Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1848-02-18

THE PET BANK AND CONSTITUTIONAL TREAS
URY.-Every one knows that divorce of the
financial affairs of the General Government
from the Banking institutions of the country
has been, and is, one of the cardinal principles
of the Republican party in this country. And
we presume it is equally we'll known that the
Federal party are in favor of close-we had
almost said a Naturalization between
the Federal Government and the Banking in
stitution or institutions of the country. 1t is
urged by the friends of National Bank, and
the opponents of the Independent Treasury
system, that, under the operation of the latter,
thousands would be annually lost TO the coun-
try by the defalcation of government agents.
This, however, is urged without any proof
There is no proof of it; whilst on the other
hand it can be demonstrated that millions of
dollars have been lost to the General Govern
ment "by the employment of banks AMI bank
paper" From the Union, of the 9Th instant,
we make the following extract, showing the
direct losses sustained under the bank paper
system prior to 1841 What the loss since
then has been we do not know -
In February. 1871. a document was issued
from the Treasury Department, from which
we extract the following statement of losses
sustained by the federal government, by the
employment of banks and bank paper, before
the year 1887 and slnce:''
Losses estimated by the Treasury Department
on the depreciation of bank
notes received prior to 1897 $4,000
Loss appearing on the books
of the treasury by banks as
repositories, prior to 1897,
about 900 900
Losses estimated by using
banks as repositories since
the year 1887, (but not sub
sequent to 184D 100000
Loss estimated on bank notes
taken and not redeemed pri-
| or to 1887 10000
Loss estimated on bank notes
taken and not redeemed
since 1887, (but not since
184I 10000
Aggregate 100000
Computed interest on the aggre
gate $500, 900
Total, principal and interest sl5,422 900
This, it will be observed, extends, no furth-
er than TO the direct loss sustained by the Uni
ted States government through the employ
ment OF bank agency and the use of bank pa
per.
The Committee of Ways and Means of the
House of Representatives made a report on
the 18th of April, 1880, in which they estima-
ted the loss by government through the de-
probation of bank notes received prior to
1917, at thirty, four million dollars In this
estimate the committee took into consideration
the fact, that after August, 1914, loans were
made to government in irredeemable paper, at
high premium, which loans were finally dis
charged in specie or its equivalent
In neither the document from the Treasury
Department, nor in the report of the Commit
tee of Ways and Means, is an estimate made
of the loss the public creditors have sustained
through the employment OF bank agency and
the use of bank paper by government. But
when the direct loss sustained by the govern
ment itself was estimated by the Secretary Of
the Treasury, in 1871, at upwards of fifteen
millions, and the losses, direct and indirect,
were estimated by the Committee of WAYS
and Means, in 1880, at thirty -four millions,
candid people will wonder at the holiness of
Professor Tucker, in affirming of the bank a.
gency system, that {" the experience of half a
century had shown that it was as safe as it
was chean