The Democratic pioneer. [volume] (Upper Sandusky, Ohio) 1845-1853, 1845-12-19


before our readers. 1t is worthy much atten
tion, and will bear the closest possible exam
nation.
by the constitution OF the United States
il is provided that emo money SHALL bt
drawn from the Treasury but iD conse
qHence Of appropriations made by law
A public treasury was undoubtedly con-
templated and intended to be created, in
which the public money should be kept
frcm tile period Of collection until ne eeded
for public uses. In the collection and dis.
bursement OF the public money no agen.
cies have ever been employed by law, ex>
cept such as were appointed by the gov.
eminent, directly responsible to 1t, and
under its control. The safe keeping Of
\ the public money should be confded to a
public treasury created by law, and un.
dor like responsibility and control. IL is
not to be imagined that the trainers of
the constitution could have intended that
treasury should be created as place OF
deposite and safe keeping of the public
money, which was irresponsible 10 the
government. The first Congress under
the Constitution, By the act of the second
September, 1850, "to establish the Trea.
sury Department." provided for the ap>
poinlment Of treasurer, and made it his
duty "to receive and keep the moneys OF
tho United Sintcs," and cat all times TO
submit 10 the Secretary of the Treasury
and the Comptroller, CT either of them,
lho inspection of the moneys in bis hands.
That banks, national or state, could moi
have been INTENDED to be used as a substi-
tu,e for the treasury spoken of in the con-
stitution, as keepers 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 capital ex.
isted in the country. Their employment
as repositories was at frst resorted to to
limited extent, but with no avowed in
lention Of continuing them perman emily,
IN place Of the Treasury of The Constitu-
tion, When they were afterwards from
tine 10 time employed, it was from mo
,ives tfsupposed 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 sav.
ernment can have no guaranty that II can
command the use of its owG money for
public purposes. The late Bank Of the
United States proved to be faitAless. The
state banks which were afterwards EN-
ployel, were faithess. But few years
ago, with millions olpubEc money in their
keeping tie government was brought al.
most TO bankruptcy, and the public credit
seriously impaired, because of their ina.
bility or indisposition TO pay, on demand,
to the public creditors, in the only curs
rcncy recognized by the constitution
Their failure occurred in period OF peace,
and great Inconvenience and loss were
suffered by the public from il. Had the
country been Involved in foreign war,
that iGct nYenience and loss would have
been much greater, and mi sht have result
ed in extreme public calamity.
Tie public money should not be min
gled with the private funds Of banks or in
diriduals, or be used for private purposes.
When it is placed in banks for safe keep,
ing il is in effect loaned to them without
and is loaned by them upon IN,
terest to The borrowers from them. The
public money is converted into bank
ipg capital, and is used and loaned out for
the private profit Of bank stockholde ers;
and when called for, las was the case in
1887, J it may be in the pockets Of borrow
Gre from the banks, instead of being 10
The public treasury contemplated by the
The trainers of the consti,
tuition could never have intended that the
meney paid into the treasury slould be
ihus converted to private use, and placed
beyond the control of the government.
Banks which hold the public money are
'ften tempted, by desire OF gain, to ex
end their loans, increase their circula,
ioH, ana thhs stlmulate, u not produce a ,
pirit of speculation and extravaganza,
which sooner or later must res ut 10 ruin
o thousands. 1fthe public money be not
'ermitted TO be thus used, but be kept in i,
be treasury and paid out to public cred i,
tors in gold and silver, the temptation !
torded by its deposite with banks TO an
ndue expansion, of their business would
e checked, while the amount of The con-
titutional currency left in circulation !,
you'd be enlarged, By It's employment in |,
he public collection, and disbursements, 7
nd the banks themselves would, in conse. =
uence, be found in safer aud sounder .
condition.
At present, State banks are employe yed n
$ depositories, but without adequate reg. !,