Eastern times. [volume] (Bath, Me.) 1846-1857, 1853-12-08
.Mis.tl..ellan,.ply..,
The Operation Of the Sub-Treasurv.

The Operation Of the Sub b-Treasury.
The experience Of The present season is of
unusual interest, as aff1rdng the first complete
illustration Of the manner in which the Indi-
pendent Treasury affects great and general
speculative movements in commerce. No one
could have observed the ever accumulating
projects Of expenditure, the multiplication of
Banks, the expansion of trade in its area, and
the still greater expansion Of it in the amount
Of exchanges through long established chan
nes, during the last two years, without being
convinced that there were working together
most Of the elemeats Of prodigious specnla-
tion, which threatened corresponding revul-
sion. The food of excitement, which in 1886
made banks, merchants, agriculturists and
idIers, all crazy with the idea of gathering
fortunes out of the bubbles of hope, was far
less than in the last two years. The real
wealth to serve as the basis of the imaginary,
was far less then than now. The sources Of
increase we're far less abundant There was
then no California pouring its annual seventy
millions Of gold into the lap Of our Atlantic
trade. The stock Of the precious metals in the
country was small in comparison, and the
profits from successful Improvements still small
Ter. Why is il, then, that speculative i'm
pulses, equally blind, and urged on by more
various and vastly more powerful frrces, have
been nearly harmless this year, while in 1887
they covered the whole country with CONNER
cial wrecks, and Frustrated our entire banking
system!
There is but one answer to be given. ln
the former period the moneys in the United
States Treasury went into the banks and added
so much TO the basis of speculation in The
latter, these moneys are Withdrawn, not from
the paper circulation, but from the specie basis
of the currency And this action has not been
sudden and eccentric, but it commenced with
the speculative movements, has followed it
every step, growing as it grew and correcting
with an irresistible power the excesses to
which it was impe1ed. It is the independent
Treasury which has saved the country from
revulsion perhaps greater than any OF former
times, and saved it not by an expedient OF mo-
mentary alienation, but by national and
heal,hful cure We can now understand what
was the full meaning of The strong language IN
which Mr.. Calhoun and other wise statesmen
enforced the necessity Of the separation Of The
Treasury from banking operations. In a
recent speech in New York, MIR. DiA, late Sub
Treasurer, made the following striking remarks
on this subject .ft rFf
In May last, the specie under the key Of the
assistant treasurer Of New York, was about
six and three-quarter millions on the 25l
September it had risen to ten millions and
quarter; and on the 9Th November it had sub
sided to six and a half millions. The salntary
influence Of the sub-treasury is thus exPlaineo'
e From May 10 September there was
prevalent bias to over action in almost all ousl-
ness, legitimate and ilIegitima'e In trade'
banking, stock -;obbiDg and land speculation
under the impulse given 70 commercial enter
prise. The treasury balance ran up to more