Richmond palladium. [volume] (Richmond, IA [i.e. Ind.]) 1839-1854, 1845-12-17

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agned that the trainers Of the constitution could have
Intended that treasury should be created place Of
deposiie and safe keeping Of the public money which
ponsIble TO the government The first Con
oress uuder The constitution, by the act of the second
September 1889, establish the Treasury Depart
ment,' provided for the appointment ef
and made it his duty receive and keep the moneys
Of the United States. aud lat all times to submit TO
the Secretary of the Treasury ard the Comptroler or
either Of them, the inspection Of the moneys in his
hands,
intended to be used a substitute for the treasury
spoken Of in the constitution keepers of the public
money, is manifest from the fact that IL that time
there national bank. and bat three or tour ae
banks of limited capital existed In he country 1 hef
employ repositories at first restored To- 10
Limited extent but with avoved intention OF con
nuing them permanently, in place Of the treasury Of
the constitution. When they Were afterwards frotl
time 0 time employed, from motives Of sugpo
sed convenience.
Our experience has shown that when banking cor
poraons have been the keepers Of the public money.
and been thereby made in effect the treasury the gov
eminent have guaranty that IL can command
the Gifts own money for public purposes. The
late Bank Of the United States proved faithess.
The state banks which afterwards employed.
ialthlcss. But few years ago, with millions Of
public money IN their keeping, the government was
brought almost TO bankruptcy, and the public credit
seriously impaired, because of their Inability or indis
position pay. demand, to The public creditors, IN
the only currency recognized by the constitution.
Their failure occurred in period OF peace, and great
inconvenience and loss were suffered by the pubic
from it. Had the country been involved IN foreign
war, that inconvenience and loss would have been
much greater; and might have resulted IN extreme pub
lie calamity The public money shonld not be min
gled with the private funds OF banks or individuals.
be used for private purposes When u IS placed ia
banks keeping. is in effect loaned 10 them
without loaned by them upon interest
the borrowers from them. The public money Is con-
verted into banking capital and l. used aud loaned oct
for the private profit Of bank stockholders; aud when
called for, las 1927 1t may be in the
pockets of the borrowers from the banks instead Of
hGn then he rn1@
stitulion. The trainers Of the constitution could new
have intended that the money paid into The treasury
should be thus converted private use, and laced be-
You'd the control Of the government
Banks which hold the pDbilc money are ct
ten tempted, by a desire Of gain, 10 extend
their loans. increase their circui 4tson. AMI thus
stimulate, II not produce sPHtt "i specuta'
ton and extravaganza, which sooner OF later
must result IN the ruin OF thousands. II the
public money be not permitted 10 &c ihus used,
ut be kept IN the treasury and PAID out to
the public: creditors IN gold and silver, the
temptation afforded by this deposic with
banks to an undue expansion of their business
would he checked, while the amount Of the
constitutional currency lett IN circulation
would be enlarged, by It's employment IN the
public collections and disbursements. and the
banks themselves would. in consequence, be
found in safer aud sounder condilion.
AT present. State banks are employed as
repositories, out without aQ"q0ule regulation
Of law, whereby the pubic money can be
cured against the casualties and excuses, re
WILSON'S, suSpensi ions, and de!a!ca'ions. 10
which, from over issues, overtrading, inor
dinate desire for gain. or othe: causes, they
are Constantly exposed. The Secretary oi
the Treasury hrs in all cases. when il IS prac-
,lcable. taken collateral security for the
noun, which they hold, by the pledge Of stocks
Of the United States, or such q tha States as
were in good credit Some of the despos!ie
banks have given this description Of security,
and others have declined TO do so.
Entertaining the opinion that ':the sapara-
ton Of the moneys Of the government from
banking Institutions is indispensable for the
safety Of the funds of the government and the
rights OF lhe people. Il recommend TO Con
gress that provision be made by law for such
separation, and that constitutional treasury
be created for The safe-heeplng Of the pubic
money. The constitutional treasury recon
mended is designed as secure depository tor
the public money, without any power to make
loans or discounts, or 10 issue any paper what
ever as currency or circulation. | doubt
not that such a treasury as was coniemP ated
bv the constitution, should be independent Of
all banking corporations. The money OF the
people should be kept IN the treasury OF the
people created by law. and be in the custody
OF agents of the people chosen by 'hemsei-
YES, according to the forms OF the consliu-
ton; agents who are dneo:iy reePonoib'o TO
the government, who are under adequate
bonds and oaths. and who subject TO
we're punishments for any embezz emeht, pr
vate use, OR m,sapTiicaiion OF the public funds.
and fsr any failure in other respects TO per-
form their duties. To say that the people or
their government are incompetent. or not 10
be trusted with the custody of their own mo-
new. ia their own treasury, provided by them
selves, bu, mus, RELY on 'he presidents. cash
,ers. and stockholders OF banking corporations,
not appointed by them. nor responsible TO
the m. would be TO concede that they are IL
competent of sei-covernment.
In recommending the establishment OF