The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-12-24

prcvsne broker and basisrS ffoa bsing employed
In making such trangfen; but u these brokers Or
bankers DO, whsn public money = put into their
cs by 1ss u sss
perty or merchandise, or Ind 1t, WI or without
interest or deposit Il N any bank they render
Themselves liable to Al the penalties set forth in
II any clerk in the department, Or other special
agent appointed to convey money from one public
depository 10 another, shoaid stop on the way, and
instead OF being six days, be SIX months in the per-
Torrance Of bis duty .empioying n the mean time
improperly would be obvious TO al. Not less Is
the improprity when this IL done by bankers and
brokers, acting as such agents.
The favorirism to which such system may lead u
also an objection to It. By properly timing the trans
fer drafts, SO that ons shall lap n with another the
peraue emit use Of one, two or three million dollars
might be given to official favorites.
Another objection to this system Of transfers on
time is, that under 1t there II continual tempta.
ton to order transfers; not because they are re-
quired by the public service, but because the
agents employed 10 making tAen win thereby be
benefited. A
amounts appear to have been about three times As
great Is they were under the previous cash system
Under the cash system the transfers 90 New Orleans
were about $3S, 900 month; under the credit sys'
they increased at Washington city from sl35 600 to
If The principles Of this mode u doing business be
correct the whole amount OF money TO the credit OF
the easurer OF the United States may be kept roll
ing through the country, exposed to all the vicssi-
tudes that attend the precarous business of brokers
and bankers. Then, every object Congress had In
Wow in passing the Constitutional Treasury act will
When the present administration came into power
it took the means to correct this evil All those par
sons who had been employed In making the trans
feis Of the public money on time, were required to
pay up. In this way sums, large parts OF wMsn
might have been lost have been secured to the rea.
sury The only sum now outstanding is the $IeO 600
taken from the depository at New York. more than
four years ago, to be transferred TO New Orleans.
For the recovery Of this, suit has been Instituted.
II is for Congress to decide whether additional
Legislation Ii necessary 10 prevent, at some future
day recurrence to the system OF transfers time.
Perhaps a closer examinati N would show that, re-
quirirg certain things to bc done, and not at the
same time providing proper means for doing them,
has in this in other instances, led to departure
from the principles, If not the letter, Of the act Of
Tbe1e are seasons in which Secretary Of the
Treasury has to exert great rmIess to avoid devat
ing from the strict line Of duty. Owing to the ma
ture of paper money system. our banks are even
the best Of them) occasionally exposed to great
pressure. in such cases they car by any oontrv-
ance, get poesession Of the money in the public
treasury, it will afford them temporary relief It
would Be thought strange II q farmer or mechanic,
when hard pressed by his debts, should apply. for
the use Of the public money. But banks and brokers
think themselves entitled to privileges mot enjoyed
by farmers and mechanics. Hence In times Of money
prsssures, (produced by the overtrading of the
barks the Seer etary of the Treasury Is liable TO be
impo tuned by committees from these institutions,
OF the evils that viii ensne to the country II they be
not allowed the use Of the public funds. II the
principle Of making transfers on time be correct the
banks may be accommodated with the use Of the
definite period But even supposiug such q pro.
ceeding to be legal, its policy s questionable. Let
It once be un derst0od that the Treasury Depart
ment Is to stretch forward q helping hand 10 the
b,nks In times Of exigency, and those exigencies
will b. Of frequent occurren ce.
Perhaps, In addition to the legal provisions al
ready existing, resolution requiring the Treasurer
to give once year statement Of each transfer
made during the yss1 van the name o. Inc Per
all that would be necessary TO prevent the missp-
pica.ion in this way Of the public funds.
9TH. What disbursing on ,en keep deposits IN
the depositorie:, and what the balance TO thsir
officers neglect to deposit; how they keep the pub
lie moneys In their hands,"
In my special reports gave the names Of the
disbursng officers that kept thar funds 10 the Dc.
podtories that l visited, with the amount to the
credit Of esch found that in those neighboThooda
the disbursing, officers, With but few ptions,
kept the money entrusted to their charge in the
Of Arksrsas, officers, residing at . distance from
any depository kept their funds in the iron chests
of the merchants with the understanding that they
we're not to be used BY these merch Ants. In other
cases it was reported that certain dsbursing of.
icers deposited 10 banks tho public none 70 intrnst
ed to their care, ard checked ON them as they
would on their private funds None of the off ,ers
who were said to pursue such . course wese under
the control of the Treasury Department.
Under the United States Bank and State bank de.
pcsit systems disbursing as well as collecting ofd
GERS were allowed to employ in their private specu-
lstions the public funds inusted to their care. The
consequence VA, that very large sums were thereby
lost to the public treasury. To prevent such losses
In future was ono Of theobects Congress had IN view
in passing the act of August O. l846. Tho penalties
it imposes on disburting officers who lend the publ,
it In bans just ~ severe as those it imposes on
collecting officers. But while the lav provided
suitable places Of deposit for collecting Off oers it
made none distinctly and explicitly for disbursing
pointed out by Mr.. Walker in three Of his annual
reports AZ Secretary Of the Treasury; and also by
Mr.. Meredith when he filed the same Office. But
this produ. ed no new action on the part OF Con-
were sf to do pretty much as they chose with the
pubic money. Some OF them conscientiously
the law in all its parts providing iron chests
ard other safeguards at their ewn expense. Others
complied with tho provisions OF the Law SO far only
as to themselves seemed convenient, or was deemed
by them expedlent. Not few, 40 there is reason
to believe, deposited the money, not indeed in in
corpofated banks, but with officers Of these insttu
tions, with private bankers and brokers. receiv
ing, ether directly indirectly, some compensation
for ita use.
II all disbursing officers should pursue this course,
the whole Of the public revenue would-not at one
time but ia snccession-pass int the possession Of
the banks. It would there be exposed to risk Of
oss fIom bank failures. It would be made the basis
Of Lew expansions Of paper currency, which must
Inevitably be followed by new contractions. It
would lead to the payment OF public creditors, not
in gold acd silver, but in bank notes.
Il is obvious that, unless Disturbing, as well as
collecting Off sers can be made to obey the law, il
nsver can produce the fun effect intended. Duly
impressed with the importance Of this, the present
administration, soon after it came into power, made
provision by virtue Of the authority vested in il by
The sixth section Of the act, Of suitable PLACES Of
deposit for Disturbing officers in the repositories in
xh!ch the treasurer keeps his account. They have
now therein every proper convenience which the
banks c0uld afford them, and have NO longer IN ex-
cuse for violating or evadipg the Law.
II is true that disbuising officers residing ia some
distant pats Of the country cannot have the benefit
OF tbsee repositories and that the duties Of others