Mississippi Democrat., 1846-05-13
IndeDcndent Treasury,


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 prima ,facie evidence that
it is the most desirable and salutary for the
public interests. ln our present position
prompt and rigid enforcement of The spe-
Gle clause is a matter Of first importance
in a 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 paralyzed the foreign trade, and
almost stopped importation-so mu;h so,
that ia 1913, the first year of its operation,
25 per cent. OF the United States produce
sold abroad was brought back in specie.
That's to say $23,000,000 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 scarcity and rise Of prices, Then
it was that the action of the specie clause
was of imperative necessity to prevent an
imitation of the currency here, which
renewed import of foreign goods would
have brought about, Notwithstanding the
duties The Wing Congress had however
given to banks the custody of the public
revenues free of interest, while the treasu.
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 S25, 1000, 600
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 credits
10 an unusual moment The result is, that
in New York and New England, the paper
imitation is greater than eper before. AT
this juncture the cotton crop has fallen off
$4,000 bales, equal to $l0,500,000, by
which amount the value OF bills to be
drawn against has been diminished. Large
Quantities of farm produce that was sent
to England has been sold and appropriated
10 the wants of merchants in England.
who have ruined themselves in railroad
speculations. Great quantities of bills
have come back protested The war
alarm has caused the apitaists--those
who had funds outstanding hereto order
home in cash, and S2,000,000 is now
taking wings for Europe. The prepara'
tons for war in Canada are multiplying
bills on the Imperial Treasury, and the
proceeds go to Canada in cash.
Those operations are sapping the whole
paper fabric on which the fictitious display
manufacturing prosperity has been ba-
sed' and the whole is to:erng TO ruin
All this, or nearly all, would have been
"erIed by the regular action of the Inde-
4 pendent Treasury. Had The government
4 demanded specie for its dues, The import OF
n heprecous metals in 1888 would not have
sunk into the bank vaults and become the
Oass Of imitation. Ii would have coutin-
ued In active circulation. The loans of
banks 10 importing houses would not have
simulated imports on credit. On the other
@nd the imports would have been no great
Ulhan the proceeds Of domestic produce
g'd abroad consequently no export fspe-
We would have resulted. The Canadian
s"ernment, in that case would not have had
Ie power of taking the last dollar in spe-
III Ueirom our vaults in exchange for bills as
@uS under the supposilion that the domes'
exports of the United States, realize
"road 100000 900, there are then bills
mat amour; to be sold IL The amount
lelurns IN goods, there is no balance due
S"ner way. In such state Of affairs il
"e Canadian government sells her ten
p''''n dollars worth OF hills, in order to
I"fy lhe specie Ia Canada, that will dis
N'Veihe same amount ofbs drawn against
puuce, and cnuse the amount TO be
'"h down from England in specie lion
w o'her hand, as is now the case. in con-
yence OF extraordinary bank loans. the
%Por's exceed the exports by seyernl mil
% demand for bills IL pro luced, which
'uu draw every dollar from The banks.