Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1853-06-17
rrnn1s or ApvERTls1sc.
From the United States Economist.
Federal Treasury Systems

StdUeS
Federal Treasury System.
On the removal of the deposits of the federal gov
ernment from the late Bank the United States, tho
various State banks in New York and elsewhere be-
came the repositories of the money of the govern
ment That is to say: the head of the Treasury des
partment delegated its duty to the corporate ins-
tutions of the several States, and the results were
found to be disastrous to the public interests. The
act of 1889, creating the treasury department. pro-
vded that it should be the duty of the Treasurer Ito
receive and keep the moneys of the United States;
and to disburse the same on warrants draEn by the
Secretary of the Treasury. countersigned by the
Comptroller and recorded by the Register, and not
otherwise" Notwithstanding that this law remains
ed in force it became the practice for the Ireasur
er instead of keeping the moneys" until demanded
the warrant of the Secretary, to lend II to- associ
atoms of individuals, Incorporated as banks. These
in their turn lent to their several members as indf
vduals, who became spectators and hazarded the
public money for private gain. The immense evils
which speedily resulted made the enactment of the
Sub Treasury law necessity. This law was simp-
" to point out the mode and manner in which the
duties of the Treasurer. prescribed by the law of
1889 should be carried out. He was to receive and
keep the money. The federal constitution recog-
nzed nothing money" but gold and silver. The
law, therefore, designated the places and buildings
where the money was to be received, and in which
it was to be kept, viz: The Mint ut New Orleans
and that of Philadelphia, vaults in the Customhons
es at New York and Boston, and certain buildings
in Charleston and ST. Louis. Four Assistant Treas
urers were appointed to keep the money at the four
last named places. These, with the Mint officers,
to give bonds for the faithful performance of theft
duties. All collectors and receivers of public money
ar, required to pay over the receipts promptly to
these keepers" of the money. When the money is
in the possession of these keepers can be trans
ferred from to the other of the repositories by
the Secretary, being always IN the Treasury. But
it be paid out of the Treasury only according to
law, on the warrant or draft OF the Treasurer in ia
vor of a government creditor. 1t can then be paid
in gold silver only, direct to the holder of the
draft warrant. 1t is obvious that the receipts OF
the public money are not always equal TO the expen.
ditures at the same point. At New York very
large proportion of the are collected but
the expenditures are not great at some other
points Nevertheless the rate of drafts is generally
in favor of New York, and draft of the government,
issued in favor of creditor or disbursing officer at
any point on New York will command premium.
disbursng officer cannot, however, sell the draft
for anything but specie, and must then account for
the premium. He NAV pay it away, however, to q
creditor but unless it is presented at the point
which 1T is drawn within reasonable time for trans
mission it may be cancelled. The object is to pre-
vent the drafts from remaining in circulation instead
of the specie 1t is at manifest that under this
system the government action co-operates with bu-
siness. The drafts upon the central point, forming
most direct remittance, and tending as far they
60 to keep down the rate of internal exchange
Nothing can be more conducive to the general
welfare than such system, properly managed by
faithful pubic Ofhcer. In The last two or three
years the most monsrous abuses have crept into the
Treasury Department Great difficulties and ex.
pense have been incurred through the want of skill
in the executive head of the department, and the
most deliberate infractions of the law have been
perpetrated by those sworn to support it, Over
$l,5OO,OOO has been drawn out and loaned on secu.
rty of fancy stocks to brokers' under circumstances
which require the most searching Investigation
Month after month has the monthly account given
the amount of specie in the Treasury, when fancy
raj road stocks only were there represent IT, The
apologists for this infamous infraction Of law en-
deavored to excuse it by aledging that the present
head of the department had so far countenanced
it as to continue the loans. What are the necessi
ties of the case1 The Secretary comes into Office
and finds an immense amount of money loaned upon
securities that will not command it in the market
If the realization is pressed, immense losses must
accrue, and the only mode is to retrace the errone-
Gus steps OF his predecessor cautiously to in
volve the Treasury in the least loss There can be
doubt, however, but that the strict letter of the
Sub Treasury law will be adhered to hereafter, and
that its admirable operation in the hands of skill
ful officer will confirm that confidence in it which
the late disregard Of its provisions has not been
able to shake.
Governor MARTIN, of New Hampshire, III his mes.
sage draws glowing picture of the prosperity of
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