Maumee City express. [volume] (Maumee City, Ohio) 1838-184?, 1840-01-11


icty doubtless felt by il to afford every prac,
ticable security. The result OF this is sun
to leave the custody of the public money!
without those safeguards which have been
for several years. earnestly desired by the
Executive: and as the remedy Is only to be
found in the action of the Legislature, it
imposes on me the duty Of again submit
ing to you the propIiety of passing law,
providing for the safe keeping of the public
moneys, and especially to ask that Its use
for private purposes by any officers intrusted
with it, may be declared to be felony, pun
ishabe with penalties proportional to the
magnitude of the offence.
These circumstances, added 10 known
defects in the existing laws and unusual
arrangement in the general operations of
trade, have, during the last three years,
much increased the difficulties attendant on
the collection, keeping, and disbursement
of the revenue, and called forth correspond
inc excrtions from those having them in
charge. Happily these have been success
ful beyonl expectation. Vast sums have
been collected and discussed by the several
Departments with unexpected cheapness
and ease: transfers have been readily made
to every part of the Uuion, however distant;
and defalcations have been far less than
might haze been anticipated, from the alb
scnce of adequate legal restraints. Since
the officers OF the Treasury and Post Office
Departments were charged with the Gus
tedy of most of the public moneys received
by them, there have been collected sixty
six millions of dollars, and, excluding the
case of the late collector at New York, the
aggregate amount oflosses sustained in the
collection cannot, it is believed, exceed
thirty thousand dollars. The defacation
of the late collector at that city, of the eX-
tent 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 distln-
rushed by an aggravated disregard OF du-
ty. that broke through the restraints OF
eyory system, ana cannot, therefore, be
usefuly referred to ms test OF the com
paratve safety of either, Additional in
formation will also be furnished BY the re-
port of the Secretary of the Treasury, In
raply to call made upon that officer by
the House of Representatives at the last
session, requiring detailed informltlon on
the subject of defaults by public officers or
agents under each Administration, from
1888 to 1887. This document will be sub
mitted to YOU in few days. The gene
raj results, independent of the Post Office,
whichis kept separately and will be stated
by tseG) so far as they bear upon this sub
iect, are, that the losses which have been,
and are likely to be, sus' aimed, by any class
of agents, have been-the greatest by
banks, including, as required IN the resolu
tion, their deprecated paper received for
public dues; thEt he next largest have been
by disbursing officers, and the least by col
leetors and receivers. If the losses on du-
ty bonds are included, they alone will be
threefold, those by both collectors and re-
ceiyers. Our whole experience, therefore,
furnishes the strongest evidence that the
desired Legislation of Congress is alone
wanting to insure in those operations the
highest decree of security and facility.
Such also appears to have been the expert
ence of other nations. From the results ot
inquiries made by the Secretary Of the
Treasury in regard to the practice among
them. am enabled to state that in twenty
two out of twenty seven foreign Govern
ments, from which undoubted information
has been obtained, the public moneys are
kept IN charge ofpublic officers. This con
currence of opinion in favor of that system
ton of internal administration.
In the modes of business and official re-
straints on disbursing officers, no legal
change was produced by the suspension o.
specie payments. The report last refer
red to will be found to contain also much
useful information inreation to this subject.
have heretofore assigned to Congress
my reasons for believing that the establish
mcnt of an Independent National Treasu-
ry, as contemplated by the Constitution, Is
necessary to the safe action of the Federal
Government. The suspension Of specie
payments in 1887, by the banks having the
custody of the public money, showed in SO
alarming degree our dependence on those
institutions for the performance Of duties
required BY law, that then recommended
the entire dissolution Of that connection.
This Recommendation has been subjected,
assI desired it should be, to severe scrutiny
and animated discussion; and allow my
self to believe that, notwithstanding the
natural diversities of opinion which may be
anticipated on all subjects involving such
important considerations, it has secured in
its favor as general concurrence of pub
lie sentiment as could be expected on one
of such magnitude.
hGCeUL CpeHJo uuNC uiSO COLLluucu u ue-
velope new objections to such connection.
Seldom is any bank, under the existing
eystem and practice, able to meet, on de-
mand, all its liabilities for deposites and
notes in circulation. 1t maintains specie
payments, and transacts profitable busi-
ness, only by the confidence of the public in
its solvency; and whenever this is de-
stroyed, the demands of its depositors and
otehoders-pressed more rapidly than it
can make collections fromits debtors-force
it to stop payment. This loss of conf
dence with its consequences occurred in
1887, and afforded the apology of the banks
for their suspension. The public then ac-
quesced in the validity of the excuse; and i,
while the State Legislature did not exact
from them their forfeited charters, Congress,
in accordance with the recommendation of
the Executive, allowed them time to pay
over the public money held, although com
PEELED to issue Treasury notes to supply
the deficiency thus created.
Itnow appears that there are other mo.
tives than a want of public confidence un-
der which the banks seek to Justify them
selves in refusal to meet their obga
tions. Scarcely were the country and CO.
yernment relieved in n depree from the