The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-12-22
THE POLICY OF THE ADMINIsTRA-
TIoN IN REFERENCE TO
THE FINANCES.


The President in ais message, renews his recon-
mendaon Of the Sub-treasury scheme, not only with
the ardeney with which he did on two former oc-
casons but with increased perinacity for, said he,
"these (his former views have been strengthened by
recent epeats" The Treasury report says, "some
defaults have occurred been discovered since Oct,
1887 but II is not apprehended that any losses will
ultimately be sustained from them, except in the case
OF the former collector of New York. That case has
been recently detected and the defalcatons are sup
posed to have continued for many years. and 10 have
reached a large amount" These defalcalions are
supposed to be the recent erents" "recently detect
ed" which has led the President again to urge the
Subtreasury scheme as recommended before to
Congress, with respectful Difference to the conflict
ing views of others
The New York defalcaion of more than million
and quarter of dollars Of the peoples money abb
stracted is circumstance of no light consideration
either as to the amount of money involved the finan
cal system under which it was permitted to take
place, or the supervisory and guardianshpthat
was exercised by those whose duty it was to watch
over the subordinate agents Of the Government, and
see the laws faithfully executed.
II is with the deepest regret, we look at the Olsen
genuousness resorted TO by both the President and
Secretary of the Treasury for the purpose of con-
Meeting this defalcation and peculaon of the public
money with the fiscal agency Of the Bank OF the
United States, and the State Banks, under the de-
pose system Says the President, ct however,
now appears, that he (Swarwout,) commenced alb
stracting the public moneys shortly after his appoint
ment, and continued to do so, progressively increas
ing the amount for the term Of more than seven
years. embracing portion of the period during
which the public moneys were deposited in the Bank
of the United States Tie phole Of that of the State
Bank deposle system, and concluding only on his re-
tiremen from office after the system had substantially
aiisd in consequence Of the suspension Of specie pay
mentsn
The Secretary in his report, says, "notwithstand
ing every precaution and security heretofore in
force the whole of these defaults by collectors re-
ceivers or banks, have occurred under the old sys
TENS of making deposites in the United States Bank
or State Banks, for safe-keeping" This is a mis-
representation as we will show from the record But
suppose it were as represented by the Secretary we
will show that neither the Bank Of the United States
nor the State Banks, employed repositories, had
any thing more do with the abstracting of the pub
lie money by Mr.. Swartwout, than the Bank Of
France.
First, as to the time these sums were distracted.
The report Of Messrs. Barker and Gilpin, the for
mer the First Comptroller and the latter the Solic-
tor ofthe Treasury, made to Mr.. Woodbury., dated
18th November last says "the deficit OF Mr.. SwART-
WONT, at the end of each successive year, was as