Arkansas true Democrat., 1858-01-05
The Treasury Report.

| HOWELL COBB. This interesting and important state paper presents most satisfactory and ad- mirable review of the operations of the treasury department for the past year; and dwells on results connected with the present revulsion, on which every patriotic citizen may well ponder. We gave an abstract of the portion of the re- port which relates to the tariff. At the conclu sion of his able ant-protection argument, secre- | tary Cobb thus finely characterzes the policy of such a retrograde movemeut:-
 "Tho day has passed in this country for in- creasing the restrictions upon commerce, and | it is hoped that the same remark will soon be applicable to all countries. We are accustomed to look at the amount of our exports and i'm ports as evidences of our growing wealth. To | encourage commerce, enlarge its operations and extend its limits, have been regarded by all DOT tions of our people as objects worthy of their united efforts. One branch of commerce cannot long exist without the cooperation of the other. | We cannot expect to furnish the world with our cotton, breadstuffs, tobacco, rice, and other pro- ductons unless we are willing to receive in return their productions. There must be mutuality be- tweennations as between individuals fla policy is to be adopted by which he productions of oth- CT countreis are to be excluded rom ours; for the benefit of the domestic producer of such articles, justice to other interests demands that there should be adopted policy by which the pro- ! ducers of our present exports should also be l furnished with market for the fruits of their industry. To do this is impracticabe; not to do it would be unjust.
 How strangely inconsistent is the doctrine of the protectonist with the practice of the govern l ,,att' Wp auruallv aypp1l1 of money in maintaining navy, whose chief duty is to give protection t. our commerce in all parts of the world. Appropriations are asked and freely given to send our flag in search of new avenues for our increasing trade.
 The American officer who returns to his coun- try, to announce the successful termination of his mission, in having made and favorable commercial treaties, Is hailed public benefac- tor, and all classes unite in doing him honor 1 In these demonstrations no one participates more cordially than the protectiouists. Ifupon the announcement of the discovery of new country which promised a large and lucrative commercial intercourse with our own, it should be simultaneously proposed to impose upon that 1 commerce restrictions that would close our ports to the entry of its productions, under the false theory of protecting home industry, what would be the judgment of an enlightened public Opin- tOu uppH ILt N4SuOll Ol a ptUplo W IO HiSG cA- | pended their treasure in discovering new marts of trade, and immediately denied themselves all the promised benefits to be derived from it?- In the case supposed, the proposition would be more startling, but not more unreasonable, than when applied to our intercourse with those coun- l tries between whom and ourselves a commerce has grown up from small beginnings to its pre- sent large dimensions. This has been accom- plished through policy inaugurated by our own government, and which has commanded the approval of enlightened minds throughout the world. Other countries have in their legis- latlon Of late years, manifested, by reducing their duties upon imports, desire to cooperate in the work of throwing of those shackles upon the freedom of commerce which false theories have placed upon it. It would present strange spectacle if the United States should be the hrst to commence a retrograde movement"
 Succeeding the argument against a return to high protective duties, is saview of the causes of the present commercial convulsion. The sec retary says
 Public opinion generally holds the banks responsible for all our endorsements. The true cause is to be found in the undue expansion of the credit system. The banks constitute an important part of that system; but there are other elements entering into it, which equally with the question of the banks, demand public | consideration.
 Credit confined toits legitimate functions is the representative of capital, and when used with ln that limit, may extend and invigorate trade | and business; when It ceases to be such repre- sentative 1t stimulates over trade, eXcites specu- latlOn. and introduces an unSouud state of things Tn the business of the country. It is this undue expansion of credit which has brought the coun- try to its present endorsements. The exteu- sion of bank credits and the overssue of bank notes, IS part and very important part, of this undue expansion. A spirit of speculation | being created ademand is made upon the banks for the use of their credit, and yielding to the pressure, they respond by the increased issue of thelr notes and by enlargng their discounts- The extent to which the banks have enlarged their credit beyond its proper limits is not to be measured alone by the amount of their circula- ton. At the time the New York city banks suspended specie payments in October, they re- ported larger amount of specie in their vaults than their notes in circulation, and notwithstand. ing this fact they were unable to meet the de- mands ot their creditors promptly with specie, owing to thelr credit operations under their de- poSit system. Having extended their own credit, and enabled their customers to do the same they were unprepared tor the revusion which came upon them. If 1t be true that our em6arrassmerts have been occasioned bv the cause here assigned, we must look beyond the acton of the banks, to the operations of other corporations as well as individuals, to fathom the entire cause of our dtficuties.''
 We think there is no less discrimination than truth and good sense in these remarks.
 most interesting and valuable portion of this report is devoted to comparison between the operations of the treasury during the finan- cial operations of 1887 and those of the present year. We hope no one will fail to read the fol- lowing extract:--
 During this financial crisis and general de. rangement ot the currency, the collection and disbursement of the public revenue have pro- ceeded without loss or embarrassment The operations of the independent treasury system, ln ordinary. times, had been found by experience emnentlv successful The danger of loss from unfathful or inefficient officers, the expense of conducting its operations without the interven- ton of bank agencies, its deeterous effects upon commercial progress and the general business of the country-all of which was apprehended by the opponents of the measure at the time of its auoptlon--have been demonstrated to be un. founded. It only remained to encounter a commercial crisis like the present to vindicate the justice and wisdom of the policy against all cause of complaint or apprehension. A brief comparison of the operations of the treasury de- partment during the suspension of 1877 and the present time, will place the subject before the public mind in the most satisfactory manner
 On the 3Oth June, 1857, immediately after the general suspension, the deposit banks held to the credit of the treasurer of the United States, and subject to his draft, the sum of S24,- 99f, l5S 37--a larger amount in proportion to the receipts and expenditures of the government than there was in the treasury at the time of the suspension by the banks the present year. The funds of the government being then under the control of the banks. and they either un wiling or unable to pay, the government was placed in the annmalu1ls condition of having an