The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1841-12-23

the pledge of their capital, We know from experience
that the public money was mol sale. Deposned WIN
a Bank OF the United States although no loss ever
actually happened from such deposit, we now see
enough TO know that there was danger, and that the
safety of the public money depended upon degree OF
discretion in the management OF the institution OF Tue
existence and continuance OF which we had not ana
could MT have, perfect assurance. And under the
operaiion of the Sub Treasury law, every ehing re-
solved itself at last, into confidence IN the honesty
and integrity Of agents, and the suiteicncy OF iher
bonds There were il is true, chambers and vaults
with thick walls and strong locks but human hands
held the KEYS Under that system OF pubic custody,
the same temptations existed which surround men OF
doubtful principles or wavering integrity IN other 81
tuations of public trust and, u tne system had con
timed these temptations were as likely TO have shown
their mower over those employed under II as they have
done in other cases.
lis confidently believed that the present bill con
,ains all that is practicable and can be useful TO-
wards establishing safe custody or place OF keeping
Of the funds of Government The system which
il PROPOSES will evidently possess some eminent
advantages of safety over bank. In banks ex-
cessive loans, and disposition, often promp'eu ny
their own interest 10 carry their accommodations 10
quite unreasonable lengths are great source oiIah
ser. The Board OF Exchequer will be free rom ms
Ii to make no loans and togive no accommodations
Operatlons in exchange, when founded IN real pusi
ness transactions, are usually safe ~ wecohuuceu
banks Indeed, regular dealing IN exchange Is tle
safest OF all banking transactions ana, IN 'his tespe
The nresent measure Iomises still greater safely IMAM
attends the same business in banks from the STRICT IL
mutations imposed IT, and the absence OF all moe
10 run into excess Banks, too, as we have seem are
sometimes induced to depart altogether rom men
toR hesffe "a But into no such spc
culations will the Board of Exchequer enter.
There is plainly therefore, less dangeri IN the sys
TEN now proposed than in bank, 80 far as danger
ar ses from the mannerin which the pubic funds may
be used while in all other respects its advantages are
eq ua to those of the best conducted banking inslitu
tons
1t may be said that it is hazardous all cases, to
suffer the public funds to be employed III any degree,
in exchange or other dealing. lfi be admitted that
this objection is not without lis force, II must be ac-
know lodged at the same time, on the other hand That
these funds would be used, not only Tor purposes OF
exchange, but IN general accommodation loans, anu
to great and often dangerous extent, by any bank
in which they should be deposited But II, alter all,
it be regarded possible that occasional losses may
happen from dealing in exchange, with the limitations
provided in the bill, 1t will then be Tor Congress 10
decide whether danger contingent shall induce Il
10 reject the bill and prefer system which locks up
rom,a use every dollar of the public money, from It's
receipt to its disbursement As the evil OF thus with
holding large portion OF the circulation from the
general uses OF society, by retaining 1t until wanted
for disbursement, is manesty great evil especially
if the funds thus withdrawn be IN the precious me-
tails it ought not to be suffered 10 exist unless the
danger from the adoption Of another system be equal
ly manifest ta
n
ought not 10 give way to dangers OF doubtful
occurrence, likely to be slight in degree II
they should occur Some risks must be run wheh-
ever any thing important is attempted IN re-
gard to revenue and finance, well as IN other bu-
siness of life and the true question must always be,
whether the danger Of 10 be clear and great as
to overtalance the evident and certain benefits, And
is be borne in mind also, that although the pre-
sent measure has not profit to Government or aug
mentaton Of revenue for It's object yet that the op
8 tbo Eve To,
some amount of earnings; that It occasional LOSSES
should occur, such earnings may make them good
The Board of Exchequer, il is to be presumed, WI
be composed of men of nigh character, known 10 The
country and possessing its confidence.
twill he their duty to superlntend and watch over
the conduct of those who pay out and receive money
from day TO day and to demand from all such agents
proper bonds, with responsible sureies and it will be
their duty also to prescribe and enforce system OF
regular and prompt accounting which shall know nei
ther indulgence delay AT tie principal Board, /
and at each agency the business OF every day may be
count for his receipts before the day itself closes Over
the Board the Secretary of the Treasury will exercise
experimenting power, by the right OF calling for all
accounts general and particular often as he peases
And finally, the absolute authority Of Congress viii
exist over the whole. Congress will have created no
corporation it will have conferred no privileges or
benefits except on the public it will have granted
no vested rights TO individuals it will have parted /
with no portion of lis power, but It's authority |
will remain to amend, to supervise throughout, or TO
abolish altogether The SYSTEM at all times according TO
its pleasure
Ii entire trust may not DO reposcd in institution
thus guarded it only be because human beings
can never be the objects of absolute confidence nor
human skill always adequate to the compllshment OF
It's objects.
Nor is the plan justly liable 10 the objection,
hat it creates union of the purse and the sword,
BY giving to the Executive the custody or con
rol of the public money. Far otherwise The
, nttnl italia # hn mn-
ley by his authority nor change ITS Gus
ody The Secretary Of the Treasury cannot touch
, dollar, nor change its custody except to meet the
occasions Of the public service and by public oiil-
,ial act Whoever shall come to the EXchequer for
money! must show the law of Congress under which
ne comes and no payment can be made but in com
oliance with such law. Until appropriations are
made by law, the President will have no more au-
horty than any other individual IN the country to
AXE farthing from the EXchequer
The purse, then, is etiectuay severed from the
sword the executive power is confined to It's proper
Junction of executing the laws of Congress- and dis
charging its other high constitutional duties; and the
public funds will be in their proper place. entirely
Deyond his reach or control until Congress shall APP
Droprate them to their destined purposes From
hat time they will go into the hands OF disbursng
agents the public service may require, protected
still by official responsibility and adequate bonds, and
,tlll beyond any interference by the Executive pow
ri In the Exchcquer therefore, the public treasures
will be safe-sae against the usual causes of loss and
LANCER and safe from Executive control.
But the Exchequer is expected to DO more than
merely tb keep safely the public money
Its second Objects to furnish sound paper clrcu-
alton in which debts to the Government may be
paid and which may also be useful to the commerce
md general business of the country The first OF
hese functions is purely fiscal and the instrument
ality of such paper medium, IN certain exigencies
If the country may become indispensable to the ex-
,rcise of the highest duties of Government.
In so reasoning upon this subject as to come to any
practical conclusions tits necessary to consider some
IS things settled and certain Among these, Of pri-
nary importance that paper circulation exists IN the
country and that there is not the least probability OF
is ceasing to exist The States posse the power OF
treating banks of circulation; they exercise this
power many of them derive not unimportant reve-
,ues from its exercise and some of them even have