Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1840-01-06

to be found in the action Of the Leg stature, inn
poses on me the duty of again submitting TO you
the proprlety OF passing law, providing for the
safe keeping of the public moneys, aud especially
to ask that its use for private purposes by any of
ticers entrusted with it, may be declared to be
felony, punished with the penalties proportoned
to the magnitude Of the offence.
These circumstances, ndtled to known defects
in the existing laws, aud unusual arrangement in
the general operations Of trade, have, during the
last three years. much increased the difficulties at
tendant on the collection, keeping, and the dis
bursenIent Of the revenue, and called forth CORES
pouding eXertions from those having them IN
charge. Happily these have been successful he
yond expectation Vast sums have been collected
and Jisbursed by the several Departments with
unexpected cheapness aud ease; transfers have
been readily made to every part of the Union,
however distant the defalcatiOns have been far
less than might have been anticipated, from
The absence of any adequate legal restraints. -
Since the officers Of the Treasury aud Post
Othce Departments were charged with the
custody of the public moneys received by them
there have been COLLECTED sixty miIlions of dollars
and, excluding the case OF the late collector oi
New York, the aggregate amount of losses sus-
iaiGcd IN tie collection cannot, II - believed ex
coed sixty thousand GIliar$ The dciara'ion of
Inc late collector Gt luHt city, Of the extent
and circumstances OF which Congress had brcu
nly Informed, ram through all the modes OF keep
us' and was distinguished by tan aggravated dis
regard OF duty, thar broke through tlic restraints
oi every system, aud cannot therefore be useidiiy
referred To as a test OF the comparayc safely oi
either.
Additional Information will also be furnished by
the report ot The Secretary OF the treasury, in reply
call made upon that officer by the house frrl,-
rescntaves of The last session, requiring detailed
mtOrma ion on The sub ect of defaults hy public
officers or agents under each administration from
lISo to 1887. This document will he Submitted to
you in few days The general resuIts( independent
Of tie posiotfce. which is kept separated, 81 will
be stated by itsei) 81 far us Il ey bear upon tins
subject are, that the losses which have been, and
are lkelyt be, sustained by any class of agents,
have been, the greatest by banks, including, as
required in the resolution, their depreciated paper
received Tor public dues that the next largest have
been 10y diSbursing officers, and the least by col
lecors and receivers. II the losses Oh duty bonds
are included they alone will be lhrcefold those by
both collectors and receivers. Onr whole expert
ence, ereiore, furnishes the strongest evidence
that the desired Legislation OF congress is alone
wanting to insure in those operations the highest
degree ut security and facility. Such also appears
TO have been the experience Of other nations: from
the results of inquiries made by the secretary Of
the treasury in regard 10 the practice among them,
! am enabled to state that in % out of 81 foreign
governments, from which undnuted information
has been obtained, the public moneys IRE kept in
charge of public officers. This concurrence o
opinion in favor Of that system is perhaps as great
us exists on any question of internal administration
In the mode ofbusiness and official restraints OH
disbursiug officers, no legal change was produced
by the suspension ofspecie payments The report
last referred to will be found to contain also much
useful information in relation &c this subject.
8, have heretofore assigned to congress my reasons
for believing that the establishment of an miepend
ent national treasury, ms contemplated by the const
tuition, is necessary to the safe action ofthe fedora
government. The suspension of specie payment:
in 1887, by the banks having the custody of TIT
public money, showing in so alarming degree OIL
dependence on those institutions for the perform
Of duties required iy law. that then
mended The entire dissolution of that connection
This recommendation has been subjected, as de-
sired it should be, to severe scrutiny and animated
discussion; and allow myself TO believe that, not
outstanding the natural d:versiiies of opinion
which may be anticipated on all subjects involving
such important considerations it has secured in III
tuyor as general n concurrence OF public sentimen
ns could be expected on ofsuch magnitude.
Recent events have also continued to develop,
new objections TO such connection. Seldom il
4 any bank, nnder the exist - system and practice
able 10 m-', on demand, its liabilities for de
Iiposites and notes III rjratinn. 1t maintains spe
i'ce payments, and T..nsicts II profitable business
l'only by the confidence of the public in its sOyen
icy; aud whenever this is destroyed, the demand
of its heposi,ors aud noteholders pressed NOR
fwapidly than it can make collections from its debt
k'ors-torce 1t to stop payment. This loss of conf
NGence with its consequences occurred in 1887, an,
afforded lire apology of,he banks for their suspen
eion. The public then acquiesced in the yadit
FOL the excuse and, while The State Legislature
did not exact from them their forfeited charters
Congress IN nccoroHnce with the recommendation
ot the Executive, allowed them time to pay owe
the public money they held, although compclle
frrauslrt tO gtInt,u JoEr
'uhus created.
4 II now appears that there ARE other motives tina
"A wan, OF public confidence under which the bank
seek to Justly themselves in n refusal 10 meet thci
obligations. Scarcely were the country and gov
eminent relieved, IN 4 degree from the diilicu
lies accustomed 10y the general suspension OF 1881
when partial one, occurred Wnhn thirty month
OF the former, producing aud serious etnhar
easements. though il had no paaton in such cil
'rumStanCes rs were alledged in Justification g
that which had previously taken pnce Their
4 was nothing in ;he condition otthe country 10 en-
danger n well managed banking institution; con
imerce was deranged by no foreign war; ever
branch of manufacturing industry was crowme
with rich rewards aud the more Than usual album
dance of our harvests, after supplying our domcs
tic wants, had left our granarfs All store hOust
hlled with surplus for expectation. 1t is in tn
midst of this that an irredeemable aud depreciate
paper currency is entailed upon the people, hy
large portion of the banks. They are NOT drive
to it by the exhibition Ola loss Of public confidence
or OF sudden pressure from their depositors q
noteholders, but they excuse themselves lay a
leging that the current of business, and exchang
with foreign countries, which draws the preciou
metals from their vaults, would require, in orde
to meer,a larger curiailment of their loans to a CON
paratvely small portion of the comm unity, than
will be convenient for them to bear, or perhap
safe for the banks TO exact The plea has cease
10 be one of necessity. Convenience and polio
are now deemed sufficient 10 warrant these inst
iulions in dsregarding their solemn obligations.
Such conduct is not merely an injury TO individu
al creditors, but il is n wrong to the whole con,
munity, from whose berality they hold most va
,,ohIa riuhta thpv yinlaie who's