Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1837-01-03

:" the operation will require the transfer OF
something like eight millions Of dollars from
the old deposite banks TO new ones either in
The State or out ofH." But why out Of it all
Why should not the revenue already received
in New Y ork and falling due in New Y ork,
be divided among the New " ok banks, 10
support the trade Of New-York 2 Why not
let it remain active there up TO the last houi
when it was payable 10 the States But the
law required that there should be at least one
deposite bnnk IN each State. Be it So Then
make deposite bank in each State, if there
be not one already, and give it deposte,
which, while il satisfies the law, will not carry
away into inactivity, funds that might be use
full in places Of business. There was then no
necessity 10 send dollar from New Y ork or
other commercial cities, merely for the purpose
Of preventing any one bank from having more
than three fonrhs of its capital. That is clear.
Nor was it more necessary for the purpose
Of distribution among the States. The law
says:
"That the money which shall be in the
treasury Of the United States on the first of
January 1887, shall be deposited with such Of
the several States as shall by law oulhorise
their treasurer or other competent authorities
10 receive the samo-and the Secretary OF the
Treasury shall deliver the same TO such trea-
/ surer or other competent authorities on rccciv-
ing certificates Of depcsite therefor" This is
the whole law. Now what does it conicm-
plate?
The money must be in the treasury on the
LIST Of January 1887, because up TO that time it
is not known whether the States will take it.
Technically and legally, the Treasury is at
Washing practically the Treasury is wher-
ever the deposiles Of the public monies are
But the Secretary of the Treasury is an of
! Enta 80 al =.
Washin ton. Accordingly Treasurer Of
State goes to the Secretary at Washington
and presents 10 him the certificates of depo-
site. The Secretary, thereupon, delivers"
/ to the Treasurer his States quota. But how
does he deliver it BY an actual manual
counting out OF these dollars mo. BY a
check on the deposite bank at Washington 4?
No. But he delivers 10 the State Treasurer
as he does TO any other person receiving mo.
ncy, draft for the amount of any one or more
of the repositories, which compose the treasu-
ry. Is not such a draft the usual and proper
mode of making public payments Undoubt
/ eddy. And then we come to the real ques-
ton. Was it necessary TO make in advance
any transfer of funds whatsoever into the sew
oral States merely because they had the OPP
ton, on certain conditions, of receiving them
If there was no such necessity, then the 18th
gal. Now there is no such necessity. The
money was to be deposited uith the States,
not Ga then. II necessarily paid in W a.
shington by drafts en- other places. II you say
that the Secretary must pay 1t into the State
Treasury, it is not enough TO bring il into the
! State-he must take it TO the seats OF Govern
| ment. Pennsylvania must have her share
not in Philadelphia, but in Harisburgh. N
York must be paid, not in the city OF New
York, but Albany.
II the place be not fixed by law, the mutual
convenience of the parties will designate it,
Now there is no individual and no State IN the
Union that would not prefer payments in N
York, or the North Atlantic cities, to pay
ments anywhere else. If the STATE Of ONO
for instance, had draft on New y ork, ii coulC
sell ii to It's citizens uselully to them, and pro
} htably 10 the Treasury. 1t does not want thu
money brought TO Ohio. Every mile II come!
| on the road lessons its value. We may safely
conclude, them that there was no necessity o
sending dollar of public money TO New orl
; or the commercial cities for the purpose eithe
of equa,izing the funds among banks, or dis
+ trbuting them among the States.
The true theory of the case, therefore, wa
, simply 10 let the excuses OF revenue in tn
, several States be transferred in the course O
= trade, TO the great commercial points, and the
TO pay the States by drafts on those points,
I The deposile banks al those points, KNOWN
d what they had to pay, would have been read
II 10 pay-and up 20 the hour of payment woul
S have employed tbs funds uselully, so that i
= every stage Of that progress, business woul
be assisted-commeic ai activity stimulated
e and all parties be gamers.
= Even surprising these transfers at all neces
a sary-thc funds should have been RENTED b
= bills to the points Of accumulation blendin
= these operations SO insensibly with the bus
IS Ness of the country, as 10 be unielt except
their benefits.
o But what has the Secretary done 7 Instea
u Of gradual preparation to provide funds at Il
n distant points, the whole science of the Tue,
70 surv seems TO have consisted in wing wa
d ranls-in taking mp the columns OF the return
e and directing drafts from the banks through
re out the United States Nithout necessity-witl
Is out reference 10 the wants or the business
J. the different sections Of the Union, the seaso
ST OF the year, or the course OF trade-and thl
III making The whole revenue Of the country woI
ii against the whole industry OF the country.
Is His secret is thus revealed in his letter
Messrs. Griswold aud Swan
lie p" / have, therefore, IN cases where the pu
TO lie money had accumulated in any banks
y any one state, and new banks could he SC
y sonably obtained in other States, tohers only
nc title public money already eristed, made but o.
re transfer to accomplish both objects, aud by
I'd single operation have reduced the excess
re certain banks in certain States, and placed
c. in the States ,ohsrs ii wouid be needed ne
in year, and where they before had not an equ
e. proportion oil the public money"
be We thus perceve-whut on less author
re wonld be incredbe-the extraordinary ma
III ner in which the public revenue has be,
e. scattered. The secretary sees an aocumul