Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-07-16
The Sub-Treasury system.

The Washington Union present most lucid view
of the operations of our admirable Sub Treasury
system in checking trading and business extra
vaganOs, and in lessening the injury consequent
upon them Itsays:
TIf theimmense California and Australia products
of gold had not occurred, the Sub Treasury system
would have forever prevented q recurrence Of such
q commercial revulsiOn as the country experienced
in 1S37l40.
"While the competency Of the system to prevent
mutations we're perfect while the amount of metallic
currency was one hundred millions Of dollars it be-
came partial when that amount had swollen to two
hundred and sixty millions.
" But, while the control exerted by the system on
the business Of the country impaired by the in
in the gold currency its influence upon trade
continued. The foreign trade expanded under the
gold influx from $305, 600 900, in lS47, to $685.
GOO, 600 in 1857. While the specie coin in the
country rose from one hundred millions or there
sbouts in 1s47, to two hundred and sixty Millions
in 1857, the issues of notes by banks rose from
sos 600, 900, in lS47 to S2l4, 200, 000 in 1857.
'The Treasury receipts also rose up from S37 000-
600 TO S69 100000; but system which controlled
the movements of specie to the extent of only sixty
nine millions became unable to control banks, deal
ing upon basis of specie amounting to two hundred
and sixty millions"
The two hundred millions of bank issues added to
the specie made a currency Of nearly FIVE hundred
millions of dollars Specie became cheaper with US
than with the rest Of the world, and consequently
went to the best msrket-sbrosd In this way we
lost two hundred millions Of specie, and we're left
with currency of bank rags; that, when the specie
basis left it, crumbled and fell in, carrying with it
the trade of the country, and parayzing with the
shock of its fall the general industry.
The bsnefeent effects of the Independent Treasury
then became apparent. Heavy imports had made
large revenues for the Federal Treasury; and this
kept at least portion Of the specie at home, and
created home demand for it to meet the foreign
demand. But for this the exports of specie and the
extravagant purchases Of foreign goods would have
gone on until the very moment of universal bank
ruptoy. The Sub Treasury checked this ruinous
of trade before collapse had become universal
and irretrieVable.
The Sub-Treasury system, while exerting pow
erful and salutary influence upon the trade of the
country, cannot now exert perfect control upon
speculation in consequence Of the narrower relative
basis Of its erstions than it enjoyed before the
great augmentations of the gold product that have
occurred in late years; and hence the Importance
Of extending the system to confer upon it such
control. OF course, the Federal Government can
proceed 10 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 the General Government, by severing all
connection between their treasures and the local
banks, requiring their officers to be custodans
of their funds and fOrbidding the collection of the
public dues in any other than the coin Of the United
States.
The great State Of Ohio has led the van of this
great movement, by enaoting law similar IN pur-
port to the Federal Sub Treasury law of 1916 The
revenues of thirty States last year amounted
to $50, 101 ,2S0; 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 were S6S, 63l, $40 The adoption
Of the Sub-Tressury 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 expansions Of commerce.
If, in addition to bringing the State revenues IN
der the operation Of this system those of the cities
towns and counties Of the Union we're also added, |
our country would enjoy the sOundest and safest |
system Of currency and business which the world |
ever ssW.
IN view of a second great object Of the Sub-Treas-
ury system-that Of causing a current of coin to
run perennislly through all channels of business
aud among all classes of the peope-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 eficacious than
even its adoption by the Federal Government has
done. The specie statistics Of the country show
that under the operation of the Sui. Treasury the
amount Of specie in actual circulation among the
people has run up from $50 297, 484, in IS47, to
SlO3 6l7, l46, in 1857. The extension of the sys-
Ten 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
'on in actual circulation to near $500, OOO,O 900.