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

The February number of Hunts Merchants Magazine
contains review, by Professor Tucker of the last re-
port of the Secretary of the Treasury the spirit of which
review may be Judged OF from some passages we shall
copy:
some of the striking faces in this report is in as
crbns to the of public policy what is due Who'll
y and solely the high price Of grain in Europe
ring with lily large crop in the United States
Now, this state fittings would have been precise
y the though the subeasury scheme had been
adopted. The government would have had the same
means of converting foreign into American con of send
ing specie to Mexico and the banks would have had
dollar less in their Golfers. Their paper would
have been equally sound, and not whit extended
than at present"
This is not true The demand for our breadstuffs in
Europe may have been the chief cause of the influx Of
SPECIE but it by the sole erclusipe
If there had been failure of the crops in Europe the
independent treasury act would of itself have brought
additional amount of specie into the country The bare
anticipation of the passage of the act caused the banks to
restrict their issues The bringing OF the act into opera
ton operated additional check the disposition to
expand, which they had previously evnced.
Had the subeasury act not been passed. our imports
of gold and silver would have been less by than
they actually were We should have received pay for
our breadstufs in broalcloths and other products OF
British industry That portion of the imports OF gold
and silver that accrued to the government whether from
revenue or loans would have gone into the banks and
been made the basis of issues Mere bank credits
would have been made the basis of governmental trans
ers and by this process the whole system of domestic
exchanges would have been thrown into confusion.
tits the sub-treasury SYSTEM and the subreasury sys-
tenn alone, that, under such an influx of specie
have had, has saved us from an enormous bank expan
sion which would have been followed by tremendous
CONFUSION And such large transfers have been
made on public account, could not possibly have beer
effected by means of bank credits, without deranging the
whole course of domestic exchanges
sUnder the SYSTEM The of government, in
stead of being received formerly chic fly in bank paper
and deposited in the banks received in specie
and deposited in the local subreasuries This mani
testify make a shadow of difference in the amount o
pece the country, the at the disposal of the
or (supposns the money wanted by the gov
eminent, has been the since the system
into operaon) in the power and means of the banks
Government, the largest dealer in the country, under
the new SYSTEM carries its transactions by means
specie It thereby dimnishes to that extent the demand
for bank notes circulating medium, and increases
the demand for gold and silver Under the old system
the revenue, being deposited in the banks, became a
debt due by the banks 10 the government which might
or might not be paid suited the convenience of the
banks Under ordinary circumstances, sudden demand
by government for the whole amount in deposite in the
banks in specie, would break every bank in the coun-
try And yet Professor Tucker can say that the new
system 'can manes,ly make not shadow OF difference
in the amount of specie in the country, in the amount
the disposal of the government, in the power and
means OF the banks" Verify the professors wing pre-
JUDGES blind his eyes to the truth, and that most mar
veously.
| "N, however, the Mexican had existed" &c.
&c. and "if there had been increase of specie
and with of paper circulation the increase Of both ben
pdrt passm there would have been danger in such
nrgement to bank ssnesl 1t is the natural the legiti
nate and the safe consequence Of increase of
y From the chance Of this evil of dstended currency
whatever may be indeed saved not by the con
sutuonai treasury, but by the Mexican war;
No doctrine can be more pernicious than that whic