The Middlebury people's press. [volume] (Middlebury, Vt.) 1841-1843, 1841-06-15

a sum sufficient 10 pay the debt at present ex'
isiing, and such as will necessarily accrue in
this and the ensuing year, be raised Oh loan for
the time and on the condition above suggest
ed.
ON KEEPING AND Discussing THE PUBLIC MON
( les.
The undersigned would also respectfully in.
wife the attention Of Congress TO the present
mode of keeping and discussing the public
moneys; and also to the subject of the creation
or employment Of fiscal agent to be charged
with the performance of The Sc and other duties.
The subject is one of great importance, both 10
the government and to he community. Such
agent or depository ought TO unite, in the highest
practicable degree, the safety of the public funds,
aud conven ence and economy in their admins
iraion and it should, if possible, be selected or
framed so as ioexert salutatv influence over The
business and currency of the country.
| The mode of keeping and disbursing the pub
lie money, provided by the act OF July 4, 1910,
will be found, on comparison with that heretofore
chiefly used by the government, emlnenily def
Gent in all these essential requisites. The 6nan-
cial history of the United States, especially for
The last twelve years, furnishes abundant proof
that the public money is unsafe in the custody of
individuals, and that their official bonds are no
sufficient security for its >aie-keepiDg ami faithful
application. Within the period above named
many receiving officers connected with the reas-
ury department have become defaulters 10 the
| government. The aggregate loss from that cause
within that period, as shown BY the books of the
department, amounts TO 5000 800, but small
part of which will probably be recovered from
their bonds. II is true that in any system which
can be adopted, some part of the public money
must in the process Of collection, pass through
tl,a n ,nHs Of md nd ha IN hi
defacaions, but The act oil July 4, 1910, extends
and continues the risk beyond The period of co..
lection, and it subjects large masses which. in the
fluctuations oil commerce. sometimes accumulate,
to he same dangerous custody.
No, only is the public money in the hands of
individuals more exposed TO loss from ordinary
delalcalions than when deposited in a well regu-
lated bank but the government is also liable 10
the risks Of fire, robbery, and ether casualties &C.
curing either 10 deposite or transmission. from
which it is entirely protected when well-regu
lated bank is the depository and the fiscal agent
The present system is also. in many respects,
cumbrous and inconvenienr. It's tendency is to
centre the disbursements Oft the public moneys at
some of the eastern rites. chiefly at New ork
That buing 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 10 payments
out of the 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 10 its convenience; bu.
when the currency Is deTan9ed, and the premi-
um on exchanges Is high, this discretion involves
discrimination TO a large amount among credit
ors equally eniIled. II then becomes danger
Gus discretion, and one that ought not 10 exist
But under the present system, II cannot be a
voided, save in few cases, without diScharging
every public liability at the most favored poini.
This would at once centre all the disbursements
at few Of the Eastern cites, and involve The
treasury in the risk and expense Of transporting
the public funds from the various points Of col
lection 10 the places Of disbursement.
An item of less importance, but still worthy oil
consideration, in settling on permanent and E.
economical arrangement, Is the direct expense of
tie present system, including the cost of the hull
| dings for the deposite oil the public money. and
the salaries OF the officers and their clerks who
receive and disburse it, No portion of this risk
Inconvenience expense need 10 be Incnried
where a well-regulated bank is made the fiscal
agent.
/ But The present system is also, in the opinion
OF the undersigned, injurious TO the business and
currency of the COUNTRY. Instead of permitting
the credit and finances of the government 10
lend their indirect but efficient aid in sustaining
The credit and regulating The currency of the
country, it brings into direct nnslilry those i'm
portant interests. In the progress Of the system
sufficient amount Of gold and silver supply
the wants OF the treasury must be withdrr wu
from circulation and locked up in vaults, leaving
no representative to supply lis place in tie gen
eral clrt ulatlon.
A large amount, also, in The hands Of hose
who pay 10 or receive from The treasury, is equal
w Withdrawn from general circular ion e. made
to flow through those channels alone which lead
into and ut al the public Golfers. The other av-
enues of commerce and Intercourse are thus de-
prived of their proportion OF the pre- iouS metals
Within the fitly-two years during which our
constitutional government has existed, we have
had. for two periods Of twenty years each, bank
chartered by congress as depository Of the pub
nc moneys and as a fiscal agent. We have had,
also, al Two intervals, am0nntilg to about pine
years, state banks employed for like purposes;
and during the remainder OF the time tie funds
of the government have been kept and the inan-
ces administered partly by individual officers and
agents. The losses sustained by state banks, as
repositories. during the firsI period of their en-
Payment, extending from 1911 to 1916, agreea-
bly, TO a statement prepared by the Secretary of
tie Treasury in 1888 and revised and IT publish
ed in 1887 were sS1,00O,676. In the latter pc
Rod from 1913 to 1887, though no actual loss is
believed to have occurred, yet be treasury and
the country has suff red Inconvenience and en-
barras> ment from the fiscal arrangements with
those numerous and disconnected Institutions
But, during the forty: years that the two banks Of
ths Unned States were The repositories of he
public money and the fiscal agents OF the govern
ment no loss whatever was sustained, nor any
delay or any expense incurred in transmitting or
discussing The public moneys so far as the agen-
nj cd
CARDS the wants of the treasury merely, tie safe
ly of the public funds, and economy in their ad-
Illustration, experience has demonstrated the
superior utility ola bank constituted ard adopted
by congress as fiscal agent. 1t has also proved
to u.s. that The actual business of the country. its