The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1839-12-31

Rouse OF Representatives, upon the Rosolu.
uons recommending The lnIepandent Treas.
/ nry.
air. SPEAKER-Thc gentleman from Nor.
wen has rightly informed the House that the
WORD 'lreasury is but once used in the Const.
luton OF the United States 1t is in the follow.
ing sentence: Sec. o. Act No money shall
De drawn from Treasury bur in consequence of
appropriations made by law
1T the gentleman is correct in understanding,
!he Term Treasury, TO mean place of deposilp,
siu'i agree WITH him that it could not mean
BANK or banks But understanding it to con.
template nolhin; more than villa, is provided for
| ny the Acl OF Congress Of 1889. NAMELY Il
Treasury department, the resolution introduced
NY 'ne gentleman is unmeaning or incorrect in
us assertion THAT 1T could not mean Bank or
Banks because very few banks were tlau in ex-
lstencc.' Certain il is that under the conledera
ton, and before the adoption of the Constitution
the iHndS OF the government had been deposited
III tie 'bank of America ut PhiIaAephia and
maj "''S institution had been used as the fiscal
ageh' OF me government to n certain extent. -
This tact was known 10 the trainers of The Con
stit'ltlon, nor was il inconsistent with the pro.
VISIONS OF HAT instrument. In The remarks |
shall make upon the independent or Sub Treas.
ury project shall have little occasion TO notice
inc b'Ii which has been printed by order of this
mouse. This bill does not embrace the plan as
entertained by the present administrator, and AS
II IS 10 be presented to the next session of Con.
gress 1t purports only to he an 'act for the safe
heeplng OF the public money! | have before me
SIR the Oil originally Introduced ny the Senator
from New York, Mr. Wright, and which find
copied INTO the Albany Argus--of Sept I6th.
with Ugh, alterations. 1t may be regnrded rs :"
KIND OF official manifesto, especially as the re.
MARKS OF the Argus are sustained by the Globe
at Washington. The essential provisions Of this
bill are rs follows:
sec !. Provides for the construction of
vaults in the Treasury building at Washington
sec. - Constitutes the minis at Philadelphia
anu New Orleans places of deposite for the rev
ehne.-Sec. 8. Provides for the construction OF
Vaults IN the Custom Houses erecting at New
YORK and Boston.-Sec 4. Establishes offices
with TIRE proof Vaults, or safes, at Charleston, S
Z. aud at st Louis, Missouri Sec. 5. Creates
four Receivers general to be appointed hy the
iresidcnt-Sec. o. Requires an Receivers to
Keep all moneys received ill ordered hy the
proper officers TO he transferred or paid out -
See. 40. Provides for the transfer of moneys
rom one place at deposite TO nuoller-Scc IL
Requires Receivers to make special deposite in
Banks when the moneys received exceed the
amount OF their bonds-Sec. II. Allows add
tional expenses for ClerkS, ire proof Chests, or
Faults Sc.
propose, sir, to examine This plan in respect
to It's comparative Security It's Economy-Its
effect on Exchanges and the business Of the
toe PoUer and Potronage
HE second Bank Of The United States was
chartered in 1916. The government itself was
stockhoder, and had the appointment of
portion OF lis Directors. Up to the time Of the
removal OF the depostes, in 1888, 1t made
the fiscal agent Of The government receiving and
dIsbursng millions of It's revenues annually, and
IL IL matter OF history that during hia period the
government did not sustain the loss of dollar
deposited IN 1888, the government deposes
were removed from the Bank OF the u. 5 aud
placed in sundry State Banks, selected by the
Secretary OF the Treasury, and, sir, undertake
10 say thai such were the terms eXacted from
these deposite Banks that no losses did accrue
or coll!d accrue TO the government except when
'he oinccrs OF the government were chargeable
with objectionable neglect. The contract en-
'ered INTO by the Glrard Bank OF Philadelphia
ana winch IS counterpart to those subscribed
by the other Banks provided as follows: III the
deposes in said Bank shall exceed one half its
caP'tai stocK actually paid in, it is agreed that
cotdterm security satisfactory to the Secretary of
the treasury shall be given for its safe keeping
and faithful disbursement-Prov that, il the
sad Secretary shall at any time deem it neces
sary, the said Bank agrees TO give collateral Sc
curly when the deposite shall not equal one
half OF the capital 'The snid Bank agrees to
make weekly returns of its entire condition to
the Secretary Of the Treasury-of the state of
his accounts &C.
Under these provisions it is known that the
principal deposite Banks did execute collateral
security in the amount of many millions OF dol
lars, and it was only in the of the Franklin
and Lafayette Banks and one or two Others
which We're owned and managed by political
paiiZaus that the Government has suffered loss,
and that in consequence OF the neglect of Gov.
eminent officers to obtain the collateral security.
But even these losses fall far below those ex
perenced under the practical operation of the
sub-treasury system-witness the deiacation of
Swartwout and Price.
There is Mr. Speaker, curious provision in
the 18th section Of the Sub. Treasury bill. 1t
is that whenever The amount of public monies
accommodating in the hands of a receiver shall
exceed the amount of his bonds. the excess
shall be deposited in some Bank for safe keep
ing. know that it also provides that it shall
not be Withdrawn except by order Of the secre.
tary. But have an instance in point which
illustrates the practical operation of this system
as now exisng-for il must be remembered
that Cnmbreleng has proclaimed that whatev.
err complains might be made the Sub Treasury
was in existence and would continue until 1910.