The New era. [volume] ([Portsmouth, Va.]) 1845-1847, 1845-12-05
THE BANKS AND A CONSTITUTIONAL
TREASIIPX

In the admirable message of the President to
Congress we find every subject, no matter how
important, grappled with such masters hand
that we cannot but admire, the more we examine
the lofty and powerful independence, which has
marked his course. Yesterday we gave his views
on the Tariff, which must make the time serving
shrink within themselves. We now give his
clear. comprehensive and able views on the sub
ject of an Independent Treasury.
We frankly confess that the old cumbrous and
expensive machinery, which constituted the Sub
Treasury OF 1887, never met our appreciation, and
If better plan cannot be given u.s. we would
rather see the money of the Government controlled
as it is now, under the law of 1899. and the
Resolution of July, 1916. With very little al
teration the present plan might be made perfect
In the deliberations of Congress on this subject
1t is hoped that spirit of mutual concession and
compromise between conflicting interests NAV
prevail, and that the result of their labors NAV he
crowned with the happiest consequences.
by the constitution of the United States il is
provided, that " no money shall be drawn from
the treasury but in consequence of appropriations
made by law" public treasury was undoubt
eddy contemplated and intended TO be created in
which the public money should be kept from the
period of collection until needed for public uses.
IN the collection and disbursement of the public
money no agencies have ever been employed by
law, except such as were appointed 6y the 90
vernment, directly responsible to it, and under its
control. The safe keeping of the public money
should be conhded to public treasury created by
law, aud under like responsibility and control II
is not 10 be imagined that the trainers of the con
situton could have intended that treasury
should be created as place of deposie and safe
keeping OF the public money which was irrespon
sbe to the government. The first Congress un
der the constitution, by the act of the second Sen
TENDER, 1889, to establish the Treasury Depart-
ment," provided for the appointment of treasnr-
er, and made 1t his duty - TO receive and keen The
moneys of the United States" and sat all times
to submit to the Secretary of the Treasury and the
Comptroller, or either of them the inspection of
the moneys in his hands,"
/ That banks, national or state, could not have
been intended TO he used as a substitute far tho
treasury spoken OF IN the constitution, as keepers
OF the public money, is manifest from the fact that
at that time there no national bank and bnt
three four State banks of limited captaI exs,ed
IN the country. Their employment as deposito-
res was at first resored to, to limited extent.
but with no avowed Intention of CONTINUING them
permanently, In place of the treasury of the con-
! stitntion. When they were afterwards from time
| to time employed, it was from motives of sun
| posed convenience.
| Oar experience has shown, that when banking
corporations nave been the keepers of the public
! money, and been thereby made in effect the trea-
| sury, The government can have 10 guaranty thai
! II can command the use of its own money for pub
/ lie purposes. The late BaHk Of the UuiIed Statos
/ proved to be faithless. The State banks which
! were afterwards employed, were failhess But
few years ago, with millions of public money in
their keeping, the government was brought al
most to bankruptcy, and the public credit serious
/ ~ impaired, because of their inability or ndsposi.
lion to pay on demand, to the public creditors in
J the only currency recognised by the constitution
! Their failure occurred in period of peace. and
great Inconvenience and loss were suffered by Tbs
I public from IT. Had the country been involved
! In foreign war. that Inconvenience and loss wond
/ nave been much greater, and might have resulted
/ IN extreme public calamity. The public money
/ should not be mingled with the private funds nj
banks or individuals, or be used for private pnr.
poses. When it is placed in banks for safekeep-
log, 1t is In effect loaned to them without interest
and is loaned by them upon interest to the bor.
rowers from them. The public money is con-.
yerted into banking capital, and is used and loan
ed out for the private profit of ban nix stock holders
and when called for, (as was The case in 1897. il
may be IN the pockets of the borrowers from ibe
banks, instead Of being in the public treasury con
! templated by the constitution The trainers nj
the constitution could never have intended thai
the money paid into the treasury should he thu,
converted to private use, and placed beyond the
control Of the government
Banks which hold the public money are often
tempted by desire to gain, to extend their loans
Increase their circulation, and thus stimulate. (
not produce spirit of speculation and extraya
gance' winch sooner OF later must result in rnir
to thousands If the public money be not per.
United to be thus used, but be kept in the treasn
ny and paid out TO the public creditors in cold and
silver the temptation afforded by its deposite with
banks TO an undue expansion of their business
would be checked, while the amount of the con.
sututlonal currency left in circulation would be
enlarged, by lis employment in the public collec.
tons and disbursements, and the banks them
selves would, in consequence, be found in a safer
and sounder condition.
Al present, Stale banks are employed as de-
poslloreS' but without adequate regulation of law
whereby the public money can be secured apains,
the casualties and excuses, revulsions. snspen.
siolls' and delacatiOns, to which, from overissues
overiTadng' an nOrdinate desire for gain. or other
can Ses' they are constantly exposed. The Sec.
rethry OF the treasury has in ali cases when il
was practicable, taken collateral secnritv for the
amount which they hold, by the pledge Of stocks
OF the United States, or such of the States as
m nod