The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-02
SPEECH OF MR.. POLK,
or TENNESSEE,

IN Inc House OF ReprsssHfatires U. 8. Jan. 1885
We are happy to have il in power TO add another
point to the line Of Notifications have nterposed TO
shield the Treasury from its liability be exposed to
be plundered by hundred hands where cannot now
reach IT," We could not wish more conclusive argu-
ment against the employment Of individual agents as
the repositories Of the government than furnished us
in this speech The batteries formerly erected against
this proposition we think will be found equally strong
and tensble twill appear The extract make
below, that II Mr. Gordons proposition assaled
out Of the House by the friends Of the administration it
at least opposed by those who watched interests
Dithin Among other remarks against Mr.. Gordon's
proposition, Mr. Polk, said
whilst | am up it may be well to notice
some other propositions Of amendment, which
the House have been notified will be made to
this bill, especially as may not have another
opportunity to address the House gen.
tleman from Virginia (Mr. Gordon) has signi-
fed his intention to move the amendment TO
this BILL, which he presented and had printed
by order OF the House some days ago. That
amendment provides, that the collectors Of
the public revenue"-when the amounts col
lected are small-''shall be the agents Of the
treasurer to keep and disburse the same !" and
that they shall receive an annual coIDpensa-
ton. It provides, further, that at places
where the amount collected shall be large,
that Receivers" shall be appointed TO be
agents of the treasurer" ito keep and dis
burse the public moneys" and that they shall
be paid an annual compensation for their SER
vices. The Secretary Of the Treasury, IN
his Report has not overlooked the description
of personal agency here proposed, but has
submitted TO Congress his views in relation to
it. lie states, that "this kind of personal
agency is, in his opinion, TO be avoided, in
all practicable and safe cases, under our pre-
sent system of selected banks; because it
would render the system less convenient, less
secure more compiler, y not more expensive"
States and the United States, should both
deem itproper gradually, and, in the end, en-
lirely to dispense with the paper system, and
which result is not anticipated, the Govern
ment cannot escape occasional losses from
that quarter, and can never hope to escape all
losses from banks as fiscal agents, ercept by
the employment, IN their place, Of other and m
diuidual agents, loho nih probably be found less
responsible, safe convenient, or economical."--
He comedies that it would be practicable to
employ such agents, but does not recommend
it, for the reasons stated in the paragraphs of
the Report which have read, and because
it would not, in the present condition of things,
be SO eligible system as the present one
A corporation may be safer than any indvi-
dual agent however responsible he may be,
because it consists of All association of indi-
viduals who have thrown together their aggre-
gate wealth, and who are bound in their cor
porate character TO the extent of their whole
capital stock for the deposite In addition to
this, the secretary Of the treasury may re-
quire as heavy collateral security, in addition
to their capital paid in, from such corpora
ton, as he cuuld from an individual collector
or receiver-which makes the government
deposites safer in the hands of bank, than
it could be with an individual.
IL may ,oeH be questioned ,ohethsr the heavi-
est security phich the most ,oeaithy individual
could gice, could make the public deposite safe
at the points Of large collection-in the city
of New York, half the revenue is collected.
Several millions Of public money may be in
the hands of Receiver at one time and If
he be corrupt, or shall engage in speculation or
trade, and meet with a reuerse Of fortune, the
loss sustained By Government Uould be ineuita-
bie With ample security, as it was sup
posed, the Government lost million or more
III the tea cases, few years ago. The loss
eS IN these cases alone as already staied, in
1927 and 1928, mhen 1t ,oas supposed ample
care had been taken to secure the debt, amount
ed to near TWO MILLIONS"
. As regards the second Objectionable al
lodged incompetency of these banks as fiscal
agents--the manner in which they have per-
formed and are performing these duties must
remove all doubts which may have existed
on that point. 1t is no longer question Of
doubt whether they can, with facility and
promptness, transfer the public funds to the
most distant points of disbursement, and per-
form all other duties which, as fiscal agents,
they may be required to perform"