Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1839-12-27

the existing laws, and unusual arrangement in the
general operations OF trade have, during the last
three years. much increased the difficulties attend
ant on the collection, keeping, and disbursement Of
the revenue, and called forth CORES pondng exer-
tons from those having them in charge. Happily
these have been beyond expe Vast
sums have been collected and discussed by the Sc
veral Departments with unexpected cheapness and
ease; transfers have been readily made to every
part OF the Union, however distant; and defaf,
cations have been far less than might have bean
anticipated from the absence Of adequate legal
restraints. Since the officers Of the Treasury and
rost once Departments were charged with the
tody OF most oil tie public moneys received by them
there have been collected sixty six millions of dol
lars, and excluding the OF the late collector at
New for Stse aggregate amount of losses susta ned
in the collection caErA il is Relieved exceed sixty
| thousand dollars. TIA dcf~lcation or the late cot
lector at that city, of the extent and circumstances
OF which Congress has been fully informed ran
through all the modes Of keeping the public money
that have been hitherto in use, and was distinguished
by an aggravated disregard of duty, that broke
through the restraints Of every system; and cannot
hreiore be useinlly referred to test Of the COM
| paratiye safety OF either Additional information
wal also be furnished by the report Of the Secretary
me Treasury in reply to call made upon that Of.
hcer oy The House Oh Representatives at the last
session. requiring detailed information on the subject
" ueiavNs by public officers agents under each
admain'@ra'ion, from I7S9 to 1887. This document
WIN De submitted to you in few days The general
results independent OF the Post Office, which is
kept separat ly and will be stated by itsef) so far
as they bear upon this subject are, that the losscs
which have been and are likely to be sustained, by
any Grass OF agents have beenthe greatest by banks,
incuding as required In the resolution their depre
Grated paper received for public dues that the next
largest have been by disbursng officers and the least
by collectors and receivers If the losses on duty
bonds are included, they alone will be threefoid
those by both collectors and receivers Onr whole
experience, therefore, furnishes the strongest evil
dence that he desired Legislation Congress- is alone
gree of security and facility. Such alo appears to
have been the experience of other nations. From
the result OF inquiries made by the Secretary Of the
treasury In regard to the practice among them,
enabled to state that in twenty-five out of twenty
seven foreign Governments, from which undoubted
info nation has been obtained, the public moneys
are kept in charge of public officers. This concur
renee OF opinion in favor Of that system is perhaps
as great as exists on any question Of internal admin
istration
In the modes Of business and official restraints on
bursina officers, no legal change was produced by
the suspension of specie payments. The report last
referred 10 Wi! b. found 10 contain. also much useful
information IN relation TO this subject.
| have heretofore assigned 10 Congress my rea-
sons Tor believing that the establishment of an hide
PENDENT National Treasury, contemplated by the
Constitution, is necessary 10 the safe action of the
Federal vernment. The suspension of specie paw
ments in 1897, by the banks having the custody Of
the public money showed in 80 alarming degree our
dtpendence those Institutions for the performances
OF duties required by law, that then recommended
the entire di solution Of that connection. The re-
commentator has been subjected, as desired il
should be- To severe scrutiny and animal tied discussion;
and allow my self To believe that Notwithstanding
| The natural dverstesc f opinion which NAV be auil-
cpa'ed on all subjects involving suck important con-
siderallons, IT has secured in its favor as gcneia
concurrence OF pubic sentiment as could be expect
ed ca one OF such magnitude.
hecentevents have also continued to develosc rev
| objections TO such connection. Seldom is any bank
under the existing system, and pruccc able 10 meat
on denand all us liabilities for dcposiies and notes
IN circulation. II maintains specie payments and
| transactsa a profitable business only by the conf.
dence of the publ in its solvency; ar wherever this
IS destroy ed, he demands of deposors and note
nold rs pressed more rapidly than il can make col
Ieeions from lie debtors fierce il TO stop PAYMENT
ihs 50 Of confidence with lis con &c quer CO. occurred
IN 1887, and afforded the apology of the bank. for
Their suspension. The public then ncquicsced in the
validity of the excuse; and while the Staie Legsla-
lures did not exact from them their forfeited charters
Congress, in accordance with the recommendation
OF The executive allowed them time 10 nav over the
pnshc money they held although compelled to is.
ated.
IL now appears that there are other motives than
want OF public confidence under which the banks
seek Justify themselves in refusal 10 meet their
oblgauons. Scarcely were The country and govern.
meni relieved, in degree, from the difficulties ofca-
stoned by the general suspension Of 1897 when pur-
tai enc, occurring within thirty months of the former
prosnced new and serious embarrassments, though
had no palafion IN such circumstances ne were al
legged in Justification of that which had previously ,ak-
en- place. There was nothing i'm the condition OF the
country TO endanger we'll conducted banking in
stIiuon commerce deranqed by no FOREIGN
war; every branch of MaHufacrurng indus,rv was
crowned with rel rewards and the more IN usual
abundance OF our harvests, after supplying our do.
mcstlc wants. had left our granares and storehouses
filled with surplus for expectation. 1t Is in the
midst Of this, that Irredeemable and Deprecated
paper currency IS entalled upon the people by large
portion Of the banks. They not driven 10 il by
the exhibition Of loss of public confidence or Of a
Sudden pressure from their deposors or noteholders
but they excuse themselves by alleging that the cur
rent OF business, and exchange with foreign countries
which draws the precious metals from their vaults
would require, IN order 10 meet n, larger curtail-
nel oi their loans 10 comparatively SIN oil porfon
OF the community, than it will be cenvesent for them
TO bear, or perhaps safe for the banks TO exact The
plea has ceased 10 be one ofnecessty Con, ep,ence
aud policy are now deemed Sufficient 10 warrant
these institutions in sisregardng their solemn oblga-
tons Such conduct 10 not merely an injury 10 indt-
v'dual cred tors but Il IL wrong To the whole COM
munity, from whose ibersllty they hold most yalua-
bic prvIlcees-whose rights they violate whose bu-
sness they dersnge, and the value OF whose property
they render unstable and insecure. II must be evi-
dent that thsnew ground for bank suspension. in re-
terence TO which their action only Disconnected
.'in, htt wn' liy nsependant of that Of the prblic
gives character TO their suspensions more alarming
than any VII oh they exhibited befsie, and greatly
Increases the mproprtiy OF relying on the banks in
the ransactons Of The government.
AlarRc and highly respectable portion Of our bank
ing Institutions are, II affords me unfegned pleasure
t. state, exempted frem all blame on aecount Of this