The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-12-02
The Treasury Fancies,

FROM the Cincinnati Gazette.
Mr.. McCulloch made the practice of leaving
large surplus deposited in banks at time
when he was borrowing money. We have
several times referred to this unaccountable
feature of his policy, and have argued that no
such surplus was needed in the legitimate
operations of the Treasury, and that it should
be used to save interest.
The Treasury funds SO deposited went into
the circulation, and thus kept up the imitation
of the currency at time when contraction was
the ostensble policy of the Secretary, and
when their retention in the Treasury would
have been so much progress on the only road
to specie payment
Besides these, there was the evil of favor
itsm, which is inseparable from the system of
depositing the public money in banks.
We have at various times argued against
carrying so large surplus, and against this
method of neutralizing the indispensable con-
traction, and against the whole system of de-
posting in banks. But all violent changes
are to be avoided. In this we differ radically
with Mr.. McCullOch, who seems to think that
these shocks bring healthy action, and that a
monetary crisis is a tonic. The order which
he has just issued, that all internal revenue
dues shall be deposited in the Sub. Treasures,
is most untimely and violent way OF doing
thing which, if properly done, is right.
The country is in monetary crisis, whose
causes we need not more than allude to.
large decline in produce has brought heavy
losses upon dealers, and has greatly checked
the deliveries by the producers. Thus the
new crop fails TO fetch the money into the
channels of trade, and this is inert. Trade
debts are not being paid, and traders are
straining their credit to carry along. This
decline in produce has been enhanced by Mr..
MoCulloch's operations to depress the price Of
gold, under the strange delusion that this
raises the public credit, while it only takes so
much of the export price of produce, and
thus adds TO the general depression, and stim-
ulates the export of the cheapened gold.
This unfavorable state of things was aggra-
vated by gigantic stook-gambling operation,
which locked up some fifteen or twenty mil
lions Of money, so as to depress the price of
stocks. This created stringency which was
felt in all monetary affairs aud in every
branch of trade. Mr.. McCullooh has given
out that he was resolved to relieve this strin-
gency by reissuing the three per cent. and
the forty five millions OF contracted green
backs; but, on the contrary, he appears to
have continued to augment the pressure by
selling gold and locking up greenbaoks.
| Thus, the currency balance at the New York
sub-Treasury last Saturday Nov. 9th, was
$50, 956, 6l2, being an increase in two weeks OF
| S7,7S3, Ill.
This seems strange way to ease the money
market. And with such currency surplus
in the Treasury, of which two-thirds might
be spared TO buy in some of the public secu-
rites, and thus return the currency to the
circulation, the resolution to reissue forty
five millions OF greenbaoks which had been
contracted in order to approach specie pay
ment was still stranger. And now, on top ol
all this, We kave this order to place the cur
rent receipts for revenue in the Sub-Treasu,
ries, which cannot but intensity the monetary
/ pressure.
A right system can be introduced by apoh
! disturbance as will make ii oppressive and