The daily union. [volume] (Washington [D.C.]) 1845-1857, 1848-02-08

Increased pdT pdSSu III was on this principle the BANKS
acted previously to 1897 and thereby brought desruc
ton on themselves and on the country. The banks
may be perfectly safe with an issue of three one
long as their issues do not raise prices much above the
specie level of foreign countries But let them, with
every additional dollar Of specie they receive. continue to
issue paper par passu and they turn exchanges against
the country and pro2uce drain which carries off not
only the recent imports of SPECIE but part OF the old
stock. Under present banking SYSTEM an excess OF
specie in the vaults of the banks is as much to be de-
pored a deficiency.
If the Mexican war had not BEEN should have had
large surplus revenue Ii this revenue hal been de
posted with the banks, it would have led to an enor-
nous expansion, which would, sooner or later, have
been followed by tremendous revusion. But, under
The independent treasury system this surplus revenue
would have been placed in the United States treasury
secure from the clutches of the banks and that class Of
spectators with whom Professor Tucker to have
so lively sympathy Thus, under the supposed by
the professor the independent treasury would have been
most effective in preventing evil for it is difficult to
imagine any greater evil to such country the United
States than an enormous imitation of the paper money
system.
" 1t is too judge of it (he independent treasury
sysem one, perhaps years; but, the other hand
long before they have elapsed the frauds and peculaon
Of the keepers of the public may compel
return the former, which the experience of half
fury had shown was as safe as il was cheap"
If there should be such failure will not be owing
to any fault in the principle OF the system or the
RICHNESS of that has been tested by the experience of
nations and of ayes) but owing to defects in Details
These defects have long been and depored by the
early and most Jealous advocates Of separation Of bank
and stae and the administration has made efforts to
rect these defective details but hitherto without
But what does the Professor when he speaks of
the former system (which the experience of half
century had proved was as safe as it was cheap"
In November 1886, the United States government had
including the sum to the credit of dsbursing officers
about fifty millions the vaults of the banks In May
1897, it had means of paying demands upon it, but by
means of dishonored bank checks Many of the public
creditors actually paid in paper deprecated 20 per
cent below par. This of the consequences OF
he cheap and safe SYSTEM lauded by Professor
Tucker.
In February, 1884, a document was issued from the
Treasury Department, from which we extract the fol-
lowing statement of closes sustained by the federal
government by the employment of banks and bank pa
per, before the year 1897 and snce:"
Losses estimated by the Treasury Department the de-
probation of bank notes received prior to
1897 $55Oo,ooo
Loss appearing on the books of the treasury
by banks as repositories, prior to 1897
about 100000
Losses estimated by using banks as deposo-
ries since the year 1887, (but not subsequent
to 1Sn) 100000
Loss estimated bank notes taken and not
redeemed prior to 1897 $4,000
Loss estimated on bank notes taken and not
redeemed since 1897 (but not since lsiD 10000
Aggregate 100000
Computed interest on the aggregate s,sO2,O0O
Total principal and interest 1922 900
This will be observed extends no further than
the direct loss sustained by the United States government
through the employment of bank agency and the of
bank paper.
The Committee OF Ways and Means of the House of
Representatives made report the 18th of April, $780,
in which they estimated the loss by government through
the depreciation of bank received prior 10 1917.
at Mityf million dollars In this estimate the COM
mee took into consideration the fact that after August
1914, loans were made to government in rredeemabe
paper at high premium, which loans were finally dis
charged in specie or its equivalent
In neltneI Inc document from the treasury Depart
ment nor in the report of the Committee of Ways and
Means estimate made of the loss the public credit
ors have sustained through the employment of bank
agency and the of bank paper by government But
when the direct loss sustained by the government itself
was estimated by the Secretary OF the Treasury in 1911
at upwards of fifteen millions, and the losses direct and
indirect, were estimated by the Committee of Ways and
Means in 1890, at thirty -four millions, candid people
will wonder at the boldness OF Professor Tucker, in
affirming of the nk-agency system, that the expe-
rence of half century had shown that it safe
it was cheap"
Mr.. Galatn's pamphlet cannot be kept afoat by the
pus of wing newspapers, the resolutions of factous
wings 1t will be refutel in due season. 1t contains
several egregous errors, and important admissions;
for example, the mode of making transfers by drafts of
the treasury In the face of a wing resolution, Mr.
Gallatn considers them having been wisely and
properly managed.
The wings have determined, either virtually TO refuse
supplies of money to the war, or to force protective
system down the threats of the people. They seem
willing to reject the scheme of the treasury, welcon
sidered as it is They talk of refusing treasury notes,
and then they will urge increase of the tariff, and the
substitution OF of the worst features of the tariff of
1872 The people ought TO understand these designs;
and it is 10 be hoped that the republicans after having
proposed and urged their own scheme, will throw the