The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-07-11

: I
sing, its danger to the security of the public trea
sure Listen, sir, if you now please, to what
he said "A corporation" said he, Fsmay be
safer than any individual agent, however re-
sponsible he may be- because it consists of an as
! ISOLATION OF individuals who have thrown toge-
Their their aggregated wealth, and who are bound
IN their corporate character to the extent of their
whole capital stock for the deposite. In addi-
ton to this the secretary of the treasury may re-
| quire as heavy collateral security in addition
| to their capital stock paid in, from such cor
poreation, as he could from an individual col
lector or receiver, which makes the government
| deposite safer in the hands Of a bank than it
| could be with individual. II may be well
questioned whether the heaviest security that
! the most wealthy individual could give, could
make the psblic dcposites safe, at the Joint of
/ large collection. In the city of New York, half
/ the revenue is collected Several millions Of
| public money may be in the hands of a receiver
at one time, and, il he be corrupt, or shall en-
gage in speculation or trade, and meet with
reverse of fortune, the loss sustained by the go
ycrnment would be inevitable"
He then goes on to enumerate the losses the
| government had sustained By entrusting the pub
| lie moneys to the custody ofindividuals. EE1'he
losses in three cases alone,D he cont inues, Gas
stated in 1927 and 1928, when il was supposed
ample care had been taken to secure the debt,
amounted to two millions. As, then, be-
tween the responsibility of public receiver and
| bank corporations, as banks do exist, and arc
likely 10 exist under state authority; the latter
| upon the ground Of safety t. the public to be
preferred. Banks, when they safe, recon-
; mend themselves to the service of the treasury
! for otfgr reasons. The increased facilities they
possess over individual collectors receivers in
| making transfers of public money to distant
points for disbursement without charge to the
| public. Indeed, this is a service which indivi-
duaIs, to the extent of our revenue, could moi
| perform"
And again, he says, esWhilst the deposit is in
bank, the bank may use it, keeping itself ready,
| at the same time to pay when demanded, and it
is not withdrawn from general circulation, as
SO much money boarded and drawn from the use OF
the community. lin the hands of receivers, they
may either hoard it, by keeping it locked up in
strong box, or use it at their own risk, in pri-
| vate speculations or trade, or they must for
their own security, and on their own response
bilisy, place it at last on deposit, in the banks
| for safe-keeping, until they called upon by
the government for it. This temporary use Of
the money on deposit in bank, constitutes
the Only compensation which the bank receives
for the risk of keeping it, and the services it
, performs. If receivers be employed, they can per-
| form sther service than to keep the money,
and must be paid a compensation from the trea-
sury"
These, sir were the opinions of Governor Polk
| in 1885. he was then opposed to this scheme
| and could see nothing in it but deforrnity, and
danger to the security of the public treasure
| but, sir, at that time the president against
| it. As the president changed his opinion
| and recommended the measure, the Governor IN
stantiy, and if by magic, discovered its beau
ties and perfections and is now one OF its warm
| est and most JEALOUS advocates. The Governor
| always takes care to keep the side of power.
If the president were to change his opinions eve
ny month or every day, His Excellency would
| change too 1t would never do for Governor
Polk to disagree with the president.
| In the message of Gen. jackson to Congress in
| 1885, find, MIR. Chairman, that he, also, in
speaking of this proposition, expresses his disap
probation of it in the strongest tetms. 'ENo one,
said he, Scan be more deeply impressed than
/ am, with the soundness of the doctrine which
strains and limits, by specific provisions, execu-
tive discretion, as far it can be done consist
emily with the presers alton of its constitutional
| character. In respect to the control over the
public money this doctrine is peculiarly applica-
| BILE"
Now, sir, by what sort of miserable subter-
| fuge do they attempt to escape from this dllem-
ma? Sir, the gentleman from Maryland Cdr. +.
Thomas) who exceeding adroit in the manage
ment of such cases, admitted in his explanation
yesterday, that the entire administration party
opposed the Sub-treasury bill proposed by Gen.
Gordon in 1885; but not upon any particular
ground of objection to the principle contained IN
it; but because they were then in the act of cs-
they believed would succeed well, and because
the measure then proposed, was Grade,
| shapeiess and indigested affair. Sir, | appeal
from the gentleman from Maryland (itr. iho-
mas to the record. The whole record of the
proceedings proves that they opposed it on no
such ground. This sir, is new invention
trumped up now to shield them from their incon-
sistency. The gentleman is entirely mistaken.
Look at the extracts have read. Ii they HAD no
objection to the principle, why did they all with
one voice denounce 1t as disorganizng and reTo-
lutlonary-caiculated to augment the power and
patronage OF the president-to put the public
moneys under his absolute control--to put III his
hands the means of corruption and finally enable
him to overthrow the pubic liberty? SIr, beg
the gentlcmans pardon, he must Lick his flint
and try it again" The truth is the whole party
opposed the scheme in 1885, because they be-
lieved 1t to be wrong in principle, and because
they had no use for 1t then as an engine OF point
icai power Gen. jackson was strong enough
without it. l have no doubt that many men now
support it from the most pure and patriotic mo-
tives. They are deceived to its consequences
and tendencies, and do not suspect the uses that
will be made of it as political machine. But
sir, the leaders understand it, and they will I'M
derstand too how to use 1t to their own advan-
tage
| But, says the honorable gentleman from New York.
mir Strong 'sthe browning consideration IN favor OF
this bill Is, that it proposes an independent system
Yes sir it is to establish Tndependent Treasury"
admit IT, And am happy that IN this one pomt can
agree with my friend from New York But, OF what
| il the Treasury to be independent Independent OF
whom have already shown that II puts the treasurer
Of the Nation within the control OF the Presideht-eh
ables him 10 draw ii from the Treasury without warrant
and in violation of law, and makes itin fact independ
ant OF Congress-Iuts It out of reach and peyohI le
control of tile peopies' r. representatives., and consequent
ly of the people themselves But, sir, have mol ne
to pursue the argument this point am deciaeaiy
in favor of Independent Treasury; butt would nave
it independent of the Presidert-enurely beyond nus
reach and oui of his power to control either directly OF
indirectly II Is SO by the existing law. Inc resident
| power over the public moneys than you have, Mr..
Chairman. The Secretary OF the Treasury Is the ocer
of Congress and of the PRESIDENT and the President
has no more authority of law to direct the secretary oil
the Treasury ia the performances OF his official
That department is differently constructed IN tlis re-
spee from all the Others The heads of all the other
Departments of the Government required to report
10 the President; but expressly made the duty of the
Treasury 20 report to Congress. And, sir, all the con