Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-02-15
former part Of his remarks the capital Of the bank would
not be LIABLE except for gross negligence in the keeping
of the money placed in its vaults

Of the mon"y placed in its vaults.
What, then, the risks under each sysrm'
Under that proposed by the BILL the only single risk
Is that OF the nsconduc and dishonesty Of the Officers
10 whom the safe keeping Of the money entrusted and
that Conduct in addition to oil other legal liabilities Is
made hg! crime and punishable with protraced prr.
sonal Imprisonment The persons TO whom this trust is
In be conhdcd: such citizens the President. with Il
full knowledge of the duties, responsibilities and temp
a'i"ns shall select and nominate to the Senate, and rs
the Senate upon full examination, shall advise and con-
sent That The President do appoint and commission to
execute The trust The risk is that these persons will BIZ
dishonesty that they will become nscns!ble 10 standing
and characler that They will violate their faith tn their
su'ees and their counry that they will ernbezzle the
public money in their hands and thus subject themselves
to infamous punlslment-lo imprisonment with roSues
and felops for Term Of not less Than two years.
Oueoi tie risks under The State Bank deposlle sYs'
teri is The same misconduct and dishonesty IF the ot
GERS agents and managers Of the banks, and they are
numerous and many OF them selected 10 perform subor.
dnae duties Without any impulation upon the inslItu'
lions therefore, their principal officers it cannot be
unfair 10 that many Of the persons who must
have 10 their books accounts and money, VIII
not be persons OF that standing and character which
would be required By all concerned in The selection and
appointment Of responsible public officers In the case
OF tie bank too, the persons who must have access to
the money in its charge numerous, while under the
other system the single depository alone has such ac.
cess Again. the misconduct md dishonesty OF The 9th.
GERS and agents of the bank not made criminal and
punished crimes. IL committed, far as the Govern
is concerned they mere breaches Ut trust, and
incur debt they lay the foundation for suit al law
tie money embezzlcd Can It, by possibility,
be supposed that these risks equally balanced: lie
knew that npon former nccasnn when this same SUBJ
ect was under discussion, had had paraded before
long and most unpleasant list OF defaung public oiil-
but il had not been stated al what periods those de-
faults had occurred what their aggregate amount
lie had never upon any OCCASION, examined The list
with much care, it not matter of entertainment
to him 10 these evidences uI unworhncss in those
who had sought and obtained public patronage and
public trust He had, however referred TO the list
sufficiently 10 learn that nineenltis OF The defaults
recorded upon it had happened during the pEevu.
cnce of system Of bank deposes Of some sort ;
and he thought it would he found upon careful compa-
rison that large ma ority OF them had taken place
when National Bank, that great security in The minds
Of many against all pecunlary evils, was the sole dePo
STORY of the national treasure The defaulters were
mostly dsbursng officers proper such as paymasies Of
the army, purscrs in The navy, and The like, or postmaS
ers who had never, until very recently, been legally con-
neced in ans way with the Treasury contractors up
on the public works All these classes of persons except
poslmascrs must always, and under any system have
the same opportunity 10 m'sapply public money; and
their defaults therefore, were no more an argument
ar.iusl the system proposed by the BILL for the saekeep
ing Of The public money, than against my other So stem
which could be devised named. lie had already
said the amount of these defaults had not been stated
lie did know the amount but this he would venture
1 affirm without the fear OF contradiction that the whole
amount of sses 10 the Government: from the defaults
OF public officers since its organization under the Con-
suon would be hut fraction Of the losses which It
had sustained from its connection with State banks alone,
setting aside the forty years of the period when Ma
tiona Bank was the sole fiscal agent Of the Treasury
Here therefore, the Stale bank system gained no ndvan-
tage in the argument lie was most happy to be able to
say that in comparison with the vast amounts which had
been received and dshursed the losses under any system
hitherto adopted had been very small; and it made him
proud his cbuntry and Of her citizens, To state Tact
which had been given TO him from hgh authority, since
the subject Of enrusIing The money Of the people with
their officers had been OF discussion before the
country The fact which he alluded that the who'll
disbursements of the army, from the year lc2 10 the
ycu 1885, both inclusive, amounting to several millions
i'm each year. had been made through the hands OF the
public officers appointed for that purpose, and that not
one dollar OF loss had accrued to the Government from
those appropriations during the whole OF that period
Ouul not this fact alone 10 inspire confidence IN The
lrustworlhiness OF public servants IL seemed 10
him so and he must say he could not comprehend how
il was after all The experience which our former and re.
cenl history had afforded that gentlemen of the most
unuucstioncd integrity should feel and manifest So much
tIsirus against the public officers OF the Government
men of elevated standing and character, and directly
accountable the people and their representatives, as
well Ms TO the civil and criminal tribunals OF The country
and should al the same time and in reference to the
same subject repose such implicit and unmoved conf.
dcuce in the incorporated banking institutions of the
States and in their officers and managers Did the be-
eye that the transfer of citizen from private life to
public Office necessarily poisoned his integrity, while
similar transfer Il situation in bank rendered nm
worthy Of all trust? No. They could not so believe
The fact could not be The honest man would be no.
nest in either situation. The dishonest man would he ho
nest in neither He knew TINT public officers sometimes
became dcauers and he must be permitted to ASK how
f ouent!y the public sense was startled by announce
mens through the public press, of the defaults and en-
bezzleens of the most confidential officers OF banks: All
were fral and errng men, and some alike IN ho casseS
would prove unequal TO the resistance which the temp.
atioDs of their situations regurcd but he could not see
that either system derived any advantage over The other
from this considerations while he did believe that The
bill under discussion proposed guards against Tins FISK,
which would be found more beneficial IN Pracuce liuh
auy hitherto known to he legislation OF Congress
So far rs vaults and safes concerned he had al
ready admitted that each system possessed equal adVun
,,ges and from what had been said, il would be seen
that 10 very great extent these securities, as oPPed
IN hath systems were identically the same.
But there is another, and much more important, risk
connected with the hank system. II is that all moneys
placed with the banks for safe keeping, upon open or &c.
neral depose necessarily subjected 10 nil the a.
cards which attend the business Of the banking insttu-
lions We have already ha, the money thus depo-
s,ed becomes at the property OF the bank and that
the deposition receives, i'll exchange for his money he SIM
n credit of the institution IT, then, lis credit be sub.
jecled 10 the hazards OF the banking business SO mus.
be The money placed general dcposte with it, as that
money merely converted by the drposor INTO That Gre
dit, By adopting this system. therefore, TOR the sae'
keepng of the national treasure, we embark The money
of the people in the same boat win Inc caP,a {" the
bank we subject il to all the hazards TO which that ca
pa is subjected, and we substantially agree so aF as
our reliance is upon the capital Of the institution Tor IN
dcmny that If the adventure he fortunate, our money
shall be SAFE but, that if it be unfortunate the risk aud
the loss shall be ours We not to be placed
in the condition of the Of the capital OF the bank
We are 10 share in The Profits OF fortunate hazard
Our only object safety for money and to gam that
we take share Of The risks. without any interest IN
The contemplated profits from them Who will contend
that these risks do not fully balance the safely we de-
rive as the consideration for mourning them: The bank
system then derives no advantage in the argument from
lie security afforded by its capital, SO long as Il SUB
icc.s US 10 all its risks without any share in It's gains
Let Us now balance The account, as tar us we nave
gone, and which system has the advantage In the
Security Of vaults and safes both equal The secu
rry afforded by the capitals of the banks is couneroa
Isad LIZ lie cnnlnels take. growing out of