The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-06-05


any system which can be adopted, some part OF the
public money must in the process of collection, pass
through the hands of ndis lduals and he subject
their Publications; but the act Of July 4th 1910, ex
tends and continues the risk beyond The period Of col
lection, and il subjects large masses which, in the
fluctuations Of commerce, sometimes accumulate TO
| the same dangerous custody.
Not only is the public money in the hands Of indi-
vduaIs more exposed to loss, from ordinary defalca-
lions, than when deposited in wellregulated Bank,
but the Government is ALSO liable to risks of fire. rob
berry, and other casualties occurring either in deposit
or transmisson, from which it is entirely protected
when welireguated Bank is the depository and the
fiscal agent
The present system is, ALSO in many respects, cum
brous and inconvenicn Its tendency is to center the
disbursements Of the public moneys at some Of the
Eastern cities, chiefly at New York. That being tho
great commercial emporium of the United States Il
the point at which funds are the most valuable, and,
therefore, the most sought-hence those who are en-
titled to payments of the public Treasury claim
them there. IL Is true, there general discretion
in the head of the Department refuse or grant the
favor of such payments according to its
but when the currency is deranged and the premium
exchanges is high this discretion involves discrm
nation to large amount among creditors equally emit
tied. IL then becomes dangerous discretion and one
that ought not TO exist But under the present sys-
tenn, 1t cannot be avoided, few cases without
discharging every public liability at the most favored
point. This would at once center all the dsburse
ments at few Of the Eastern cities and involve the
Treasury in the risk and expense of transporting the
public funds from the various points ofcolection to the
places Of disbursement.
An item of less importance, but still worthy of con-
sideration in settling permanent and economical
arrangement is the direct expense of the present sys-
tenn including the cost Of the buildings for the depo-
site OF the public money, and the salaries Of the Off
GERS and their clerks, who receive and dsburse it, No
portion Of this risk Inconvenience expense, need
70 be incurred where well regulated Bank is made
the fiscal agent.
But the present system is, also, in the opinion ofth
undersigned, injurious to the business and currency
Of the country. Instead Of permitting the credit
and the finances Of the Government to lend their nd
rect but efficient aid in sustaining the credit and regu
atng the currency Of the country it brings into direct
hostility those important interests In the progress Of
the system sufficient amount Of gold and silver TO
supply the wants of the Treasury must be Withdrawn
from circulation and locked up in vaults leaving no
representative to supply its place in the general crcu
lation large amount, also, in the hands of those
who pay to or receive from the Treasury il equally
withdrawn from general circulation an made to flow
through those channels alone, which lead into, and
out of the public Golfers. The other of
merce and intercourse thus deprived of their pro-
portion of the precious metals
Within the ffty-two years during which our con-
sttutional Government has existed we have had for
two periods of twenty years each Bank chartered by
Congress, as depository of the public moneys and
as fiscal agent. We have had also, at two inter-
walls, amounting about nine years. State Banks en-
the tme the funds of the government have been kept
and the finances administered partly by banks and
partly by individual officers OF agents The losses
sustained by State Banks as repositories during the
first period of their employment extending from 1911
to 1876 agreeable to statement prepared by the Sc
creary Of the Treasury in 1888, and revised and
published in 1887, were 81 000676. In the latter pc
Rod, from 1888 to 1887 though actual loss is be-
lIeved to have occurred yet the Treasury and the
country suffered Inconvenience and embarrassment
from the fiscal arrangements with those numerous and
disconnected institutions But during the forty years
that the two Banks Of the United States the de-
positores Of the public money and the fiscal agents of
the government, loss whatever was sustained nor
any delay, any expense incurred in Transmitting or
dlsbursng the public moneys far the agency of
those institutions extended. Then as regards the
wants Of the Treasury merely, the safety Of the pub
lie funds and economy in their administration, expe-
Renee has demonstrated the superior utility of Bank
constituted and adopted by Congress fiscal agent
II has also proved to that the active business of the
counry its currency its credit its industry and its
merce, are intimately connected with, and dependent
upon, the financial arrangements of the General Co
vernment. II they be wise and benefcent, they ind
recty but efficiently promote those great interests of
the people, if constant and uniform in their action
they give to those interests confidence and stability
Since the removal of the public deposites from the
Bank of the United States in 1888, the Government
has had no permanent fiscal agent, and no definite
financial system. All has been experiment. transfer
and change. The business Of the country has yielded
TO the unsteady impulse and moved forward with wild
irregularity at time stimulated to excessive
ton at another, sunk into lelhargy And in provi
ding for the wants of the Treasury is surely mpor
tant to look also to the and the welfare of the
community from the products of whose industry the
Treasury is supplied.
And regards those great interests, we find the
testimony Of past years is less distinct and strong
in favor Of moneyed institution chartered by the G
neral Government, and possessed of its confidence
and credit The period embracing the last ten years
nj of hal late sb.T
as the fiscal agent is fresh in the memory of us ALL
and locked back TO period Of great public pros
perty; and, though other causes did, doubtless, Co
operate to produce that favorable condition of things
yet one Of the governing principles on which depended
the steady advance of the country in commerce. in in
dustry and in substantial wealth. the existence of
fiscal agent established by the General Government
and charged with the equalization of exchanges and
the regulation Of the currency.
In the present condition of our country the relief
be anticipated from such an institution cannot be i'm
mediate, but must be the work of time; the business
of the country would, however in the opinion of the
undersigned steadily and certainly revive under its
influence.
In whatever point oflight the undersigned is able to
vewfthis subject he is Tresstiby led to the conclu-
sion that such fiscal agent framed TO possess those
Important functions, alike essential to the of
the Treasury, and of the community Such insti-
tuition should be framed with deliberations for must
have high duties to perform and extensive interests to
protect and promote; and it should be granted with
care for it will be liable 10 great and dangerous abu-
SEES. As the fiscal agent of the government, and eff
fective regulator Of acurrency in widespread com
munity 1t should be steady and uniform in It's action
and fixed and stable in its character. "a
The undersigned has doubt of the power Of Con-
gress to create such institution. Experience has
proved its necessity to carry out other expressly grant
ed has been exercised and recognized by the
Legislative and Executive Departments of the govern
ment during four-ifths of the whole period of
tinnal existence, and it has received the uniform
ton of our highest judicial tribunal.
ct that power has been questioned by many wise
and patriotic statesmen whose opinions entitled to
consideration and respect, and in a measure like this
of high political import which, if wisely conceived and
cordially concurred in, must have great and endu
Important far as possible to obyiate objections and
reconcile opinion.
If such institution be SO conceived in princi
pie, and guarded in its details to all scrues
touching the question of constitutional power, and
thnsa he chi xyh hav al