Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1840-01-03


was distinguished by an aggravated disregard Of
duty, thu broke through the restraints of ever,
system. and cannot therefore he usefully referred
TO as test of the comparative safety of either.
Additional Information viii also he furnished b,
the report uf the secretary uf the neasuv, in re.
ply TO cal made uron that officer bv the house
orreprcscnatves al he last session, requiring de.
tailed information on the subject OF defaults b,
public officers or agents under each administration
from 1850 to 1887 This Gocument will he sub.
miited to you IN few da,s. The general result.
(inependenl of the post office, which is kept sep
ara,eIy. and will be stated Ivy self) Ear they
bear upon ;his subject, are that The losses which
have been, and are likely 10 be, sustained by any
class OF agents, have been The greatest by banks,
including, as required IN he resolution, their de-
precla'ed paper received for public dues that the
next largest have been h, dsbursng officers; and
the leas, by collectors aud receivers. II the losses
on du,v bonds are included they alone will be
,lrecfDh hose bv both collectors aud iyers. -
Our whoe experience therefore furnishes the
strongest evidence that the desi,e ed legislation Of
congress is alone wanting TO insure in those opera.
tons the h CHEST degree Of security aud ficility.-
Such also appears TO have been the experience
Of other nations. From the results Of inquiries
made by The secretary Of the reasur, in regard 10
the practice among them, | am enabled TO state
that in twenv.lwo out Of twenty seven foreign
governments, from which undoubed information
has been drained, the public moneys are kept in
charge Of public officers. This concurrence OF
opinion in favor Of that system is perhaps great
US exists on any question or internal Administrations
In the modes of business aud offic la
restraints or Glsbur>ng officers, no legal
change was produced by the suspension o.
specie payments. The report last referred
10 will be found TO coH'aln also much use'
fn ,nfr,ma,lun ~ relation to his subj oct.
heretofore assigned to Con-
gress my reasons for believing that
the establishment of an Independent
National Treasury, as contemplated
by the Constitution, is necessary to
the safe action of the Federal Gov
eminent. The suspension Of spe-
Gle payments in 1887, by the banks
having the custody of the public
money, showed to so alarming de-
gree our dependence on those insti-
tutions for the performance of duties
required by law, that | then recon-
mended the entire dissolution of
that connection. This recommen-
dation has been subjected, as de-
sired it should be, to severe scrutiny
and animated discussion; and al
low myself to believe that, notwith-
standing the natural diversities OF
opinion which may be anticipated on
all subject involving such important
considerations, it has secured in its
favor as general a concurrence Of
public sentiment as could be eXrec.
ted on one of such magnitude.
Recent events have also contin-
ued to developc new objections to
such connection. Seldom is any
bank under the existing system and
practice able to meet, on demand,
all its liabilities for depostes and
notes in circulation. It ncirto;"r
specie payments, and transacts a
profitable business, only by the con-
fidence ofthe public in its solvency
and whenever this is destroyed, the
demands of its depositors and note
holders-pressed more rapidly than
it can make collections from its
debtors-force it to stop payment
This loss of confidence with its
consequences occurred in 1887 and
afforded an apology of the banks fol
their suspension. The public then
acquiesced in the validity of the
excuse; and, while the State Legis.
lature, did not exact from them
their forfeited charters, Congress
in accordance with the recon.
mendation of the Executive, allow.
ing them time to pay over the public
money they held, although com
PEELED to issue Treasury notes tc
supply the deficiency thus created
Itnow appearsthat there arc 9TH
err motives than a want Of public
confidence under which the banks
seek to justify themselves in refu'
sal to meet their Obligations
Scarcely were the country and gov.
eminent relieved, in degree from
the difficulties occasioned by the
general suspension of 1887, when
a partial one, occurring within
thirty months of the former, produc-
ed new serious embarrassments
though it had no pallation in such
circumstances as were alleged in
justification of that which had pre-.
viously taken place. There was
nothing in the condition of the
country to endanger we'll man.
aged banking institution; com.
merce was deranged by no for.
eign war every branch of manu-.
featuring industry was crowned
with rich rewards; and the more
Al