American Republican and Baltimore daily clipper. [volume] (Baltimore, Md.) 1844-1846, 1845-12-03

State banks which were afterwards employed
were faithless But few years ago, with mil
lions Of public money in their keeping, the
| government was brought almost to bankrupt
cy, and the public credit seriously impaired,
because of their inability or indispostion to
pay, on demand, to the public creditors, in the
only currency recognized by the constitution.
lhelr failure occurred in period of peace,
and great Inconvenience and loss were suffered
by the public 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 public Calami-
ty. The public money should not be mingled
with the private funds of banks or Individuals,
or be used for private purposes When it is
placed in banks Tor safe keeping it is in effect
loaned TO them without interest, and is loaned
by them upon interest TO the borrowers from
them. Tho public money ls converted into
banking capital, and is used and loaned out for
the private profit of bank stockholders; and
when called for, las was the case in 1879 it
may be in the pockets of the borrowers from
the banks, instead of being in the public trea-
sury contemplated by the constitution. The
trainers of the constitution could never have
intended that the money paid into the treasu-
~ should be thus converted to private use, and
placed beyond the control Of the government.
Banks which hold the public money are oft
en- tempted, by desire of gain, 10 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. IF the public mo-
ney be not permitted TO be thus used, but be
kept i'll the treasury and paid out to the public
creditors in gold and silver the temptation az
forded by its deposite with banks to an undue
Y pSiDn pf their huainooc nonl1 ka ohock -
while the amount of the constitutional curren-
cy left in circulation would be enlarged, by its
employment in the public collections and dis
bursemonts, and the banks themselves would,
in consequence, be found in safer and sound
or condition.
At present, State banks are employed as de-
! Posltores; but without adequate regulation of
law, whereby tho public money can be secured
against the casualties and excuses, revulsionS,
suspensions, and defacations, to which, from
ovcrssues, overrading, all inordnate desra
| Tor gain, or other causes, they are constantly
exposed. The Secretary of the Treasury has
in all cases, when it was practicable, taken col
lateral security for the amount which they
hold, by the pledge of stocks Of tho United
States, or such of the States as were in good
credit. Some Of the depositc banks have Civ
en- this description Of security, and others have
| declined 10 DO so.
Entertaining tho opinion that "the sopara-
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 the people," ! recommend to Con-
grcss that provision be made by law for such
separation, and that constitutional treasury be
created for the sale-k6cping of the public mo-
ney. The constitutional treasury recommend
ed is designed as d secure depository for the
public money, without any power 10 make
loans or discounts, or to issue any paper what
ever as currency or circulation. | cannot
doubt that such treasury as was contemplat-
ed by 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 custo-
dy oil agents Of the people chosen by them
selves, according to the forms of the consttu-
ton; agents who are directly responsible TO the
government, who are under adequate bonds
and oaths, and who are subject to severe pun
ishments for any Enforcement, private use or
misappcaton Of the public funds, and for any
failure in other respects to perform their du-
ties To say that the people or their govern
ment are incompent, or not to be trusted with
their own money, in their own treasury, pro-
vIded by themselves, but must rely ON the pre-
sldepts, cashiers, and stockholders of banking
ing corporations, not appointed by them nor
responsible to them, would be to conccde that
they are incompetent for selfgoVernment.
In recommending the establishment OF con-
stitutional treasury, in which the public money
shall be kept, desire that adequate provision
be made by law for its safety, and that all exc
cutive discretion or control over it shall be re-
moved, except such as may be necessary in d.
recling its disbursement in pursuance of appro-
pnations made by law.
Under our present land system, limiting the
minimum price at which the public lands can
be entered to one dollar and twenty-five cts.
per acre, large quantities Of lands of inferior
quality remain unsold, because they will not
command that price. From the records ofthe
General Land Office it appears, that, of the
public lands remaining unsold in the several
States and Territories in which they are stua-
ted, thirty-nne millions one hundred and FIVE
| thousand five hundred and seventy -seven acres
have been in the Market subject to entry
more than twenty-years; foIty-nine millions
six hundred and thirty eight thousand six
hundred and forty-four acres for more than fif-
teen years; seventy-threc millions seyenty-four
thousand and six hundred acres for more than
ten years; and one hundred and six millions
one hundred and seventy-sx thousand nine
hundred and sixty-one acres for more than FIVE
years Much the largest portion of these lands
will continue to be unsaeable at tho minimum
price at which they are permitted to be sold
so long as large territories of lands from |
which tho more valuable portions have not
been selected are annually brought into mar |
ket by the government. With the view to tho
sale and settlement of these inferior lands, |
recommend that the price be graduated and
reduced below the present minimum rate, con-
fining the sales at the reduced prices TO SET
tier, and cutivators, in limited quantities. If
graduated and reduced in price for limited |
torn to one dollar per acre, and after the ex-
piraton of that period for second and third