The Cadiz sentinel. [volume] (Cadiz, Ohio) 184?-1851, 1845-12-17
MESSAGE OF PRESIDENT POLN
(coNcLUDED.)


been intended TO be used as substitute for the
treasury spoken of in the constitution, as keep
ers of the public money, is manifest from the
fact, that AT that time there was no national bank,
and but three or four State banks of limited cap
tal existed in the country. Their emplymcnls
as repositories were at first resoed to, TO limi-
ted extent, but with no avowed intention of con-
tinuing them permanently, in place of the treas
ury of the constitution. When they were after
wards from time to tune employed, il was from
motives of supposed convenience
| Our experience has shown, that when banking
corporations have been the keepers OF the public
money, and been thereby made in effect The treas
my, the government can have no guaranty that
| il can command the use of its own money for
public purposes. The late Bank of the United
States proved to be fllthess The State banks
which were afterwards employed, were faithless.
But few years ago, with millions OF public mo-
ney in their keeping,the government was brought
almost 10 bankruptcy, and the public credit ser-
ously impaired, because Of their inability or in
Idsposition to pay, on demand, to the public Gre
Editors, in the only currency recognized by the
Econstitution. Their failure occurred in period
of peace, and great Inconvenience and loss were
suffered by the public from it. Had the country
lbcen involved in foreign war, that inconVenl-
ence and loss would have been much greater, r,and|
might have resulted 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 it is placed in
banks for snfekeeping, it is in effect loaned to-
them without interest, and is loaned by them up
on interest to the borrowers from them. The
. public money is converted into banking capital,
and is used and loaned out for the private profit
of bank stockholders; and when called for, Gas
was the case in 1877 it may be in the pockets
n from the banks, instead of tho public treasury
contemplated by the constitution. The Trainers
: of the constitution never have intended that the
money paid into the treasury should be thus con.
vercd 10 private use, and placed beyond the con-
troll of the government.
Banks which hold the public money are often
tempted, by desire of gain, to extend their
u loans, increase their circulation and thus stlmu.
/ late if not produce spirit of speculation and
eXravagance, which sooner or later must result
e in ruin to thousands. If the public money be
not permitted to be thus used, but be kept in the
treasury and paid out 10 the public creditors in
gold and silver, the temptation afforded by its
: deposIie with banks to an undue expansion OF
a their business would be checked, while the
amount of the constitutional currency left in cir
" culation, would be enlarged by lis employment
in the public collections and disbursements and
= the banks themselves would in consequence be
T. found in safer and sounder condition.
= AT present, State banks are employed as de-
positories, but without adequate regulation of
e law, whereby the public money can be secured
n against the casualties and excesses, revu|sons,
Suspensions, and dealcalious, to which, from over
issues, over trading, an inordinae desire for gain,
or other causes, they are constantly exposed
: The Secretary of the Treasury has in all cases.
when it was practicable, taken collateral security
0. for the amount which they hold, by the pledge
. of stocks of the United States, or such of the
States as were in good credit. Some of the
R. deposte banks have given this description Of Sc
curity, and others have declined TO do so.
Entertaining the opinion that ''the separation
= 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 Congress that provision
= be made by law for such separation, and that a
constitutional treasury be created for the safe
keeping of the public money. The constitutional
treasury recommended is designed rs a secure
ID depository for the public money, without any
pt power to make loans or discounts, or TO issue
any paper whatever as a currency or circulation
| cannot doubt that such treasury as con.
e emplated by the constitution, should he inde
pendcnt of all banking corporations. The mo-
ney of the people should be kept in the treasury
g tof the people created by law, and be in the Gus
= tody of agents of the people chosen by them
selves, according 10 the forms Of the constitution
r agents who are directly responsible to the gov
ernment, who are under adequate bonds and
= oaths, and who are subject 10 severe punishmen'
e. for any embezzlement, private use, or misappli
cation of the public funds, and for any failure il
other respects TO perform their duties. To say
that the p ople or their government are incom
peent, or not TO be trusted with the custody o
r, their own money, in their own treasury, provided
Y by themselves, but must rely on the presidents
cashiers, and stockholders of banking corpora
h. tions, not appointed by them nor responsible Il
them, would be to concede that they are incom
: petent for selfgovernment.
Recommending the es ablisement of con
stitutionaL treasury, in which the public none.
shall be kept, desire that adequate provision bt
: made by law for IFS safety, and that all executive
discretion or control over it shall be removed, ex
- cept such as may be necessary in directing it
disbursement in pursuance Of appropriation
,e' made by law
Under our present land system, limiting th
minimum price atwhich the public lands can bc
entered TO one dollar and twenty-five cents pc
II. acre, large quantities Of lands of inferior qua
remain unsold, because they will not comman'
that price. From the records of tho Genera
lie Land Office il appears, that Of the public land
gh remaining unsold in the several States and Terri
tories in which they arc situated, thrty-nine mil
lions one hundred and five thousand five hundro'
se and scventy-seven acres have beenin the market
ire subject to entry more than twenty years; forty
os nine millions six Hundred and thirty-eight thous
and ai.r k.,.lroI nr,d EarIr Gnur nnrnc for ranr