The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-07-11

a3 In case money so deposited is not considered
as In the Treasury from the time deposite who Isl
from thai time until II passes into the Treasury re-
| sponsible TO the United States =
The answers TO these questions will show what
then the true theory several points now unaer
i discussion. ~.
In his leier Of February 25, 1874, Col. Hamilton
TO question first" All moneys collected on ac-
count of The United States, and deposited 10 BANKS
10 The credit OF the Treasurer, are considered as IN
! ihe Treasury from the lime Of depose. The steady
course with regard TO standing revenue - ihat me
money deposited 10 banks passes immediately 70 ,he
4 charge the payers, that receipts of the Treasurer
| should be endorsed upon warrants signed by the
! Secretary, countersigned BY the Comptroller, and
registered BY the Register which Is the course regu
! nTo question second.-"A Amer moneys are depo-
sited in banks to the credit of the Treasurer they
are in his control, though they may not legally be
disbursed bur upon warrants OF the above descrip-
ton If deposited without passing, in the first in
stance, 10 the credit OF the Treasurer, the means
used for placing them in his custody and disposal
are warrants of The like kind"
To the third question:" In respect to any moneys
of the United States deposited in banks but not 10
the credit of the Treasurer the banks considered
directly responsible to the United States In the
Of depostes tothe credit of the Treasurer they
are responsible In the first instance to hm-ulti-
mately TO the United States"
Thus 1t appears, MIR. President, that, from the
foundation OF the Government, deposiies were made
in banks under the direction of the Secretary OF the
Treasury--were put by him afterwards in the same
banks under the control Of the Treasurer when and
not till then, they were considered as In the Treasu-
~, subject 10 be drawn 10 answer appropriations,
and for no other purpose whatever.
In regard to the construction that ought to
be put upon the resolution Of 1916, Mr.. For
syth thus expressed himself:
Bank were 70 be received BY practice and neces-
sty all bank notes not forbidden by the Secretary,
were received in payment. The resolution OF the
year 1916 directed such measures be taken by the
Secretary as he should deem necessary for collect
ing duties, &c. in specie notes Of the Bank OF the
United States Treasury notes, and notes of specie
paying banks, and that after February Goth, 1877,
duties taxes &c &c ought to be collected or re-
ceived otherwise than in the legal currency Of the
United States, or Treasury notes, or notes Of the
Bank Of the United States or in the notes Of banks
which are payable and paid on demand, in The said
legal currency of the United States MIR Dallas,
in his report to Congress Of that year, said: No
State bank notes are receivable by law in payment
OF debts 10 the United States; the acceptance OF such
notes has been properly lefl TO the vigilance and
discretion OF the Executive Department" The re-
solution changed the existing law by authorizing all
speciepaying bank notes to be received BY the col
iecting officers; il authorized measures for causing
such only TO be taken and il expresses an opinion of
the time beyond which one others ought 10 be taken
of the sixteenth section Of the bank charter
a command or permission TO the Secretary TO over
look his obligation TO that institution be inferred
The Senator from New Jersey, who quoted this re-
solution read the word ought as shall, and when cor
reced, asked with some surprise, il ought and shall
be did not mean the same thing. Certainly not sir: :
the words are not Identical nor they always of
equivalent signihcation in this instance the word
ought was selected because il implied what really
exsied-a doub, as to the praccability Of effecting
the object. It was intended to justify the Secretary
in the adoption of unpalatable and unpopular regula-
lions, that what was aDxiously desired might be OBJ
tained and that at the same time 10 leave him full
justification to receive duties, &C. in notes OF banks
not paying specie il no other notes could be obtained
The precauon was wise, and an act Of justice to the
/ head of the Department No one who remembers
the condition Of the currency at that day, will deny
that the efforts of the Secretary Mr.. Crawford
crowned with unlocked for success. The measures
he adopted more than realized the hopes Of Con-
gress.
1t will be seen Mr. Forsyth admitted, tnat,
the act Of 1889 had remained from the period
! of its enactment mere dead letter on the
Statute book, by permitting bank noies 10 be
AIKEN as specie" This he said had been done
from "NECESsITY."
The construction placed by Mr.. Forsyth
on the resolution Of 1916 goes further than we
are willing to go. We have ever been OPP
posed to the notes OF banks not paying spe-
Gle being received in payment Of the revenue.
And we differ from Mr.. Forsyth, in the OPT
Mon he expressed, that the resolution intend
ed to leave the Secretary Of the Treasury at
liberty to " receive duties, SC. in notes of
banks not paying specie, if no other notes
could be obtained" We believe it was in
tended to be mandatory; that notes of banks
not paying specie, should not be recs,red J; but,
also, that the notes of banks, that did pay spe-
Gle, should be receiped in all payments made
into the public Treasury
We wait to see how far the practice Of the
Government, when the banks shall have re-
sumed specie payments, will correspond with
the views Of its duties, given in the foregoing
extracts from speech made four years ago,
by one who is now at the head Of the leading
executive department of the Governmet, and
who, report says, enjoys more than all others
the confidence Of the Chief Executive Ma
gstrate.
TIL e PANIC OF 1S33-34-THEP PANIC OF
lS37-3S.
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