Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1846-05-28

Treasury under the power confded to him by acts Of
Congress, for supervising the finances and the doings
Of the subordinate officers Of the Treasury. In 1911
the public funds were removed from the old United
States Bank on the approach Of the period for the
expiration of its charter by Mr.. Gallatn, who, with
out consulting Congress, any other authority, pro-
ceeded of his act to select other banks and make
his deposites with them. From that time up to the
charter of the new United States Bank, In 1916, the
custom and usage in respect the keeping Of the
public money remained the same il ever had been.
The charter Of tile Bank provided that the public
monies should be deposited in the institution and its
branches unless the Secretary Of the Treasury should
otherwise direct That bank retained the public funds
until October, 1893, when, experience has since
fully proved it became necessary to remove them 10
places OF greater safety and State Banks selected
BY the Secretary of the Treasury, and made Of
precisely in the manner adopted by Mr.. Galaiin In
| 1911. This plan pursued through one of the
greatest commercial reyulsions that the world ever
saw; yet so vigiant, active and sagaclous was the
Secretary that amid the failure Of banks the ruin of
merchants, and finally the insolvency of nine State
governments, the finances of the federal Treasury
remained undsturbed, and no loss sustained by
the government When the whole currency Of the
country consisted of individual Shin lasters" and
deprecated bank promises, the large of the
government collected and dsbursed without loss
and without confusion The state of affairs, howes
amply demonstrated, and the officer who had skill
fully preserved the credit of the government through
surrounding rum urged the necessity Of some distinct
system Of finance, and some mode of preventing the
public funds from becoming the oasis Of speculations,
the results of which disastrous Accordingly,
in July, 1Si0 bill was approved. separating entirely
the fiscal affairs of the government from the banks,
and creating " Treasury for the first time.
The revenue and expenditure of the federal gov
ernment in usual years very nearly equal each other
The receipts from all quarters in the year ending
June 80, 1915, S29, 769, 1873, and the expend-
lures, including payments on account of the public
debt were go 965, 207, being an of expendi-
ture equal to S199,074. This revenue, in round
numbers thirty millions, is collected and disbursed
territory of nearly two million square miles in
extent The officers of collection located in
twentyseven different States, each of which has
its own system Of finance, its own revenues and ex-
pendures entirely irrespective and independent of the
federal government within its borders. With
the exception of Massachusetts, New York and Loui-
siana the collections of the federal government in
no State equal the amount collected by the government
of that State. In the Southern South Western and
Western States the expenditures of the federal gov
eminent uniformly exceed its collections in those
quarters. In all the New England States, except
Massachusetts, the expenditures of the federal gov
eminent exceed its revenues collected in those States
but including Boston, the received in New
England very nearly equals the whole expendi-
ture as thus the customs of Boston usually furnish
sum which, after discharging all the government
obligations due there, leaves surplus equal to all the
wants of the government in the other New England
States. Tn year the revenues in the whole Of the
New England States S2,9iS, sos; of this sum
50 500, SD was collected in Boston, and 81 ,572 800
was expended there; the balance, 81 ,0l7.772, was
drawn against BY the Secretary in favor of the other
FIVE New England States, in which the whole expend-
ture 81 ,347 200, and the revenue S36S, 1886
consequently the balance, 1918 S64, very nearly
met by the 81 OFT 772 surplus that accrued from the
nc will ha Ohco f,,rd-
complete operation for New England. Boston is
the common centre of business for that section aud
all moneys and drafts flow to it from every quarter Of
the six States, and drafts Boston are always de-
sirabe remittance thither Therefore the opera
ton of the Treasury comes eminently in aid Of the
current of business. The principal expenditure of the
federal government in the interior of New England
is for pensions Thus, out of the 8 ,347 2C0, stated
above the expenditure in five States, SSl5, 900 was
for pensions. Now the operation of the specie-cause
of the Independent Treasury is to issue draft to the
public creditor in the interior of the State payable in
Boston, in gold on presentation and it must be pre-
scented in a reasonable time for transmission. The
gold and silver having previously been collected at
the government depository is paid to the pensoner
sight Of his draft. He carries the gold TO bis home
in the country and spends it in his neighborhood. 1t
passes from hand to hand in circulation until paid into
tile hands Of the shop-keeper; it is by him used in
the payment of his note at the local bank,
Boston, where it ultimately again passes from the
Importers hands into the public vaults to be repaid
to the pensioner other public creditor In Boston
the disbursements Of the federal government are
larger than in all the other States of New England
together The circulation of the specie is therefore
far active; that Isl it will pass with less delay
from the Treasury to the creditor, from the latter into
general circulation-more readily again accumulate
as the depostes of merchants in banks whence it
will again be transferred to the Treasury. What
Boston is to the New England States is New York to
a. a.,
for the same year that for which the figures are
given for New England, were 5000 ,491, and the
expenditure S3,6i9, 600 leaving surplus Of So
371 SCI to be expended in Western and Southern
States. In all the States Of the Union, south of New
England, and exclusive of New York, the collections
So 654 .36S, and the expenditure SD, 724 600
leaving S5,O1O, 2S2 to be met by drafts the surplus
accommodating in New York These were to be drawn
in favor of every State of the Union and almost every
section OF every State. in payment of construction of
forts, army and navy expenditures, salaries of officers
pensions, &c. The payments from all quarters fall
due as fast as the revenue is collected. The amount
of duties cargo arrived at New York scarcely
in possession of the receiver-general before
Treasury draft reaches him, ordering the payment of
all, or portion of ii, TO pensioner in Illinois
other State. The gold drawn from bank vaults on
the check of the importer is by the order of the
Treasurer put into the hands of the public creditor
whence 1t passes into circulation, performing those
legitimate functions which were previously usurped
by paper promises This operation does not increase
the volume of the currency nor in any way affect
prices; it merely distributes the constitutional cur
rency into the hands of all classes of society the
farmer, well as the mechanic and merchant, enjoys
portion of the national wealth which his industry
has earned. These drafts of the government run upon
New York at the rate of six to millions of dollars
per annum, and TO that extent in aid Of the
exchanges of the country. When promptly presented
and paid they eminently useful, because balance
due to the country from the city is actually settled
and discharged. If, however, they were allowed to
float for a length of time in circulation and accumu-
Late as an Indebtedness nransf the civ II would in