The daily union. [volume] (Washington [D.C.]) 1845-1857, 1848-11-04

the most rdcuous ii is the modern instrument of tor
and distress 10 the merchant the trader and the
hnancier Such consequence is inevtabe-a scarcity
il makes scarcer"
Does the sub treasury take from individuals or banks
any money that properly belongs to them Does il with
hold from he merchant trader. or fnancier' any of
his just dues How, then. does it &C, 'moden in
sirument of orture!" With just as much reason might
bankrupt dealers in fancy stocks attribute their want
of money TO the action of VIM. B. Astor or Peter c.
Brooks in holding to their own the action of
government.
Since the constitutional treasury system has been in
operation, the average subject draft in all the
subreasury offices has been more than sufficient to
meet the demands of the public creditors for than
a few weeks in advance If government had had the
disposition TO aid spectators in stocks and real estate it
would not have had the power The use of the public
funds might have pF0ked temporary advantage to the
schemers and Spectators of Wall street, but we know
not why they should be favored than scheners and
spectators in other parts of the country 1t is quite
time for these gentry to give up the notion that they have
prescrpve right to the of the treasure of the Uni
ted States.
Mr.. Webster is correct in stating 'hat when money is
plenty, the subtreasury locks up" The chief revenue
of the United States being derived from customs when
ever the banks make money plenty, the importation of
foreign commodities is increased and the is in
creased in proportion Them the subtreasury locks up
the surplus revenue; but when money becomes scarce
pays out this surplus for the expenditures of govern
ment are not affected by the monthly changes in the
money market. Other things being equal the expendi-
lures the same. whether the money market
traced or expanded.
So far is from being true that the sub-treasury in
the pressure in times of PRESSURE that the very
reverse is true The gold and silver which it then pays
out is gold and silver which, but for its blocking up
would long since have been exported from the country
And TO its very action the banks indebted for large
portion of the gold and silver that remains in their
vaults; while this action has caused them to be
less excessive in the issue of paper credits than they
otherwise would have been. Ii they had been the de-
posores of the public funds they would have increased
the debts they TO individuals for deposes and
notes circulation in the ratio of twenty per cent and
owed in addition, millions to government: while they
would not have had half the in real money they
now have, to meet the just demands of their creditors
The constitutional treasury system operates in two
ways. 1t widens the specie basis and dminishes the
height OF the paper supersuctue and its operation in
both ways is highly beneficial.
The banks themselves are benefited by it, and they
know it. In times OF prosperity they want check, and
this the constitutional system imposes; though, unfortu
naey this check not half strong it ought to be-
In times of adversely, the specie in the ubreasury
almost OF much to them if it in their
vaults for what is then in the subtreasury must
out, and that without any long delay.
Well would it have been for all parties if government
could have accumulated specie fund of twenty mil
lions This would have prevented the necessity of ne
goating the late loan and the paying out of this in
the discharge of the demands which the has created
would have caused sensible relief
On the 18th OF August last. the vaults of the Commercial
Bank of New York contained 800 OO dollars in specie.
The subreasury the date contained 81 400 100
The of business caused change within about a
month"; by which the specie of the bank reduced
the 18th of September 4600,000 dollars while that of
the sub treasury augmented 400 900 dollars This
difference in favor of the sub treasury much
drawn from circulation, and the banks mpeled
cua their discounts to replace the specie thus withdrawn
and not only this SPECIE but the bills representing it
This turn of the sub treasury screw how many
such turns would require bring the patient down to
complete state of torture p
This, we suppose, is intended illustration Of the
mode in which the operations of the sub.treasury affect
the banks There nearly thirty banks in the city of
New York. In one OF these according to Mr. Webser's
account the amount of specie the period of about
month"; reduced in the of 200, 900 while, in the
PERIOD the amount of specie in the sub treasury Of
fee was increased in the sum OF 81 100000 Suppose
this to be Might there not have been other de-
mand on the Bank of Commerce than that caused by the
sub-treasury? There most certainly was for while the
bank lost 81 00O the sub treasury Office gained but
81 900 And were there other from which
the sub treasury could derive supply Of specie! Be-
sides the Bank OF Commerce, there twentyeght or
twenty nine banks in New York. and upwards of seven
hundred and fifty banks in the country. Between the
25h of August and the Goth of September, month and
four days elapseda time long enough to bring specie
from New Orleans. from the distant land Offices, from
Mexico, from the West Indies, and from Europe.
Supposing the stated by Mr. Webster to be true
it proves nothing But it is not true Mr.. Webster is
peculiarly unfortunate in his statistics According the
published ment of Miard Fillmore the comptroller
of New York the whg candidate for the vice presi
dency, the Bank of Commerce had, on the morning of
the oath of June, only $532,777 in specie. How did
it, in the short period of two months, make this ten
fold that amount And, according 10 the official state
ments OF the treasurer published in the National nell
and other leading papers, the amount in the sub
treasury at New York, the Goth of August, was
81 $4,000 So and the both of Sept, $l447, 1897 IS
showing decrease of forty five thousand instead of an
increase of million, as stated by MIR. Webster