The daily union., 1854-12-23

100000 taken from the depository at New York more
than four years ago to be transferred to New Orleans For
the recovery of this suit has been instituted.
1t is for Congress decide whether additional legislation
necessary TO prevent at some future day recurrence
the system of transfers time Perhaps close examine
ton would show that requiring certain things to be done
and at the time providing proper means for doing
them has in this as in other instances led TO departure
from the principles if not the letter of the act OF 1886
There in which Secretary OF the Treasury
has great rnness to avoid devating from the
strict line of duty. Owing TO the nature OF our paper
money system banks leyen the best of theml oe
casonay exposed TO great pressure II IN such cases they
by conryance get possession OF the money the
public treasury, ii will afford them temporary relief Il
would be thought strange if farmer mechanic when
hard pressed by his debts should apply for the use Of the
public money But banks and brokers think themselves
entitled privileges enjoyed by farmers and mechaa
les Hence in times Of money pressures (produced by the
overading of the banks the Secretary OF the Treasury
is liable TO be mportuned by committees from these nst
tuons their friends who loud in their declarations
of the evils that viii TO the country If they be
allowed the Of the public funds II the principle Of
making transfers time be correct the banks may be
commodated with the of the public money to almost
any amount and for indefinite period But even sup
posing such proceeding be legal its policy is ques
tonable. Let it be understood that the Treasury
Department is to stretch forward helping hand to the
banks in times of exgency and those eXgencies will be Of
frequent occurrence.
Perhaps in addition the legal provisions already
sting, resolution requiring the Treasurer to give
year statement of each transfer made during the year
with the of the person and the time employed in
king would be all that would be necessary oprevent the
misapplication in this way of the public funds
Mr. Gouge concludes his report with the following
ming up of the effects of the constitutional treasury system
if faithfully carried out viz:
l. 1t will increase the amount of gold and silver in the
vaults of the banks and the pockets of the people.
Though it cannot control the banks it win, to
tain extent check them in their expansions and thus
weaken the force of their subsequent contractions
1t will prevent those Losses which frequent in
former years. and which the necessary consequences
suffering public officers nrused with the public funds
apply them to their private
1t will give the government at all times, the control
of its funds that it apply them to the public
service just when and where it choosesa control it could
not have if it should deposte the public money in the
banks and the banks should lend it to their customers
1t will prevent those arrangements OF banking
change, and commercial operations which are always
caused by governments eecng large loans in bank cred
its and by paying off the public debt through the medium
of bank agency.
Though cannot prevent frequent explosions ofbanks
resting on insufficient capital, and conducted wrong
principles it WILL it is believed, unless under very exraor
dnary circumstances prevent general suspension Of se
Gle payments.
+ IL general suspension should unfortunately occur it
viii afford standard by which the depreciation of the
currency be exactly ascerained and greatly facilitate
a return to better state of things.
| The less government has to do with banks and the
less banks have to do with government the better for
both" II it be not an adage ought to be one Evey in
qury have made said Mr. William Jones, the first pre
dent of the United States Bank has entirely convinced
that every formidable difficulty with which the bank THAT
is the United States Bank has had to contend has been
produced by its agency for the government and paricn
larly the too rapid reduction of than eighteen mil
lions of the public debt between the months of june 1871
and November 1872 1t was the connexion Of bank and
State that caused the Bank Of England suspend specie
payments in 1897 and to continue in state Of suspension
for more than twenty years. 1t was the connexon Of
bank and State that caused own banks to suspend
specie payments in 1874 and again in 1887, both which
suspensions followed by many years of commercial
aifction and pecuniary embarrassment In country
has general suspension Of specie payments occurred
eept such as has been caused by the connexon of bank and
/ State. a4.E
The constitutional treasury system has been in ope
ration for nearly nine years, under circumstances Of
peace and of payment of specie by the banks and Of
of deficient and of surplus revenue
of negotiation of loans and of paying off Of loans No
evil that has beallen the banking, the commercial the
ufacturing the agricultural the other interests of the
country fairly be attributed to its operation Each
succeeding year has afforded additional evidence not only
Of its feasibility but Of its being the system that best
adapted to the wants Of the government and Of the people
We cannot depart from it without departing from the
principles of the constitution Every proper ought
therefore TO be taken to bring it perfection
possible and TO make it the permanent system of the
ton