Arkansas true Democrat., 1858-01-05
 To tn

will be remembered by those who participated - the scenes of that day. It will be realizedI
 every one from this brief presentation of <, .hI The effort of the government to withdran, " - deposits and get control of its funds was fol.
 an additional blow aimed at the banks. BrS :, dollar which could thus be drawn from ~ pon @ .l1 vaults of the banks diminished to that er, J I'm their ability to afford relief to their custom. nye Their loans had'to be contracted, and the S mand made by them upon their debtors fo, N Amons clement increased the pressure already fo "a tb, the money market, and thereby added to 4 Inro ri; general panlc and want of confidence which !, faded the usual attendants of monetary crisis Lslld
 The government not only emhrro N |, for the want of its money, but in the efn ,L1,;on obtain it became obnoxious to the charge of y C,r ding to the general distress, which many ne Tn thought it was its duty to relieve To av"S ,a tb1 recurrence of these difficulties the plan of sa doJ rating the government from all connection x
 the banks was suggested, and in 1846 was low liE manetly adopted. The result is before tpS Are our country in the occurrences of the last few W We seal The banks, as in 1887, have suspended T4~>Co lve payments but the analogy ceases there. soI ped as the operations of the treasury department
 its disbursements are concerned. The oovs But 't] ment has it's money in the hands of its o5s % rom Al cers and in the only currency k1ov,r = Where constitution r. has met every liab;I;+ 'o- mor1 embarrassment. It has resorted to m, arl ,-l nd hd ent to meet the claims of its creditors but VII or Da1 nron,ntness nays each one mon ,,,osot 0a wa dol If the contrast between the operations of S helr and the nresent time storned bora f. t01 'ertur anouoh to vindicate tbe nalicv of +ho ;J1S pad dent treasury system. but if doe. ,l % ven hd most remarkable eeatnpe distinT,is n 4@nd for neriods has reference to the efe9t 'ns erhap marcal and general bnsine.s tara. "e oOl' nd md coI,n1rv nrodncad hy tb ,,rosor o v low lo1 irjaiand ont treaS,,r to raditd has been afforded to the money market by '' VI
 non+ In 1897 tba d.,,,o+ r .I 7o'eF srhap l r l.. fd ;.h b;aI . -. t: e''Aelyept
 ol '' %14'ii so 'FI' IS' 7ao& thd and added to the general panic and pressurend ne
 In 1857 the disbursements by the goyermr.,d all of its funds, which it kept in its own vaults su is on piled the banks with specie, strengthened theept al hands, and would thus have enabled them nd tur afford relief when it much needed baill ga had been in a condition to do it. Their nal7a ne trid ty or unwingness to do so under such tayor.ye. ch ble circumstances, only shows how much wog, thes the endorsements would have been if the ell nus wi vernment was now demanding payment h5rr fror them, instead of furnishing them the means H. str relief jlls Ind
 At the time and subsequent to the Iassaged
 the independent treasury act of l846 the greg Tn est apprehension was expressed, aud no doC'r lon1 felt, by its opponents, of the effect of such Of policy. The accumulation of specie in t,lall t vaults of the government, the distress 1t wou 1d pr1 occasion in the collection of the public dues le pr specie, and particularly its operations in mons n,, tary crisis, were regarded as certain sourcesc q inevitable evil. The idea that it would aiJrt ou relief at such time looked upon as w ea' n s and visionary by its opponents, and very con- of tb, oI;,. h,,Il b , Z: s1-.'A nong expected to those who resisted its adoption witt !, e. e. So much zeal and ability
 Whilst the opponents of the system appre. 1I :, O"Oo'9 us'- ith al confidently to its operation for wholeSom. M check upon excessive issues by the banks. Ex.. I perlence has shown that tbe apprehensious ds d; the oiI0 were siou"uies'' anu tue a'ic At0usG sha the others well founded, to limited eI. [ IL
 tent. The increase of the circulation of th.
 banks at the time they were used as public de- .h positors, pared with their circulation othg I H periods and particularly since the adoption d-itb the independent treasury system, affords ths,ar most satisfactory evidence of the restraining I.- tiuence of the system upon the tendency of tn.
 banks to extend their credit and increase ther
 issues It is impossible to estimate with accura cy the extent of this influence. There areN many elements which enter into the financial operations ot great and extended country like
 ours that no man can pretend to ana yze the may.
 causes at work with view of assigning to each v
 separate and legitimate effect Noone doubts ia-rH
 however, that the effect of collecting the pubEc>9
 revenues in the notes of the banks, and deposit
 ing the funds when collected with them, would v i be an extension of the credit of the bank and <
 an addition to their circulation Iroportone9 $
 this increased demand for the use of their notes
 To the extent that this stimulant to credit ha
 been withheld, to that extent, certainly, has L S
 restraining influence of the independent treasuTz upon excessive bank issues been felt. The co, -
 lection annually of about S70OOOOOO in the
 notes of banks, and a large amount at all tims =
 remaining in their vaults as deposits, would al =
 ford facilities for extending their credit whica :- 1the past history of these institutions show tbey
 would not hesitate to avail themselves of IS
 such system had prevailed for the last tsl .-t
 years, the strong probabilities are tha. the pes
 sent crisis would have been much sooner reaca. -
 ed, and the effect would have been more disls .-S
 trous, because more extended, and with fewa - sources of relief.