The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-10-31
SPEECH OF Mr. POLK,


a. NE Hous Of Representatives., U.s., jan. 1885.
/ We are happy to have Il in our power to add
another y,oInt to the line Of forti6caions have
interposedo shieid the Treasury from lbs liability
10 be exposed to be plundered by hundred hands,
where one cannot no, now reach H." We could not
wish more conclusive argument against the en-
ployment of individual agents the depostaries Of
the government than Is furnished us In This speech
"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. A gen.
tleman from Virginia q Mr.. Gordon) has signi--
| fed his intention to move the amendment 10
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 reyenue"-when the amounts col
lecled are small" shall be the agents of the
treasurer to keep and disburse the same = and
that they shall receive an annual compensa-
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" "to 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. He 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 il
would render the system less convenient, less
secure, more compiler, il not more expensive"
n ssUnlcss the
States and the United States. should both
deem il proper gradually. and, in the end, en-
tirely 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, eacept By
the employment, in their place, of other and IN
dipidual agents, rho wiH probably be found less
responsible, safe, Convenient, or economical"
He concludes 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 indivi-
dual agent, however responsible he may be,
viduals who have thrown together their aggre-
gate wealth, and who are bound in their cor
porate character to the extent of their whole
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 could from an individual collector
or receiyer-which makes the government
depostes safer in the hands of a bank, than
it could be with an individual.
ST may ,pel be questioned uhether the heaui-
est security uhich The most ,cealfhy individual
could gioe, 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 the public money may be
in the hands Of the Receiver at one time ; and
u he be corrupt, or shall engage in speculation
or trade, and meet Nth reverse Of fortune, Tie
| loss sustained By Government ,rouid be inerita-
BILE. With ample security, as it was sup
posed, the Government lost million or more
in the tea cases, few years ago. The loss
eS in these cases alone as already stated in
1927 and 1928, phen it ,cas 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"
From WarrocEs Almanac, for 1899