Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1849-10-04
The Tariff of Is46--The sub-Treasury.

The following extract from a letter of the Com
mercial correspondent of the Washington Union,
exempfes the operation of our present commercial
snd financial systems:
The state of the money market here, amidst most
active business with less speculation in some
of the leading staples affords clear illustration Of
the fact how little the abundance OF otherw-e ct mo-
ney has to do with the movements of banks or the
locality of specie deposies When the export trade
of the country has been prosperous and the producers
of the agricultural wealth of the country rea large
sales at fair prices, the fact manifests itself IN the
prompt payment of bills, and the deposites of the
city merchants propOrtionately increase. Thus, al
though the sales of goods have been this fall much
larger than last, money is very plenty, where's last
year it very dear in the same month. The cause
is found IN the fact that exports have been larger aud
renuGeratve, the country dea lers have paid up
BETTER and the deposes in bank exceed those of last
year by many millions. So long there is abund-
ance of internal exchange drawn against produce,
the money market on the seaboard must always be
easy. New Orleans as the outlet for the produce of
the great valley, affords illustration:
Value Of produce received at NU Orleans foreign srpors
imports Of specie. bank loans and specie.
Prod reed. s ifs 1884, ISIS 81
FO'gn ex 27427i2a 3O7475as 4so9O3 S934s2a S7Os9ss
Total 7aI43461 IO 997 1871 $50 $40 l0O70 $40
Bank OsGs 2sf go s9SsgS Ss %
Import" none 1s72,On 665O,o5O i,si5.sOs 2,5sl $50
The huge bank loans of 1912 exceeded the value
of the produce received in that year at New Orleans
They were the remains of The old corrupt system,
and persisted with the resumption of that year. The
business of the port is now ll9 millions, against 7
millions of loans, which scarcely exceed the specie
held by the banks. The vast wealth of the Western
States float down the rivers followed by bills of
change which pay for goods and liquidate accounts
wherever they make their appearance. The destitu-
tion of considerable proportion is the eastern cities,
i and heir Is
abundant in New York, and the more steady is the
markets under the operations OF the Independent
treasury. The duties received at this port for the
last three weeks have beeII 81 .OO9799 increasing
the amount in treasury here from s., 255, 54l August
81, TO SO 523 239 September 17-or rather more than
the receipts from California in the same time. Every
day the advantages of the independent treasury sys-
tem become more apparent, and in useful
way than in occustoming people To the of coin.
As on instance: at the Boston assistant treasury
Office under the three years management of exGov-
ernor Hubbard there never taken bad coin nor
did the government lose the first penny. Its whole
revenue minus the current expense, realized to
the last farthing. 1t may be remarked, that ex-
pert do the officers become in the handling of coin,
that bad and adulterated pieces recognized by
the touch with the utmost precision; person rapidly
counting will throw out the bad pieces without STOP
ping The process, or without making This
faculty, attainable by all by practice, Is the surest
safeguard against loss by spurious money. IL is stat
ed, on good authority, that The Chinese officers will
detect by sight the degree Of aduteratinn in piece
of money with wonderful accuracy. Where coin is
much used, the danger of counterfes is next to
thing as compared with that growing out of the Use
of paper. The general prosperity of the country is
now leading to rapid multiplication of bank credits
in various parts of the country. Spectators are
every where seeking to create bank notes means
of getting possession of produce This is always Al
the risk of the bill-holders If the produce pur
chased is sold to profit, the notes are redeemed; bu
if it falls the public lose fall in produce last yea
crushed three Ohio banks, whose bills had been uset
to get possession of it by speculator in New York
Those bills are now selling at 30 cents the dollar
The bl-holders are thus always taking the risk o
speculations made for the benefit of individuals. Al
this process is constantly the increase, and there
fore daily becoming more hazardous, the importance
of rigid enforcement of the independent treasury
more manifest.