Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1840-01-13

REPORT
,f TIE SECRETARY OF THE TREASURY
ON TIE FINANCES.
TnrAsuRy DrrAnrmr,r, D,o, 4 1870

uaeu III that reply. But lew general statements
llom Them will throw iigli ON the topic under con
sidetalion.
Losses appear TO have occurred fiom defaults q.
men2 Officers IN every administration" OF preslden.
ta tenn from the formation OF the present GOV.
ernment. Thus, among discussing officers, they are
found IN every term siuce 17S9 among COLLECTING,
officers in each since 1913 and a ong deposile Of
heers, or banks, in all since lsI7.
Tie largest amount OF loss from each class with
IN the period described, has been Ly depnse off.
Gers, consisting Of banks aud including, us the res
nlution requires, the depreciation on such Of the,,
notes as were taken for public dues. Tue loss by
his class at the lowest estimate, has exceeded SIX
mlllons and IA hall of doals and. adopting a com
pulaton made by a committee of the House Of
Representatives,, IN 1882 would equal IS millions
he next largest amount OF loss as asccftalued and
computed by the proper bureaus. has been by dis.
butslng officers, and has been little under five mil
lions. Aud The least loss has been by collecting OIL
ccfs not much exceeding o millions. The aggregate
Of all these taking the lowest estimate 70 banks
is about thirteen millions and half IT, IN connec-
on with this subject, considered the losses in
collecting The revenue by the non payment OF bonds
Tor duties, on which credit was given to merchants,
something over seven aud bali millions of dollars
must be added increasing the aggregate to more
4 an twenty lone millions. The appropriate losses
by these classes have been thus Those by tho
banks and by the duty bonds amount TO more than
tmo-thirds of the whole The losscs, either by the
banks alone, or the merchants bonds alone, have
been nearly as great hy both discussing and col.
eciing officers united aud either is more than
three-old great as by collectors aud receivers and
several rpous more than By theu not only from
17e9 TO 1857, but from 1889 10 the present mo
ment.
The particular losses in each Presidential term
being also dcsHed by The resolution, they have been
aseeItaued aud, they furnish a striking solution
OF some of the general causes Of those 10 sses The
periods in which The largest and some Of The small
est ones happened among each class OF public n
gents may be usctuy designated here. Among
The banks the largest losses from S13 TO 1917
then consisting entirely of depreciation 90 notes Ia
ken. aud next from lSal 10 1924, Consisting then
chiefly OF depo,itcs, white fom 1929 to 1888, aud
from 1893 TO 1887, they were smaller rEan in any
pc Rod since 1873. Among discussing officers, look
lne TO tie amount discussed, the largest losses were
from 1891 TO 1895, neX from i517 to lsal and next
from 1909 to 1913; and they smallest from
l529 10 1883 and 1888 10 1887. Than in any other
term whatever, except from I759 to 1893. The
loss on each ! 100 Iom 1899 10 1888 was only 10
cents, aud from S33 TO 1887 only 81 cents while
IN some previous terms IL was high . dollars
aud 10 cents In this class the most numerous loss
es, compared WITH all III Office, were from 1917 TO
1921, next from 1921 to s25 aud next from 1913 10
1917. The smallest proportions ia this respect, ex-
cept DUNG the FIRST two terms under the Constitu
lion Was from 1899 To 1888, aud except those and
The thnd term, the neAt smallest was from 1873 TO
1897.
Among collecting officers, il looking TO the n.
mounts collected, the largest losses were from 1897
to 1851. next IIom 1909 10 33. next from Isl7 TO
] S2l, and next from sos 10 1900. The most nn-
merons defaults, compared with The whole number
Of That class IN Office were from 1909 10 1873 ntxl
nom 505 to 1909. next from l5l7 10 1921 and ne N
from 1925 10 1928, The ratio of them from 1900 Ia
233 and 1888 to 1887, one luutth rs large
as III so1e OF The periods just enumerated. Indeed
Il WIS less than in any previous terms from the
foundation Of The Government, except four aud ,he
number of such delaultefs less than in any Pres.
dential Term since 1904.
The accounts Of HE Post Office establishment
being kept separately, and It's officers acting in the
capacities both OF collecting, and discussing, are mol
included m the above rcsofs, bat will be given in /
he special report in distinct tables
On careful review of these dates il nusl be oh |
'lous, that in the absence OF any penal prohibition
10 Use he pubic money Tor private purposes, aud Of
other adequate securllies against misconduct, the /
increased losses during some OF The terms mention
ed must have happened more from the strong temp |
iaions TO misuse The nancy, combined with the /
calamitles incident 10 war extraordinary EXPANSIONS
and coniracuons in Tie currency, and great specu- |
lalons aud Commissions III rade, thau iiOm any pc
cuhaf rapaclty among those then in public trust, OF
any spec lal neglect the part OF those who
then eithef accounting officers, possessed Of the
power 10 appoint and remove unidhlul agents.
Thus III 1881, 1872 and 1883, prosperous but
rot Specializing years in the interior scarcely sim
gle loss IS supposed to have happened among
ceiYers, though some thea reported foi suit
on previous defaults and the same may be said OF
collectors then, aud IN 1885, prosperous but not
Specializing years on the seaboard But III more Ca
lamloHs periods OF trade, like 1897 aud 1898 l50S
10 iolo 10 lS2l, aud 1887 sometimes succeeding
oteis oil rash speculation, the defaults multiplied a.
mong collectors, well as discussing agents. So,
IN similar periods in the interior, like ISIS TO 1921,
aud 1856 and 1897 they increased among the re-
cegers aud The banks much III ratIO with the indi-
tate tllrst for hazardous investments, and The over
disasters which ensued from them and o.
ver-lssucs Of papel mo ley.
Another very strong Illustration Of this is 10 be
found in the periods ofthe greatest losses mer-
chants bonds compared with the whole amount Of
duties collected. These losses were the highest
from 1925 10 1929, of any term since the commence
inent Of the Government, doubtless in greft mta-
sure growing out OF the excessive mercantile spec
uulors aud failures that period and the next lag
gest were from 1921 10 1876, resulting probably
nom like cnuses while from 1929 to 1913. a pc
rod Of comparative regularity IN trade, the loss
was smaller than in any other tens since 1909,
and less than even from 1893 TO 1897, and 1897 to
1891.
On The other topic, TO the feasibility and utility Of
additional checks and penalties against deialcatcns
4 he illustrations referred to, as drawn from example
'lfoad are these: Out OF twenty seven Govern
menis IN respect to which accurate statements have
been obtained, and which include almost every I'M
pouint civilized country in The world twenty six
seem to prohibu any private use Of the public mon
ey. either by collecting or discussing agents. In
SIX cases only do Tie deposI,e agents appear TO be
allowed the use Of public funds and that is only
when those agents are banks. and the money is
placed with them IN genea deposie. In a great
majority N these governments, the employment Of
public funds Tor private purposes by any agents what
is not only prohibited, but punished by severe