Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1845-01-09
The Keeping of The Public Money.

The late report of the Secretary of the Treasury al
ludes but briefly to the manner in which the public
money remaining in the Treasury has been disposed
of for safe keeping. This is Of the highest importance
of any subject contained in the report, yet 1t has APP
parently received the least attention. When the con-
dition of the late National Bank was such as to make
it an unsafe depository for the government funds, and
they were removed, through the far-seeing vigilance
of Gen. Jackson, a storm of Indignation arose at what
was called "a union of the sword and purse" al
though Gen. Jackson in his protest stated, that the
Executive would ever court the exercise of the un-
doubted power of Congress to direct In rchdt place the
public money should be kept. Pursuant to that policy
Congress established 81 the S ub-Treasury system" the
spirit of which involved a revenue not to exceed the
expenditures, and the latter TO be made by draft In IA
vor of the public creditor, so promptly and regularly
on the points Of receipt that no surplus should ever
accumulate, either TO be loaned for any purpose what
ever, or to remain in the Treasury Withdrawn from
business operations. So perfectly did this thing ope-
rate in 1910, that Of S25, 0C0,0 900 expended by Mr..
Woodbury., 500, 100000 were made by these drafts,
of which SIC, 0O0,O00 were drawn upon New York,
meeting the revenue so accurately that throughout the
whole year the close of no week left $4,000 on hand
subject TO draft. Nor was one dollar lost to the gov.
eminent. AT the extra session of 1871, this system
was promptly demolished, and no substitute has beer
provided up to this time. The large revenues of the
government have been entirely at the control of the
Executive, and he tells us that in making new deposi.
tories, or changing the money from one to the other
he has been governed by the following motives :-"tC
accommodate officers and agents employed in paying
ont the public money according to the appropriation:
as WeH as those entitled to receive to prevent over
grown acnumulations in banks, b~egetting temptation,
to inordinate discounts and issues of bank notes anC
bank credits, producing speculations, overtrading, &c.
to difuse the benefits Of the public deposits, and there
by obtain greater security for the public money unit
dlsbursed according to the appropriations"
Now the increase of government revenues las
January was such as to exceed the expenditures anC
cause an accumulation in the government banks IL
this city. of which there were then three, viz: tht
Bank of Commerce, Merchants, and Bank of America
and at the close of the session, a law was passed b.
some means, limiting the number of repositories t
four, and the American Exchange Bank was added
AS long as the government revenues were no create
than the expenditures this gave the pet banks no verl
great advantage. From April to July there were pai
into the customs, in this city, S5,47S,5SS, and iron
June to September 30, S7,629,964, making SI3, 3OS,
534 paid by the merchants of New York in six months
In four deposit banks, mostly by checks ON the eighteen
other banks. The consequence was, that the fou
banks were always creditors, and by drawing speci
from the other Institutions, checked their loans, Will
their own ability to make loans was increased. Thi
movement progressed as follows: