The Evansville journal. (Evansville, Ind.) 1834-184?, 1845-12-13


provided for the appointment ola treasurer, and
made it his duty, to receive aud keep the mon
es of the u. S ~ and Sat all times to submit to
the Secretary of the Treasury and the comp
;roller, or either of them, the inspection of the
moneys in his hands.''
That banks, National or State, could net
have been intended to be used as substitute
for the treasury spoken Of in the Constitution, as
keepers OF the public money, is manifest from
the fact that, at that time, there was no Nation
al Bank, and but three or four State Banks of
limited capital existed in the country. Their
employment as repositories was at first resorted
to, to limited extent, but with no avowed in
tenton of continuing them permanently, in
place of the treasury of the Constitution. When
they were afterwards from time to time employ
ed, it was from motives of supposed convent
ence.
Our experience has shown that when bank
ing corporations have been the keepers of pub
lie money. and been thereby made in effect the
treasury, the Government can have no guaran-
ty that it can command the use OF its own mon
ey for public purposes. The late Bank of the
u. S. proved to be faithless. The State banks
which were afterwards employed were faith
less. But few years ago, with milliong Of
public m oney in their keeping, the Government
was brought almost to bankruptcy, and the pub
lie credit seriously impaired, because of their
inability or indispostion to pay, on demand, to
the public creditors, in the only currency recog-
missed by the Constitu ton. Their failure oc-
Cured in period of peace, and great iuconve-
nience and loss were suffered by the public
from it, Had the country been involved in
foreign war, that Inconvenience and loss wou Id
have been much greater, and might have result
ted in extreme public calamity. The public
money should not be mingled with the private
funds of banks or individuals, or be used for
private purposes. When 1t is placed in banks
for safe keeping, it is in effect loaned to them
without interest, and is loaned by them upon in
terest TO borrowers from them.
The public money is converted into banking
capital, and is used and loaned out for the PR
vate profit of bank stockholders; and when call
ed for, las W as the in 1879 it may be in
the possession of the borrowers frem tile banks,
instead of being in the public treasury contem-
plated bv the constitution. The trainers of the
constitution could never have intended that the
money paid into the treasury should be thus
converted TO private use, and placed beyond the
control of the government.
At present, State Banks are employed as de-
positories, but without adequate regulation OF
law, whereby the public money can be secured
against the casualties and excuses, revulsIons,
suspensions, and defalcatiOns, to which from
over issues, overrading, and inordlnate desire
for gam, or other causes, they are constan ty
exposed. The Secretary has In all cases, when
it was practicable, taken collateral security for
the amount which they hold. by the pied ge OF
stocks OF the u. S., or such of the States as were
in good credit Some of the deposte banks have
given this description of security, and others
have declined to do so.
Banks which hold the public money are often
tempted, by desire of gain, to- extend their
loans, increase their circulation, and thus slim
ulate, # not produce spirit OF speculation and
extravaganza, which sooner or late must result
in ruin to thousands. 1t the public money be
not permitted TO be thus used. but be kept in
the treasury and paid out 10 the public creditors
4 ~, JoI
deposte with banks TO an undue expansion of
their business would be checked, while the "a
mount of the constitutional currency left in
circulation, would be enlarged by Its employ
ment in the public collections and dsburse-
ments, and the banke themselves would in con-
sequence be found i'll a safer and sounder condi-
ton.
= L Ilino the oninion that ssthe separation
of the moneys OF the Government from banking
institutions is indispensable for the sa ely of the
funds OF the Government and the rights of the
people, recommend to Congress that provis-
ion be made by law for such separation, and
that a constitutional treasury be created for th e
safe keeping Of the public money. The consti-
iutlonal treasury recommended is designed as a
secure repository for the public money, without
any power TO make loans or discounts, or to is
sue any paper whatever currency or circu-
latioB. cannot doubt that such tire asury as
was contemplated by the constitution should be
independent of all banking corporations. The
money of the people should be kept in the trea-
sury Of the, people created by law, and be in the
custody of agents of the people chos by them
selves, according TO the forms of the constitu-
ii on; agents who are directly responsible TO the
Government, who are under adequate bonds and
oaths, and who are subject to severe punish
ment Tor any embeZzlement, private use, or mi s.
application of the public funds, and tor any
failure in other respects 10 perform their duties.
To say that the people or their Government are
hof n. ia
tody Of their own money, in their own treasury.
provided by themselves, but must rely the
presidents, cashiers and stockholders OF bank
ing corporations, not appointed by lhem-n nor re-
sponsible to them, would be to concede that
they are incompetent for self government.
In recommending the establishment of con- !
stituiional treasury. in which the public money I
shall be kept, L desire that adequate provision
be made by law for lis safety. and that all Exc
cutive discretion or control over it shall be re-
moved except such as may be necessary in d.
recting its disbursement in pursuance of apr o.
prations made by law.
Under our present land system, limiting tho
mi nimum price at which the public lands can be
en- tered TO one dollar and twenty five cents per
acre, large quantities of lands ofinferior quality
remain unsold, because they will not command
that price.
From the records of the Gen eral Land Office
it appears, that, Of the public lands remaining
unsold in the several States and Territories in
which they are situated, Thirty nine millions one
hundred and five thousand five hundred and Sc
ventv seven acres have been in market, subj ct
% entry more than 90 years, Dc, 638,G44 acres I
or more than ten years; and l06, l26.96l acres {
or more than five years. Much the largest por {
ion of these lands will continue to be un salea-
Die at the minimum price at which they are perl |
nitted be sold, long as large territories OF
an DIS from which the more valuable portions |
rave not been secle cled are annually brought S
nto market by the Government With the view c
o the sale and settlement Of these inferior lands q
recommend that the price be graduated and G
educed below the present minimum rate, conf '
ing the sales at the reduced prices to settlers I