Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-12-14

The improvement was Voluntarily INTRODUCED 10y the
department in 1889, and was afterwards sanciion py
Congress IN the depose act ut 1880
The measure insured greuer IN the management
of Tie banks and increased waici!uimfss by i"e
surees in times CT difficulty, take eicien, steps 10
indemnify the Treasury.
With view to illustrate further The effects Of requr.
ing collateral security both Of banks and col
lrcting officers as well 10 cummunca interesting
facts in connection with the safety of keeping the public
money from the foundation OF the Government sevsIa!
tabular statements, prepared by lie Department. are mere
with presented
First A list of the banks still indebted 10 the U. S,
COX defaults previous the close If l534, none u" which
are believed have given, originally any Collateral Sc
curity. is annexed The whole amount nov due, with
out computing interest," equals 81 0nUG7G; end grea,
part Of this must be regarded as a total Uss
S,cond Another list of niebird banks is annexed,
most Of which gave collateral security The rrn4ning
durs from them TO the Treasurer defaults nccIulmg
between 1884 ard October lc37, though al first very
large have been reduced 20 about 81 lUOGGU, and most
if OIL Of these debts, with sure others, owing 10
public disbursing officers, for money on deposie, II Is
confidently expected will in The end he paid
The first ins,amen due from those, Which have since
executed other bonds aud given security under The
act Of October, 1887, has been promptly met, and pUr
tons Of the second have already been advanced 10y
Of hem. Suits pending against only tw" u account
OF their liabilities.
Thirdly The eventual losses sustained from receivers
and collectors while, us purl of the bank CrpGse sys
tem they collecting he public funds, 10 be after
wards placed for safe keeping in banks al the last
session, estimated al sum ringing from S9''O.GCO 10
81 200 0G0. (See printed report To H. ol Representa-
lives, 2Slh February, 1888. No. lOl)
Collateral security had generally been taken "l these
officers; but in former times IL vas not always IN So
la ge amounts and with so great care US oil ale, anu
consequently most Of The foregoing losses Happened
many years ago.
A list of all those officers no. the 18th of Oclo-
ber 1887, the time designated III the resolution OF The
House Of Representatives, stood on the books OF The
Treasury, having neglected 10 settle tAer accounts
in season NAV he sac It'll tie amount charged 10 EACH
in The printed report made The 10Th of January last
(docunen mt No IIl Butscvrra Of these were not then
actually indebted The s though, having neglected
Just their accounts ut the Treasury they came WIN
in the express words of the resolution and consequently
were included Some defaults have occurred, or been
discovered since October 1897; but il is not appehended
that any losses will ultimately be sustained from lhcn
except in the Of The former collector Ui New ork
That has been recently detected, aud the dealca
lions are supposed to have been continued Tor many
wears and to have reached large amount. From Their
character they could perhaps have been efecuoy pre-.
vented only by penailes for false returns system o!
cash duties, and personal inspections oil money ana
vouchers. with punishmcnls for misuse OF The public
rupGs similar to what was urged in the report from this
DEPARTMENT the finances in September, 1884. II Is
intended In make the particulars Of this the subject
Of special report the PRESIDENT for The consideration
of Congress. .
The requirement. Of collateral bonds has undoubtedly
diminished many az The losses before mentioned. Bot
Notwithstanding every precauilon ana security hereto
fore in force, The whole OF these defaults whether by
collectors receivers, banks, have occurred under the
old systems Of making deposits in United States Bank
or STATE Banks for safe custody.
Under either of those systems, if unre'ormcd, Con-
prcss must continue to employ officers TO collect The
ulc money we'll banks to keep alter COLLECTED,
with all the former risks and probable losses incident 10
both classes Of agents But the proposed plan Of an In
dcppndrnl Treasury with all lis checks and guards, VIII
dninisE the number Of risks, aud tend III several re
spec:s to strengthen The public security by requiring
the officers employed in collections 10 hold most OF
the money for time in deposite, it adopts only part OF
tie agents under either Of the former systems; and
hence dispensing witt; the banks, unless II may be tor
few strictly special deposltes avoids most, II not a
Of the risks and losses which have been sustained from
that class OF agents.
II true that under this plan il contemplated TO i'm
pose on collecting officers the duty Of keeping some
what longer, in few cases. and in sums somewhat
larger in others. the money which, under The DINER
systems since 1889 those officers have cOIrcied; and
three four Offices proposed 10 be established
70 hold general receipts in depuslte at few central
points These changes all the material ones which
have been recommended this point But 10 increase
the public security under all duties ne or old, as well
as those Of any agents am pie bonds are to De re.
onIred occasional examinations Of their funds and &C.
counts of and rigorous character, introduced; the
use of the former strictly prohibited; and new and severe
penalties should be imposed fraud, falsehood in re-
turns and cmbezzleien!s, by rehGeflRg 'eh Psn''en
tIary offences.
Homes, diligence can never suffer by these changes,
while carclcssness in business and laAiiy OF principle
will be prevented, or exposed and properly rebuhed
Additional safeguards like these are also OF vital I'M
poronce in moral vew by more ehec'ual!y prevent
ING as well rs furnishing wrong.
They are therefore, earnestly urged again on the con-
s;dcrstcn Of Congress Whether looking to further Sc
cny other important ends, one OF the most dss faoe
alterations which incorporated into the plan OF an 10
haI an nspn a
rney for private purposes be hereafter considered He
pal and punished dangerous breach oil uust ne
Of the last few years. demonstrates The pro
preiy Of such organic change OF our system, who
ever and whatever may be The fiscal agents employed
The change 50 far respects mere collecting or dis
bursting officers, will have 4 decisive tendency to pre-
serge not only the Government but them aud their Sc
cures from those losses which il was never contem
plated they should hazard, by making loans or specu
Iatons with funds held IN sacred trust Tor purposes
entirely public in their character and constant IN Their
demands Had such provision been adopted early IN
our egslaton, doubtless it would have prevented most
c no, all Of the losses heretofore sustained from those
classes Of officers, and much wretchedness which has
be(aIIen both principals and surees Some Of the ear
Hest acts Of Congress wisely prevented officers OF Inc
customs and of The Treasury Department. from being
concerned in commerce. or dealing in the public lands
or public stocks These restrictions were doubtless IN
,rnduced chiefly with a view TO remove the temptation
and hazard incident to the possession OF the public mo-
new But the prohibition ~ employ that money Tor pri
vale PURPOSES under severe penalties, has not yet been
introduced except in substance in the MINT by making
embezzenents there punishable as ieIonrs lis expe
dency has been urged by the department heretofore and
seems confirmed by experience as well as theory. The
Of such provision in the mint, where no losses
from its establishment 10 the present moment, have or
SO many years. and after having the custody OF SO many
millions Of money. been known 10 occur, is very Srk'
ing illustration o.! its efficacy.
Finding that no new act on this and some similar
points passed by Congress at its late sesson,a cir
cuar, bearing them, issued by this department
soon after the adjournment copy Of which is annexed
In regard 10 depose agents, heretofore consisting
chiefly OF banks the change from former usages, which
would be introduced by such prohibition. would be
greater But The present condition Of The Treasury and
Of The country is highly suspicious for The reform Dl
unfinished the balance Of The public money now on