The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1840-04-21
Balance
S2O.20O.OOO

banks 100000
Balance $2O20O,OO
twenty millions two hundred thousand dol
iars then, appears to have been expended in the
! threa years, between january 1887, and Jan
1910 besides all the receipts from the custom
house, and land offices, and all other sources.
IL there be any error in this general statetnen
hope that some gentlemen will point it out
and shall cheerfully make the necessary cor
rectlon. My object is TO be accurate MS well as
distinct. But it there be no error, if this state
nhent he true, as suppose, then the results Ger.
tainiy is, that for the last three years, the govern
nent has expended almost seven million year
beyond its income; and has supplied the defc.
lehcy ont OF funds previously acquired or recei-
we'd. The six millions reserved under the de
pose law, the nine millions afterwards with.
ilei" from the states, the five millions received
from the Bank, all of these were funds prcvi.
ously acquired, and none OF them any part OF the
income or revenue OF 1887, 1888, or 1889. All
the income and revenue of those Years have
been expended and these twenty millions
more.
This general stale OF the Treasury, and hSto.
ry OK revenue and expenditure for the last three
years, may well awaken attention. We have no
twenty millions more in crib 10 90 to. Our CAPT.
tol is expended. There will he two millions g.
half due from the Bank of the United States
IN September, and there is II small balance still
due from the deposite banks; both together not
exceeding three millions and u half; and Tor the
rest, we are to rely on the usual sources, the
CUSTOM house and the land offices.
Now, then, the important questions are, does
the admin istration expect an augmentation oil
incomef
Or, does ii expect such reduction of eX-
pendtures as shall keep it within the income7
Or, does it contemplate lonns, either in the
form of Treasury notes or otherwise to make up
deficiencies?
Aud, il the last, to what extent?
The present measure is to authorize the i'm.
mediate issue of FIVE millions of treasury notes,
for the purpose ofsbeing paid out TO persons hav
ing claims upouGovernment,o or used as means of
borrowing money for the necessities OF the trea
sury.
do not propose to oppose the passage Of the
bill because think it quite clear that the mon
ey is needed, in order TO carry on the Govern.
nlent.-Thete are indeed, objections to this
i"'m of borrowing money. For it is borrow
ing of money to all intents and purposes. The
Secretary, indeed in u recent communication 10
the Senate, does not call II borrowing He
avoids that word if he were afraid 1t would
burn his mouth. He calls il only exchanging
treasury notes for specie Tins ia.:s; under that
form of statement now usually called humbug.
The Secretary receives money, gives for 1t his
treasury notes, payable q year hence, on interest
of five or six per cent. But this, he thinks is
not borrowing money; it is only exchanging his
note for money; sort of exchange believe,
which most borrowers are obliged TO conform
to. The authority, and the only authority
under this marvellous exchange rs a
sanction of the law of 1887, which authorizes
his to borrow money
i cannot say that think the communication
ofthe Secretary to which have referred, Is n
very clear answer to the call ofthe Senate. But
we learn from it, after all, what 4 was sure
muse have existed, and which it may be OF some
importance TO show.-lie admits that deposes
nave been made to the credit of the treasurer, IN
certain banks; and that ihereupon such banks
have received Treasury notes 10 a correspoh.
ding amount. And the treasurer in letter &C
companvng the Secrelary's report, says these
funds are drawn for as other funds, and not spe'
cifcaliy The Secretary says these deposles are
special, and IN specie. All that is humbug again;
deposites in banks are regarded specie deposteS,
while banks pay specie, and the treasurer, as
have remarked, says expressly that these sums
thus deposited, are drawn for, when needed ~
com mon 10Th other funds, and not speci caiy, or
separately. The idea, of thus dellisoh, or 'hs
pretence, for it hardly deserves Respectable
name, about special specie deposites, was sumo
iently dissipated by the examinations. last year
into the conduct OF the banks connected "it'i
the New York custom house. Nhen tne
banks pay specie, special specie deposi ne Is
nothing but deposite i'll specie or It's equivalent
and the amount sspaid ont, Oh drafts IS specie or
it's equivalent And this is the case with all
other deposites Of money, unless it be lettin kegs
or bags, and not carried into the general nc
count Of the bank.-Auy one nny see now 'h'S
is, and has been, who will recur to me evidence
| of the Cashier OF the bank OF America, on me
occasion which have referred to. AS l nave
already said the Treasurer informs US li'at THESE
deposes are mixed with other funds heloheihR
to tue United States in the same bank lhnt Is
to say, they all stand together to his cfe"''io o"
the books Of the bank, and he draws as ne mas
occasion, just is done 10y any other oeaisr WI
the bank.-This is the whole Of il. Special
| specie deposites is nonenity. ...
Now. it ia easy TO sue HAT this mode OF Obtain
,pg money from the banks may be OF very con-