The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1858-07-07

country to be exchanged for imported goods which
in comparison were dear with us In this way we
lost by exportation in the course of two or three
years, upwards of two hundred millions Of specie,
which went out of the country to make place for the
bank rags that we were using as money in its place
The enormous importations, however, that re-
suited from this course of trade produced an i'm
mense demand for specie to pay the customs
duties upon them, and large accumulation
Of specie in the snb-treasury just after our ex-
ports of specie were the heaviest and these
exports together with the extraordinary demand Of
and accumulation Of specie in the treasury produced
crisis considerably in advance of the stage of alb
solute and universal ruin. But for the operation
of the sub-treasury creating an immense home
demand for specie while the enormous importa-
tons were coming in, and causing an immense ac-
cWnulation OF specie beyond the reach of the banks,
tho exports of specie and the extravagan purchases
of foreign goods, would have gone on until the
very moment of final collapse and universal bank
ruptey. The subtreasury checked this ruinous
course Of trade before collapse had become uni
yersal and irretgievabe.
We have shown, however, that the sub-treasury
system, while exertng powerful and salutary in
huence upon the trade of the country cannot now
exert perfect control upon speculation, in conse
quence OF the relative basis of its opera
tions than it enjoyed before the great augmentatons
OF the gold product that have occurred in late years
and hence the Importance of extending the system
so as to confer upon it such control OF course the
federal government proceed no further in this
great measure of reform than it has already gone ;
and it remains for the States to complete the work
which has been SO well begun by Nue. general gov
ernment, by severing all connexion between their
treasures and the local banks requiring their own
ding the collection Of the public dues in any other
than the coin of the United States.
We are glad to see that the great State of Ohio
has led the in this great movement, by enacting
law similar in purport to the federal sub-reasury
law of 1896 The revenues of thirty States last year
amounted to $60,l0l, 2sO. which shows that the
revenues Of the States amount in the aggregate to
about the same as those Of the federal government
which for the last year $68G3l $40 The adop-
ton Of the aubtreasury system by the States would
thus double the operation of the system and restore
that CONTROL to the governments of the people, over
the banks of the capitalists, which has been lost
since the establishment of the sub-treasury system
by the expansion of commerce.
If in addition to bringing the State revenues under
the operation of this system, those of the cities
towns, and counties of the Union were also added
we would enjoy in our country the soundest and
safest system Of currency and business which the
world ever saw
In view Of a second great object Of the sub-treas
ury systemthat of causing current of coin to run
perennialy through all channels of business and
among all classes of the people-the adoption of the
hard money system of the federal government by
the States, cities counties and towns of the Union
would render its operation more eficacous than
even its adoption by the federal government has
done. The specie statistics Of the country show
that, under the operation of the sub-treasury, the
amount of specie in actual circulation among the
people has run up from S30,297 ABA in 1s47 to $685.
6l7I46, in 1857 The extension of the system in
the mode we have indicated would doubtless Danish
hundred millions of bank rags from the handling
of the masses and run up the amount of coin in ac-
tual circulation to near 100000, 900.
EXT ~ & q