Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1846-01-10


for motives Of supposed convenience.
Our experience has shown, that when
banking corporations have been the keep
ers Of the public money, and been there.
by made in effect the treasury, the govern
ment can have no guaranty that 1t can
command the use of its own money for
public purposes. Pie late Bank of the
United States proved to be faithless.
|, The State banks, which we're afterwards
employed, were faithless. But a few
years ago, with millions Of public money
in their keeping, the government was
brought almost to bankruptcy, and the
public credit seriously impaired, because
of their inability or indisposition to pay,
on demand, to the public creditors, in the
only currency recognized by the consti-
tuition, Their failure occurred in pc
Rod Of peace, and great inconvenience
and loss were suffered by the public from
it. Had the country been involved in a
foreign war, that Inconvenience and loss
would have been much greater, and might
have resulted in extreme public calamity.
The public money should not be mingled
with the private funds Of banks or ndl-
yiduais, or be used for private purpo-
SEES. When it is placed in banks for safe
keeping, it 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 bank
ing capital, and is used and loaned out
lor the private profit Of bank stockhold-
ers; and when called for, las was the case
in 1887 it may be in the pockets Of the
borrowers from the banks, instead OF be-
ing in the public treasury contemplated
| by the constitution. The trainers OF the
constitution could never have intended
that the money paid into the treasury
should be thus converted 10 private use,
and placed Beyond the control OF the 60
vernmen:.
Banks which hold the public money are
often tempted, by desire of gain, to ex-
tend their loans, increase their clrcuIa-
ton, and thus stimulate, if not produce
spirit of speculation, which sooner or
later must resu; IN ruin 10 thousands. IT
the public money be not permitted to be
thus used, but be kept in the treasury, and
paid out to the public creditors in gold
and silver, the temptation afforded oy MS
deposite with banks 10 an undue expan-
sion Of their business would be checked j.,
while the amount Of the constitutional
currency left in circulation would be en-
larged by its employment in the public
collections and disbursements, and he
banks themselves, would, in consequence,
be found in safer and sounder condition.
At present State banks are employed
as repositories, but without adequate reg
uIation of law, whereby the public money
can be secured against the casualties
and excuses, revulsions, suspensions,
and defalcations, to which, from over Is
sues, overriding, an inordinate desire
for gain, or other causes, they are con-
SANITY exposed. The Secretary of the
Treasury has in all cases, when it was
practicable, taken collateral security for
the amount which they hold by the pledge
Of stocks of the United States, or such of
the States as were in good credit. Some
Of the deposit banks have given this des-
cription of security, and others have de-
clined to do So
Entertaining the opinion that the sep
araton Of the moneys Of the government
from banking institutions indispensable
for the safety Of the funds of the govern
ment and the rights Of the people" re-
commend to Congress that provision be
made by law for such separation, and that
constitutional treasury be created for
the safekeeping of the public money.
The constitutional treasury recommend
ed is designed as secure depository for
the public money, without any power to
make loans or discounts, or to issue any
paper whatever as currency or calcutta
tion, cannot doubt that such treasury as
was plated by the constitution,
should be independent fall banking cor
poratons. The money OF the people
should be kept in the treasury OF the
people created by law, and be in custody
Of agents OF the people chosen by them
selves, according to the iosms OF the con-
stitulion; gents who are directly respon-
sible to the government, who are under
adequate bonds and oaths, and who are
subject 10 severe punishments for any en-
bezzIement, private use, or misapplca
lion of the public funds, and for any TAIL
ure in other respects to perform their
duty. To say that the people or their
government are incompetent, or not, to be
trusted with the custody of their own mon
ey, and their own treasury PROVIDED oy
themselves, but must rely on the presl'
dents, cashiers, and stockholders OF bank
ing corporations not appointed by them,
nor responsible to them, would DC 10 con,
cede lha they arc incompetent for sci
COVE rnment. -.
In recommending the establishment OF a.