The Washington union., 1857-11-12
THE SUB-TREASURY, AND IFS SECURITY AGAINST
PANICS AND FLUCTUATIONS

THE sUBTREAsURY, AND IFS SECURITY AGAINST
PANICs AND FLUCTUATIONS
The sub-treasury originated in the i'll faith of
banks and the defects of the paper system With his
keen perception, Gen. jackson discovered the rotten
ness of the Bank Of the United States its mischievous
dabblng in politics. and the falsy of its assumptions
OF successfully controlling and regulating the cur
rency, and consequently, vetoed the bill for its
charter State banks with lofty preensions of hon
csty Of purpose and Of substantial wealth and capa
city, became repositories Of the public money in
1888, and in 1896 an act was passed attempting to
regulate their action, and to good faith to the
government and safe currency for the people
They received government deposites and discounted
upon them and the public domain was rapidly being
converted into government credits on the books of
the banks. To check the Wild unreguatcd spirit Of
speculation in public lands, and to avoid it's swelling
the paper bubble to bursting which he feared had
become inevitable, and to secure some real money
for public use, Cen Jackson, in the fall of 1885, is
sued his famous specie circular, requiring that gold
and silver only should be received at the public land
offices. Tho evil had gone too Far to be rcmedied
by any means within his power. Soon after Mr..
Van Buren, came into office, in 1887 the whole paper
system exploded, and with many millions of the ma
tion's money in their vaults every bank proved
faitlIess and not dollar of real money could be OBJ
tanned to meet any public engagement, however
cred.
Mr. Van Buren was compelled to convene Congress
the 4th of September The first act passed at this
special session to prevent the payment to the
several States Of the fourth insament of the deposte
directed by the act of 1885, and the second author
ized the issuing of ten millions Of treasury notes.
ceivable for public dues. Another, passed at the
time authorized the Secretary Of the Treasury to
extend the time payments uponal outstanding duty
bonds which had been given under the then mode
Of collecting duties from customs. The bills of the
banks at least ten per cent beowpar and those
who were compelled to obtain specie bought it at
that rate Of brokers, who generally had back-door
connexion with the banks, and mysteriousy procured
it. The paper expansion had been strikngly rapid
but the contraction more SO. The government and
the people sought good currency, but tho banks
despite all their boasting professions had furnished
most faulty ard useless one The State banks had
concurrcd with Gen jackson and the democratic
party in pronouncing the United States Bank to be
unconstitutional and nexpedient, and i'll declaring
had wholly failed to redeem its boastful promises.
The public mind was turned to the means of shield
ing the government against recurrence Of the dis
astro,ls consequences Of the explosion Of 1897.
Mr.. Van Buren, took ground in his message against
national bank and in opposition to returning to the
deposite-balk system, and distinctly recommended
the government to act for itself without the use of
banks One Of the nobest and least selfish of our great
men, Silas Wright, selected to prepare and urge
through bill to separate the State from all connex-
ion with banks and TO establish assistant treasures
at prominent points TO receive, keep, and pay out
the public money. His bill passed the Senate, but
defeated in the House by union between the
wings and certain democrats who left their party to
sustain the wishes of the banks. This measure again
passed The Senate at the next regular session, and
WIS again defeated III the House The House in the
next Congress was democratic and snti-bank and
Mr. Wright had tho satisfaction of seeing his great
measure. which he had so long, ably, aud faithfully
sustained, become law on the 4th of July 1s4O
At the first session Of the next Congress, which,
through hard cider and log-cabins, and bank iniu-
cnce, had become strongly whig, this wise measure
was repealed, and an attempt made to charter and
substitute in its place anational bank which, thanks
to President Tyler, failed through his veto Mr.
Wright lived TO the great measure of the times.
which he had perfected and 30 long and faithfully
and ably advocated, rcenacted in 1916, and which
remains in successful operation, alike safe for
the government and salutary for the people, proving
that there necessity ofa national bank for any
purpose, and least Of all for that of controlling the
people in managing their own affairs.
The subtreasury system was an all-mportant step
in the right direction in favor of Legislative purity
and constitutional independence, and was warmly
supported by President Buchanan in the Senate I'M
like the complex contrivancc and mysterious opera
tons of national bank the sub-treasury is simple
machine, readily comprehendod by the voters of the
country There is treasurer at Washington and
subtreasurers at numerous points where national
revenue is collected, who credit TO his Office all
money received and charge all drafts drawn by him
upon them. He is thus credited with the entire rev.
enue of the United States, and charged with what
is paid out upon his draft, countersigned for
the purpose Of Authorization, by the Register of
the Treasury. An account is opened by the treas
urer with each sub-treasurer, who is charged for
whstevcr he receives II is an indictabo offence for
the treasurer any subreasurer to lend or apply TO
hie own use any moneys received by him in hie of.