The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1845-12-06

without interest, and ia loaned by them upon inter
est to The borrowcrsirom them. rhe public money
Is converted into banking cnpiln md is used ami
loaned out fhr the private profit of hank stock hold
ers; and when called for, CAS- in 1879 il nny he in
me pockets ut he borrowers from the banks instead
OF being IN the public treasury contemplated 10y tho
constitution, The trainers Of the constitution could
never have intended hnt the mOury paid the TREASURY
should he thus converted TO private use and placeJ
beyond the control of tho government
banks which hold the public money arc often
tempted, Ivy desire of gain, TO extend their loans,
increasing their circulation, md thus stimulate if moi
produce spirit of speculation and extravaganza;
"n'ch sooner or later muSi result in ruin to hou.
sands. II the public money he not permitted to he
thuS used, hut kept in the tr'nsury nnl pl out To
the public creditors in gold aud silver the temptation
afforded by its deposit with banks to an undue ex-
pan'lon OF their business would be checked, while
the amount of the constitutional currency left in
circulation would be enlarged by the employment in
The pubic collections and disbursements, and the
Ia nRS themselves would, in cOnscq lcnce. be found
in n safer aud soundrr condition
AT present, state banks arc employed drposi.
tors, but without adequate regulation of law where.
by the public money hn secured against the cas-.
ualities and eXceescs revolutions srspansinns and
deiacatons, - which from Ovcrssurs ovrrradng
and lnnrdinalr desire for GAIN mr. other cluscs thew
uro certainly exposed The Secretary Of the Treas.
ury has in all eases, when ii was practicable, taken
collateral security for the amount which they hold
by the pledge of stock of the United States or such OF
the States as were in gbal cr,,it. som, Of the de-
posi-, banks have given this description of security
and others have declined to do So
Entertaining the opinion that "the separation of
the moneys ofthe government from hanking inslitu
tonsis indispensable for the safety Of the funds of
the government and the rights oftho people" re-.
commend TO Congress that provisions he made by
law or such separation and that constitutional
treasury he created for the slf5 keeping Of the puhic
money.-'Ihe constitutional treasury recommended
is designed a secure depository FOR the public mon
ey, without any power to make loans or discounts,
or 10 issue any paper whatever as n currency or
circulation; cannot doubt that such a treasury Us
was contemplated Nv the constitution should We indie.
pendent ofall hank corporations.
The money of the people shoutd be kept in the
treasury 1.-THE people created by law, and he in the
custody Of agents of the people chosen Ivy themselves
according to the terms of the constitution; agents
who are directly responsible to the government who
are under adequate bonds and oalhs, and who are
subject TO the severe ppnshmcn,s of ANY cmhrz.
Element private use, or misappication of the pubic
funds, for any fIiure in other respects to perform
their duties.
To say that the people or their government nrc
incompetent, not TO I've rus,cl with the custody
OF their IN money, in their treasury, provided
by themselves hut must rely on the presidents, cash.
ers and stockholders Of banking corporations not ap
pointed by them, would be to concedc that they are
incompetent for self government.
In recommending :hn establishment ola c0nstiu.
liona treasury, in which the public money shall he
kept desire that adequate provisions be made by
law far its safety, and that al executive discretion
control over il shall h. removed except such may
be necessary in directing s disbursement in pursu.
ance o! appropriations made 10y law.
ITO make room FOR the news of the week we o.
NIT ~ another week the last part OF Mr. Folks
Message, which treats altogether Of minor subjects