Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1846-05-28

i for the performance Of this additional duty re-
ceiver- general was appointed at New York with a
salary Of "a 900 per annum, and one at St Louis,
one at Boston, and one at Charleston, each with a
salary Of 80 500 all Of these give ample bonds for
the faithful discharge Of their duties This is the
whole machinery of the Independent Treasury. In
its operation it requires that all existing collectors
and receivers of The public money shall pay over as
often as directed, TO the recevcr-general" IN their
neghborhood, the public money in their possession.
The receiver is to keep separate account Of the post
Office money, which is controlled by the Postmaster
General all the other funds be transferred frum
one depository to another, paid out IN the public
service the direction of The Secretary Of the Urea
sury II is to be remaik ed that the surplus collections
are fortunately at those points above described,
which bill is always at a premium. The public
creditor therefore, derives advantage from getting
| Treasury warrant on New York. The law requires,
however, that this warrant be promptly presented for
payment; otherwise the Secretary may change the
place OF payment. This law also provided Tor the
/ gradual collection Of the government revenue in
specie exclusively, viz: an increase of one-quarter
the amount TO be paid in specie each successive year
until the whole was collected in specie.
This was the law of 1910, and while in operation,
worked admirably as far as its provisions were car
red out powerful bank influence, however, sue
ceeded through change In government In procuring
its repeal in August, lS4l when it had been in force
one year and one month, and before sufficient time
had been allowed 10 perfect its details. No subsi
tute was provided but the old expedent of local banks
was resorted to- and instead of the plain and simple
movement of the government officers placing the funds
in repositories at convenient points, subject to the
drafts of the Secretary, fIysix banks, dispersed all
over the country, selected, and the money loan
ed TO them WithoH interest Ii is obvious that the
public deposites are Of but little service TO the banks
unless there remains surplus for them to use for
their own purposes The floating debt of the govern
ment, consisting of Treasury notes payable within
ndad 10 N
years, and the means, which should have been ap-
piled to their discharge remained in the banks without
interest Thus the fiy-six banks have held aver
age of 81 ,000,0C0 of public money for three years
free of interest, while the government has been pay
six per cent, amounting to S660,000 per annum,
an equal amount borrowed by it Of the public. Nor
is this by any means the greatest evil of the system
II gives to each deposie bank control Of all the others
i'm its neighborhood by which means il not only has
more money to loan itself, but it compes others to
contract their loans. There are in New York city
| twenty-four banks where merchants and importers
keep their accounts OF these seven institutions only
are favored with the public money, and the
en- receives all for the month. The duties in the
month of March amounted to S2,600,000 for the port
of New York, This constituted the paid into
one government bank by all the others. The balance
in favor of that bank therefore large end those
balances being vigorously demanded in specie, ne
cessary compelled the debtor banks 10 loan cautiously,
| freely, taking advantage of the improved value Of
money that its act, operating through the other
banks, had created. 1t is obvious that under such
circumstances the institution would naturally be
ous use the funds at It's its DISPOSAL to the best ed-
vantage. AS the money may be called for at anv
time, stock loans afford the readiest means of en-
ploying the funds profitaby and, at the same time,
having them at command wien called for. law
of New York State requires these institutions to
make quarterly returns of their affairs, and to in
the returns the amount of stock loans, with view 10
check them The banks, however. take the stock as
security, and note payable on demand, which note
is counted cash hand Millions Of money are
loaned in this way gamblers, and reported to the
comptroller as cash on hand.
The general result, therefore, is that, under a
"specle clause" as enforced by banks, the funds are
Withdrawn from commercial paper and loaned to stock
spectators. The evils resulting from this mode of
disposing of the public funds have become evident
of late and the Independent Treasury bill has been re-
vived and passed tho House of Representa- tives by
large majority in accordance with the demands of the
people, as expressed the last Presidential election
The bill is in all respects, similar to that of no.
above described with the exception that 1t is to 90
into operation June 30, 1916, and requires all the
dues TO be paid in specie at that time but the pay
ments of the government not required to be in
specie until October /, 1916, three months later
This provision is to afford time for the disbursement
of the surplus Sl OOO 900, in the banks in such
funds as they may wish TO pay out. Thereafter all
the receipts and expenditures of the government are
TO be in specie exclusively. This provision is very
obnoxious TO the banks, which do not wish to lose the
deposits that they have so long protably enjoyed
and it appears to be regarded with vague fears by
other parties who have less faith in the immutabIe
laws of trade than in the sagaciy of corporations
These fears seem also have influenced the Senate
Committee on Finance, and they have announced
their intention to report the bill that came from the
House, amended as to postpone the specie clause
until jan, 1547 in ORDER stated to allow time for
the banks and the commercial community to prepare
for the specie payments and reason for the sup
posed necessity of this measure ii was stated very
correctly that the present expansion of the banks had
turned exchanges in favor of England and the specie
is going abroad; this being undoubted fact, and
proving that the institutions hare not prepared for the
action of the Independent Treasury bill, although in
constant expectation of Its passage during the past
four months, it is certainly most singular argument
to put FORTH why six months longer time should be
granted, during which, with the vast power they WELD
the most pernicous influences may be exered to pro-
cure a farther postponement at the meeting of the
next Congress 1t was further stated that prior TO
to the consideration of the Independent Treasury BILL
bills to establish a uniform warehousing system, and
branch minis in New York and Charlestown S. c..
would be disposed Of These doubtless measures
of first necessity not to regulate trade the cur
rency, but to distinctions in the way of the
freest individual enterprise and the circulation Of the
constitutional currency but when they alledged to be
remedial measures in their relation TO the action
of the Independent Treasury, their necessity is by no
means so clear.
The carrying trade fthe United Stated has, through
the action of high cash duties payable the impor
tation of foreign goods and the delays and deductions
from debentures, been entirely unable compete with
the perfect facility that the carrying trade of the
world has enjoyed in freedom of the English ware
houses The carrying trade of the United States was
80 per cent of the direct but with the cessa
ton of the Of Europe, the removal of restrictions
and increased facilities to trade afforded by Great
Rrta md nfhnr Countries of E,lrnnn IIa;.e