The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-01-30
COMMUNICATIONS.
sURY--sPECIAL DEPoSITE
sCHEME--sTATE DEPOsITE BANKS
AND TREASURY NOTES.
NO. XII
To The Publisher Of he Nadiso.ia,


To the Publisher Of The Madisoniaa.
II was with perfect amazement that read the as
founding withinhe lasttwo years pub.
lie officers given in the Madisonian o. Saturday last
taken You state, from an official report made by
the Secretary of the Treasury to the House Of Re-
representatives., in obedience 10 resolution offered at
the extra session, BY the Honorable James Garland
Tothat gentleman the country owes debt Of last
ing gratitude, for having brought before the public
at this time, the important disclosures contained in
the report
Who can read the facts you state, without being
astonished that defalcatons to the amount of more
six hundred thousand dollars have taken place with
in oyears, among class of officers who it is now
proposed TO make the permanent depostaries of the
peoples money! The defaulters referred to by you
appearlo be limited to SUCH as were ont Of office ON
the l2h day OF October last am cred.by informed
additional defacalions have occurred since that pc
riod, to very considerable amounts. Suppose that
the whole one hundred and sixty old Collectors of
Customs and Receivers Of public moneys, were TO be
called on suddenly to settle their accounts and pay
over the balances due by them to the government,
have we not reason to apprehend that there would
be found among them numerous defaulters, and Tor
large amounts II the history of the past is 10 be
relied on as guide, we certainly have. omit 10
bring into view, District Attorneys, Marshalls, and
o;her public officers, into whose hands the public
money frequently falls; because with the exception
of post masters and the officers Of the Mint it is not
proposed to make them depositaries Of the public
money under the Sub Treasury plan. Yet, the de-
falcaiions of those officers furnish additional evil
dence Of the insecurity of the public money when
placed in the hands of public officers, though re-
E.~
their appointments and entering into the duties of
their respective Offices.
II appears, that the same report communicates as
a fact that all the banks lately employed deposile
banks have either paid over already, all the money
which was in their hands al the credit of the Trea
surer of the United States; are expected to do SO,
il may be called for; have furnished offered
to do So ample security under The act of Congress
of October as for the payment of the same To-
geher with the interest which may accrue thereon
with the exception of the Franklin Bank Of Boston
against which suit is stated 10 have been instituted
What a contrast, is here exhibited between this
class of agents, for safety, and that composed of
Collectors and Receivers The former have had
Unprecedented difficulties TO encounter during the
last two years, arising from numerous circum-
stances, while the latter have encountered no such
evils in their operations Their duties experienced
no change, arising out of new circumstances They
had but TO observe their Instructions and response
bilities ceased.
Under all these circumstances and facts presented,
it cannot ~but become matter of surprise and even
of establishment when they cease 10 be generally
known, that the class faithful agents have been de-
nounced and condemned, and the anfaithful have
been taken into special favor by those, (or some of
them at least whose official duties led them 10 be
made acquainted with all the facts, they occurred
The Secretary of the Treasury, must have been in
full possession of them all. Yet in my opinion, no
one whomsoever, has exered himself more for the
purpose of throwing discredit the banks general
w. and "the late deposi,e banks" in particular than
that officer has since the general suspension OF pay
ments in specie With him, it is believed by many,
originated that scheme Che Sub Treasury upon
which, the Globe declares rests the fate Of the ad-
minis,ration." BY a clerk employed in his Depart
ment was written treatise, on /" The crpedacney Of
dispensing Nth BANK AGENCY and BANK PAPER in The
fiscal concerns Of the UNITED STATES" This was
copied into the columns oflhe Globe.
have already in some Of my previous numbers,
quoted from the reports Of the Secretary Of the Trea
sury made in 1884 and 1885, passages awarding TO
the Deposie Banks the highest need of praise, for
the manner in which they performed the duties OF
fiscal agents Of the Government. / have also made
reference to his report of December, 1886, after the
difficulties had commenced under the execution oil
the depose aci of June previous, in which his tone
was somewhat equivocal.
Up to the passage of the act of June, 1886, usually
denominaed the Deposte and Distribution act, II
appears the deposite system was preserved nearly IN
the same state in which the present Secretary found
II when he took charge of the department. Recent
publications. however, show that he made attempts
TO enlarge the number ofbanks al dineren' nmeS LOT
some purpose, but was restrained by some superior
and controlling power. The passage OF me act oil
June, 1886 relieved him OF all restraints. lie lheh
had full latitude given him. lie aVaiied himself OF
il to the fullest extent. To the manner in whlchthe
authority under that act was exercised, 10 the ill
Judged measures adopted under IT, and the woiul
mismanagement which succeeded, do attribute the
failure Of the depose system and the disasters which
fell on the country and resulted in general suspen-
sion Of payments in specie by the banks.
An nordnate ambition and the extreme OF tint
dity, accompanied with an unconquerabe disposition
to avoid all responsibility however trivial in charac
ter arc most unfortunate companions TO be associat-
ed together in the person of individual filling an
important public Office
The act Of June 1896, was no sooner passed, than
action under it appears TO have commenced. bank
in Mississippi was selected, which the Secretary had
long sought from some cause to appoint but had up
to that time been overruled in his wishes The stu
alton of this Bank at the time appointed was oil so
doubtful a character that, in my opinion no pru-
dent and skilful fnancier would have employed IL
under any circu stances whatever; and II is re-
markahle fact and one which iustiieS the position