Democratic banner., 1847-12-27
: CContinued from LIST page.1

AHe actoI Iue OH OF august, lS4o, TO
establish a wars-housing system, has been
in operation more than a year, and has prov
edto be an important auxiliary TO Ike tariff
act Of ls46, in augmenting the revenue
and extending the commerce of Tie coun-
try. Whilst it has tended to enlarge our
commerce it has been beneficial to our man
ufactures by diminishing forced sales at
auction, Of foreign goods at low prices, to
cause the duties TO be advanced on ttem,
and by checking luctuation in the market.
The system, although sactioncd by thc OK
Perience of other countries, was %entir.ly
new in the United States, and is s~uSccpti-
bic of improvements in some of its prolis-
ions. The Secretary of the Treasury, up
on whom was devolved large discretionary
powers in carrying this measure into effect,
is now collecting the practical results of the
system in other countries, where il has long
been established, and will report at an ear
ly period of your session such further reg
u~lations suggested by those investigations,
as may render it still more effective and
beneficial.
By the act to provide for the better or
ganization of the Treasury and for the col
lection, safe keeping and disbursement Of
the public revenue, all banks were discon-
tinued as the fiscal agents Of the govern
ment, and paper currency was no longer
allowed to be received in payment Of pub
lie dues.
The Constitutional Treasury, created by
this act, went into operation on the 4th Of
January last. Under the system establish
ed by it, the public monies have been col
lected, safely kent, and di3bursed by the
direct agency of the officers of the govern
ment, in gold and silver; and transfers of
large amounts have been made from points
Of collection to the points of disbursement,
without loss to the Treasury or inconven-
fence to the traffic of the country.
While the fiscal operations of the gov
eminent nave been conducted with regu-
larity and ease, under the system, it has had
a salutary effect in checking an undue in
iation of the paper currency issued from
the banks which exist, under State charters.
Requiring, as it does, all dues to the gov
eminent to be paid in gold and silver, its
effect is to restrain excessive issues of bank
paper, dispropoItioned to the specie in their
vaults, for the reason that they are at all
times liable to be called on by the holders
of the notes, for their redemption, in order
to obtain specie for payment Of duties and
other public dues. The banks, therefore,
must keep their business within prudent
limits, and be always in a condition to meet
such calls, or run the hazard of being come
PEELED to suspend specie payments, and b.
thereby discredited.
The amount Of specie imported into the
United States, during the last fiscal year
was T2o, l2l,2S9, of which there was re-
tanned in the country $22,276,l70. Had
the former financial system prevailedS;a and
the public money been placed on deposit in
banks, nearly the whole of the amount
would have gone into their vaults, not to be
thrown into circulation bythem, but with
held from the hands of the people, and
made a basis Of new and enormous issues
OF bank paper. A large proportion of the
specie imported has been paid into the
Treasury for public dues, and after having
been, to a great extent, recoined at th.
itors' a "as Oeen Pa T c ~! Ia as a curren.
cy among the people. The amount of golt
and silver coined, and now in circulation it
the country, is larger than at any former
period.
The financial system, established by the
constitutional Treasury, has thus far beer
eminently successful in its operation, and
recommend an adherence to all its e~ssentia
provisions, and especially to that vital pro
vision which fully separates the govern,
ment from all connection with banks, ant
excludes bank paper from all revenue re
seived.
In some of it's details, not involving it
general principles, the system is defective
and will require modification. These de
fects, and such amendments as are needed
and deemed important, were set forth in thu
last report of the Secretary Of the Treasu
~. Those amendments are again recon
mended to the early and favorable conside
ration of Congress.
During the past year the coinage at tn
mint and its branches has exceeded twent,
million of dollars. This has consisted clif
ly in converting the coins Of foreign coun
tries into American coins.
The largest amount of foreign coins i'm
ported has teen received at N. York, and
a branch mint were established at that city