Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1847-12-29


-,
:s d CO Is. srFHasos 6
drEsixts millions of dollars.
akl g on, during the last spring
B g i.iid 'ssa'1 accompanied by still higher
I4rlces,, anffoflowed by a greater fall. ano
10y bankruptcies in Eaig1fd as1ne xtenl
heretofore unknown, fifadE7 Is a I'd
credit greatly exFandedy acting .aason aaaon
lhfs expansion, would have isredaeed a tst sre-
,sqision- = 1.S here exceeding aaaysHatahas here
totofe occafred.ifrthe, country. A general
suspension of@the banks would probably
.Ehaye resulted; ;depressing the wages Of Ia.
leor atad prlcesSof properly and products:
aHectihg nJurIouslv the operations and
credit even Of the most solvent, and pro-
duclng extensive bankruptcies From. this
revulslon we have been saved by the con-
stItutlonal treasury, by which the specie
imported instead Of being converted into
bank ISSUES, has been made to circulate
directly to great extent as 4 currency a.
mong the people, having been recoined
here during the last eleven months by the
new orders Of this department, under the
act o. 9Th February, 1893, and the zeal
Gus cooperation Of the able and efficient
head OF the mint at Philadelp phia, to the un.
precedented extent OF $20,759,O 81; and
there are thousands Of our citizens NOW
solvent and prosperous, who have been
saved from ruin by the wholesome opera
ton OF the constitutional treasury. The
banks that 50 unwisely opposed the system
have been rescued probably, from another
suspension; their stockholders, depositors,
and note holders from severe losses; and
the country and government from the ruin
Gus effects OF deprecated paper currency.
If the union Of the government with the
banks had continued, and their suspension
and depreciation Of their paper occurred
during the war, requiring large specie dis
bursements, which suspended banks could
not furnish, consequences the most disas-
trous to the honor and the interests of the
country must have ensued. The govern
ment is now disconnected from banks, and
yet lis stock and noles are at par, although
we have been constrained to contrac,
heavy loans, and to keep larger armies
IN the field than at any former period. But
during the last war, when the government
was connected with banks, its six per cent.
STOCK and treasury notes were deprecated
twenty-five per cent, payable in bank pa
per twenty per cent. below par; thus a.
mounting to loss Of torty-fve cents in
every dollar upon the operations Of the
government. In my first annual report
to Congress-, on the Sd Of December, l345,
IN recommending the adoption OF the con-
stltutional treasury, the following ,obserya-
tons were made:
"'Nor will it be useful to establish IL
constitutional treasury, if it is to receive or
dlsburse the paper Of banks
"'lf paper, in whatever form, or from
whatever source it may issue, should be
introduced as a circulation by the corstitu-
tional treasury, it would precisely to that
extent diminish its use as means Of circu-
lating gold and silver
''During and before the commencement
of the last session of Congress, it was
thought by many that this measure could
not operate successfully during war, and
that large loans could not be negotiated ifI
the payments were required in specie.
The department, however, adhered to the
recommendations Of It's first report, beiey-
ing that the government would be rendered
stronger by the divorce, and that if the
treasury should resort 10 banks to nego-
tate its loans or supply its revenue, that
both, if the war continued, would be in
volved, as they were in the war Of 1912,
in one common ruin During the months
Of June, July and August last, (per table !
N, the sum Of $6, 600, 600 was transferred |
from the assistant treasurer Of New York !
for necessary disbursements at New Or
leans and in Mexico. Heretofore, the |
public money being deposited with the
banks, and loaned out to their customers, |
when such enormous transfers were made, !
q contraction Of tho banks with ruinous
losses must have ensued; but the money
oil the government is now transferred from
n ew York to New Orleans, and scarcely |
affects business or the money market, be |
cause the transactions Of the government
are disconnected from those Of the banks.
When the government formerly received
and dsbursed only the paper of banks,
d IGVulSlOu anu numerous Dullk.
ruptcies occurred in England, they uni
versally reacted upon our perlous paper
system, SO as to create q pressure in our
money market, a large and sudden con-
traction of the paper currency, 4 calling
in Of heavy loans by the banks, and as
many failures and most fire.
quent suspensions Of specie payments
Now, for the first time in our history, al
though failures in England of the most un-
preceoented magnitude have occurred, in
cluding banks AID bankers, yet our banks
and credit are sound and stable, and the
business ofthe country is stil prosperous
and progressive.
'Nothing is more injurious to all class
es, but especially to our manufacturers, than
the expansions, contractions, and fuctua-
lions of the bank-paper system, vibrating
with every considerable change Of the pub.
lie moneys held by them as repositories.
This perilous and seductive bank paper
system opens temporarily, and beyond the
wants of the country, u market for foreign