The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1840-01-04

were charged with the custody Of most OF
the public moneys received by them, there
have been collected sixty six millions Of
collector at New York, the aggregate a.
mount Of losses sustained in the collection
cannot, it is believed, exceed sixty thou
sand dollars, The defalcation of the late
collector at that city, Of the extent aud cir
cumstances Of which Congress has been
fully informed, ran through all the modes of
keeping the public money that have been
hitherto in use, aud was distinguished by
an aggravated disregard Of duty that broke
through the restraints Of every system, and
cannot, therefore, be usefuly referred to as
test of the compartve duty Of either.
Additional information will also be fur
nshed by the report of the Secretary of tie
Treasury, in reply to a call made upon that
officer by the House Of Representatives at
the last session, requiring detailed informa-
tion on the subject of defaults by public Of
! fcers or agents under each administration,
from 1889 TO 1897. This document will
he submitted 10 you in Il few days. TIE
general results, Independent Of the post Of
flee, which is kept separately and will be
stated by Itself,) so far as they bear upon
this subec,, are, that the losses which have
been, and arc likely TO be sustained, by a
ny class OF agents, have been-the greatest
by banks, including, as required in the res
| olulion, their deprecated paper received for
public dues; that the next largest have been
| by disbursing officers, and the least by col
| leclors and receivers. If the losses on du-
tv bonds are included, they alone will be
lhIeeGold those by collectors and receivers.
! Our whole experience therefore, furnishes
| the strongest evidence tina: the desired le-
| qislation of Congress is alone wanting to
insure, in those operations, the highes! de-
gree of security and facility. Such. also,
appears to have been the experience of 9TH
er nations. From the results Of inquiries
made by the Secretary Of the Treasury in re-
! gard TO the practice among, ,themlam enabled
| TO state, that IN twenty-five ont of twenty
seven foreign governments, from which un-
doubted information has been obtained, tic
public moneys are kept in charge of public
| officers. This concurrence OF opinion in
favor Of that system is perhaps as great as
exists on any question of internal admins
tration.
In the modes Of business and official re.
straints on discussing officers, on lega
change was produced by the suspension o
specie payments The last referred to viii
be found to contain, also, much useful In
formation in relation to this subject.
have heretofore assigned to Congress
my reasons for believing that the establish
menl OF AN Independent National Treasury
as contemplated by the Constitution, is ne
cessary to the safe action of the federal gov
. ernment. The suspension Of specie pay
{ ments in 1897, by the banks having the Gus
todv of the public money, showed in SO a
= farming a degree our dependence Of dutie
/ required by law, that then recommerde
5 the entire dissolution of that connection
/. This recommendation has been subjected
$ as | desired it should be, 10 severe scrulin,
G and animated discussion; and | allow my
: self 10 believe that, Notwithstanding the na
iural diversilies of opinion which may
= anticipated on subjects involving such i'm
j. pOrlant considerations, il has secured in il
S favor as general a concurrence Of public sen
!. limen,s as could be expected on one of sue
d magnitude.
Y Recent events have also continued TO dc
r. velope new objections 10 such a conneXioI
ID Seldom is my bank, under the existing sy!
f. tenn and practice, able to meet, on demanC
f. all its liabilities for deposics and notes
Y, circulation H. maintains specie payment
Sc and transacls profitable business, only b
u the confidence Of the public in its solyeuc.
Mt and whenever this is destroyed, the d
or mands of its depositors and noteholders-
en- pressed more rapidly than il can make CO
rl lections from lis debtors, force il TO stop pa
IL meri. This loss OF confidence, with
of consequence, occurred in 1897 and aflord
a the apology of the hanks for their suspe
%. sion. The public then acquiesced IN 4
so validity Of the excuse; and, while the Sta
in legislatures did not exact from them tht
.ty forfeited charters, Congress, in accordan
"a with the recommendation Of the EXecutl'
10 allowed them time 10 pay over the pub
tn money they had, although compelled to
for sue Treasury notes to supply the delicien
* thus created.
be Il now appears that there are other II
1t tves than a want of public confidence |
ng der which the banks seek TO justify The
ro. selves in refusal 10 NEE! their obligatio
,Iic Scarcely were the country and governm