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

Nicui') VI hucS ScleSA"aiS
aiors in stocks and real estate seven burnt brandy VIII
not save them" Such banks will be in difficulty every
time exchanges turn against the country. 1t very easy
for them to turn round and denounee the odious SUB
treasury" when the fault u.s. in reality in their con-
duct
Recently, however, il appears that the Secretary OF
the Treasury has issued OF habsas corpus writ by
which he has managed release from imprisonment q
certain portion of the of the treasury. will
not undertake to that this is Illegal but ven
say that he finds himself enrapped by the working
Of machinery Of which he is not the master"
The reference here the purchase of treasury notes
lately made by the Secretary of the Treasurya proceed
ing expressly authorized, by the constitutional
ury act, but by the act under which those notes
issued. The Secretary may occasionally find himself
embarrassed, owing the imperfect Congress has
provided for carrying the constitutional treasury act into
effect, and owing very unnecessary restrictions
the transfer of the public funds from place place
But not true that he finds himself enapped by the
workings of system of which he is not master" On
the contrary, far less difficulties have been encountered
than expected and the system operates with
than its best friends anticipated
'The fluctuations and the pIessures in the monetary
affairs of the country caused by the ubtreasury SUCH
that all filled with distrust and doubt, unable TO
oresee the issues of events and of unprepared to
meet them. They walk In perpetual apPrehe and
fear douby armed lest enemy spring up before their
steps. What is the inevitable consequence OF all these
things! Unusual embarrassment, distress, and bankrupt
cy, huctuaon from bad to state OF things unex
ampled, far know in the history of the county.
We told that the subreasuy would prevent all these
uinous fluctuations and these distressing pnches in the
money market"
Here all the pecunary difficulties the people suffer
ing under, in any part of the country, attributed TO
the sub-treasury But have shown, by facts which
cannot be nvaidated that they have been caused by the
action of the banks We We're told" however, says
Mr. Webster, that the subtreasuy would prevent ali
these ruinous fluctuations, and these distressing pnches
in the money market" No, not prevent them only pre-
vent their being violent they otherwise would be
And this the much abused subeasury system has done
But it is not possible with system simple as this,
and with the imperfect machinery Congress has pro-
vided control hundred and fifty banks, with
nominal capitals to the amount OF two hundred millions,
and issuing credits to amount greatly exceeding
their nominal capitals.
But here another very important consideration Three
ouhs OF our importaons foreign account Go into
State street Wall street, and ask merchants respecting
importatons. They give you little information
speeding them they from foreigners and 60
mission dealers. Our merchants can form judgments
respecting the prospects Of the market The goods i'm
ported by foreigners, the duties paid immediately the
scarcity of money follows, and then is in the power
foreign importers to embarass monetary concerns
If the mportatons made by foreigners these
foreigners must pay the duties of their pocket
What matters it, then, if the cash goes into the sub
treasury and is there locked up!" How does this put it
into the power of foreign importers to embarrass our
monetary concerns"
But whom does Mr. Webster mean by foreigners
Does he mean nauralized citizens If he does he mis-
names them; for they foreigners than he
But even if he includes them in his denuncation, he is
wide OF the truth in supposing that three ourths OF the
importatons are made by persons not natives of the
county. portion of our imporations are, we know,
made by foreigners and foreign 1t would be
contrary to the order of and the laws of trade if
were not 1t is proper that in trade between two
countries the labor and capital of both should participate
But these Massachusetts, Tor least that portion of
them which MIR Webster represents) seem as if thew
will not be satisfied until they have monopoly of e,xry
thing
81 do not know the precise locked up in the
sub-treasuryat Boston but probably, if it put
circulation it would enable the banks ST. 500 900
more than at present."
Probably it would and temporary relief would be
gained thereby. But million and half added to the
circulation Of the banks of Boston, might cause ten
times that amount to be added TO the circulation of the
banks of the rest of New England and twenty times
that amount TO the circulation of the rest of the Union
Then it would not be long before specie would flow out
OF the country in large quantities. and the banks would
in order to themselves be obliged to commence
new curtailment severe than even the present
Even matters are, the Suffolk Bank, at Boston,
recently received in day million of dollars in coun-
try bank-notes.
'By present wreched policy, compel the Ameri-
trader to pay than double for the use of his
money that the English trader pays"
Here Mr.. Webster is right 1t is solely owing to the
action of the banks that the market rate of interest is
from 12 to "a per cent. per The banks, by ex
panding the currency, led the people into many foolish
undertakings and now, by contracting it, they are
spreading ruin around them This, and not the sub.
treasury and the ariff-ths is "the wretched policy,
that is producing all this evil.
again with regard Mr. Folks tar-has it protected
American industry Let look the woollen manufac-
turers. What is their condition Why in single esab-
lishnen, the Middlesex Mills Lowell 800 ha nds have
been recently discharged Wages have fallen twenty per
cent and the price Of wool one-hird Forty wooen man
uiactories have stopped within four months and 5000
laborers have been discharged from them"
All this may be Mr.. Webster says The fall in the
rate of wages and the price OF WOOL is no greater than
would naturally follow the contraction of bank curren
cy. Under the papermoney imitation which prevailed in
Massachusetts, from August ls43, to August, 1s47, the