The Wyandot pioneer. (Upper Sandusky, Ohio) 1853-1868, 1853-11-17
Operators of the sub-Treasury


treasurer of the United State in city of New
York, addressed the meeting of the dem
ocracy. in Iammany Hall on the 9Th instant
i'm the course of his speech General Dix
explained and dwelt upon the operations
of the sub-treasury. This is subject with
which the speaker was entirely familiar,
and from his experience in conducting, in
the great commercial emporium of the
country hisimportant financial Office ofthe
government, his views and opinions are en-
titled to the highest consideration. Gen
eral Dix, in his speech, paid high and
deserved compliment to the present Sec
retary of the Treasury, the Hon. James
Guthrie. We give below the portions of
this speech which relate to the working of
the sub-trcasury system - Washington
Union.
"In May last the specie un Ter the key
Of the assistant treasurer of New York
was about six and and three-quarters
millions; on the Esd September it had
risen to ten millions and quarter; and on
the 5th November it had subdued to six
and half millions. The salutary inf1u-
ence of the sub-treasury is thus explain
ed
'From May to September there was a
prevalent bias to over-action in almost all
business, legitimate and illegitimate-in
trade, banking, stockjobbing, and land
speculation-under the impulse given to
TO commercial enterprise. The treasury
balance ran up to more than ten millions.
This rapid accumulation of coin, and the
enormous sum of ten millions thus with
drawn from the reach of operators, check
ed in a very salutary manner the general
tendency to over action.
''Speculators could not command The
money they required to carry on and ex-
tend their transactions. Merchants were
compelled to limit their orders for foreign
goods. Debtor banks, pressed for bal
ances, were obliged to contract their dis
counts; and as the flood of specie poured
into the sub-treasury, the channels from
which it was drawn were nearly exhaus-
ted, and some of the bolder adventurers
were left high and dry by the receding
tide. This was the first good influence of
the treasury system, gradually draw
ing specie into its own vaults as the banks
extended their operations, and stimula-
ted the spirit of enterprise and specula-
ton, and checking the tendency to excess
by law as certain as those which govern
the material world.
"The second good influence of the sys-
tem," says Mr.. Dix, "was as salutary as
the first, and was the result of the same
infallible law. This accumulation of ten
millions of coin in the sub-treasury here
made money scarce and valuable; most
stocksfull in price, and the interest paid
for the use of money rose rapidly and to
enormous rates. In all such cases hold
ers of stocks which maintain their price
are tempted to sell for the purpose of real
izing the higher profits of other invest
ments. This was the case with the stocks
of the United States. The government
had offered a high premium for them. The
holders surrendered them, and took the
surplus coin in the treasury in exchange
''By this operation, then, three millions
seven hundred thousand dollars were
drawn out of the sub-treasuryin six weeks,
and thrown into Wall street to relieve the
pressure caused by preceding excesses ir
speculation and commercial adventure
1t is, indeed, the only relief Wall strteet
has had-the only relief it possibly could
have had-and it has saved us from re-
action which, without it would have been
scarcely less severe than that of 1887.