Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1838-09-27
From the hadisonian.
From the h"iisonlhn
CONSEQUENCES OF "THE d.
VORCE.v

AT THIs TIME, SCATTERED ALL OVER THE
CNIrED STATES By THE ORDER OF MIR.
SECRETARY WOODBURY., IN DEFIANCE OF
TuE PUBLIC WILL, AND IN DIRECT VIOLA
SIos OF A POSITIVE LAW OF CONGRESS.
Congress having five times rejected
the Sub Treasury scheme, which had for
its object (among other things) the keep
ihg of the public money by Executive
officers, appointed by and liable at any
moment to be dismissed by the Presi-
dent, nearly every body supposed, when
Congress adjourned, that, when the
Banks resumed specie payments, the de-
posit law Of 1896 would compel the Sec
rotary 10 revoke his circular, issued
shortly after the banks suspended, re-
quiring the Receivers and Collectors to
keep the money, and that IL ,couid be de-
posiied in bank to the credit of the Irea-
sury, as it had been previously. but
what must be the astonishment oil Con
gress when they meet What must be
The Indignation OF the People OF the
United States, when they hear that the
public money il scattered over the coun-
iry, in the hands of Receivers and Col
lectors, and that not single deposiie
bank has been selected, nor Is II intend
ed that one shall be selected
Who can tell what these Receivers
and Collectors are doing with the public
money What is To prevent them from
using il What check has the Govern.
Inent over them under tins beautiful
financial system of MIR. Secretary Wood
bury They make their own returns
10 the Treasury Department, and state
what they please in them. How can
the Secretary know that tho money they
represent 10 be IN their hands is actually
there The banks under this system
have nothing to do with the Government,
md of course make no returns To IT. IL
the Collectors deposite the money in
bank, they have il placed there to their
own private credit, and can check Tor II
NJ any timc Jor their urrr vrTrufr purposes
Under the deposit law OF 1886, the Col
lectors and Receivers were required To
deposit the revenue they collected IN
bank, every week, to the credit OF NE
Treasurer Of he United Siates and, OF
course, when thus deposited, II could
not be touched by any one m'fhom me
ouiho,iiyora r. easmy dran. The banks
were required TO make regular returns
every week of the deposits made by The
Collectors and Receivers; and, by look
iag at these bank returns, the Secretary
could always detect any delinquency on
The part of the Collectors aud Receivers.
But having +" separated Bank and State,
Go Use the unmeaning slang oi the day.
he has separated the public money from
all sorts of safeguards over it. The col
lectors can at any time use the pubic
money without the Governments know
ing any thing about it and, If It should
he m,sapplicd or embezzled, where IL
the security The Collector mt New
York collected during the year Sie, ,OOo,-
600, and he gives security in perhaps
fifty or one hundred thousand dollars, the
penalty Of his bond
The banks, under the deposit law gave
any security that was required, besides
the security of the whole amount ot thcn
capitals. The Government was perfect
Iy secure, and will moi lose by them
single dollar, unless by one OF the Sec
retary's family banks at Boston.
But this great invention Of modern
finance, which is TO immortallze Its wise
authors" the separation Of Bank and
Slate"-mhy, mhoi a perfect farce ii rs :!
Is it supposed that the People are to be
eternaIIy made the dupes of humbugs,
and to be deceived by The sound Of catch
phrases ?
The whole amount Of this now discov-
cry in finance, separating Bank and
State," consists in depriring the Govern
ment Of the means which The bank would
afford it of detecting Interpretations q
he public money, and the better security
Of It's saie-keepIng. In every other par
ticular, the conneXion is just as great ns
il ever was. Is not the revenue paid at
this time in bank paper : Is it not de-
posted in bank by the Collectors at their
own private credit, prorided they doni
think proper 10 use IT, And cannot the
banks use or bank upon it, Ito use ano-
tber modern phrase when thus deposited
IN the same way they did before, II II
suits their interest to do so The re-
venue Is COiIeCtcu I'D 'Hc pfo"'o'"'J v ''"'''
of banks, and yet the Treasury cannot
trust the banks with the keeping of Their
own paper Under the deposite law,
when the money was placed a, the cred
il of the Treasury in bank, the Govern
mcnt had the right to draw it all out in
specie whenever it chose to do So
What more can it do now with the notes
of the banks in the hands Of the Collec-
tors and Receivers Is the Govern
ment any more secure now, by holding
the bank notes, than 1t was before, when
it held the bank returns and certificates
Of depositc ? What is u bank note but
an evidence Of a debt due And is not
n bank certificate Of deposlte the same
thing in substance or what conceiva-
BILE benefit, then, can il be to the Go.
vernment TO have its revenue scattered
all over the country, in the hands o.
Receivers and Collectors, without hav'
ipg any check over them whatever, wher
that revenue is collected in bank paper
In our opinion, n more unwIse and 'nde
fepsible encouragement OF financial al
fairs, aud keeping at unnecessary risf
of loss and plumber Of the public money
al Il. Ia.