Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1846-04-11
The Sub-Treasury--Its Effects.

We regret 10 see it stated, in a New York pa
per, on the authority fletters from Washington,
that caucus of the Democratic Senators had
been held, at which it was resolved to pass the
Sub. Treasury Bill as it came from the House.
We regret 1t, because we had. we confess with
very FAINT hope however, Cooked 10 the Senate
TO avert from the country the serious evils which,
we verify believe, will flow from its enactment
into law-nay, which, by the voluntary adms-
sion of some of lis advocates, must OF necessity
result from It's adoption.
The surplus revenue amounted on the lst OF
April, according to the monthly statement of the
Treasurer of the United States, To nearly twelve
millions of dollars, distributed among upwards of
fifty repositories, most of them State Banks
Nearly seven millions of this amount are in the
Banks of Philadelphia, New York and Boston, the
great commercial marts OF the Union. What
must be the effect of Withdrawing suddenly from
the Banks this immense amount Of specie. to be
boarded, until called for by the gcmen,s of the
Treasury in the safes and vaults to be built for It's
reception by the Government! The disastrous
effects Of the removal Of the deposits by General
Jackson. from the Bank Of the nited States al.
though they were transferred to the Pets, with
special Instructions to Discount freely" for the
purpose of preventing the pressure which was
iorescen, cannot have been forgotten. How much
more severe must mat pressure now be, when the
amount of the deposits is much larger than it
was then, and when they to be- not as then, the
basis of Bank discounts, but, except they may he
required to meet drafts upon the Treasury, are TO
lie idle and barren in the Government repositories
ba
by the provision OF the BILL as 1t passed the House
Of Representa- which, going bow-shot be.
yond Mr.. Van Buren's scheme in 1887, or the
bill which received his sanction the 4th o.
July 1899, requires tie paymsnt of all sums due
The Government gffer he lM Of July neIt, for
customs, lands and poSaees, IN gold and nicer ?
IL may, indeed, be said, that there will be no i'm.
mediate transfer OF the Twelve millions of surplus
now on depos te but that the dspos,laries will be
permitted 20 retain the amounts in their possession
respectively until ihey are drawn out by the Go.
vernment, to meet demands upon It as they arise.
Even if this be the fact lof which, not having
seen the bill itself we are ignorant) it will not
at all mitigate the apprchended evil-for the ob.
vous reason that the Banks not knowing at what
hour they may be called upon Tor a final settle.
ment, will not, by extending their loans incur the
hazard Of being unable to comply with the requi.
siton whenever it may be made. They will be
compelled TO keep themselves in a constant state
Of preparation for an emergency, the time of the
occurrence Of which, though uncertain, they
know cannot be remote And besides a. Is well
remarked by contemporary, while the Banks are
/ losing this large amount Of the deposltes. sur.
/ plus will be steadily accumuatug IN the several
Sub. Treasures. in all parts of the country and
"this accumulation will continue until every dol.
lar Of the deposits IN the Banks IS exhausted and
| by the time that point Is reached. the surplus IN
the hands 0! the Receivers General. will perhaps
be rs large that now the Banks"-a surplus.
however, not serving tia purpose u extensive &C..
commodaton to the trade and business Of the
country, as AT present but itself ab.lrsctcd from
/ tho channels Of circuIaton-nOt only M, enrich
ing the country by ahOrdlng facilities for the de-.
velopmcnt ri IT, resources but inpovershtug ID 10
the full amount thus Withdrawn from circulation
and rendered unpfoductiye.
IL is manifest that the Banks. as measure NJ
self.proieofion, will be compelled to adapt their
business to this new state ofthngs. Yet we per.
coiye already If they do so, that the pressure
which must necessarily onsue, will be ascribed to
an effort on their part, TO produce "a panic" for
the purpose Of thwaring the policy Of the Go.
vernmen,, aud Of bringing into disrePute this