The Kanzas news., 1858-01-30
The National Treasury.

The National Treasury.
A correspondent of the New York Cou-
rier and Enquirer says:
''The United States Treasury has not
been at so low an ebb since the administra-
ton of Mr.. Forward, when treasury notes
were below par in this city, and an agent
was sent in vain to Europe, like bag man
soliciting orders, to hawk United States
bonds through every national capital. 1t is
true that the last Treasury return shows a
slight increase of surplus, the balance sub
ject to draft being Sc, ,2l2, ,3O4; but requi-
sitions from disbursing officers having
charge of public works have been suffered
to lie over, and this is said to be the cause
of the apparent increase of money in hand.
It is considered prudent to keep a reserve
of $4,000, 600 in the mints for the purchase
of bullion.
The state of the Treasury is relied upon,
very singularly, as an excellent card for the
management of Congress. The chairman
of the Committee on Finance declares the
Government under protest for obligations
deferred, and an immediate issue of treasu-
ry notes has been required to save it from
the confession of bankruptcy.
These notes are not based on specie, and
do not represent specie. The act just passed
says, indeed, that after the expiration of one
year from their issue they shall be 'tpaid
and redeemed" But no specification is
made in what shape this payment is to be
met, nor has the Administration devised
any reliable means for obtaining the money
| I,or 30 Il 1ox- CO.
nothing but the credit of the Government to
give them value. The Government, it is
true, is at all times obliged to receive this
paper in payment of its own dues but so
is every bank. however irredeemable its pa
per may be. The practical operation OF
this new system of paper emissions is well
illustrated by the state of affairs existing al
this time. The Government is receiving
but little more than half million dollars
per week. Suppose the whole $50, 900, ,OOO
of notes to have been issued and to be in
the hands of the community. A sudden
monetary CONFUSION seizes the business
world, precisely such as occurred in Septem-
Der last. People owe the Government no.
thing. The payments on duties cease, and
the parties holding the Government prom
ises to pay want their money, just as they
rushed to the counters of the banks with
their paper, demanding redemption. They
could get nothing. The collector might
step forward and say oUe will take those notes
for duties, and the registers might offer pub
lie lands for them. That would avail moth
ing. The holders would have no duties to
pay, and would have more land than they
could plow or sell. The principle of the
Sub Treasury would be violated. Its issues
would not be coin, but would be s'irredeem-
able shin-plasters, - t'paper trash," great
deal worse than the ''bank rags because
not even promising to pay in specie or any
kind of money at any time.
1t is true that this insignificant sum of
$50, ,O00, 600 will not shake public confidence
in the solvency of the Government, and
the notes now proposed to be issued
Will probably bear premium +; but it is
perfectly evident that the principle of the
Governments financial system is completely
abandoned. The Sub Treasury is no longer
hard money institution, nor specie-pay-
ing concern. 1t has sunk below the level of
the banks which the President and Secretarv
of the Treasury so strongly condemn.
Now the old principle having been repu-
dated, who can see to what extent the new
one will be carried Twenty millions of
paper are now authorized to be issued, but
if trade should not greatly revive, and the
domestic wars, upon which the Administra
Ttion appears to be entering, are to go on.
twenty, fifty, even hundred millions more
must be thrown upon the country. They
are fully available only for duties and public
lands. They viii not be wanted for those
purposes. They may fall below par, and at
last become utterly unavailable. We do not
say that this result is probable from the
facts now before us; but the principle is
vicious, and in the end viii be found i'm
practicable. The '-bank rags" abused and
decried as they have been, may yet drive
the Government rags out of circulation