The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1845-12-19

In The collection and disbursement OF the
pablo money no agencies. have ever been
employed by law except suh as were APP
pointed by the government directly respon-
sue to II, and under us control. The
sal, keeping of the public treasury created
by law and under like responsibility and
control II Is not 10 be imagined that the
trainers of the constitution could have IN
tended that treasury shdhc created rs
place oi depos!c and safe keeping of the
public money which was irresponsible 10
the government. The first Congress under
the constitution, by the act of the 2d of
September. 1889, TO establish the Treas
nry Department. provided for the appoint
ment OF Il treasurer, and made this duty
ia receive q keep the moneys oflhe Il. s.
AMI AT all times to submit To the Secretary
oil the Treasury, and the Comptroller, or
either OF them. the inspection Of the moneys
in his hands.
hat banks, national or State, could
not have been intended to be used as n
substitute for the treasury spoken in the
constitution q: keepers OF the public money
IS manifest from the fact that mt that time
there was no national bank and hut three
or tour State banks of limited capital cxis-
tel mthe country. Their employment as
repositories was at first resor,ed 10, toa linn
lled extent. but with no avowed intention
ul continuing them permanently in place of
Inc treasury OF the consuluton.-W hen
'"ay were afterwards from time to time
employed II was from motives OF supposed
convenience.
oar experience has shown that when
banking corporations have been the keep
ers OF the public money, and been thereby
maze IN effect the treasury, the government
can have no guaranty that it can command
the use Of its own money for public pur-
poses. The late Bank of the United States
proved to be ailhess.
The State banks which were afterwards
employed, were iaithless. But a 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 indisposllion to pay on
demand 10 the pubic creditors. in the only
currency recognized by the constitutions
Their failure occurred in a period of peace,
and great Inconvenience aud loss were sui-
l,rcd by the public from it. Had the coun.
try been involved in a foreign war that in
convenece and loss would have been much
greater and might have resulted in extreme
public calamity.
The public moneys should not be
mingled with the private funds OF banks or
individuals. or be used for private purpos-
es. When it is placed in banks for safe
keeping, it's in effect loaned to them with
oaI interests, and is loancdby them upon in
trrest to the borrowers from them. The pub
lie money Is converted into banking capital
and is loluei ont aud used for the private
profit of bank stockholders: and when
called for, las was the case in 1887 il
may be in the pockets OF the borrowers
from the banks instead of being in the pub
lictreasury contemplated by the constitution.
The trainers OF the constitution could never
have intended thatthe money paid into the
treasury should be thus converted to pri-
waite use, and placed beyond the control OF
the government.
Banks which hold the public money are
often tempted by desire of gam to extend
their loans. increase their circulation and
thus stimulate if not produce spirit OF
speculation and extravaganza which sooner
or later must result in ruin to thousands
II the public money be not permitted to
be thus used but be kept in the treasury
and paid out to the public creditors in gold
and silver, the temptation afforded by its
deposit with banks to an undue extension
of their business would be checked, while
the amount of the constitutional currency
left in circulation would be enlarged by its
employment in the public collections and
disbursements. and the banks themselves
would in consequence be found in safer
and souuder condition.
A.! present State are employed or depos-
tories, but without adequate regulation or
law. whereby the public money can be Sc
cured against the casualties and excuses,
revulsons, suspensions and deiacations, to
which, from over issues, over trading and
inordinate desire for gain or other causes,
they are constantly oppressed The Secre-
tarv of the Treasury has in all cases when
il was practicable, taken collateral security
for the amount which they hold by the
pledge of stocks Of the United States; or
such of the States as were in good cred
it. Some of the deposlte banks have given
this Descriptions security and others have
declined to do so.
Entertaining the opinion that the separa-
ton Of the government from banking in
stituiions is indispensable for the safety
of the funds of the government and the
rights of the people, | recommend to
Congress that provision be made by law
for such separation and that constitutional
treasure be created for the safe keeping of
the public money. The constitutional
treasury recommended is designed as a Sc
cure depository for the public money,
without any power 10 make loans or
discounts, or to issue any paper whatever
as currency or circulation. l cannot
doubt that such treasury as was contem-
plated by the constitution, should be indie
pendent of all banking corporations. The