The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1840-05-12
For the Caledonian


/ The Caledonian of week before last contains an
article showing concusivey that the Office holders
in these hard times and under the operation of the
Sub Treasury system, have interest directly op-
posite to the interests of the people;-that they
reap where not they but the people, have sown,
and gather unto themselves the fruits of other mems
industry. II shows that while the office holders
gain by having constant fluctuations in the none
'ary affairs, the Banks and the people suffer-
But it does not however fully appear from that
article hoao the Sub-treasury system is capable of
producing fluctuations in the money market, ma
king money some times very plenty, and again very
scarce. l propose 10 show it. The yearly income
Of the government is say thirty millions of dollars
Under tho Sub Treasury system Mr. Van Buren,
says the government shall receive nothing but
specte and that should be locked in iron chests and
be kept out of circulation, Tho highest estimate
made by The Secretary of the Treasury of the a.
mount of specie in the county at any time within
the last few years is about eighty five millions.
Debts constantly falling due TO the government,
and debts owing by the government, being mostly
salaries to its officers fall due at only four periods
in the year, that Isl quarterly. The basis of Bank
ISSUES is SPECIE and for every dollar in specie in
their vaults, Banks authorized by law in the
different states, to issue two or three dollars in
Bills Suppose then there eighty. five millions OF
specie in the country, all in the vaults of the
Banks, and for every dollar in specie in their vadts
they issue three dollars in Bills. I he money circu-
lating then, is two hundred and fifty five millions.
Suppose twenty millions Of specie to be wanted
to pay debts due to the government 1t
must be drawn from the Banks. In proportion to
the specie drawn out they must call paper money
in, that is So in bills for 81 In specie They must
then call in sixty millions in Bills. This at once
reduces the circulation quarter, from two hun
bred and fifty five millions to about hundred
and eighty millions. This produces scarcity.
The rate ofinterest is high, specie at premium,
and the prices of produce, and wages of labor,
low. The money lender grinds, and the holder of
specie gels fat Well the quarters salary of the
Office holder becomes due Suppose ten millions
in specie to be then paid out 10 the officers In
fortnight it gets into the Banks. They increase
their issues ,hree fod that is thirty millions
Money is then comparatively plenty. In another
fortnight these ten millions in specie may again be
called out Of the banks, and be locked up in the
iron chests of the government In the mean time
the Banks have loaned their thirty millions,
credit of too months, but of sixty days,
four months Suddenly they find themselves with
millions in specie less in their vaults than they
had a fortnigh previous. OF course they again
call in thirty millions. Thus is money made con-
stanty 10 huctuate land the rich man who is watch
ing the changes is made richer while the poor man
who watches only his tools, or his plough, is made
poorer How much better would it be, instead of
looking up the specie, and keeping it out of circu
laton, for the government to have il in constant
and to receive and pay out in pay ment
for debts due TO and from the government, Bills
of good sound, specie paying Banks. Then, mon
ey instead of being sometimes scarce, and
times plenty would, like water always preserve its
level Then how much morewould our government.
display the wisdom OF a serpent, the hamlessness
of dove. ABB.