The Arkansas banner., 1845-12-24

Sury l)epafHnehi, proVlded TOT t'i0 ePPo"' ment of treasurer, and made Il hls duty "to eceive and keep the none ys oI the t. a''" and ssat all times to submid to the Secretary of the treasury and comptroller, or either ol them, the inspection of the moneys ID his hands,
 That banks, national or State, could moi have been intended 10 be used a5 a suosll- tute for the treasury spoken of m the con slitution, as keepers of the pubic mohey' Is manifest from the fact, that at that time there was no national bank, and but three or four Stale banks of limited capital existed Ill the country. Their employment as dePositories was at first resorted to, to a limited extent bat with no avowed intention oi continuing them permanently, in place oi the treasury of the constitution. When they were alter wards, from time to time employed, 1t was for motives of supposed convenience
 Our experience has shown, that when banking corporations have been the keepers of the public money, anti been thereby made in effect the treasury, the government can have no guaranty that it can command the use of it's own money for public purposes 1he'l late bank of lfe U. 5. proved to be lalih- less The State banks, which were aitef- wards employed, were iatllless. But lew years ago, with millions ut public money lh their keeping, the government was brought almost 10 bankruptcy, and the public credit seriously impaired, because of their inability or lndlsposllIon to pay, on demand, to the public creditors, in the only currency recog- nized by the constitution The failure oc- cured in period of peace, and great mcollS pennee and loss were suffered by the pubic l from it. Had the country been involved m d i foreign war, that inconvenience and loss would have been murh greater, and might have resulted in extreme public calamity I'he public money should not be mlng with the private iuGds os banks or lndlvldu- als, or be used for pfiVafe purposes. When 1t is placed in the 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. Tine public money Is converted into banking capital, and is used and loaned out for the private profit oi bank stockholders; and when called for, Jas was l the case ill IS37,) il nay be in the pockets ol the borrowers from the banks, instead of being in the public treasury as contemplated ! by the constitution, The ffamees o the constitution could never have intended that the money paid into the treasury should be ] thu5 converted to private use, and placed be- yond the control olthe government.
 Banks which hold the public money are often tempted, by a desire of gain, to extend l their loans, increase their circulation, and thus stimulate, if not produce spirit of spe- culatlon, and eXtfavag lnce, which sooner or later, must result ln ruin to thousands Ii the public money be not permitted to be taus used, bul kept in the tera- sury and paid out 10 the public credl- tors in gold and silver, the temptation atIord- ed by its deposite with banks to an undue expansion of their business would be check ed, while the amount of their constitutional currency left Ill circulation would be enlHrg- ed by its employment in the public eolec- tions and disbursements, and the banks them selves would, in consequence, be found
 in safer add sounder condition.
 At present, State banks are unemployed as Repositories, bat without adequate regula- ton of law, whereby the public money can be secured against the casualties and eX- cesses, revnlsIons, suspensions and defaica- tlons, to which, from over issues, overtrad- ing, an inordinate desire for gain or other causes, they are constantly exposed. Tine Secretary of the treasury has in all cases, when il was practicable, taken collateral se- curty for the amount which they held by the pledge of stocks of the U. S, or such oi the States as were in good credit. Some Qi the deposit banks have given this description of security, and others have declined to do 90.
 Entertaining the opinion that '.the separa- lion ol the moneys of the government from, banking institutions is indispensable for the safety of the funds of the government and the rights of the people" 1 recommend te : Congress that provision be made by law fol such separation, and lhata constitutional lrea- 2 sury be created for the safe keeping of tht public money. The constitutional treasury recommended is designed as a secure depos
 tory for the public money, without uay pow CT to make loans CT discounts, or to issue any paper whatever as q currency or circuia ton. cannot doubt that such a treasury as was contemplated by the constitution should be independent ol all banking corpo
 rations. The money of the people should bt kept in the treasury of the people, created bs law, aiit Bc Ill Custody oi agPlllo or ltiC Deo pie chosen by themselves, according to th, forms of the constitution; agents who are di- reclly responsible 10 the government, whe are under adequate bonds and oaths, an, who are subject to severe punishmeuts fo { any elnbezzlement, private use, or misappli cation of the public funds, and for any lad : ure ill other respects To perform their duty
 To say that the people or their government , are incompetent, no: to be trusted with thr custody oi their own money, in their owl
 treasury, provided by themselves, but mus f rely on the presidents, cashiers and stock
 holders oi banking corporations, not appoint
 ed hy them. nor responsible to Them, woult be to concede that they are incompetent fo , seli-government
 In recommending the establishment of; constitutional treasury, in which the public
 money shall be kept, desire that adequate
 provision be made by law for its safety, ano that all executive discretion or control ovel it shall be removed, except such as may bt necessary in directing it's disbursement n pursuance of appropriations made by law.
 Under our present land system, limiting the minimum price at which the public lands can be entered to ol D per acre, large quantities of lands of inferior quality remaln