Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1849-08-16
THE SUB TREASURY LAW IFS OPEN ylo-
IAIfDN

III SlB TREASURY LAW lis ofE.N Alu-
IAI ION.
Their snne aspect in which The disclosure Of Mr..
DeHby 5 eaanmus defalcaiun IS 81 much greater lnpo'
,anre 10 the pubic. than rreatds The mere degse d
ipopflriy whiei is Ia be atared 10 hs cmJuc ar 10
thai al his sscas aud agent, Hr. osbdne. Through
whose failure he became unable meet his obi rtions
the q svernHlent. We reier h. the uudenabie preo
which The ease brings light, thai The ruvisens Of the
SubTreasufy law were openly aud Knowingly violated
hs the lae Administrator. 1 he leading principle o
that law that all the receipts ard disbursements 81
public money be in gold silver. II pm
possd and carried through Congress and trumpeed ti
10 the cualfy. hand money measure 20 sliet was
lis requirement thar nothing but specie should be rld
cut or receised. thai ef Of MI Secretary Walker
hInselfiu amendment by witch treasury drqs
migtln certain be paid To pntc creditors instead
OF can. vas mel with stern refusal by Demoefanc
Srnaie. Tie explicit words of the law (Seo. 100 are
these.
Livery officer agent engaged in making dshnrse
mems of the United siaies oil Tie General
Posi- Office tAah make oil payments IA gold or sipar
coin. in ,ssuiy noIes il tue creditor sgfte
said notes in payment"
Is, Section 20 il is provided
''fha exchange If funds STALL be made BY any dis
bnrs,ng officers or agents Of tte k9reramea q ANY
grade or denomination whatsoever connected NTH daV
branch IF hs public scfriee uher hao exchange ~
gold ana silver and every such sbnsing officer when
the means FOR his disbursements furnished 10 him IN
gold aud SILVER, shall make his payuent IN the money
furnished hen tiose furnished Ia HIM IN
drafts, shall tl3ose drafts 10 ho presented then
place OF payment and property paid according the law,
aud shall nuke his paymensin The money received
tm the drafts furnished. unless N either he cat
exchange lie means IN his hands for cold aud silver NJ
par.'
The plain import of these provisions is, Tint tho DIS
harsng Officers and agents, a(efery deception, to
consider ali funds DEPOSIT with them IN gald and svef
as Especial deposits" and must pay uut only those
,deaiicai Bi,, other ruld aud syc flI hich they
nsv exchange Them aud IN case they lave tseasnfy
drafts placed IN he hands. hey ara forbidden IN any
case 10 pay he public erriif ia thesn drafts. aud
sur iogtt ihrm ased al tie depository upin which
they IRE drawn nndip pay out the speee Illus procured
nnies" they can ihems Ives actually o1chnee The dafs
far gold ard liver par. When the bill was before ibe
Senate. Mr. Dxm H. Lewis, then ehltmauoi the Com
mtiee 81 frame esefled Inns II l. procure aaead
men Il tie 10Th sec lon. 81 that when the drafts "coid
NOT b. disblsssd al par" The discussing oil or might
nevertheless pay Them Out It the creditor willing 10
accept them IN sst astnn ul his duties. Mr. IeWsBr-
c'ased that wthon this amendment. the wheels of the
Independent Treasury icoui be locked. The law would
inrodace "a miserable system q speculation the gor
eramsm fnnGs.' bat street hnfd nancy ptcyfiled, and
The Senate rejected the amendment by vue OF 40 TO
We To this historical fact fr The purpose Of shay
Ing ho. distinct and unqnesGnnable he meaning Of
the Sub Treasury law, t5at ap Ulcer entrusted with spr
Gle must pay oa ai very specie. or other equivalent
specie, and II entrusted with drafts must actually
change them for specie and pay the specie only,
But what was ihe practice II hath the government
and iis agents developed ia Mr. Donby's case Ist
the Washington Union tell in It's defence Of thai gen
tlenan
The defalcaon Whatever be is amount was not GO
casioned by robbery, bal by the commercial embaras,
Ineni of huuse il Richmond which WAS Is transmit M
GIVE nment funds Mr. DeIlby in France. and that
huse was ruined because OF the in which the revuu
tisn in France had brought down upon the hanse there
10 whirh the Redmond house had made canslnmens
The drafts 'cere returned protested from France, and
.hr. Deabg's draft shared similar fate"
hat drafts are these al which the organ Of ihe late
administration speaks ehly, in lis Justification Of Mr.
Denly Treasury dgals2 M. indeed They were
drafts drawn by MIR o bne the houses ia Europe 10
whrh he had enasgned the produce which be purchased
IN tins country with The specie or Treasury DRIFTS fiat
were placed IN his hands. J he government my moi
have known thai the unds thus applied speen-
ls,'"ns but II keew ibis pe' ely WE'LL that lis navy
gent. Mr.. DENLY, wnuld either the nancy or
the drafts mhth his h me agcut fereiye1 aud that his
Hsonrsenfnts al Mafselles would never be made che
N that Identical money, in gold and silver COR which
The drafts might be directly exchanaed The wal
arrangement il had been carried without loss
Singer of sswas IN ELECTROMAGNETIC Of the Sab-uea
snry law which allowed only une step IN The way ul II
change, and that from Treasury drafts into gold and
silver al Marsees and therefore distinctly forbade any
snch III The Of commercial DRAFT. in acronnis be-
tween American aud European houses. Il Is idle 10 say
'hat the disregard Of the law 10 which refer
unavoidable, Tor uitero se the Disbursements nj foreign
STA Ions could mol hsve been made. That may be true
but the law saruly from Necessity the friends If The
'ste administration should al least have the gace Ia
81, especiay when they know what the penalty Tor its
vi lat on is. by IFS own iefms he peEiicntidrg and
members of the Cabinet, no less than The Navy agents.
coming within its meaning. Let ii be known. all
events, 10 the people that all The foreign transactions
at the government. the Sub Treasury
garied during Mr. Folks term than if il never had exis-
'ence md this. notwithstanding requirement in the
~ section above cited that receiving discussing
officer agent who shall neglect, evade violate the
foysons II this and The last preceding section of this
art requiring PTS and disbursements be ma lie in
specie. &r shall by the Secretary OF The Treasury, be
Immediately reported the President of the United
Safes, with the facts Of snch npgec evasion. VIC
iali'n and also 10 Congress- if 10 session, and If not IA
session. at The offs session after the VIC
lation takes place" IN If this specific injunction,
the Washington Republic very periinens asks The ques
ans. ''Was any report Of Mr. Deuby made 10 the
President Of the u States If SO, any report Of II
ever made to Congress ~
BY the ih section of he ats Of August 9Th, 1876 for
the better regulation f the res sIy, il is declared that
" any officer s'shal his use. in any way
whatAveror shall by way of investment in any kind
of rPerty merchandise, shall loan, with or with
out erest, &c. &c, any portion Of the public mot
'ays entrusted II him f SIZE keeping, disbursement,
,anstsr, for any other papose every such act shall
-sb~ deemed aud aduiged be embezzlement
'o 50 much Of the said meys shall be thus iakea.
converted Invested used oaned dep siied exchanged
which Is hereby declared 10 be elnny
80 and any eficer agent Of
the United Safes and all persons advising pariicipa-
sing 10 such aci. being convicted therefore before any
-scsnr ii the United Stats If competent jurisdiction
"shaI' be sentenced 10 imprisonment fu term less