Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-06-07

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IL we assume the period OF iron, 6vo 10 ,;.b,
yenrs IA that IN which this debt bo PAID wi,hS,,
INCONVENIENCE and cmbauat smcnt---and tho lin,
appears to be short onough-wo have ono of ,L,
most essential elements on which To form our iud,,
ment rs To tho best and most COW nient mol. -,
which the loan can bc kept up and the credit of tL,
I1oNernmont sustained.
| In the inception and during the pro,rossivo 4,
crease of n national debt, the issues of 'rrs,.,,
| n"tcS, though dangerous and dolusve, hay. ye,
their advantages. They need not lie issue,I 81,
wv, iran The actual wants of the Treasury require; and
we power To issue nny given sum IL, for all ciI.e
i've purposes OF immediate expenditure n fun,I !,
inc Treasury available 10 that amount But, when
mo debt has acquired its maximum and ceases q,
"oe"mulaic, or when II becomes larger than th,
amount necessary To be kept On hand To meet tl.
current wants of the Treasury, these ADVANTAGE,
usappc'r. This mode OF 10 m then d, comes 10 tbc
Government what tho sale IN market OF new prom
,sS"y notes, Tor The purpose Of raising money n,
| Jake up Old promissory notes, is to an indiyidn,I
" 10 the issile OF Treasury notes to take up o,,,,
| ,'Sosuty no'esyenr alter year IN succession; anil
unher those circumstances, II is inconyeuient MI
expensive. ''''
bui the raising of money by tho issue OF T,.,..
ury notes Is questionable, because il il leccn,;..
ny nus means heavy debt may bo raised and "a
tened permanently upon the country, the nmon,,
OF new ISSUES being involved with the pavm.n, nS
the old; while the People, and even thos, ,yh, ~,
minister the finances may not be impressed viii
| IN the process of creation. W
therefore, IN the opinion Of the UNDERSIGNED
"e', hati"na debt does exist, and must continue
| o' uhc, u - better that IL should be made . nm
'cu uop', according To our ancient financial us,y.
u II then sheltered by cover, and is IN, snL,.,
"i no ucI"son IL Is open, pspable true; the eyes
"i the country will be upon IT, and will H.. ali, =,
S1"'e l" mark ITS reduction or its increase; a mi
Is believed That loan ior the requisite sn,,unt
having eight years TO run, but rcd, enable nj Mn.
| VIII "l tho Government, on six month"; no,,c,
c""d he negotiated AT much less rate of interest
lhrh Treasury notes. Much erprnsn wo,IJ ,I.,,
IL ~ IL,
notes. 'J
l.. isthcr'orc respectfully recommended that sum
suhci'ht 10 pay the debt nj present existing pnj
such as will necessarily accrue IN this and IN. ,n,u-
ihS year, bc raised on Ia IN Tor the time AMI nm ,L,
condition above suggested.
On Keeping and dis6msiRs the puJiic pt,n,vy.
The und.rIsned would also respectfully invite ihe
"l.nu"n "i '"ngr' IS To the present mode al keep.
ns ami dISbursns tho public moneys; and also to
inc subject OF the creation or employment of , 6s-
eat agent To 10 charged with tho performance of
these and other duties. The subject is one of sreat
inl'ounncc, both To the Government and In Tho
community. Such agent depository ought To
unite, M the highest practicable degree the saCo,v
o the public funds, and convcnirnce aud economy m
Their administration; aud 1t SHOULD, il possible 10
so selected or framed us 10 salutary influence
over the business and currency &C tho country.
The mode OF keeping aud dsburSins the public
money provided 10y the net of July I, 1910, will 10
""hi, on comparison with that heretofore chiefly
these essential requisites. Tine financial history of
the United States, especially for the last twelve
years, furnishes abundant proof that the public mo.
ney rs unsafe in the custody of individuals am ,b,
their official bonds sufficient security for IN
saie-k keeping and faithful Application. Within tho
period above named many receiving officers con.
nected with the Treasury Department have become
deaultcrs To the Government. The AGGREGATE lo,s
from that Cause within that period rs shown hv The
books OF the department, amounts TO 50 GEO 500
ou' small rart OF which will probably be recov.
cred from their bonds. II is true that in any sys-
TEN which can be adopted, some part of the nubIc
money must, m the process of collection mass
through the hands OF individuals and Le suiiect to
thelr dciacntonS: hut the act Of July L. $50 eye
'enus ana continues the risk beyond the period OF
collection, and 1t subjects large which, in the
iluctuat onS OF commerce sometimes accumulate To
the same dangerous custody.
Not only is the public money in the hands of in
divlduals more exposed 10 loss from ordinary deC,-
cations than when deposited in u well-rcoulatcd
BANK but the Government is also liable TO the RISKS
oi hre, robbery and other casualties occurring. eli.
ther IN deposlto or Ians.nission, from which It is
entirely protected when well. regulated bank ia
the depository and the fiscal agent.
The present system Is also, in many respects
cumorous and announcement Its tendency is TO cen.
ire the disbursement OF the public moneys at como
OF the Eastern cities, chiefly at New York That
being the great commercial emporium OF the UnteI
States, is the point at which funds are the most va
liable, nnd therefore, the sought; heuce those
who are entitled to payments out OF tho public
treasury claim them there. Ii is true there IL n
general discretion III the head Of the Department to
refuse or grant tho favor of such payments accord.
| ing 10 ITS convenience; but when the currency is
dcranscd and the premium exchanges is hirb
this discretion involves discrimination TO n LARGE
amount among creditors equally entitled. IL then
Incomes dangerous discretion, and one that ought
not tn cNis. But, under tho present system il can
not be avoided, save IN few cases, without dis
charging every public liability at the most favored
| point. This would at centre all the dsburse-
mcnis at few oithe Eastern cities, and involve Ito
Treasury IN the risk and expense Of transporting
the public funds iTom the various points of collcc-
| ton 10 the places OF disbur, cncnt.
| An item OF less importance, but still worthy of
| consideration, IN settling on permanent and eco
nomlcal arrangement, Is the direct expense of the
present system, including the cost ol the buildings
Tor The deposte OF the public money, and the saa-
RES OF the officers and their clerks who receive aud
dishurse IT, No portion Of this risk, inconvenience,
or expense, need To be incurred where a well.rceu.
| lated bank j. made the fiscal agent
But the present system Is also, in the opinion of
the undersigned, injurious 10 the business and cur
| rency of the country Instead ol permitting tho
credit nnd the finances Of the Government 10 lend
their indirect but efficient aid IT, sustaining the credit
and regulating the currency o the country IL hrings
into direct hostility those important interests In the
pfosrcss OF the system, sufficient amount Of gold
| and silver 10 supply the wants Of the Treasury
must bo Withdrawn from circulation and locked up
IN vaults, leaving no representative To suppIy its
place IN the general circulation.
large amount, also, IN tho hands of those who
Withdrawn from general circulation, and made To
How alone through those channels which lead into
and out OF the public Golfers. The other avenues of
commerce and intercourse are thus deprived Of their
proportion Of the precious metals.
Within the hfIy-two years dGrin, which our con.
suiutinnal Government has existed, va have had,
Tor Two periods al twenty years tch, bank eh ute-
ed hy Congress rs depository ofthe public MONEYS
aud as a fiscal agent. We have had also, at two
intervals, amounting 10 about nine years State
banks employed for like purposes; and during the
remainder Of the time, tho funds OF the Government
have been kept and the fnauceB administered partly
| Ivy banks aud partly by individual officers aud
agents. The losses sustained Ivy State banks as
depo torres, during the flst period ol their en-.
| ployment, extending from 1911 Ia 1916, ngtcel-
| bly, e. statement prepared Ivy the Secretary uf
| the Treasury IN 1888, aud revised and rcpublsh-
| od in 1887, wcro 9 .OOO.G7G. In the LITTER
period, from 1888 10 1857, though no actual los, ~
believed to have occurred, yet the Treasury and the
| country suffered Inconvenience aud embarrassment
| from the fiscal arrangements with those numerous
and disconnected institutions. But during the forty
years lint the two banks of she United Suites were
the repositories ot the public money aud the fiscal
! agents Of tho Government, loss whatever WAS
sustained nor any delay or any expense incurred
m transmitting disbur,lng the public moneys so
| fir NJ the agency Of those inst tutons extended.
Then ne regards the wants oi tho Treasury merely,
the safety Of the public funds and economy IN thcr.
administration, experience has demonstrated the gu
/ poror uiiiiy o; !s:k constituted and adopted 10y