportation or difference of
exchange, com mission or any thing else whatSo-
| ever. Ii Is hardly possible 10 conceive of
system less expensive in transuctng the fiscal af-
FAIRS of the nation than is presented in either o.
the foregoing plans But how will it be with
me sub Treasury scheme? Firs., it contemplnies
the erection OF expensive buildings in various
parts of the Union, (see Sec. !, 3, 4)-ncxt the
| procuring oil iron safes for the great multitude
OF the smaller offices; and next the multiplica.
ton OF numerous Offices aud snnried CLERKS
Hdd To TINS the cost of transporting coin from
one part OF The Union tn the other, or if the re
moval is effected by bills of exchange add sir
me costs and commissions Of such eXchan gc,anh
you have picture of the economy of the system
| proposed in :he third place to notice the ef.
feet of this system upon the exchanges and bus
ness OF the country. The subject of the cnrren
cy Is one which deeply affects all classes of com
! ntun!y. Whatever tends to Il dcraugcnent of
me currency vitality effects the whole business
opefations OF the country. Hitherto it las been
! regarded ms the duty Of the government to foster
| me various branches of industry and enterprise
! III winch lis citizens We're engaged. Nothing
| naruiy Is o! greater moment to the business OF
me u. . than the existence of IL reasonable sys
ZEN or eXclInnge Take Tor example, the New
England States. They to n great extent II
manutnrnring,popn Their manufactures
are thought important to their other branches
oi industry. Bnt the manufacturer does not
ma market nr his goods within the limits of
~ England. ii& sends to every ana the most
'S"''' i'"tS vi Tue JnIpn, Wncrc tt!ty are sold,
ana the currency of each section il taken in
payment. Hut, sir, ot the present rates of ex.
cHahge Inc manufacturer must sacrifice great
or rate OF per cenagc than the profits on his
goods IN converting his funds iulo the currency
OF N. England
Now, sir, il is obviously in tie power of Coy.
eminent, and hence il becomes It's duty TO eHah-
I'sl' ana pepetuate16 system which while il is
safe to itself shall regulate the exchanges of the
country Such was the fact under The u. g
Bank prior TO 1889. We have seen that ns,i
,oU"h furnish Bills Of exchange TO government
Tee OF charge for commission, aud such were
us Facilities Tint The rates of exchange TO private
cltIZehs rnEey exceeded one bali OF one per cent
lie operation of the Sub Treasury bill cannot
but he fatal to the exchanges as will appear as
we proceed. But again, sir, this scheme must
operate hnfavorably TO the business OF the coun
try inasmuch as it withdraws from circulation n
large portion OF the currency
The public receivers, by the provisions oC this |
pm are required to keep the public money A |
large amount of specie, the basis of our paper
ISSUES, IS necessarily to he withdrawn-lo |
up IN the IRON safes ana vaults There occurs +!
IN one OF President Jactson's messages Il think !
his valedictory of 1866 passage which is
worthy 10 be remembered lie snys:--
, it Is against the genius Of our institutions 10 |
lock up in vaults the treasures of the nation"
The public revenue is peculiarly the treas are
OF me naton 1t is the peoples money, and should
excess beyond the wants of the government. as
to promote the Interests of the people. Such
were the views and such the policy of govern.
ment prior TO the introduction of the Sub Treas
ury plan. The excess ofthe revenue above the
wants OF government. was placed in situation
10 be "sea IN the prosecution OF the great branch
es or American industry. ! beg leave, sir, to
read circular Issued by Mr. fancy, Secretary
to the several deposite banks in 1888 read
from that addressed 10 the Grard Bank:
c.. "Irensury Department, Sep; 26, 1888.
oir-in selecting your institution as one Of the
hscal agents of the government | not only rely
on it, solidity and established character as aordn
sufficient guaranty for the safety of the public
money entrusted to its keeping, bnl / confde also
IN ITS disposition to adopt the most liberal course
waich circumstances will admit towards other IN en-.
led institutions generally, and particularly towards
those IN the city of Philadelphia The deposits of
the public money will enable you to afford increas.
ed facilities to commerce and to extend your ac-
Communications to individuals And as the duties
which are payable to government arise from the
business and enterprise of the merchants engaged |
/; ii,