Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1837-09-23
Resort Of the Postmaster General.
PosT OFFICE DEPARTxExr,l
September 4, 1887.

September 4, 1887.
SR-Immcdiatcly after the suspension OF
specie payments by the banks in New York, IN
May last, q circular was sent out. directing all
postmasters who had been instructed to dcpositc
the proceeds of their Offices in banks, to retain
them in specie to meet the drafts Of the Dcpartmt
To those who had been instructed to pay d.
rcctly to contractors, another circular was sent.
reminding them Of their duties and liabilities IN
reference to the money to be received and paid
by them under existing laws.
Instructions have recently been prepared di-
rectine the manner in which returns Of cash on
hand are hereafter 10 be made to the Department,
and forbidding the ioanng Or use OF the moneys
belonging to the pubic tor any purpose whatev-
CT. Copies Of these papers are annexed, marked
s, 3, and c.
In relation TO upwards Of ten thousand OF the
post Offices, these regulations make no change.
The only change affected by them, is, that about
eleven hundred postmastcrs who formerly dcpos-
tied thei. income in banks, weekly, monthly, or
quarterly, according to its amount, now retain
the money in their own hands till drawn tor by
the Department. To about nine-ten:hs OF these,
the new system is more convenient than the Old,
as it saves them The trouble OF going or sending
TO the banks and procuring certificates OF dcpos-
lite it is equally safe, their entire balances Will
be drawn for as often they are deposited; and
it Is more efficient, because some postmastcrs who
might NEGLECT to dcposic will not neglect to dis
honor draft.
The postn,as:o1s who VIII not close their ac-
counts quarterly, will not, probably, exceed one
hundred; and the balances in their hands, from
quarter to quarter, are not likely, under proper
administration of the Department, to exceed, IN
ordinary times, one Or two hundred thousand dol
lars. As they arc required TO have their balance
always ready in gold and silver, the Department
will always have tho means of meeting ITS en-
gagcmcnts, and if default in an individual case
should occasionally happen, nothing like gener-
al refusal to pay, In the case OF the late dcpos
lite banks, is ever to be apprehcndcd.
1t will ever be the true policy Of the Depart
ment not to have large surplus, and, consc-
uucntiv, there will DC little to entrust to the Gus
tody OF pos.masters or others. Moreover, inc
number of post offices now instructed to retain
their funds. will be largely reduced upon an ad-
ustrnent of the collection system to the mall ser
vice. as arranged within the last twelve months.
Though in some places convenient, Banks arc
not necessary to the collection and disbursement
of the funds of this department. In reference to
more than ten thousand post offices, the coicc-
lions and dishu-vs-.>s.as effected more cxpedi
tiously and more conveniently without the Inter
position Of banks, than they could with II. Inc
contractors who arc creditors OF the government.
are its collectors from postmascrs and the coilcc
ton and disbursement arc but one operation II
is generally effected in few days after the
close of each quarter. The operation is the same
the drafts of the department, though It Is more
tarlv The few Offices, in reference to winch
banks arc convenience. are those whose receipts
are large, and not likely to be absorbed from
quarter by the drafts o; the department
They have generally iron chests or safes where
their specie is kept; and, with strict s,lpervIs-
ion and careful attention to their bonds, they VIII
seldom. If ever. be found in default
The necessary transfers of funds arc elected
by the department; without inconv enicnce or loss.
On the inferior mail routes, the expenditure IS
greater than the income; SO that, after
the contractors have received the entire revenue
of the Offices supplied by them, balances are still
due. These balances are readily paid OH by
TRAITS on the postmasters in the cities where the
surplus arises. as they could be by checks on
banks in the same places. The process is rem
Tered more easy from the fact, that the heaviest
surplus accrues at those points where they arc the
most valuable. particularly at New York, SO that
he drafts of the department TO pay balances IN
he most distant parts ofthe Union, are general
V better than cash. being available tor mercan
lie remittances Thus. the necessary transfers
If the department arc readily elected; ana as
his state OF things not likely TO change, Ii would
e,dorn. if ever. become necessary for the depart
nent to transfer specie from one point to aHothcr
{ there was not Z bank in existence
Upon the suspension of the banks. efforts were
made in some quarters to compel the department
o receive irrcdccmabIc and deprecated paper
or hostages. Law. justice. and pubic poiicy, re-
,uired an inflexibic resistance OF these efforts:
ioid and silver are the only constitutional and
ecal currency in the United States, and nothing
nut that curren cy. or its equivalent can DC legal
v offered 10 the public creditors In payment All
axes are imposed Id this currency, and ali con-
racts made upon its basis. The public faith
ould be kept, and the public business successful
V carried on, only by a strict adherence to the
LAIN letter. as well as obvious spirit of the law
The undersigned is happy to state, that all at
cmpts to force the department to receive de-
paper were soon abandoned; that little
ifficultv has been experienced in collecting
ostaccs in specie, and every where the clrcula-
ion Of change tickets has been successfully re-
istcd: and that the credit of the department has
cen preserved unimpared. Nor IS any difhcui-
' apprehended, so long the hostages are col
,cted in the constitutional currency OF the Cni-
ed States. But should the department. be com
eiled to receive and offer TO its creditors the de-
rcciated notes issued by hundreds OF embarrass-
j, faithlesso bankrupt corporations or indiv'du-
Is no sure calculation can be made as to the fu-
lrc and there is reason to apprehend a general
iscontent extensive failures. and dcplorable DIS
throughout the mail service
With what face could the department insist on, I
nd compel a strict performance OF contract obi
atoms by contractors, when stripped Of the pow
to perform the most vital part OF the contracts