The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-11-29


issued to aid in tho construction Of tho rail-
way. The magnitude OF the sum, and the
possibility that when II was paid 1t would DO
locked up in the Treasury and thus withdrawn
from the banks, had caused . little anxiety, all
OF which. however. was dissipated by the simple
device Of leaving the money on deposit with
certain banks which put mp Government bonds
as security for It. The transaction. therefore,.
amounted 10 nothing moro than . transfer Of
credit on the books OF the banks from the Union
Pacific Committee TO the Government, and It
neither diminished nor Increased the fund at the
disposal Of borrowers.
The incident, happily 90 It has terminated.
none tho less calls attention TO the antagonistio
position. which the United States Treasury. I'M
dor the law which now governs II, holds to-
ward the other financial institutions Of the
country. Surprising. In the case just mentioned,
either that the Secretary Of the Treasury had
insisted on the Sl3. 100000 being paid to him in
lawful money. or, that no bank had been able or
willing to furnish the security he required a. q
condition for leaving It on deposit outside OF
tho Treasury. Then. the whole amount would
have been drawn from tho bank reserves,
and, In q critical state OF the money market,
which indeed, does not now prevail, the result
might have been disastrous. Az IL II, the needs
OF the Treasury may compel the gradual with.
drawalo Of the money in the course Of the next
few weeks. and . decided rise in the rates OF In.
terest may ensue.
Our present Independent Treasury was the
outcome Of the long war waged moro than half q
century ago, by Andrew jackson and his Demo
cratic successor In the Presidency, Martin Van
Buren,. against tho United States Bank of that
era Their hostility TO the institution was juBti.
ned by the faults of its management. and its I'M
fitness. 30 well 40 that Of all the other banks Of
the country to DO tho custodian Of the public
money, was demonstrated 30 much to the salts
faction of the majority OF the people that they
resolved In 1s4o to mako the Treasury its own
banker and no longer expose the nation to
loss through bank failures or to the evils Of bank
favoritism in the use Of public fundA Ever
sinoe then, the new system has been In operation,
and every attempt to supplant it BY Q revorsion
TO . great national bank a. the Governments
fiscal agent like the Bank Of England, has
proved abortive.
In the days when the Governments revenues
amounted to less than $1,000, 900 . week, and
Its disbursements 10 about the same. the indie
pendent Treasury worked little OF no harm to
The country's business. Now that tho revenue
has swelled 20 an average Of over 81, ZOO. 900 o
day. and the balance carried by the Treasury
amounts to over 5000 o0. 900. the situation has
become quite different. Indeed. for the four.
teen fiscal years from 1878 70 1897 the Treas
% s.~Ns~s -.
~, = A.. - 49,
by an excess Of ordinary receipts over ordinary
expenditures. moro than 81, 200. 600. 600. which
Il o sum exceeding the entire active circulating
medium Of the country. OF oourso, had the ox-
pedicnt Of anticipating the payment Of bonds
not been available. other measures would neoes-
cotostronho hut IL noss,hi,,tr a.. .nnsI,,ns ~
I.tt.r,,,
,,ths -, 49, e-s-SN..s
ths $500 80 e.. s,roH ,eoe :, - "a
out NOR. th.n T. ,o,,.ot.d 49, ~. n.on,. 90
s..-t....s,. 80 Nr.-N
Zoo. Too 90 ,aoa ~hi.S .,sSa.s msssv
caoo ono ooo a.. 49,. a. ..na =. aSs..s
r-sat.rnow ,han 80 80 ar s.ea,. h.Ssa
e.. ~. 80 - 80 ~. csSN"-N.-S-.
h.en stasduI nons,ns $500. to- ~. 49,. :.
en- 5000 ~ $500 a. @s.s.....Ss 80.
,ts ,nnamn sn tha go. az, ".ss $500
ho.n sse 600 600 Ill t%n,,hn -. -. III
~. 800. =, $3.50. 80. a. an. hs.S.~ -
.,n,,o,is,, m. .oI. =, Al. TTntor p.,,e, p.n-
81, iii ,vh.n a. q. oomn,.t.d ,,-,,.h q, 10,
.hou. sa5 600 600 avsr .nd sho,. ~. eao ono
ooo 80 .rhs,an 800. ma a. I'll -. 49,.
Jan In.~t ~, I, ~. wo,.r 4. la. ., ~. 49,.
"a the arst ;n.taIim.nt IN ~ h,, b..n. the ,.Ign.
IN. nI.,hor. Iii ~. rns,,n,nt.h.S
III. iooitirat. 900 ~ Ali. cor.,,.a .,.
nonr from m. Trs.onrrh .s h..n 1900 =.
reauce and to k.an rsauo.s Al. 80. a, 5000
for Loan. ana a. vonld nav. h..n 1900 than
At has besn hut Far tha conntsrsotinr .s.no- -
Oh. retrrn IN thI. corntrv ,or ..I. -. -.
.mount of onr s.crritios nrsviousIv Ma shro.s
,Tht. corntorao,In. ...rnv re- hs-~~., 800
h..n cornt.r.,t.d hv Ar T,ron..n d.na,a o.,
onr agricnItur. nroanot. vhich va nv. nosn
.h,. 70 .hin tn.,..a ~ ,n. .o,a -h;oh o,ou,a
otberviso have Mean tahsn IN navmant for ths