The daily union., 1854-12-23
OPERATION AND ADVANTAGES OF THE INDIE
PENDENT TREASURY SYSTEM

Accompanying the report Of the Secretary OF the Treas
ury the finances is report by Mr. Gouge, who was d
reeted investigate and make report upon various points
connected with the safekeeping and disbursement Of the
public money. Mr. Gouges report Of the most in
teresng and valuable documents transmitted to Congress
His remarks upon the operations and advantages of the in
dependent treasury law particularly interesting at the
present time when facts being developed which show
the wisdom of the treasury policy adopted by the present
administration We shall avail ourself of the matter
tained in this report from time time but present we
only have space for the following extracts 1t will be seen
that the first extract has reference the system of trans
ferring the public moneys, which in operation the
4h of March, 1885, and in to the inquiry, "Wheher
anything be done facilitate the transfer of the
public money from place to place, and to lessen the ex-
pense thereof" Mr.. Gouge replies
In a weregulated treasury system, all unnecessary
transfers of public funds will be carefully avoided At
present the is occasionally under the necessity
of making transfers simply because the securities
against fire. thieves and robbers at the places where the
money is collected deemed sufficient Transfers
from these motives will be unnecessary if the repositories
be strengthened in the manner above recommended
1t viii probably be advisable before long to establish
depository in Minnesota and another high up the Mssou
ri if the Kansas and Nebraska Territories shall be settled
rapidly is anticipated This will the risk and
expense of transporting part of the money collected at the
land offices in the Far West TO the present repositories at
St Louis and Dubuque and afterwards carrying it back
again deray the expenses of Indian agencies and other
charges against the United States in those dis
tant regions
Where transfers of the public money actually
they in most parts OF the country owing to the
facilities which railroads and steamboats, afford be made
from depository another with great despatch and at
very small expense But this is, in many instances,
made unnecessary by the of transfer drafts.
/ For example: person in Washington city wishes to
pay sum OF money in New York He deposites the gold
silver in the treasury Office at Washington and receives
order in return for equal amount of gold and silver
the assistant treasurer at New York In this way the
government is saved the expense of bringing gold and sill
from New York to Washington city and private ndi-
vduas the expense of carrying gold and silver from Wash
ngton city TO New York The government is perfectly Sc
cure for il does not issue the transfer draft till the gold or
silver is actually paid into the treasury Office The private
individual risk for the gold and silver which
the draft is drawn is actually in the assistant reasuers
Office AT the me these drafts are for such amounts
that they do not become OF the circulating medium
They simply eontrvances to prevent the unnecessary
/ transportation Of specie from place to place.
To considerable extent the cost of transporting the
public funds from depository to another is already
avoided by of these transfer drafts and will be to
greater extent the system is generally
derstood
Immigrants and others subject some risk and
expense carrying money intended for the purchase Of
lands far into the interior There the money is paid into
the land Offices and then has 70 be brought back by gov
ernmen to Of the repositories before it can be a
piled the public service. This carng and rccarting Of
money might be avoided by provision that parties wish
ing purchase lands might make payment for the
advance at any depository and receive certificate for the
amount which certificate should be receivable in full pay
within stipulated period. There would be dan
ger such certificate becoming circulating medium than
there of the scrip now issued by the land office becoming
such To certain extent this principle has already been
acted on If made general it would prove convenience
both the government and to those wishing TO purchase
public lands.
This principle might be applied extensively and
6 has been already in cases. Merchants in inland
cessuch, for example as St Louis and Cncnnati-may
occasionally find convenient 10 make their pay
of duties at the seaports through ach the goods
introduced into the country than at the places where
they actually reside Those engaged in the construction
railroads Also though the iron imported from abroad
may be consigned the Far West may find more
nen pay their duties at the seaports in the East whence
they derive OF the capital for making their railroads
If allowed pay their duties the port OF Importation
they would be saved the expense of carrying the money
the West and government saved the expense of bringing it
back again.
It is fixed principle Of policy with the United States
government to grant every facility that can be granted
with proprey to those having payments to make into the
public treasury and though much has already been done
in this way all perhaps has not been done that might be
done.
There is one way of making transfers public funds
which appears be highly Objectionable 1t is that of
signing transfer drafts bankers brokers' and Others and
allowing them the use of the money for such time as it
be supposed will compensate them for the expense of
transporting specie from one depository to another
An experiment of this kind was made during the Mex
can war; but it was followed by such consequences to
give little encouragement to repeat it, In October 1850
however, this mode of making transfers time
duced to something like system In the twentyeight
mpntbs that ensued the transfers made in this amount
ed in the aggregate to between fifteen and sixteen million
dollars and the money out of the treasury deposto
res for average of about sixty days In
cury in the form of deposes Of stocks taken from
the broker banker employed to make the transfer but
+, in other security required.
AT the commencement of the system, seventy
eighty days allowed for carrying money from New
York to New Orleans but the time was gradually pro-
longed so that from hundred to hundred and
thirtyve days consumed in Transporting the public
money from the depository at New FORK to the depository
at Washington city.
In one instance Mr. VIM. Minor the president of an
In siy hmm md
days in transferring $25Ooo from the depository Boston
to the depository New Orleans This gentleman
on the I'd November 1890 received 100000 from the de-
postory AT New York, with the ostensIble purppse of
transferring IL to the depository at New Orleans bEt the
money has reached the depository at Ne Or
leans and it is 20 be feared will
Under this system government funds transferred
without direct cost TO governments but the ordinary
pensc of transporting gold and silver by railroad steam
boat s small especially when express companies are the
agents. 10 make all that be saved in this way
/, worthy OF consideration,
The law requires that when transfers Of the public
money ordered they shall be promptly and faithfully
made There is nothing in the law prevent brokers and
bankers from being employed in making such transfers
but IL those brokers or bankers do when public money is
put into their hands for transfer public agents use the
said money "by way of investment any kind of property
or merchandise lend it, with without interest or dc
pose it in any bank they render themselves liable to all
the penalties forth in the sixteenth section of the
I August 6, 1886
lany clerk in the department. other special agent a
pointed 70 convey money from one public depository to
another should stop the way, and instead Of being
six days be ak months in the performance of this duty