New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-12-03
PART II.
PAGES IL L..

10 receive such funds as NAV be thereafter collected
under the Internal revenue laws. This necessarily
very slow process which would require several weeks
If months. 10 produce any substantial encct upon
most unsatisfactory way If atiOIdng relief 10 tho
business Interests oi he country in an impending com
There are doubtless some defects in the nde
pendent treasury system. bui experience Of forty
idrr wears has IN my Judgment fully dem2 lemon rs
seeded In the annual report of the Secretary OF Tho
essqry TOR the year ,t E aS De e If V tbs
two systems in their ability 10 meet commercial crises.
Illustrated In o37 nnder the bank deposit pohey,
and In 1857. when the Independent treasury system
was in full operation:
The operations of the MISUNDERSTANDING system. in
ordinary times had been found b. experience emnenty
successful The danger loss from unaitnfnl and IN
efficient officer. the oNpons. conducting H. operations
without the Intervention OF bank agencies IT. deetrous
effects upon commercial progress AID The general business
Of the country-al u which aDprchended by the op
ponents Of the molsurc at Of it, adopon-aNs
demonstrated unioundcd. H. only remained TO
encounter commercial crisis Ike the present b Nhdi'd'
the justice and Wisdom Of the policy against al cause vi
complaint Apprehension. brief comparison oil the
operations Of the Treasury Department during he s'-peh'
1887 and the p.sent tine will place the subject
the public mind the most satisfactory manner
On the Both OF June 1881 Immediately after the gen.
erl SUSPENSION, tn deposit banks held % the credit 81
Treasurer Of the United States. ana subject 70 ms
draft the VI S!i 99i j3 ga larger amount ia pro-
portion the pt, and expenditures Of the "oNe'
ment there In the Treasury at the time OF no
BY me banks Ar present. YEAR ANU i'""s
Of the being then under the control oil ts
hanks and they either unwilling o unable 70 pay, ths
Government was placed In the anomalous CONDITION VI
having al oy rowing Treasury which It seeking To
dclee by distribution deposits with the states, ana
vet una bic it, ordinary obligations
The effort the Government TO Withdraw ~ deposits
and get control rs funds felt additional blow
aimed at banks. Every dollar which could mus De
Withdrawn from vaults Of the banks diminished to that
cx-nt ability 20 AFFORD relief 10 the customers lhe
loans had contracted, and the demand made by them
upon their debtors oE settlement increased the pressure
adv f,it te money market and thereby addd IN ue
general panic confidence which are the usual
attendant a monetary crisis The Government wa NOT
only embarrassed " IT, money but In the effort u
obtain It ObEoXiou tn charge Of adding To the
general distress which person, thought u was s
duty to relieve. To avoid recurrence of these dhicrI'
ties the plan separating the Government from all conHc
zion with the banks suggested and in 1916 was perna'
neutlv adopted The result Is before The country IN u'
occurrences Of the last few weeks The banks, A. IN 1879
have suspended specie payments buo the analogy cel'e-
there 30 far the operations Of the Treasury Department.
IN H., disbursements gre concerned The Government has
r. money IN hands Of IT. own officers ana IN me oS
currency known to the Constitution. IL hes met every a'
,nv without embarrassment. IL has rsortd t. no *
iicnt 20 meet claims o r. creditors but with pr"'
moss nay, Sfch one upon pre,euta0n. II the contrast be-
tween The opation, Of 1877 and The present U >"I9'
here Il would enough % vindcatH the pocy u te u
u4ud,n,tcas,y system; but IL dos not The most le'
markae feature Distinguishing tie oNo prods ha' i'eF'
. IN b effect upon the commercial and general business
int Pat Of produced by the present. OPERATIONS
- tb INDEPENDENT treasury. IL j, The RELIEF NhIch mas
m Afforded to the money ma.ket by he -1lr-fm"nt' IN
,-ci- of the General Government. In 1888 inc U"h'u u
the Government it, funds with "hch u meet IT, ODS
zion, wclarn-d the banks crippled th'li r-"u''' ''
added 10 the general panic and pressure" In 1914 u' us
bur,-n.nt, by the Of H. FUNDS when IL ~"
IN it, own ,aul, supplied the banks with specie strength
en4d their hands AID would TN, ha'" enabled mem F"
rord relief when il Va, 80 much needed they had been
in . condition to Do IT, .
rbi, tenn If history. and the many subsequent
opcratinn, Of the independent treasury 'N'eu nurt
like circumstances ar. commended 10 TIE carelul 'F
.fIer,iiou o those persons who now lnsi't upon ~.
rapc1l and upon return to the Old Daih,'ePo,,N
policy II Is worthy of observation a'o, We, ,
r,Ii.y If al riding relief 10 the money market NJ"
- much orticl,e i'm certain quar'ers, * by no means
new thing Il ha> been The uniform poh'Y q" uo
q ,yerunlrnt when possible. in all cOmneFal r,.''
nom l-46 10 the present time. Ihe dlncuuy VIZ,
ia. Danaifment Ia, encountered during the d't 81
in Withdrawing part of our present. 9ank dep.,ns;
nven ,y tlt careful and conservative lnetons nPt
and at time, when there VAS no nnanral .pIc-7n,,
pves Somr conception Of what those diioultc woulh
r.. i'm making such Withdrawals in times ~ .irliEeIrN '
and commercial distress The experiences oi 20. ~
lated Ia the above Quot1ipn.. WOMB De FPc'Vc"' "''
M les In every cOmmeral crisis