Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-08-06

The United States is the only country
tain such a
U. s. Only Country treasury sys-
to Try the System. of the country
have long contended for It's abolition upon
the grounds that it was an out-ot-oale
and inefficient way of administering the
nations finances They have CLAIMED 'ha1
anv reform OF the banking situation
should do away with the independent
Treasury, whose operations they have held
seriously hurtful to the country business.
This persistent agitation for the with
idrawal OF the government from the bank
ing business has found strong support in
the exemplary banking systems In vogue
among the great western countries OF
Europe. However. the wonderful hnanclal
growth of the United states mas tempered
the force Of the arguments OF the oppo-
nents to the Treasury, for the government
has undertaken to carry on banking OPP
erations ever since Its organization IN
its early years 1t was part owner 0,
great commercial bank the first and sec
ond Banks OF the United States). Whlie
for the last fifty years II has not only
taken care OF its own revenues ana cnech-
ing accounts. but also has MANAGE wb tn
has TO do with the issue OF Circulating
notes. =,
No important commercial country in
western Europe has attempted TOT many
years to engage in government banking,
either as owner or shareholder or COM
mercial bank. or as maintaining a sepa-
rate depositary for it's own funds. or as
undertaking the issue and redemption OF
circulating notes.
Sotvitbstandins the weight of foreign
example, much may be counted in favor
of our indepen.
Arguments Made dent Treasury
for Treasury Plan which are thu
absolute safety of our money and tne
UNPARALLELED prosperity of our one nun
dred millions of people At all events
Congress has seen At to preserve the IN
stitu,ion which has served the country
for the last seventy years. and this ar
CUES that its advantages are greater
than the disadvantages charged against It
one of the principal objections which
has been made against the independent
Treasury Is that II keeps vast amounts
OF money locked up in its vaults, thus de-
pleting the stores of currency left to the
country for financing its business. The
effect OF this withdrawal Of money by the
government from the channels Of trade
is the same as though thousands OF peo-
pie should insist upon boarding their saw
ings instead of keeping them at work, anc
=, to deprive the banks OF their ability &c
lend and the business men OF their credll
fer procuring money wherewith to finance
the nations commerce and industry.
Moreover, it is charged that the govern
,nent sequesters most of the nations store
of money in its vaults during those perl
DDS when business has greatest need OF
plentiful supply OF cash. The income anc
the expenditures of the government nuc'
tuate While there must of necessity be
some relation between Them no machin'
cry has been devised for keeping the mel
balance on hand in the Treasury always
about the same. One pair OF congress
sionai committees prepare the bills fol
raising government revenues. while othel
ert rely independent committees prepare
the bills for spending them. 1t thus nap
ptrs that the Treasury has faced dehclts
Of hundreds of millions of dollars and ir
other years surpluses of like amounts
Thu great uncertainty OF the amounts OF
money which from year to year Will bt
Withdrawn by the government from tht
country's SUPPLY is complained OF as being
a grave detriment TO business.
The income Of the government Is de
rived from various forms OF taxation
such as tariff du
Income Derived ties. internal reve
r4;o, nue. duties. ccrao
AAo-ii AoH'''A ration taxes and
,sos,.,v an income tax MANY of thes.
.t.b ~. ,o+;yi., NV dnr.ssio,
Oh 'Faae anu Ia
times irnportations are heavy and income:
Increase with consequent increases IN thu
amounts derived by the government from
income taxes and customs duties Thu
:. .f,,,as ~ brisk business the balance I,
.ra.,, -. So ~, .to o,b.r h,nd
t',' ~ ~ e,a,,a..,,,,
when business Is Jun '"e e'hil'eh'
income Is light and balances IN the treas
ury decrease. This is directly opposed t.
TIE needs of business II is when bust
,ess ie active that cash is most neces
-. We, hrciress is,or,,d money IL