New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-12-09

would be enough to vrdics'e tbe policy Of the inie-
| ptDcent treasury ryetm; but i. does rot The tnost
remarkable feature dirg ishihg the two psrofs has
ieiiette 70 the effect upon tia Commercial sod gen.
trd buslDss Interest Of toe cOurhy Produced by .ns
'esert optra ins Of the ir0epeudeEt treasury. Is Il
the relief which hss be- afforded 20 the no'ey MAJ
ket ~ the oisbuf- -mers IL psce OF The general Gov
eminent. 10 1897, the demand the Govern neLt foi
lie fuuds with which 10 meet its oblig soul weakened
ihe baIts, crippled their resources Ind aided TO TIE
general psIc ard pressure. la 1871, the oisour-e-
enis by the Government O. it, fuods w5,h II H. pr
IN lie own vsul.s supplied the bsIk. VIII specie.
strengthened heir hsn5s sud would thus have ensb ed
them to afford relief, when was 20 much aeedef IT
they had been in condition to do it Their inability
unBi gpess 10 do 90, under ouch favOrs 1le CIR
orms'sy oes, oniy snow hoT much worse the embsr-
| iastmtnt would have been il the Government wsI
demanding payment from them, Instead Of furnish
| II ths n The 7 esrsof relief
At the time, and subsequent 10 the pssssge OF the
Treasury act Of 1916 the greatest sppre
hen'ion expressed spd no doubt fet by ifs opp
rtnts, Of the effect If such policy Toe sccunus-
tion Of specie in the vaults Of the Goyerprner ths
distress il would asion in the collection Of the pub
lie dDea in specie and par iculsrly It's operations 10
monetary crisis, we're regarded cersin sourcas Of
Inevitable evil The ioea that 1t would afford relief a.
such tine was looked upon a. Wild and vis )nsry by
its oppOEe ns and not very conf ienty ansc psted by
ts fIitLds. The success Of the policy should be as
gratifying il unexpected TO those who iesistet
its sdopton with 20 much zeal aud ability.
While the opponents Of the system spprehendsd
from it the most rujnous effects upO0 the bsnks aid
the currency its feuds locked confidently TO It's op.
eIa'icD fer a Wholesome check upon excessive lssues
by the bsIks Experience has shoFn that t1e apPre-
f.rsions If the were groundess AMI the aatici.
pstions Of the other wers well-founded, 70 llmied
extent The here Of the circulation OF The bsnks
al the tine they used publ, depositcres CON-
pared with their circulation at other periods and par
iculsry sirce the adoption Of the Independent treas
ury system, affords the most satisfactory evi 1ence OF
the restraining Influence of the system upon the tend
snCy Of the banks to EXIT nd their credit and Increase
TO estimate with surrey
the extent Of ths influence. There are go many ele'
meDts which enter into The financial operations Of
great ard e1te ded country like ours that man ESQ
prsteId to snsly 70 the m9ry causes at work with
view CT assigning to each its separate aud legitnste
effect. No one doubts, hoEever that the efsct o.
collecting the public in the notes OF the banks,
and 6eporiiug the funds when collected with them,
would be extension Of the credit of the bsnk aud
addition TO their circulation preporioned to tins
increased demand for the use OF Their notes. 10 tae
extent that this stmulsnt to credit has been withheld
70 that extent certainly las the restraining iJu.nce
Of the Independent treasury upon excessive bank -
sues be en- felt. The collection annually Of about SO-
coo eco in the notes o. banks, and large amount a.
all times remeioing in their vaults deposits would
afford faculties for extending their credit, which the
past history Of these institutions shows they would not
bei ute 10 avail Themselves OF III such icy stem had
prevailed for the Last ten years the strong prooao
lice ere tn at the present crs would have been much
sooner reached, aud the fleet would have been more
disastrous. because more extended and with fewer
sources Of relief.
system in restraining the bs ks from extending teen
credits have rot been Oyerestimated, and 1t u conu
den,ly believed that they have not, It is respectfully
submitted TO public consd ration whether the a1oph)n
Of the principle by the respective State Govern
mepts would not complete the WORK OF reform aud pre-
vention against DO suspensions, 20 happily iUaugu-
rsted successfully prachced by the General CO.
rueht. The various State ovenments now collect
arr ually about $50 COO CO. This amount Is collected
pninly In bank Totes, and, whtn not Immediately die
bursed il eth kept 10 the form of bank notes IN the
dan tad
with The balks. Let the seversl States collect their
revenues in specie and thence is Withdrawn from the
banks s,imu8ht TO overblnkiDg to the extent OF the
facilities afforded them by this use OF their notes
The remarks already tDade Ia connection wi b the
Ddepenoer Treasury OF the general Government ara
here applicable to the effect that would be produced
by fuch policy. The collection and dis 'uree1en; IN
specie Of the Of both the general and State
Governments not TO speak Of the various city, town,
and county corporations, would constitute such De-
rnsnd for specie at oil times as t. require lite rejection
In tie country. Tire banks, Knowing that they were
l6ble to furnish Il cir notehoders with this specie,
| would requisite Their hsues accordingly, ana would
couR6 Queniy be strait from excessive oyerlsnes,
which render suspen ion OF specie payments by tsem
Inevitable wren a crisis comes which requires than
do VII they ought Hl~sys to be ready to Go-pay
| their dehs. The bIprhen.0n that such require
| ment b. the State Goyerlm ents you'd opera'e op,
presivey upon the p, ople u prove es unto1nded
So did 10 the Of the general Government Sac
| ta1es are now pad most generally, in bank no es
These notes profess be the representatives, of specie
If thew the tax could easily convert tnem
into spt Gle. If tn not then they ought not to
be ecived AS such either by the State Govern nents
the people The very object Of he Law TO guard
agar TIE latter contingency and thus to secure t.
| the corntiy sound paper currency always convert
| IDLE into epecie.
Urder the operation Of an independent treasury
sysem edoptd by each Of the States there woui1 be
20 difficulty in retaining in the country sufficient
emorrt Of specie not only for the purposes OF tae
| Government but also 10 secuIe q sound paper cur
rency As org however as the present ystem lasts,
tis IL suit carrot be locked for One would suppose
that the large increase of gold in the last few years
would hsve enabled the banks 70 have protected them
selves az the necessity Of suspendpg spscie p4y
tfenis Such 81 Oud have resn the Gaze; bat 1t has
OF bet and will not be until some policy s1cn as i
here r. coIpen1ed ia adopted which will compel them
t, le4p suffsient spscie in their vaults to meet
| ,bsir issuee. Slice tie disc very OF god III
| California in 1919 there has been coined at the
mint. Of the United States the sun OF 500 COO,-
Geo ard even q larger amount has been added from
thst source 10 the gold OF the world. At that tine 1t
| was es iDsfsd thar there was in the Uaitsd States
| sl20 0G0 coo of sp ce. OF that amount, the banks
beo $40 zoe Geo. upon which hey issued circulation
of Sl4743 AIS. Ths,r deposits at hat time
10 sol lis 623. IL is esunsted that there Is now IN
tie Uited States $3.50 900 OoO of specie, aad OF tbl
cum the 6'pts have $50 QUO 0cS sgG%H Ssh s
| srG their deposits have increased to $3.50 :
| 3Jl $50 I,wll be seen from this statement. ths:,
with the Increased quantity of specie In tbs country
The bar Ks have only increased their specie from l3
coo COO 10 500 coo COO while thew have increased their
ciculstion from sll4 743 AS to s2li 77S S. No o,e
supposts that such wouo have been the case IT, dur
ing ,bs peliod the financial operations OF the various
State Governments had been c0nductd upon tie prir
oipes Of The independent treasury system 1t lie con
fd.I tly believed that such policy would have saved
the country om the present bank sus pensiop. IL, at
the time the General Government. was uaki1s Its dis
| bursements in specie at the commencement Of the
present crisis The operation had been going on
iiom The different State Tessuries the effect neces
| tsiily would have been TO have supplied every de-
| l. L. and fh.h hank already