Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1845-12-12
the revenue standard. will place the manufactur.

the revenue standard, will place the manufactur.
ing interests on stable footing; and inure to
their permanent advantage; while il will, as near
ly as may be practicable, extend TO all the great
interests Of the country the incidental protection
which can be afforded by our revenue laws Such
system, when once firmly established, would be
permanent, and not be subject TO the constant CON-
plants, agitations, and changes which must ever
occur, when duties are not laid for revenue, but
for the protection merely" of a favored interest.
In the deliberations OF Congress on this subject,h
is hoped that spirit OF mutual concession and
compromise between conflicting interests may pre-.
vail, and the result of their labors may be 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 undoubtedly
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 mon.
ey no agencies have ever been employed by aw,ex-
ceat such as were appointed by the government,
directly responsible to it, and under its CONTROL
The safe keeping o. the public money should be
confded TO public treasury created by law and
under like responsibilities. 1t is not to be i'm
aged that the trainers of the constitution could have
intended that treasury should be created as a
place of deposit and safe keeping of the public
money which was irresponsible 10 the government.
The first Congress under the constitution, by the
act of the I'd Sept 1880, ''to establish the treas
ury department. provided for the appointment OF
treasury, and made it his duty "to receive and
keep the moneys of the United States" and at all
times to submit to the Secretary of the treasury
and the Comptroller, either of them, the inspec-
ton OF moneys in his hands,
That banks, national or state, could not have
been intended to be used as substitutes for the
treasury spoken of in the constitution, as keep
ers of the public moneys, is manifest from the
fact, that at that time there was no national
bank, and but three or four State banks, fim-
tied capital existed in the country. Their en-
ployment as repositories was at first resorted
to, to limited extent, but with no avowed in
tention of continuing them permanently jim place
of the treasury Of the constitution. When they
were afterwards from time to time employed,
it was from motives of supposed convenience.
Our experience has shown, that when bank
ing corporations have been the keepers Of the
public money, and been thereby made in eff
feet the treasury, the government can have
no guaranty that it can command the use of
money for its own public purposes. The late
bank Of the United States proved to be fruit
less. The State banks which were afterwards
employed, were fruitess. But few years a.
go, with millions of public money in their keep
ing, the government was brought almost TO
bankruptcy, and the public credit seriously i'm
paired, because of their inability or ndspos-
tion to pay, on demand to the public creditors,
in the only currency recognized by the consl-
tuition. Their failure occurred in period of
peace, and great Inconvenience and loss were
suffered by the public from it. Had the coun-
try been involved in foreign war, that incon-
venence and loss would have been much great
er, 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 safe keeping, il is in effect
loaned to them without interest," and is loaned
by them upon 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, (as was the case in 1897 it
may be in the pockets of the borrowers from
ury contemplated by the constitution. The
trainers of the constitution could never nave
intended that the money paid into the treasury
should thus be converted to private use, and
placed beyond the control of the government
Banks which hold public money, ore often
tempted, by desire of gain, to extend their
looms, increase their circulation, and thus slim
ulate, if not produce spirit of speculation and
extravaganza, which sooner or later, must re-
suit in ruin to thousands If the public money
be not permitted to be thus used, but be kept in
the treasury and paid out to the public credit
ors in sold and silver, the temptation afforded
by its deposite with banks TO an undue expan-
sion of their business would be checked, while
the amount of the constitutional currency left
in circulation would be enlarged, by its employ
ment in the public collections and disburse-
ments, and the banks themselves would, in con-
H.
dition.
At the present, state banks are employed as
repositories, but without adequate regulation
Of law, whereby the public money can be Sc
cured against the casualties aud excuses, re-
vulsions, suspensions, and defalcatons, to
which, from over-issues, overtrading, an inor-
dnate desire of gain, or other cause, they are
constantly exposed. The Secretary of the
Treasury has in all cases, when it was practi-
cable, taken collateral security for the amount
which they hold, by the pledge of stocks of
the United States, of such Of the States as are
in good credit Some of the deposite banks
have given this description of security, and
others have declined to do so.
Entertaining the opinion that "separaton of
the moneys of the government from banking
institutions is indispensable for the safety Of
the funds of the government and the rights of
Of the people," | recommend to Congress that
provision be made by law for such separation,
and that constitutional treasury be crea-
ted for the safe keeping of the public mo-
ney. The constitutional treasury recommen-
ed is designed as secure depository for the
public monny without any power TO make
loans and discounts, or to issue any parer
whatever as a currency or circulation. can
not doubt that such a treasury as was contem-
plated by the constitution, should be indepen-
dent of all banking corporations. The money
ofthe people should be kept in the treasury Of
the people created by law, and be in the custo-
dy Of agents of the people, chosen by them
selves, according to the forms Of the constitu-
ton; agents who are directly responsible to
the government, who are under adequate bonds
and oatbs and who are subject TO severe num-