The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1846-03-07

the confusion and " chaos come again" at the close
of the meeting, was really fierce democratic erup-
ton, beating the original vesuvlus IN its burning
brliancy at midnight, all to pieces We give full
report OF the proceedings in another column.
The Finances OF the Government.-Sub-
Treasury Bal.
bill for the regulation of the finances of the 60
vernment will, without doubt, be introduced into
the House of Representatives sometime within the
next week or two. The principal object Of this bill
IS, to bring into operation system for the protcc-
ton anc saie-keeping of the public moneys-for the
regulation OF the currency Of the country-and tor
the purpose Of placing restrictions upon the move
ments of the numerous banking institutions located
IN every section OF the country. Under the existing
system, the finances OF the government are regu-
lated and controlled by the banks holding public de-
poslts and until some new system is perfeced-un-
I'll Congress re-establishes the Sub-Treasury or
some other plan--the surplus revenue must be de-
posted in the State banks.
There II at present no permanent system for the
regulation or afe keeping of the public monies BY
the provisions OF the of June l7th 1884, the Sc
cretary of the Treasury compelled to recognise, to
certain extent, the State bank system that existed
AT that time and the system then in operation de-
olared that changes should be made in the places
of deposit, except for noncompliance with the in
suctions of the Secretary, the failure furnish
sufficient security 1t therefore appears that the
Secretary is restricted in the management of the
surplus revenue, and is compelled to carry out the
provisions OF law which must appear to all, but
the institutions holding the public money and those
engaged speculations, to be very defective, and
very injurious in their operation The surplus reve
nue. of the government, at this moment, amounts to
- -. e HI \
tate moment to state that very large part of this
sum held by banking institutions engaged in stock
and all other speculatons The public funds are
now more or less used to promote speculation, and TO
create a fictitious business, tending to destroy a
healthy state Of trade, to initiate credits, and produce
an expansion, leading to revusion in commercial
affairs. and the bank rupcy and ruin OF the CONNER
oial classes.
The surplus revenue 1892, when change was
made in the places OF deposit amounted 10 about
ten millions Of dollars. The employment Of this
surplus IN the speculative movements OF the day,was
one strong argument in favor OF their removal from
the Bank Of the United States, and good reason
why II should not have been given 10 other banke,
10 be used Tor similar purpose The disposition
made OF the deposits IN 1892 led TO the tremen-
dous speculatons OF 1895 and '86 and the revusion
in commercial affairs in 1887, and similar dispos
ton OF the surplus now would, without doubt, be
attended with similar results.
The Sub Treasury law would serve az a check to
any bank expansion. Instead OF increasing the
banking movement of the country, as the transfer
OF the surplus revenue in 1882, from the United
States Bank to the State banks did, the Sub-Treasu-
ry will reduce and restrict it. II will act as a check
upon any and all attempts TO initiate the currency,
by an over-issue of paper promises TO pay. The
operation OF the Sub Treasury SYSTEM while large
surplus existed, would not be so satisfactory,
or so beneficial to the commercial classes as
when the receipts and expenditures of the 60
vernment were about equal, and when there was no
surplus OF any account but it would be, under any
circumstances, much better than the present State
bank system. Itwoud be much better for the sur
plus funds Of the government to be locked up in
vaults, and drawn entirely from use, than to have
them appropriated to the imitation OF some specula-
tive b ubble and the arrangement of the legti-
mate trade of the country.
The contemplated alterations in the tariff redu-
cling the average rate OF duty 10 rigid revenue
standard, will prevent any further accumulation of
surplus, and any objection that may be brought
against the Sub Treasury scheme, upon this head,
Will soon be done away with. There can be no
other objection this act. II ID full time that it
was almost entirely used up IN efforts to get the Sub
Treasury bill through Congress Il became law
IN tue astyear OF his term and continued in opera
ton less than year. II was repealed in the early
part OF Mr.. Tylers term, and has since been land on
the shelf The Baltimore Convention. that nom;
mated Mr.. Polk, made this bill feature in the new
creed of the party then and there PROMULGATED
Among the resolutions adopted at that convention
favor Dlan nd 10.
comes necessary that the party lose no time in car
rying out the object OF those resolutions The op-
position 10 this measure has, from Its first ntroduc
tlon oeen very great, and, as the effect ofs opera
non Is as yet merely theoretical, it is opposed
strictly upon party principles. Any measure emana-
ung from the democratic party must of course be
eoademned by the opposite party, but any mea-
sure 'enaing to restrict their pet banking In
su.uuoAs meets with the most bitter oppo-
snuoh' Inc Sub Treasury scheme may be
an experiment, but II is an Experiment attend
% WIN very hue danger TO any interest, except
inc oankhg interest, and any experiment tending
10 cnecA the increase or progress OF the banks in
every section OF the country, cannot but prove per-
fecdy successful and satisfactory. The ,;m.s a..
mand the re-establishment Of this snh.Trs.s,,,
plan, with all It's rigid restrictions Tn. r.o,,.
lasion OF the finances OF the general government,
the preservation OF the present value Of the curren
cy, and the safe keeping Of the surplus revenue
require the immediate adoption of this act, and s
immediate enforcement.
The returns received, from time to time, from the
banks IN different sections of the country, exhibit
steady increase in the general movement, and this
incredse, although at present gradual is progressing
80 surely. that i must ultimately initiate prices and
credits, and, = u goes forward, gain strength and
force, until nothing can resist its influence, and ali
classes will be drawn into the expansion, and the
whole county become again one universal scene of
spec,latiuu ading ia hank rno,.y ..~.., -