The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-03

proyision OF Tho bill which passed ths Senate at the
extra session. aud which inscres 10 that ball, as an
amendment, by the Sense itself.
| He would relieve the Senate and himsef from any
further observations the details Of the bill lie
had omitted several Of great mporlaneei and among
them lie would mention those which made provision Tor
the official honds of the several dep0siiaues lie De-
eyed those provisions broad aud ample, and such as
were calculated secure the public ireasure and
he thought every Senator, upon examination. wond
agree with him this opinion lie would not attempt
10 paricnlarze the other sections which had not been
noticed but would merely remark that none OF them m
iroduced any principle into the bill, and that he
thought all would be found reach the object Intended
by them.
Such. Mr. President, said Mr. w. is the system
which the majority Of tie Committee on Finance have
considered be III ir euty TO present 10 The Senate
for the sae-keepng transfer, and disbursement OF the
public money Of the United States THIS system IS
sreuuously opposed not by the political party uniformly
opposed the present Administration only but by some
OF the respected and Influential individuals among those
who have, hitherto, its friends and supporters
What them proposed by those who cannot give ihelr
support to The bill before you The system Of State
bank deposiles be especially urged as the
antagonist proposition and under the impression that
there rest the present controversy so lar as DIS,
nct propositions Of any character would be submitted
to the Senate. he proposed institute comparison be-
tween the advantages and disadvantages oil each sys-
tenn connected with the prominent objections which
had been heretofore urged against the provisions o the
bill
First then as to the safety OF Tho public money under
the system proposed by the bill, and under the STATE
bank deposte system.
The bill proposes require ample and sufficient bonds
and surelcs from all the depostsdes constituted 10y IT,
step toward the safety Of the money entrusted 10
the keeping OF those agents.
1t also proposes provide vaults and sales at the most
important points Of collection and disbursement, ~ tins
respect placing itself upon par with banks so lar as
| physical securities concerned,
1t farther proposes 10 adopt the use Of the vaults ana
SIZES OF the hanks at al places where those securities
provided BY the Government, using the banks
FIR safety simply, by the system Of special depostes,
| aid IN any fiscal agents OF the Treasury
These the guards which the system constituted ny
the hill holds out TO the people aguns the loss Of heir
treasure,
The State bank dcposc system presents the capitals
O the institutions as security for deposes in the SHINE
manner for all other liabilities Of the incorporation
Il also presents vaults and safes, constructed for
its own security, and il is fair to presume, as securely
\ constructed as those proposed for the Government
Ii presents, have heretofore practscd un-
der it, collateral bonds with sureties for the due and
shfa luhlnen Of its engagements on The part OF Inc
\ bank
These arc the projections to the public offer
ed by the State bank deposite system supposng as he
DID, that the system, if continued, to remain upon
the plan of open general deposes as adopted IN the
1 deposo bill Of 1896. Otherwise, as he had shown 10
former part Of his remarks, the capital OF the bank
4
keeping Of the money placed IN its vaults
| What, then are the risks under each systemi
Under that proposed by the bill the only single risk
is that Of the misconduct and dishonesty OF the officers
| TO whom the saiekeepng OF the money IS entrusted,
and that conduct addition all other legal liabilities,
is made high crime, and punishable with protrac'ed
| personal imprisonment The persons TO whom this
trust be confded such citizens as the Prcs-
dent, with full knowledge Of the duties Responsible
ties and temptations, shall select and nominate to the
i anda he
advise aud consent that the President do appoint and
commission execute the trust The risk is that these
persons will be dishonest that they will become nsen-
sble standing and character that they VIII violate
their faith their snrees and their country that they
viii embezzle the public money in their hands, and thus
subject themselves to Infamous pnhshment--o imprI-
sonment with rogues and felons for term OF not less
| than two years.
One of the risks under the State bank depose system
is the misconduct and dishonesty Of the officers,
agents and managers Of the banks AMI they nnmer
Gus, and many of them selected TO perform subordinate
duties Without any mputation upon the institutions,
therefore, their principal officers 1t cannot be unfair
that many OF the persons who must have ac-
TO their books, accounts, and money Will not be
persons of that character and standing which would be
required by all concerned 10 The selection aud appoint
of responsible public officers la the case OF the
bank too the persons who must have access 10 the mo-
ney its charge are numerous, while under the other
1 system the single dePostary alone has such access
/ Again the misconduct aud dishonesty OF the officers
and agents Of the bank not made criminal and pun
/ shed as crnes Ii committed, far the Govern
ment is concerned they are mere breaches Of trust and
incur debt they lay the foundation for SUIT at law TO
recover the money emhczzed Can it, BY possibility,
he supposed that these risks equally balanced! he
knew that. upon former OCCASION when tins same SUBJ
ect was under discussion, had had paradcd before
us long and unpleasant list Of defauting public
officers hut il had not been stated at what periods those
defaults had occurred. what their aggregate
amount. He had never, upon any occasion, examined
the list with much 1t snot matter OF onler-
taintnent him these evidences OF nnwohlness
in those who had sought aud obtained public patronage
and public He had, however, referred 10 the list
sufficiently 10 learn that nine ,enths of the defaults
corded upon il had happened during the prevalence OF
system Of bank deposites Of sort aud he thought
il wonld be found, upon careful comparisons that alarge
majority Of them had taken place when national bank,
that great security, in the minds OF many against all pc
cuniary evils was the sole depository OF the national
treasure The defaullers were mostly dlsbursing Off
GERS proper such paymastes OF the army, pursers IN
the navy, and the like posttnasiers, who had never,
until very recently, been legally connected IN any way,
with The Treasury contractors upon thepubIic works.
All these classes Of persons except postmasters must
always and under any system, have the opportu-
nifty to msappy public money and their defaults there
fore were no argument against the system 'ro-
posed by the bill for the saekeepng OF the public mo-
ney than against other system which could be devs-
ed or named He had already said the amount OF these
| defaults had not been stated He did not know the
amount but this he would venture to affirm, without the
fear Of contradictions that the whole Of losses
to the Govcrnment, from the defaults of public officers,
since It's organization under the Constitution, would be
but fraction OF the losses which II bad sustained from
It's connection with State banks alone setting aside the
forty years Of the period when national hank the
sole fiscal agent of the Treasury Here, therefore, the
State bank system gained no advantage in the argument
| He most happy TO be able to say that, 10 COM
parson with the vast amounts which had been received