Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-01-02

,isting of banks, and inc!u0!h5i - the i''
,;rs the Dc precll!on such Of elr notes Us were
La for nub,ic dues The loss BY tbs class, al INC
loves, estimate has exceeded six millions and nall
# dollars and adopting computation mace py COM
ni,tee Of the House of r. in 1882 would equal thrty
five millions. The next largest amount OF loss, as Us
contained and computed by the proper bureaus, mas Dee
bv dsbursine officers, and has been little under h'e
millions And the least loss has been By correcting OF
icc-s not much exceeding two millions Inc aSsGe
oat, Of all these losses taking the lowest estee 'oi
5,nks is about thirteen millions and hail II, IN
connex ion with this subject, were considered c
n collecting the revenue By the OF bonus
far du,;es on which credit given to merchants,
something over seven and half millions OF dollars
must be added increasing the aggregate TO more NAN
wrntvonc millions The proportonate losses by these
classes have been thus Those by the banks and by the
u,y.bonds amount to more than two-thrds Of inc
whole The losses, either by the banks alone, OF uie
merchants bonds alone have been nearly as srIa' 10
bv both discussing and collecting officers united ana
either is more than thrcctold as great as oy
and receivers and several millions more than by then
not only from l'o!to 1905 ou' 4io'i - Wv"
present moment .
rha particular losses in each presidential term being
also desired by the resolution, they have been asceF
,,u.d. and as they furnish striking solution ol so
NJ IN. General causes of those losses the periods III
which the largest and some OF the smallest ones MAJ"
ncncd among each class of public agents may be use
fully designated here. Among the banks, tie lars'S'
losses were from 1913 to lol7 then consisting ehtc
lnf dcnrp on -
1904 consisting then chiefly of deposi,es; while from
1sao 10 lSaa and from 1888 to 1897, they were smaller
than II. any pcr,nd since 1913. Among dIsbursng ON
GERS looking the amount dsbuscd, the largest losses
were from c2 to lS2, next from lsl7 to lo2l and next
from 1902 1875 and they smaller from 1871 10
and 1888 to 1887 than in any other whatever
except FROM 1859 1898. The loss on each SlOO from
S20 to lS3; only nineteen cents, and from 1883 to
1887 only twenty.sx cents; Whit IN some previous
terms it was high tw" dollars and sixteen cents
J,t bic he mo
all in Office were from 1917 to 1881 next from ISL to
sa5 and mex, from 1913 TO 1917. The smallest pro-
norton in this respect except during the first two terms
under the constitution, from lo29 to 1888, and
except these and the third term ule next SMALLEST iio
! 1888 TO 1887
Amonu collecting officers if looking to the amounts
collected the largest losses from 1871 to lsOl next
from 1909 to 1913 next from ol7 TO sa and next from
1865 to 1909 The most numerous defaults compared
with the whole number Of that class in office, were from
1909 TO 1873 next from 1855 TO le09, next from ls2
TO 1925 next from 1917 10 1871 and next from leo to
1919 Tho ratio of them from lS21 TO 1888, and lS3'
to 1887 was etouT'h rs large as IN some OF the
periods lust enumerated Indeed II was less than IN
any previous terms from the foundation OF the Govern
nent except four and The number Of such deaultcrs
was less than in any Presidential term since lcC4.
The accounts of the post office establishment beng
kept separately, and its officers acting IN the capacities
both of collecting and dsbursng, not included IN
the above results but will be given in the special report
in distinct tables.
On careful review Of these data, it must be OBJ.
yious that in the absence of any penal prohibition TO
use the public money for private purposes, and OF other
adequate securities against misconduct, the increased
losses during some Of the terms mentioned must have
happened more om the strong temptations to misuse
the money! combined with the caamties incident to
war; extraordinary expansions and contractons III the
currency, and great speculatons and commissions IN
trade than from any peculiar rapacity among those
then in public trust any special neglect on the part
OF those who then either accounting Objects or
possessed with power to appoint or remove uniathfui
agents.
Thus in 1891, 1882, and 1888, prosperous but not
specuianr years, in the interior scarcely single loss
Is sunposcd TO have happened among receivers, though
some were then reported for SUIT on previous defaults;
and the same may be said OF collectors then, and IN
1885 prosperous but not specializing years on the sea-
board But in more caamitous periods OF trade Ike
17g7 and I79S lS5 10 1913, Isis to 1921, and 1887,
sometimes succeeding others of rash speculation, the
defaults multiplied among collectors, as well as DIS
bursting agents &c. in similar periods IN the interior,
Ike iSlS TO l-2, and 1856 and 1887, they increased
anon- the receivers and the banks much in ratio
with the nord:natr thirst for hazardous investments
and the Overwhc ming disasters winch cnSued from
them and ovcr;ss;ies OF paper money
Aaothcr very strong illustration .. this IS to be found
in the periods Of the greatest losses on merchants
nasa o Stta is Esate na4at OF dAi;es f
so, NJ uny term suce the OF the Iio-
vernment doubtless in great measure growing out OF
the e,crssiyc mercantile specuations and failures OF
that period and the next largest were from ISL 10
1925 resulting probably from like causes while from
1929 to 1888, period OF com parare regularity III
trade the loss was smaller than in any other term since
1902 and less than even from 1873 TO 1915 ana l'''
1901. ;.
On the other topic, as to the feasibility and utility OF
additional checks and penalties against deia!cations the
illustrations referred to- drawn from examples oooau
are these Out of twcnty-seven Government, IA -
snect 10 which accurate statements have bee outdcu
and which include almost every ImporN'i' .,N.iiHcu
country in the world, twenty-sx seem y l'n"Iot any
private use of the public money, elth " 'oi't'e 81
dsbursinu aueuts I'm SIX cases ohy uo the uePosile
agens appear to be allowed the use OF PUBIC lunus anu
that is only when those ages are oaikS' ana tue mo-
new is placed with them ipSeheia IN srea'
majority or these Goyerncnts, the employment OF pub
lie funds for private M by nen,es
H. yppr;.o.ncnt the gaileys, the penitenary,
"a - onr ;ystanccs death. More minute checks and
J ,isoarc introduced in NEST of them, and less is
left 10 6:cIe'ioh - '.s '' ~ " ' ~''
'la MAT course Of making full and explicit statutory
royisions on all these important points, and duly res
executive discretion, liable to degenerate INTO
tyranny has before been repeatedly urged bv che under
srned from regard well political prInc
plcs as TO an of the public occnrty, and d.
intuition of the difficulties and responsibilities he has
of late wears been compelled TO pass through III peri
cd of such immense collections and disbursements, &c.
compa MED BY SO severe rcvu!sons III commerce and
such harrassing bank suspensions.
Dwelling No longer this topic now, he is convinced,
mot c-sy that the for greater security in the
collection and disbursement OF the public money! but
ali the other provisions heretofore ndcd the
establishment of an independent Treasury for keeping
and transferring it, should be early adopted Promi-
nenty among these last, the separation between the
banks and the principal fiscal operations of the Co.
| vernmcnt. That would he likely produce many adj
yantagcs which have been explained so fully on for
occasions that only few Of them need here be ad-
vered TO, and this very briefly II would render bank
ruptcy ofthe Treasury impossible BY wide ifnot gene
raj suspension Of specie payments Tothe loss, vexaton
and dscedt Of this, the Government has already been
than once subjected, and S bank Judging from
experience abroad and analogy at home, would form
ctirctual guarantee against IT, than State banks
during periods of extraordinary commissions in trade,
if administered under the present imperfect system of
banking; or, in other words, under similar defective
G. arers, and occasionally similar false banking prin
ciples Such separation would relieve both the
banks and The Government from any further exposure
to Eu,ua opportunities, enbarrassmcnts and crimna-