Iowa territorial gazette and advertiser., 1845-12-27

from the period Of collection until needle
: for public uses. In the collection an
disbursement. Of the public money l,
} agencies have ever been employed BY Law
} except such as were appointed By n
! government. directly responsible 10 /, an
under its control. The safs keeping q
the public money should be contsded 70
public treasury created by law, aud unde
liks. responsibility and control. 1, Is M
to be Imagined that the trainers Of IN
constitution could have intended .sha,
treasury should be. created as place q
deposi'e and safe keeping of the publi
money which was Irresponsible 10 IA,
government. The frs, Congress unde
the constitution, by the act Of ,he secon.
Sep,enber. 1889, ITO estabiishihe Treas
ury Department" provided for The sp
polniment Of atreasnrer; and made j, hi,
drty 'to receive and keep the moneys o.
the United S,aies." and ..sa all lines "a
submit 70 the Secretary Of the Treasury
and the Comptroller, or either OF them, ,,l,s
inspection Of the moneys in his hands,"
| That banks, national or state, could no,
have been intended 10 be used ss u sub.
ssituse for the treasury spoken Of in the
constitution. ~ keepers Of The public
money, is manifest from the fact, that al
that time there wss no national bank, and
but three Or four Sla,e banks VI limited
capital existed in the country. Their
employment as repositories was ), first
resorled 10. 10 aIlimi,ed extent, but with no
avowed intention OF continuing them per-
manensly, in place Of the treasury Of The
constitution. When they were afterwards
from time to time employed. j. was from
motives Of supposed convenience.
Our experience has shown. ,ha. when
banking corporations have been the keep.
ers Of The public money. and been thereby
made in effect the treasury. the govern
ment can have no guaranty that il can
command the use OF its own money Tor
public purposes. The late Bank OF the
United States proved 10 BE fai.hless. The
State banks which were afterwards en-.
ployed, were faiihless. But few years
ago. with millions Of public money in
their keeping, the government. was
brought almost 10 bankruptcy, and the
public credit seriously impaired. because
Of their inability OF indirposi,ion 10 pay.
on demand. % the public creditors. in the
only currency recognized by The consli,u-
ton.
Their failure occurred in a period OF
peace, and great Inconvenience and loss
were suffered by the public from il. Had
the country been involved in foreign
war, that inconvenience and loss would
have been much greater, and might have
resulted in extreme public calamity. The
public money should no, be mingled with
the private funds Or banks or individuals.
Or be used for private purposes. When il
is placed in banks for safe keeping. i, Is
in effect loaned TO them without, interest,
and il is loaned by them upon interest to
the borrowers from them. The public
money is converted into banking capital.
aud is used and loaned ou, for the private
profit Of bank stockholders; and when
called for las was the case in 1872 ii
may be in the pockets Of the borrowers
from the banks, instead Of being in the
public treasury contemplated by the con-
s,itu,ion. The trainers of The constitution
could never have intended that The money
paid into the treasury should be thus con.
verled to private use. and placed beyond
the control OF government.
Banks which hold The puhl,t money
are often tempted, by desire Of gain, 10
extend their loans, increase their circula-
lion, and thus stimulate, il not produce a
spirit OF speculation and cx,ravagance,
which sooner or later must result in
ruin 10 thousands. If the public mon.
ey be not permitted 10 be thus used, but
be kept in the treasury and paid ou, to the
public creditors in gold and silver, the
temptation afforded by its deposi,e with
banks to an undue expansion of their bu-
s;ness would be checked, while the amour,
Of the constitutional currency left in cir.
culation, would be enlarged by its en-
ployment in the public collections and
disbursements, and the banks themselves,
would in consequence be found in safer
aud sonnder condition.
At present, State Banks are employed
as depositories, but without adequs,c reg.
ulslion of law, whereby the public mon
ey can be secured agsins. the casualties
and excesses, revulsions. suspensions and
defalcalions, to which from ever issues,
over,rading and inordina,e desire Tor gain.
or other causes, they are constantly ex
posed. The Secretary Of the Treasury
has in all cases. when i. was practicable.
taken collateral security for the a,noun,
which they hold, by the pledge uf stocks
Of the United States, or such OF The States
as were in good credit. Some of The d.
posile banks have given this description Of
security and others have declined 70 do So
Entertaining the opinion tl,a, slhe sep
ara,ion Of The moneys Of the government.
from banking institutions il indispensable
for the safety Of the funds OF The govern.
mens and The rights Of the people," T..
to Congress- that provision be
made by law for such separation; and .ha,
. constitutional treasury be cresssd for
the safekeeping Of the public nonsy.-
The constitutional treasury recommended
is designed as secure depository for tire
public money, without any power to
make loans or discounts, or 10 issne any
paper whatever as currency Of circnIa.
tion. I cannot doubt thai such treasury
as was contemplated by the constitution,
should be independent of ell banking cor.
porations. The money of the people |
n l. = ~ 49,. = 7 -