The daily union. [volume] (Washington [D.C.]) 1845-1857, 1854-05-17

vaults, but By the whole amount " specie In the eo,
that the banks sustained in their operations ths
in the long run, better supported by the specie in
treasury offices than they would be il they had il in a
own Golfers II they had possession Of il only tempoa
IL would be made the basis Of liabilities but as IL
could not keep il permanently, they would soon BE- |.
with more liabilities their hands and with les !,
Gle than at present
In country like this there ought 10 be somew here
OF gold and specie in reserve and there is no place for
suitable the treasury offices of the United States
Ii the banks think that the proportion Of gold and \
in the treasury offices is at any time too large 4
their own power to diminish it, All they have to do
diminish their paper issues This by lowering prizes n
diminish mportatons and this will reduce the payments
be made into the treasury. Then as the payments ord
the treasury viii be as large ever, the amount Of al
and silver in the banks win be increased just the am
in the treasury offices is diminished.
There is another view of the subject which will ,ho
how very uwise it would be to the check which
constitutional system imposes the banks ii there be
who infatuated as to wish this check removed
The circulation of the banks was on the LIST of Jan
two hundred and four millions and their deposes va
hundred and lightweight Millions while the suns
by them to other banks fifty millions Here we bal
four hundred and ortythrec millions of paper credits
performing the functions Of gold and silver and which
not yet gold and sver--whch mere promises to !
the amount on hand-and which paper promises contrI
to be payable only because payment Of them In the agg
gate is never demanded. Wo add the suns due to Old
banks to the bank notes, and the bank-book credits N
properly called deposites because they are equally
tutes for money In the accounts Of the Bank Of EngI
the sums due to other banks cassed under the head
deposies, and constitute, in point of fact great port
of what called its private depostcs. The bank chs
goes far the bank note and the bank draft as far
the bank check All substitutes for money. The bs
note is used in retail trade the bank check in whoe
and the drafts of the banks another are used in n
Ting transactions between distant parts Of the country
Here we have four hundred and forty-threc millions n
of circulating capital but Of circulating debt Will any pm
dent sensible say that it is desirable this amour
should be increased2
The only check which the United States have on d.
banks is Of negative nature, and consists simply M
ing nothing do with Them in not aiding them in nau
ing their circulating debt by refusing let them have
public money basis for paper issue, and in r
ing pass their notes. instead of gold and silver to s
having claims on the government But some po,ar
checks desirable and these must be imposed BY u
States or remain unimposcd Every State in the Uniu
ought to pass law to prohibit the circulation Of sua
notes. In checking inordinae and improper banking III
will be found effective than all the "Suffolk Baa
systems and all the Safety Fund SYSTEMS that hF
ever been invented With mines yielding ussr
millions per annum there is hardly for delsyi
which regard for the public welfare urgent
requires.