The Washington union., 1857-11-12

will command specie at almost every point where
its holder desires money, and If drawn on the
sub-treasurcr at Now York will command specie,
at par, in New Orleans, 81 Louis, Chicago,
Charleston OF San Francisco. national disbursing
officer, in receiving advances for public purposes, is
furnished with drafts upon the treasurer at Wash
ington or upon such subtreasurer as may have gov
ernment money as he may select He may thus re-
ceive the coin at the treasury, of subtreasurer,
or sell his draft for coin but for nothing else where
ever he chooses A disbursng agent can, at overy
important point sell the treasuer's draft in his fa-
vor for gold and silver coin.
The great mass Of drafts are drawn upon the sub
treasurer at New York, where very large share Of
received and paid out in gold and silver coin and it
is statute offence to receive pay out anything
else. The effect Of this provision is to create to
certain extent demand for specie and retain it in
that FORM without reference foreign demand or the
wants Of gold and silver manufacturers It's awhole
some regulator by it's own simple operations. When
there is ovcrtrading, by excessive importatons the
demand for coin to pay duties tends to check it. In
such case specie, without the interference of bank
managers, tCcuuluutcb III iiio ouu-hc"o"tt "''N'
naturally restrains over-trading. Tho greater the
excess of duties above expenditures the larger will
be the accumulation in the vaults Of the subtreasury
all of which may be removed to the treasury at
Washington, if needed there. When. from panics
or other causes the receipts Of revenue fall below
penscs tho current of gold and silver will be not to,
but FROM the subreasury.
The late large importations increased the surplus
in it, while the recent expenditures, exceeding our
income, have diminished it, But for the accumua-
tons in the subtrcasury the present financial troubles
would havc been infinitely greater. While there was
more revenue received than was paid out the sur
plus accumulated, in gold and silver until it check
ed importatons and when the revenues ceased to be
equal to the expenses, the current of coin, which
had flowed from the pockets of the people into the
treasury began to flow from it back again. Its sur
plus largely tended to supply tho gold and silver
much needed by the banks and merchants and but
for such surplus the crash would have been much
more fatal.
The subtreasury is a self.adjusting machine, which
operates always advantageously, and never injurious
ly. 1t receives and pays only real coin, and never
disappoints anybody. Not dollar has ever been
lost by it, 1t does not pretend to regulate exchsnges
Since the death Of the National Bank these have
been regulated by the business of the country, and
have been lower and more uniform than they we're
furnished by that exploded concern. Their present
arrangement is occasioned wholly by vicious pa-
per currency. The subtreasury Is powerful for
good producing no evil and sensible, patriotic
citizen desires the overthrow of this Of the most
useful measures ever adopted by Congress. Except
few bank worshippers, it has not an cnemy in the
Union.
Its successful working should induce the several
States to adopt similar arrangement for the
agement Of their financial matters Il would create
an additional demand for specie, and secure much
greater circulation, and produce stability and uni
ornity, and essentially contribute to the prevention
Of panics and revulsions. If every State would re-
ceive and pay out real money, the demand for it
would greatly increase the amount in the channels of
common circulation, and fill the place occupied
by small paper. When the national revenues
received iii paper, specie was seldom seen. Now,
by doing all its business with coin enough is re-
tanned in circulation to meet its wants II the State
governments would pursue the same course, the
same result would follow. But while they receive
paper the better currency is devoted to other pur-
poses. If there were an increased demand for coin,
more of our foreign debts would be paid in own
domestic products.
The States have it in their power, by the manage
ment of their finances, to take important step
towards improving the currency, and rendering it
stable and more valuable We hope to see the
States take up and act upon this subject in manner
beneficial to all and injurious to one.