Whig Republican. [volume] (Lexington, Miss.) 1840-18??, 1840-10-21
From the National Intetligencer.
TIE DIVORCE-HOW is IT!

The New York Express states that the bank
OF America, in that city, with capital of two
millions, has only about thirteen hundred
thotisand dollars lent out on discounted paper,
while they have, or had few weeks since,
'nearly three millions lent to government on
their Treasury notes. The bank is now, in
fact, the agent of the Government. Mr.. Al
LEN, the Receiver of the Independent Treasu-
ry, has an office in one corner, within its
walls, uses the vaults of the bank, and to all
intents and purposes, the bank and the Govern
ment are as closely connected, and more so
than it ever was with the United States bank.
The Bank Of the United States could not, by
its charter, lend the Government over half T.
million, without law of Congress. The bank
Of America can lend three millions, or any
other sim, at any momentand oil any terms as
satisfactory to Mr.. NEwBotD; possibly the d.
rectors may be consulted after the lone is
made"
The following, from the New York Com
mercial Advertiser. gives us q further insight
into the practical working of this sub-Treasu-
~, by which the Government was to be "di-
vorced from the Banks"
The principles of the Sub-Treasury Bill
are enforced just so far as to secure the collec-
ton of specie enough to pay the office-holders
Just SO far as is necessary to keep up such a
distinction In the currency as will secure GOLD
for the househo d troop, and RAGS for the Peo-
ple--and no further. Let a merchant of known
responsibility go to the collector to pay bond
for instance, of thousand dollars, and present
his own check upon the Bank of America for
seven hundred and fifty dollars, drawn in the
ord nary form, and another of his own checks
for the remaining two hundred and fifty doll
lars, adding the words '' in SPECIE" and his
bond will be given to him. Both checks will
will go to the bank together, he carried thro'
the books together, and the specie drawn Upon
neither; or, if drawn1it world only be done
in the farccal way of counting it out by the
paying teller, to be counted in again by the
receiving teller, and in thirty minutes he stow
was before. The Receiver General keeps his
office in the bank, and the whole change here
result in the simple fact that party favorite
has been provided with snug berth AT FOUR
THosAND FIVE HUNDRED DOLLARS YEAR, for
doing, or having done, in the Bank of America,
what Messrs. Newbold and Thompson did ex-
nctly as we'll without pay in the Bank of Amer
lea before! But in other parts of the Union,
where the people and the banks have not been
able to bear up under the cruel policy of the
Government as we'll as they have done in New
York, and where the banks have not been able
to resume specie payment, the other part of
the Sub-TreasUry is in operation. Specie is
there exacted-the Government and it's officers
all the hard money that comes with
in their grasp, and the rags are literally left
for the People. Further than this, and in all
that has been said about divorce of Bank and
State-especially in the city,of New York
the Sub-Treasury is sheer imposture.''
The Express says--s'A person to whom the
u. States . indebted presents the evi Ter ca
with which he has been furnished by the prop
er officer, of that Indebtedness, for payment.
The Treasurer takes that evidence and re-
turns him Treasury Notes, and asks him to
sign a receipt of which the following is a
COPY
w AsHTNGToN, --.
81 have received of the Treasurer of the
United States, Treasury notes of the follow
ing number and denominations, to-wit:
No. -- For the sum of --$
-, which, said notes are received by me in
exchange for the sum of s. deposited by
me in specie to my credit in the Treasury of
the United States.
Signed. A. b
Thus the payment of this debt is effected
by creating another; the evidence of the origin
al debts is called deposite of specie in the
Treasury.
So that the debts Of the government, what
ever may be their amount, are made to const-
tute fund, upon which an unequally unlim-
tied amount of Sub Treasury Notes may be
issugd.
This is the neU credit system, which it GER
tainly required the power of magician to es-
tablish.
Let one of those notes be presented at the
Treasury for payment. The Treasurer takes
It, ask the holder to sign receipt that he has
deposited its amount in specie in the Treasu-
~, and then gives him new note! This is the
'snew way to pay Old debts"
The notes thus issued cannot be issued IN.
der the Ave million act, but are the fruits of
the Sub-Treasury, ard show what dangerous