Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-01-02

81 ,ht .;ncn The fail in foreign exchange, these inst
tutons with few exceptions, originating III gross ee
pcr,urcs from correct banking principles, by em'arKs
in trade and BY making large investments ana long
loans often not to business men, for common bus-
ness PURPOSES urc able ever TO sustain specie
pavments provided they felt disposed to exercise the
former fobcarancc and gences towards each other
and the community towards them II is source OF
much satisfaction TO add that the recent suspension mas
caused far less embarrassment delay and probable loss
10 the Treasury whether by deposcs IN banks or inc
possession of their notes. than have occurred heretofore
on similar occasions. -.
Two reasons exist for this. The banks have OF late
been employed and their notes taken TO less extent
than was before customary and the suspensions among
them have been less general by not reaching, IL IS com
pucd over onc-third of the whole number IN the uni.
ted States though including, perhaps more than nan
of the whole banking capital. vi those suspehding,
fortunately only three or four held any considerable
amounts of public money deposited with them since
1897 and thew as we'll the rest in public employ
have made commcndablc exertlons to meet with hdey
their engagements to the Treasury
The admonitons, however, which the late suspension
has given in respect to the importance OF some new ie
nal provisions connected with the keeping OF the pun
lie money! have been slight, and have already been
sufficiently advcrted to.
They appear 10 be equally strong IN favor OF some
ncv LEGISLATION or additional regulations to the KIND
of currency which should be received for public dues
In relation to this last point the constitution ana
laws are explicit enough concerning what constr
tutcs money.
| But the practices under them, in receiving other
things than gold and silver money, or rather as
currency or substitute for money, have continued so
lone and been at times loose to create much dan
ger and difficulty. The views Of the department on
all portions of this subject were SO fully explained I,
CONGRESS on previous OCCASIONS and more particularly
in September, 1887, to render 1t unnecessary TO re-
| peat them here ct
! Rut some illustrations and combinations of those
views contained in the transactions OF the present year,
! are new, and are az follows
| In srndrv instances banks as well individuals,
holding the Trcasurers drafts have insisted on specie
in PAYMENT and refused to accept the current notes OF
| spece-paylng banks.
This they had undoubted right to do, and thus the
idea has been strongly corroboraed that however much
both public and fiscal convenience may be promoted
by the use of paper currency for either large or distant
payments yet the receipt Of any thing short OF Specie
or the notes not only of specicpayng banks put such
as are convertible into specie the spot, and al par
can never cfiectuay protect the public credit Inc
practical importance of this question under our present
system will be the obvious when II IS understood
that near twenty millions of the twenty-five expended
this yenr for ordinary purposes, have been, and will be
drafts drawn directly collectors and receivers
and must therefore be met, not only by them, but IN
specic or its equivalent II seems impossible, also, that
eventual embarrassment and occasional losses by bank
failures and suspensions should be obvatcd, II any
thing but specie long kept hand by public agents
ofanv description. Nor any system operate as Il
check on overssues by banks, restrain The tendency
to gambling speculaons, and aid gradually IN mPror-
ing the currency of the country, as well as preserve IN
purity the constitutional standard OF value unless
the notes received speedily paid over Tor public
debts when acceptable creditors, and, at brief inter
yuls any of them left hand returned for specie
to the institutions that issued them.
4, 1t appears that the effect which such course would
produce in the currency at large, by permanently with
drawing specie either from banks or from circulation
would in ordinary times, be much less than many per-
sons have apprchended In the collection and pay
!nents of the above twenty millions BY collectors and
receivers, the whole amount hand with all OF them,
al any one me has seldom cXceeac" one million ana
4 half
i Al New York city, where two-thirds Of the
customs of the whole Union collected, and where
the gross receipts this year will exceed fifteen millions
of dollars the amount on hand at any one time has not
averaged half million of dollars.
AS an illustration of the system OF drawing for this
money speedily it may be added that the amount left
al the close Of each week. subject to drafts has sell
dom equallcd one-twentIcth Of a million.
At the recent suspension Of specie payments most of
the funds in the custom houses composed of bank
notes but nearly half Of these in the land Offices
sisted Of specie. Though the notes on hand were
issued by banks paying specie and in good credit AT
the time tlcy %s5s issettl.ilc, has .. .
tthiTenrncc, several protests an" &C" ,'Ju'ns nc
laws with both receivers and collectors Al the former
RI s,spenson as specie the only currency then III
lowed to be taken by receivers most OF these dcu
ties were obvated with them, and were confined chiefly
TO the deposite banks and large collectors Inc great
amount of specie which the receivers then possessed
contributed much also to the general relief of the
Treasury, and especially furnished most opportune
means for making legal well as satisfactory pay
ments of the heavy Indian annuItes, soon afterwards
, falling due in the West.
Some considerations intended to be next pre-
scntcd on the permanent deficiency apprehcndcd as
likely happen in the revenue after ISL, under the
operation Of the present tariff But the length to which
this communication has already extended and the
n In
gislae so long beforehand in anticipation of an event
which possibly but not probably, may be avoided, have
induced the department. TO postpone for the present any
particular remarks topic involving considerations
of so difficult and agitating character
II MIsrELLlSEoUs.
Some of the leading changes, which this department
during the last fsc has thought proper to urge
material in connexon with the finances may, before
closing BE- summary and perhaps usefuly condensed,
and presented together 10 the consideration of Congress-
They follows:
J new organization Of the Treasury Department in
such respects 10 appropriate division
Of labor, strctcr accountability, and closer supcrv
sion over the collection Of the revenue by officers cxcu
svely devoted TO il.
An increase Of the checks and securities against de-
faults in all officers whether collecting keeping dis
bursting public money! and especially by prohibit
ing its for private purposes under penalties
| Some provident fund, TO be formed when any
sonal and accidental surplus happens to be in the Trca
sury, tDut never ucsiSneuy raising one ny hSaton)
which shall be employed to meet contingencies and
fluctuations, instead OF being compelled frequently
resort to loans increased taxes; and the absence
Of such fund.- permanent authority TO be gwen for
the procurement Of means, when needed under unex-
pccted deficiencies.
A reduction in the ordinary expenditures, so as for
several years not TO exceed seventeen eighteen mil
lions Of dollars annually, unless when The is
abundant the great national works which is intended
complete any event, should be hastencd more ant
when the smaller
The passage Of occasional presumption and gradua-
ton laws 10 the public lands, under udicious mita
tons concerning the quantity sold in any case and
for the prevention of frauds and partalltics.
To reduce the tariff, whenever the amount of reve
nue. iustiies the measure and always regulate its pro-
visions with paramount regard to finance, discourag
ing articles of luxury, and encouraging useful and
cessary only incidental objects in tariff lcgis
ation
In connexion with this policy Of protecting freedom
Of trade resist monopolles and exclusive PRIVILEGES