Mississippi Democrat. (Carrollton, Miss.) 1844-18??, 1846-05-13
Independent Treasury,
Ed'r.7

Independent Treasury,
Quite an attempt at panic was gotten up
last week in the Stock market on the
strength of the anticipated evils resulting
from the operations of the " peoples law'
as it passed the House of Representatives.
The fact that banks and spectators show
symptoms of dissatisfaction at the passage
of the law, is primG .facie evidence that
it is the most desirable and salutary for the
public interests. In our present position
prompt and rigid enforcement of the spe-
Gle clause is a matter of first Importance
IN national, military, and commercial
point of view. We will endeavor to set
forth as briefly as possible our reasons for
this conclusion, to which we have arrived.
When the present tariff law came into ope-
ration, it paraIyzed the foreign trade, and
almost stopped lmportatlon-sO much so,
that IN lS43, the first year of its operation,
% per cent. OF the United States produce
sold abroad was brought back in specie.
That's to say $23,O0O,000 of the precious
metals arrive in the United States accord
ing to official returns, during the nine
months ending June 80, 1913. The small
quantity of foreign goods which were ne
cessariIy at the heavy duties charged, pro-
duced a scarcity and rise Of prices. Then
1t was that the action Of the specie clause
was OF imperative necessity to prevent an
initiation of the currency here, which a
renewed import of foreign goods would
have brought about, Notwithstanding the
duties. The Wing Congress had however
81 r IL
revenues free Of interest, while the tgeasu-
ry was borrowing money at 6 per cent
The specie that flowed into the country
filled the Golfers of the Banks. Those of
Boston, New York and New Orleans, the
three chief points, held near $25, 900
The advance on goods and small supply OF
foreign goods caused an immense and uu-
healthy activity in manufactures, particu.
larly in New England. A large capital
was wanting, and the banks, acting on the
absurd notion that the tariff would keep
the specie in the country, lent their credit:
TO an unusual moment. The result is, thai
in New York and New England, the paper
initiation IS greater than euer before. a.
this juncture the cotton crop has fallen of
$4,000 bales, equal to SIC, 100000, BY
which amount the value OF bills TO be
drawn against has been diminished. Large
quantities Of farm produce that was sen
to England has been sold and appropriated
to the wants of merchants in England
who have ruined themselves in railroad
speculations. Great quantities of bill
have come back protested. The wa
alarm has caused the capitalists-thos
who had funds outstanding hereto orde
il home in cash, and $2,000,00O is nov
taking wings for Europe. The prepare
tons for war in Canada are multiplying
bills on the Imperial Treasury, and tn
proceeds 60 10 Canada in cash.
Those operations are sapping the Who'll
pepper fabric on which the fictitious displa
Of manufacturing prosperity has been ba
sed, and the whole is lettering to ruin
All this, or nearly all, would have bee
averted by the regular action of the Inde
pendent Treasury. Had the governmer
demanded specie for its dues, the import {
the precious metals in 1888 would not hav
sunk into the bank vaults and become tn
basis of initiation. Il would have contin
ued in active circulation. The loans {
banks TO importing houses would not haV
simulated imports on credit. On the othe
hand the imports would have been no grea
er than the proceeds of domestic produc
sold abroad; consequently no export of spe
Gle would have resulted The Canada
government, in that case would not have ha
HE power of taking the last dollar in spe
Gle from our vaults in exchange for bills a
mus under the suppositon that the domes
TIC exports of the United States, reaIiz
abroad 100000 900, there are then bill
10 that amour; to be sold If The amour
returns IN goods, there is no balance du
either way. In such state of affairs
the Canadian government sells her tie
million dollars worth of bills, in order
carry the specie 10 Canada, that will di.
place the same amount of bills drawn again
produce, and cause the amount to /
drawn down lroHa England in specie. Ito
the. other band, as is now the case, in col
sequence of extraordinary bank loans, II
imports exceed the exports by several mi
lions, a demand for bills il pro fuced, whIe
would draw every dollar from The banb