Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1845-12-11

SlftpStNfC " WV E0friuUft nis lhM
fitsi Congress under the constitution. hv
the oct II ihe second September, 1850
10 establ SD the Treasury Department, .
pfovid fer the appointment, ol ireasur.
es, and made il h's duty 10 receive and
keep the moneys Ct the United S,a,rsn
and sAi all times To sunni, to the Secfe.
safs q the lreasury end the Comptroller
or either Of them, The inspection of the
moneys in his hands. F"
! That banks, national or state, could no,
have been lniened TO be used as q sutsi.
tute far q e treasury spoken Of in the con.
sii,ulion, as keepers OF the public money.
IS manifest from The fact, that st that tina
there was no nstional bank, and but three
or four State banks of limited capital cx.
isteG in The country. Their emplo, men,
as repositories was at first resofled to, To
limited exten., but with no avowed in.
teEion Of continuing them permanently,
in place Of the treasury ufihe constitution,
When they we're afterwards from time
to time employed. it was from motives Of
supposed convenience.
Our experience has shown. that when
banking corporations have been the keep.
ers OF the public money, and been there.
by made IN effect the treasury, The gov.
ernmeut Can have no guaranty that il eau
commend the use -. Ills own money for
public purposes. The late Bank oil The
United States proved to be fsithless.
The State banks which were afterwards
employ ed, were fni.hess. But a lew
yoais ago, with millions of public monty
IN their keeping, the government was
brought almost TO bankruptcy, aud ;he
public credl, seriously impaired, because
ofihetr inability or ndisposliion 10 pay.
on demand, TO the public creditors, IN the
only currency recognised by the constiiu.
ton. Their failure occurred IN a period
of peace, and great inconvenience snd
loss were suffered by the public from il.
Had the country been involved in for.
eign war, that lnconvenu nee and loss
would have been much greater, aud nigh,
have resulted in extreme public CALAMITY.
The public money should not be mingled
with The private funds Of hanks or midi.
vlduals, or be used for private purposes.
When it is placed in banks for sal. keep.
ing, il rs in effect loaned 10 them withou,
interest, and is loaned b. them upon 10.
;erest TO the borrowers from them. The
public money is converted into banking
capital. and is used and loaned out lor tho
private profit oil bank stockholders; and
when called for, (as was the case in 1917
il may be in the pockets Of The borrowers
from the banks, instead Of being in the
publ c treasury contemplated by the con.
stitution. The trainers ofthe constitution
could never have intended that the money
paid into the treasury should be thus con.
ver,ed to private use, and placed beyond
the control Of the government.
Banks which hold the public money
arc often tempted, by Il desire Of gain, 10
extend their loans, increase their circu.
laiion. and thus stimulate, il not produce
a spirit oil speculation and extravagance,
which sooner or later must result 10 the
ruin TO thousands. IL the public money
be not permitted to be thus used, bu, DO
kept in the treasury and paid out to tho
public creditors in gold and SILVER the
temptation afforded by lis deposile with
banks 10 an undue expansion u th,ir bu.
siness would be checked, whls tho
amount Of the constitutional currency ltfi
IN circulation would be enlarged, by lts
employmea; in the public collections and
disbursements, and tho banks ttemseya
would, in cons quence, BIO found IN o -.
Ter and sound,r condition.
At present, State banks arc einployedu
deposi.ori s, bu, without adequate reguls.
lion OF law, whereby the public money
can be secured against the casualties aid
excesses, revulslons, suspensions, and de.
falcstIons, to which, from over.issues,
overtrading, an inordnste desire for
gain, or Other causes, they are constantly
exposed. The Secretary Of the Trea-
sury has in all cases, when it is pracilca.
bic, taken collateral security for the
amount which they hold BY the pledge Of
stocks Of the United States, or such oil the
States as we're in good credit. Some Of
the depos lie banks have given this descrip.
lion Of security, and others have declined
to do so.
En,ertaining the opinion That "ihe
separation OF the monies OF the govern.
meat from banking institutions is 10.
dispensble for the safety oil The funds
Of The government and the rights Of tho
people," recommend 10 Congress that
provision be made by law for such spa
ration, and that constitutional treasury DO
created for the sale keeping Of The public
money. The constitutional treasury Iec'
Commend is designed as secure deposito.
ny for the public money, without any pow
or TO M Ike loans Or discounts. or TO issue
any paper Whatever as currency or
circulation. doubt not that such irea'
sury as was contemplated by the consthu'
ton, should be Independent OF all banking
corporations. The money of the people
should be kept in the treasury ofihe peopie
created by law, and be in the custody oi.he
agents oil the people chosen by themselves \
according TO the forms Of the constitution;
agents who are directly responsible to tho 4
government, who are under adequate 4
bonds and oa,hs, and who are subject 10
severe punishmenis for any embezzlemeni
private use or misapplicaiion. of the pub
lie funds, and Tor any failure in other res
poets 20 perform their duties. To say
tina, the people Of their government
4. a.