Weekly national intelligencer., 1847-12-18

that port and in the last eleven months by him in specie
ls6l5,422 26. During the month of August, there
was deposited (see table GG the of S5, 720 92 with
he assistant treasurer of that cy and transferred from
disbursed by that officer The receipts and disbursements of
the Government in specie during the last eleven MONTHS have
amounted together TO the of $780, S94 402 40 and
dollar has been lost 10 the Treasury any injury nfct
ed upon any branch OF commerce business The Constu
uonai treasury has been tried during period of when
was necessary TO negotiate very large oans when expen
dltues were being increased, and when transfers unprece
dented ~ amount were required distant points for dsburse
ment During the last eleven months the Government has
received transferred and dsbursed more specie than during
the whole aggregate period of yseven years preceding
since the adoption Of the constitution To render the system
still safe, useful and economical TO define more clear
y the powers of the Department. and especially to render
''the public money in the hands OF dsbusng
agents. the amendments suggested in my last annual report
(ncluding the establishment OF branch mint at New York;
and which received the sanction OF the House Of Representa-
tives during the last session. again recommended to the
favorable consideration of Congress During the year ending
30h June lS47, imports of specie S24 2s9
(see table IT, Of which, under former systems must
have gone into the banks TO have been made the of
issues Of their paper the additional of fifty or sixty
millions of dollars Such expansion during the last spring
and summer accompanied by still higher prices and followed
by greater fall and by bankruptcies IN England to extent
heretofore unknown finding banks and credit greatly
panded and reacng upon this expansion would have pro-
duced evuson here exceeding any that has heretofore
Cured in the country general suspension Of the banks
would probably have resulted depressing the wages of labor
and prices of property and products affecting iDuiousy the
operations and credit the most solvent and producing
extensive bankruptcies From this revuson have been
saved by the Constitutional Treasury by which the specie inn
ported instead of being converted into bank issues has been
made to circulate directly to great extent currency
among the peopehavng been reconed here during the last
eleven months by the orders of this Department under
the of 9th February l793 and the Jealous cooperation
of the able and efficient head of the mint Philadelphia
the unprecedented extent Of S20 4S IL and there are
thousands Of citizens solvent and prosperous who
have been saved from ruin by the wholesome operation of the
Constitutional Treasury The banks that unwisey opposed
the SYSTEM have been rescued probably from another suspen
sion; their stockholders deposors and note holders from
severe losses; and the country and Government from the
runous effects of deprecated paper currency If the union
Of the Government with the banks had continued and their
suspension and the depreciation Of their paper occurred dur
ing the war; requiring large specie disbursements which
pended banks could not furnish consequences the most das
ous 10 the honor and the interests of the country must have
ensued The Government is disconnected from banks,
and yet its stock and notes at although we have been
constrained TO contract heavy oans and to keep larger armies
the field than at any former period But during the last
war; when the Government connected with banks its six
per stock and Treasury deprecated twenty
five per cent payable in bank paper per below
par thus amounting loss Of forty in every dol
lar upon the operations of the Government In my first
nual repoo Congress- the Sd Of December, ls45,
commencing the adoption of the Constitutional Treasury, the
following observations were made
g Nor will be useful establish Constitutional Treasury
if it is to receive dsburse the paper of banks
6 If paper in whatever FORM from whatever il
ISSUE should be introduced circulation by the Con-
sttutiona Treasury, twoud precisely that diminish
its OF circulating gold and silyer.'
During and before the of the session
of Congress- thought by many that this could
not operate successfully during and that large loans could
not be negotiated the payments required in specie.
The Department. however, adhered to the recommendations
of its first report believing that the Government would be
rendered stronger by the divorce and that if the Treasury
should banks negotiate its loans supply its
venue, that both, the continued would be involved
they in the of 1912, in common ruin. During
the months of June, july and August last (per table NJ
the Of &c. 000 600 transferred from the assistant
OF New York for necessary disbursements New Or
leans and Mexico. Heretofore, the public money being
deposited with the banks, and loaned their customers
when such transfers made, conacion of the
banks with runous losses must have ensued but the money
OF the Government transferred from New York toNew
Orleans and scarcely affects business the money Market
because the transactions of the Government disconnected
from those of the banks When the Government formerly
received and dsbursed only the paper OF banks whenever
levuison and numerous bankruptcies occurred in England
hey universally reacted upon our penous paper sem
to create pressure in money Market large and sudden
contraction of the paper currency, calling in of heavy loans
by the banks and consequence many failures and most
frequent suspensions of specie payments Now, for the first
time in history although failures in England of the most
magnitude have occurred including banks and
bankers yet banks and credit sound stable and
the business of the country still prosperous and progressive
Nothing is injurious to all classes but especially to
our manufacturers than the expansions, contiacton and
fluctuations of the bankpaper SYSTEM vibrating with every
considerable change Of the public moneys held by them
repositories This perous and seductive
opens temporarily, and beyond the of the country
market here for foreign imports not in exchange for EXPORTS
but for credit the redemption of which drains the country
Of its specie contracts the paper currency forces sac
ce the sale Of domestic fabcs and depesse the industry
of the whole country Domestic manufactures require for
their permanent and successful operation the basis of specie
checking vibrations and inaons OF the paper SYSTEM con-
nng imports to the Of the country and prevent
ing the temporary purchase OF foreign goods for credit and
not for exports which always results in disturbance Of the
money market and in injury TO the country If manu-
acturers desire great advantages from the home MARKET il
must be abundany and permanently supplied with large
specie circulation, which alone sustain that market for
number of years. and prevent those caamtes which
follow inflated paper currency home market for
when based upon specie and low duties is
sod permanent, and augmenng but when founded upon
paper Credits II is inflated year. only be depressed the
next succeeding yearthus depriving the nanuac
urer of any weassured and permanent domestic market
The bank deposte year. ls36,) when importing
grain, conasted with l947the year of divorce the Gov
from banks-exhibts The deusive initiation the
with its succeeding disasters and the solid prosperity Of
he Others resisting thus far great extent the revulsion
England and proving the good effects Of the union Of low
lues and the and specie circulating Cons
utonal Treasury.
renew my former recommendation for the establishment
If branch the mint of the United States the city Of
New York During the last eleven months, commencing
he st of January last the amount Of coin actually paid in to
he assistant treasurer at that city Gas per table HH)
529, 904 744 9, nearly all of which in foreign coin,
age portion of which, far practicable transferred
md recoined into coin at the mint at Philadelphia