True American. [volume] (New Orleans [La.]) 1835-18??, 1838-12-12

from adherence by to the
standard of value instead of sanctionng the suspension by
the receipt of irreeemable paper aud the advantage
rived from the large Of .pcce introduced into the
country previous TO 1885, afford valuable illustration Of
the true policy of The such crisis, Nor
tue comparison fail to remove the impfess that national
bank is necessary in sudh emergencies Not only spe
Gle payments resumed without aid hut exchanges al
SO ren more rapidly restored than when existed thereby
showing that private capital enterprise and prudeuce
fully arquut ends On ali these points experience
seems to have confirmed the views heretofore submitted 10
congre,s.
We have been saved the modification of seeing
the dls,resses of tho community for tho third time
seized on 10 fasten upon the country danger.
Gus an institution; and we may also hope that the
business of individuals will hereafter be relieved
from the injurious effects of continued agitation
of that disturbing subject. The limited influence
of national bank in averling arrangement in tho
exchanges of tho country, in compelling the
sumption of specie payments, is now not less ap.
parent than its tendency to increase inordina,e
speculation by sudden cxpan sions and contractions
lts disposition to create panic and emba amusement
for tho promotion of its designs; its interfer-
ence with politics; and its far greater power for
evil than for good, either in regard tho local in.
sitntions or the operations Of Government itself
What was in these respects but apprehension
opinion when national bank was first established,
now stands confirmed by hun,iiiating experience.
The scenes through which we have pissed prove
how little our commerce, agriculture, manu-
tactures, or finances, require such en- institution,
and what dangers are attendant its power-a
power, trust, never to be conferred by the AHler
can people upon their Government, md still less
upon individuals not responsible to them for its
nvo dabe abuses.
My CO 'vieton Of tho necessity Of further lcgis.
lative proceedings for the safo keeping and dis
bursement of the public moneys, and my opinion in
regard to the measures best adapted to the accom-.
plishment of these Objects have boon already sub
Isitted to you. These have been strengthened by
recent events; and, in the full conviction that time
AL Al
propriety. feel it my duty, with respectful defer.
once to the conflicting views of others, agan to
invite your attention 10 them.
With the exception of i,nitod sums deposited in
the few banks still employed under tho act of 1885,
tho amount received for dutes and. with very in.
considerable exceptions those accruing from lands
also, have, since tho general suspension Of specie
payments by the dcposite banks, been kept and
dlsbursed by the Treasurer undor his legal powers
subject to the superintendcnce of the Secretary of
INC Treasury. The propriety of defining more spe
chcally and of regulating by law, tho exercise of
this wide scope of Executive discretion has been
already submitted to by Congress.
A change in the office of collector at ono of our
principal ports, has brought to light defalcation
of tho gravcst character, the particulars of which
will be laid before you in special report from tho
Secretary of the Treasury. BY his report and tho
accompanying documents, it will be seen that the
weekly returns of the defaultng officer apparently
tho affairs entrusted to his management. 1t, how.
ever, now appears that he commenced abstractiny
the public moneys shortly after his appointment
and continued TO do So progressively increasing 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 tho Unit d States; the whole of the state bank
deposite System, and concluding only on his re.
tirsmant from office, after that system had sub
stanally tailed, IN consequence Of the suspension
of specie payments.
| The why in which this defalcation was so long
concealed, and the steps taken 10 indemnify the
United States, ms Tar as practicable, against loss
will also be presented to you. The case is one
which imperanvely claims the attention of Con.
gross, and furnishes the slronges, motive for the
| Q Enlistment Of a more severe and more secure
system for the safe keeping and disbursement of
the public moneys than any that has heretofore
existed.
1t seems proper at all events that by an early
enactment, similar to that of other countries, the
application Of public money by an officer of 90.
vernment to private uses should be made felony
and visited with severe and gnominious punish
mon. This is already in effect. the law in respec,
to the mint, and has been productive of the m 81
salu'ary results. Whatever system is adopted,
such enactment would be wise az an indepe n.
dent measure, since much of the public m oneys
must, in their collection and ultimate disbursc-
ment, pass twice through the hands of public Of
heers, in whatever manner they Intern dintey
kept. The government, it must be admitted, has
been, from its commencement. comparatively for
,unate in this respect. But the appointing power
cannot always be we'll advised in il. selections, &
ihe experience ct almost every country has sh ,wn
that public officers not at all times proof
against temptation. 1t ia duty, therefore, which
the gnve nment o~ es US well to the interests COM
United 10 lis care to the officers themselves TO
provide against trdnsgressons Of this; charac,e
that is consistent with reason and humanity. Cnn.
hn M Jpal pt I ,.p ,,f
who are entrusted with the public money and |
shall at oil times be disposed encourage watch.
tnl discharge of this duty. II more direct CO.
operation the paIl Of Congress, IN the sup ryi.
sion OF the conduct Of the officers entrusted with
the custody and application OF the public money
is deemed desirable, it will give me pleasure to
assist ia the establishment of any judlcious and
constitutional Flan by which that obec, NAV be
accomplished. You will in your wisdom determine
upon the Proprley of adopting such plan, and
upon the measure necessary TO its efrclual eXecu.
ton. When tho late Bank of the United States
was incorporated, and made the depository of
public moneys, right was reserved TO Congress TO
inspect, at its pleasure, by COMMITTEES of Iha,
body, the b 'oks and tho proceedings Of the bans
In one of the States, whose bank ing institutions
ARE supposed to rank smongst the first in poin, of
stability, they are subjected to constant examna.
lion by commissioners appointed for that purpose,
and much oil the success of its banking system ia
attributed TO this wa'chful supervision. The same
'nrse ms also been adopted by an adjoining State
tavorahly known for the care il has besowe ed upnn
whatever relates to its financial concerns sub
init to your consideration whether a committee ,f
Congress nigh, not be prof; ably EMPLOYED in in.
specting, al such intervals ms might he de.mpd
proper,the affairs and accounts of officers entrusted
with the custody ofpublic money, Tn q frequent
performance OF this duty mig hi be m ade ohlioatorv
on the committee in respect to TO these Off rs
who have large sums in their possession, and 10, !
discretionary IN respect to others. They mioht /,
report to the executive such defalcatons as were
found TO isl, with view to o prompt removal |
from office unless the default was substantially
accounted for: and report nso to Congress Mt ,ha
commencement of each session, the result of their |
examinations and proceedings. Ii does appear m |
me that with sub ecton of this class Of puLIic
officers TO the general supervision of the Execu,iv.
To examinations by committee OF Compress. o,n,- |
RODS OF which they should have no previous norice
ard TO prosecution and punishment as for felony.
fDr every breach of rnst, the safe keep,np If Ibe
public money, under the 81 stem proposed might
be- placed on surer foundation than 1t has ever
occupied since The establishment of The govern,
ment.
The Secretary of the Treasury VII lay before
you additional Information containing details
on this interesting subject. 70 th.se | ask your
e. r!y attention. That it should have oiven ris,
I" great diversity of opinion canno, be subiect Of
surprise. After the collection md custody of the
public moneys has been for so many wears since
with, and made subsidiary to, the adj
vancrment OF private interests, return 20 the sim
pie and scldenying ordinances of the institution
could not but be difficult. But time and free dis.
cnSson ,lciting the sentiments of the people and
aided by that conciiatory spirit which has ever
thelr course on great emergencies,