The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-01-12
SUB-TREASURY CANDOR.

In his last annual report, the Secretary of the
Treasury says, recent occurrences have shown that
the rhole treasure of the United States, when entrust
ed TO banks is liable in critical periods to be swept
at once from the and control of the General Go
| vernment." What recent occurrences justify such
declaraion-such an assault on the integrity and
correct dealings of the banks 7 There are none
whatever. The whole is an invention and misre-
presentation, for the purpose Of prejudicing the
banks and promoting the Sub-treasury scheme In
another part of the report the Secretary says, "he
remaining dues from them (the deposite banks) to
the Treasurer en- defaults accruing between 1884
and October, 1887, though at first very large, have
been reduced to about ~ 400 600, and most if not all
of these debts with some others owing to public dis
bursting officers for money on deposite, il is conf
IDENTIFY expected WILL in the end, be paid" Why did
the Secretary go back to 1884, when not single de-
facation occurred till the general suspension of
specie payments took place in May, 1887, an event
which his own mismanagement Of the public funds
mainly rendered necessary Does he intend to
convey the idea, that the whole Of the money in the
banks, at the time suspension, was "swep at once
from the use and control of the Government ~ If
So the facts contradict the assertion. When the
suspension took place on the 10th May, 1887, they
held Of the public money about S32, 100000. On the
18th day Of August following, the sum had been re-
duced by payments made of the drafts OF the Trea-
sury, to less than S9,0O00O0, at the credit of the
Treasurer in the banks is shown by the table APP
pended to the report of the Secretary, at the extra
session. And this enormous reduction took place in
the space of one hundred and ten days; yet the Sc
cretary would convey the idea, that it had been
swept from the use of the Government
On the first of the present month, second install
ment fell due and payable by the banks that avaed
themselves OF the credit authorized by Congress in
October, 1887, and we doubt if the balance owing by
the banks nor exceeds million and quarter of
dollars the most of which is well secured, and will
be paid as ii falls due.
great QUERY has been made, and but the other
day brought forward in Congress by Mr.. Taylor,
of New York, that In consequence of the credit
given to of the banks the Government had been
obliged to issue Treasury Notes. and to pay interest
the same, at the rate OF from two 10 six per cent.
per annum. And were not the banks under the act,
compelled to pay interest at the rate of six per cent!
And what amount of Treasury Notes has been
issuedq Why nearly sixteen millions; while
thelwhole amount the banks took Of the credit author
ized amounted only to about four millions and half
of dollars!
Why is it that the Secretary has avoided through
out his whole report and documents accompanying,
even mentioning the names of the Commonwealth,
and Franklin Bank, of Boston Those are the only
two banks by which it is suspected that dol
lar will be lost that have been employed since 1888
We want TO know how it happened that about $40
600 stood at the credit Of the Treasurer at the time
the former bank failed, when in October, 1897 near
ly every dollar had been drawn out We want TO
know something as TO the for placing large
sum in that bank at the credit Of the Commissioners
for purchasing site for Custom House, when the
purchase had neither been made, nor the site agreed
upon2 We want to know too something about the
manner in which the latter bank was selected-the
collision between ii and another bank whose President
was the brotherinaw Of the Secretary Of the Trea-
sury, and was Naval Officer at the time-his agency
in contingent 10 Washington and getting the bank Sc
lected, all of which partially forth in the re-
port of committee of the Massachusetts, Legisla-
iure last year. These defalcations would be proper
SUBJECTS, in our opinion, for investigation by
mittee.
since the Sub-Treasuryites are resolved to con-
''hue the'r warfare against the banks the depose
system, ana The currency Of the country, we will
| carry the war into Africa.