Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1841-06-21

some OF the Eastern cities, chiefly at New York
Ihdt being the great commercial emporium of the
united States, is the point AT which funds are the
most valuable, and, therefore, the most sought /;
hence those who are entitled TO payments out Of
tue public Treasury claim them there. 1t is true
there Is general discretion in the head of the
department to refuse or grant the favor of such
payments according to its convenience; but when
the currency is deranged, and the premium on
exchanges is high, this discretion involves dis
crlinlnnon 20 large amount among creditors
equally entitled. 1t then becomes dangerous
discretion and one that ought not TO exist. But
uHder The present system, il cannot be avoided,
save III lew cases, without dischurging every
pubic liability AT tho most f.vored point. This
would NJ once centre Nil the disbursements Mt n
lew OF the Eastern cities aud involve the I'rensu-
ny III tie risk and expense of transporting The
public funds from the various points Of collection
to the places of disbursement.
AN Item of less importance, but still worthy of
consideration, in settling on permanent aud eco.
noncnl arrangement, is the direct eXpelise of
thc present system, including The cost of the
buildings for The deposiie of the public money,
and The salaries OF the officers md their clerks
VINO receive AMI diSburse il. No portion OF this
risk, Inconvenience, or expense need TO be incur
rcd where wellreguated bank is made the f.
nancial agent.
But The present system is also, in the opinion Of
the undersigned, injurious TO the business and cur
rency OF the country. Instead Of permitting The
credit and TIC finances Of the Government TO lend
their indirect but efficient mid in sustaining the
credit and regulating The currency of the coun-
try, 1t brings into direct hostility those important
Interests. In the progress Of the system sutfi-
Client amount of gold ana 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wants OF the Treasury must be Withdrawn from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
circulation.
lnrup al -, a., ,I,o ,,bo
pay TO or receive from the Treasury, is equally
Withdrawn from general circulation aud made TO
flow through those channels alone which lead in
To and out Of the public Golfers. THE other av-
cnues Of commerce and intercourse are thus de-
prved of their proportion of the precious metals
with The fifty two years during which our
constitutional Government has existed, we have
had, for TIVE periods of twenty years each,
a bank chartered by Congress depository of
The public moneys aud as fiscal agent. We
have lad, also, at Two intervals, amounting 10 n
bout nine years, State banks employed for like
purposes; aud, during The remainder of the time,
the funds OF the Government have heeu kept and
me finances administered! partly by banks ~ partly
by Individual officers and agents. The losses sus.
famed by State banks, as repositories, during the
first period OF their employment, extending from
l0l To 1916, agrecaby TO statement prepared
Ivy the Secretary OF the Treasury i'll 1888 and
revised and repubisled in 1887 were s ,000,676
In the latter period, from 1888 TO 1897, though no
actual loss is believed TO have occurred, yet The
Treasury and the country suffered Inconvenience
and embarrassment from the fiscal arrangements
with those numerous and disconnected lnstu-
tons Bur, during The forty years that The two
banks OF the United States were the depositores
Of the public money and the fiscal agents OF the
Government, no loss whatever was sustained, nor
any delay or any expense incurred in transmitting
or dsbursing The public moneys, so far ms the n
.,e,.t tad Itnn no
regards the wants of The Treasury merely, the
safety OF the public funds, and economy III their
administration, experience has demonstrated The
superior utility ola bank constituted & adopted by
Congress fiscal agent 1t has also proved TO lis
that the active business OF the counlry,its currency,
its credit, its industry, and its commerce, are intim
atey connected with and dependant upon The
financial arrangements of the General Govern
nent. II they he wise and benificent they ind.
reclly, but efficiently, promote those great inter-
ests Of the People; if constant and uniform il
their action, they give to those interests confidence
and stability.
Since the removal of the public deposites from
tho Bank Of the United States, in 1888 the Gov
eminent has had no perlnaEt nj fiscal agent mud no
definite financial system. All has been expert.
ment, transfer, and change. The business of the
country las yielded to the unsteady impulse, and
moved forward with wild irregulariiy; at one
time stimulated 10 excessive action, mt anotbe,
sunk INFO lclIargy.-And, in providing for the
wants of the Treasury, it is surely important 10
look, also, TO the wants and the welfare OF the
community, from the products of whose industry
the Treasury is supplied.
And ms regards those great interests, we find
The testimony Of past years is no less distinct aud
strong in favor OF moDed institution chartered
by the General Government, and possessed of its
confidence and credit. The period embracing
the last len years of the existence of The late
iapE Of tha IIniteb no tho HscaI e
fresh in the memory of us all, aud is looked bnck
to as a period of great public prosperity ; and
though other causes did, doubtless, CO operate to
produce that favorable condition of things vet
one OF the governing principles on which depend.
ed the steady advance Of the country in CON
merce, in industry, and in substantial wealth, was
The existence of fiscal agent established by the
General Government, aud changed with the equal
izaion Of exchanges, and the regulation Of the
currency.
In The present condition of our country, the re-
lief to he anticipated from such nm institution
cannot be immediate, but must I've the work of
time. The business oi The country would, how
ever, in the opinion of The undersigned, steadily
and certainly revive under its influence.
IN whatever point Of light The undersigned is
able 10 view his subject, he is rreSsllhly led 10
the conclusion that such fiscal agent framed us
To possess those important iunt tons, is 80
Hal to The wants of The Treasury and Of the COM
muniiy. Such an institution should be framed
with deliberations for il must have high duties TO
perform and extensive interests to protect anA
promote and il sh ould be granted wi'h care. for
1t viii lie liable TO great and dangerous abuses.
As The iscal agent Of the Government, and an ef
iccve regulator Of the currency in widespread
comm nifty, il sboud be steady and uniform in
action, and fixed and stable in lis character.
The undersigned las no doubt Of the power Of
Congress 10 create such an institution. Expert
ence has proved its necessity to carry out other
expressly granted powers ii has been exercised
and recognised by the Legislative and Executive
departments Of the Government during four-Gfihs
of the whole period of our national existence,
and it has received the uniform sanction of our
highest judicial tribunal
YET that power has been questioned by many
wise and patriotic statesmen whose opinions are
entitled TO consideration aud respect aud in Il