Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1849-04-27

WIN '"e ~ ,hev would do, if any Increased
Wh'en, ,aid mon foreign goods IN aid ara en-
ouy ~. of similar articles produced d.
nome"
.rur sI,BTGEASuRY.-We presume tha,' Nv I go
al eansrnt the Subtreasnry VIM no" ~ 49, . ,v,th
- tore ri public opinion. we ehtlfry Sa,.asnry
= w,,r on this subject who says lnal VIZ ,s,v more
/, me mos, absurd q" all absurdtles anu S nalm DAYS
;;;nms than ..the Monster" was IN ils pam ,ncsni
.rnss me- latter had the power 10 rr.,eae md
NANCY market with It's depostes iiou w -, nondrrous
,t,,idmos but the Subreasury "OPENS i.s nd ,h.rr
;,usn 10 receive nothing but CON- anu NV
~" ,,s ~ INST t the Government mas ueo ~ iayn.
Wh.neypr the sums in the Suolieaso, consequence
thr money market Is tignteheu' a. &c and
,on.v hrcnmes dear, business uhsa.isa..' -. ct.s
n s,a,s nj things often occurs IN tne 'aise 80
.sn,cally New York. where recuipts i'o NJ The
ca iarye The Subtreasury being tue ,, de,av as
times II should be ueinolisheu "'
poss,ble.-l Ait1aadr,d OdietS' .o.,
Hmm ms text the New YORK journal VI o'"'
merce, Taylor paper and formerly ao oPpo"en'
u ,bs Sublreasury, comments with great ioiee'
bringing 10 bear suorg arguments anu 'o'e'N
s;ye facts. Il shows that, under inc P'ese"'
Tom IN. business OF the country is conuo."'
with salty, and that any resort 10 DAMS ""s
,bsr Jynre,i States Bank "monsler OF ''e pe'
h.nL svs,4m. as recommended! in lale huih"e'
t,hs Wbis would be FOLLY and madness we
cav nothing now OF The gross in'loSt'oh ''''''ueo
~ be prac,is,d on The public, IN keeping ua'A
80 s,norcssiny "pally schemes" before inc eiec-
ton and in ,,ow springns repeal oil the ouo-
treasury. This 'palering with aouo'e Sshse'
,b;s wearing OF the 'uo.pary" mask 70 feaca
| mower 10 be thrown away. mat emo a"a'ue''
ana .xnose the hideous deformily oil ultra-paiy-
;.m mus, strike The public ear win oi>gus' ano
a,;on an INDIGNANT and overwhelming indIsna-
ion omono all who believe in the golden rule OF
| .aones,v is the best policy" That cons'dera-
,ion aside The facts and The arguments Oh Tue jour
! y.,.-i Commerce., The leading commercial organ
preiudiced in favo: ol ,S"G-and by no means
ar. eniie.i . eleal weight, and form The bes
answer 10 lie Wing clamnr against the lndepen.
dent Treasury and ior National Bank or The
pc, banks. They settle The question. Fatal step
will i, be on The part OF the adm nsiralion, 70 IN.
settle the present sound and prosperous system
and once more expose The country 10 the ga nj
lhrocs and convulsions OF The union OF Bank and
Government The Journal OF Commerce says
II we mistake mol, the Wings will find much
j .
| man 10 adopt any onei which will be satisfactory
| 10 themselves or the public. The present system
| mic M doubtless BIZ amended in some particulars,
| bul se do not believe that The parry III power
wi venture discard !, as whole, or adopi The
| only connecting system, The use vi t.e local
| baGks.
In ne fif>t place, the Banks in some parts Of
me country entirely unsafe; and is diflrult
| 10 adopt a general system which IS nnI available
| and applicable throughout The county Thr
| L,.e, ,n>,aiced ay the nariun IN consequence oi
DE- pusI ing me publ money in the Banks, were
N IS47 estimates by Judg- Wuoihnry Then Sc
ce.t ~ Of me Treasury, al Si5,492 900, incIu.
| ding ini-re>l and depreciation OI Bank notes
| .vmpar.l wih s,ecie. As vel there has been no
loss under he Sub Treasury system.
Scconui; II ,hs Banks were all safe, in all sec
aons ul he coan ", lne:e wound sill. be va ID
| .; lection 20 lne use ~ ilcm as tpus iunes VI
| ~. pub &c n"acy. pruvi'rd iae depo>ies st
made az 70 Lc :. psoytd basis OF discounts;
ana on 10 other condition, we presuiHe, woud
,ney b. received ny the Banks When he pub
| nc mrney i, employ as basis OF Bank dis
| couus, he first effect is very Cheering 10 borrow
| rr>: aud they consequently Increase ihen 20.
| saoempps aad extend their business. But when
| ne deposits are Withdrawn, as lheY are al any
amelia bic To be- iheu suddenly The Banks mus
enuail their discounts aud borrowers must paw
40 their extended line, without the usual tacili.
ties Tor payiGg even sualier amount. Ii was
the government deposits more Than anything elsc
mat caused the enormpDs expansion oil 1885 3,
and The explosion Of 1897 These deposits had
| been increasing rapid, Ior Two or three years,
| and were distributed among host OF banks, max
ing them all ieel s,rung, when in fact they were
never 50 weak before Gorsed with money moi
their own, and wishing 10 make a pruht on II,
and wilhal, lo ooiiee their customers, the
oapss extended their circulation and dis
counts 10 an Unprecedented amount This
enhanced the prices of all descriptions Of pr }.
| nefry. and Inc enhancement OF prices tempt.
ed new and ever increasing engagements,
I'll a. length even a mosi inflated currency was
insufficient tor the transaction OF business, and
so money became scarce in The midsl OF abun-
dance. Such an unnatural impetus had been
given to business OF all sorts, and speculation
OF all sorts that terrible crash must have iol-
lowed even il the Government deposits had con-
tinued 10 the Banks. But as if TO make an ex.
ploson inevitable, C"ng'ess in June, 1896,
passed an act 10 distribute the surplus revenue
among the different States. The amnun' So or
deIed 10 BE- distributed was 49,, 46s S59 81 being
the aggregate on deposit in The different Banks,
January /, 1887. When The ins.almens unler
the above law became payable, some of the
Banks were unable TO ccmpy, and all were OBJ
lt2eu 10 Cuildll lneII uiSSuuu'S duu Sdn III 'HeH
debts THIS created universal distress among
their debtors, many OF whom broke outright,
leaving The Banks minus. Soon The Banks
themselves broke, i. e suspended specie pay
Denls. and condition OF bankruptcy enSued all
over The country, which was bnmIlialing and
d,seraceiui Then came The Bankrupt Law,
which. in palpatle violation OF The National
Constitution, wiped out some TWO hundred mil |
lions oil Indebtedness by sweep OF The pen.
These leri bie disasters, as We said before. OIL
sinated in lhr accumulation OF large govern !
menl deposi' III public mcnce, the placing OF that
Snone; in tn b;nks and The increase oI bank clf
culanun aua l0ans IN consequence. We Go not |
say thai M her causes concutIed with The above |
out that was The originating cause and The more |
The subject is Investigated, the more clearly will |
the iruin oi THIS assertion appear.
:, i'm such lesson before us, and still fresh in
our recollection, can il be believed that The peo-
ple OF The United States will sanction The same
experiment asainl Surely they will not.
We admit that there are inconvenisnces con-
nected with the Sub. Treasury system. The lock.
ing up of large amounts OF specie, (Which is he
basis of pa per currency,) must Of course affect
The money markel,-frst, by diminishing for The
lime beng, The amount Of specie in circulation
or in Bank vaults, and secondly, by begetiing
caurion, and perhaps curalment, on tie part OF
lie Banks. Bul of the Two, i,iis IS saier opera
ton, and in the end much less injurious. than an
undue expansion The latter begets speculation,
and terminates in disaster. The former prevents
speculation.
Wherever the public money is pnl, whether
in The Banks or in Snb-Treasuries, il will do
n, ,s5 biet n accumulated in large amounts For |