Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1859-01-07


Of appropriations to actual receipts, and Of
expenditures 70 appropriations will restrain,
the former legislative, and the latter, ad-
ministrativo extravaganza. These, in my
Judgment, are the essentials Of good fnan-
cial systom.
Under such q system the custody Of tho
public revenue would involve far less hazard
than heretofore. Still under any system,
while collections from taxes for all PURPOSES,
State and local, cannot be expected soon to
fall below four millions, and may exceed, as
in 1854 and in the present year four mil
lions and n half semi-annually, Of which n
moioty will not bo required for disburse-
mont until sometime after collection and
portion will remain for six months or more,
tho point Of custody will remain one Of
great importance.
The safe'keeping of the public money,
therefore, properly engaged large share
Of the attention Of your Immediate prede-
cessors, rs well rs OF your own. Tho chief
essential point Of difference between tho
modes adopted seems TO be that the latter,
while requiring ample securities from depos-
iiaries for payment on demand, did not con-
tthlIialo hilCWiiuuTdWCl VI tub liOndDh Qo-
posted from the transactions Of business, m
til wanted for public purposes, while the lat
ter seems to intend the actual keeping of
all public moneys in tho hands of State aud
County Trcasurers until required for dis
bursemont in discharge ofpublic obligations.
If the safety Of the public moneys is equally
insured by either mode the former seems en-
titled to preference, for money is machinery,
whose work is exchange, aud it is obvious
that tho withdrawal from use Of considera-
bic sums for considerable periods must in
some measure interrupt and embarrass tho
operations of business But safety is the
paramount consideration, and no mode of
custody is admissible which docs not secure
it as far as it can be secured in any mode.
The sub-Treaaury.
| In former communication thought it
my duty to recommend TO your considera-
tion plan for ths safe keeping and dis
burse,nent Of the public moneys, which
seemed to me 10 combine security with con-
yenience, That plan failed to commend it.
self to your approval; but you did not omit
to establish by law system of regulations,
intended to accomplish the same general
purpose. Few measures fulfill perfectly
the designs of their authors; and some de-
fects have become apparent in the practical
workings of the act Of last session to which
think proper to direct your attention.
Tho ac. itself was doubtless desinged to
incorporate into the administrative system
of Ohio, the leading provisions of Federal
legislation Oh the same subject. There are,
however, among other differences between
the Federal system and that which has
been thus inaugsrsted in our own State,
two which seem 10 inc especially worthy Of
considerations Under the Federal laws all
officers having custody of public money arc
appointed 10y tho Federal Government, and
arc required, from time to tine, to give
such bonds, with snch securities as the Fed
eral authorities may require. Under tho
set OF last session the County Treasurers
throughout tie State are made depositaries
of the State as we'll as the County revenues;
Of the revenues derived from canal tolls
and other sources, as we'll as those derived
from taxation They are also constituted
agents for the transfer Of public funds and
fiscal agents of the State, under the law.
Yet these officers are not appointed by the
State Government; are not required to give
bonds to the satisfaction of any State offi-
Ger; no State officer is authorized 10 ascer-
tain the suificiency Of the bonds actually
given, or to require, in proper cases, new
, bonds or additional securities. The whole
matter of these bonds is left where former
laws placed it, under the supervision of the
County Commissioners, aud it may well be
doubted, whether tho conditions Of those
heretofore given apply to all the duties re-
quired by tho recent treasury law.
5 This is a matter which deserves and will,
, l doubt not, receive your attention. While
you will probably think it best to adhere to
the plan Of constituting the County Treas
urers State dcpostaries, rather than recur
s TO tho plan, which seems 20 mo preferable,
! Of directing the selection of depositaries by
} the State Treasurer, you cannot fail to APP
> preciate the importance Of throwing around
! the public deposits, in whatever hands, all
: practicable guards and securities.
: The other point of difference between the
t Federal and State systems which seems to
me most important is this: The Federal
: system prescribes tho medium in which pay
I men.s may he made into the Treasury. 1t
+ directs that all such payments shall be mads
in gold or silver or Treasury notos. A or
7 responding provision in State legislation
would require such payment in gold or sill
yer or the notes Of specie paying banks or
; ganized and regulated by State laws
: The act Of last session makes no provision
: at all in relation to this very important
9 matter; and by the omission, seems virtu-
i ally to require the receipt, for taxes and
a other State dues, of whatever may DO cur
\ rent as money in the several localities where
n payments are made. Such has, | uuder-
: stand, been in fact the general if not uni
9 versal construction Of the act BY tho County
9 Trsasurcrs and other public officers
i Thus construed, the act fails wholly Of
n its intent. 1t allows the Treasurers to re-
n ceive, and under it the Treasurers have ac-
& tually received large proportion Of the
l. taxes in the notes of numerous banks OF
l. other States. 1t has thus virturlly encour-
t aged the circulation within our limits Of a
e currency subject in no respect to the control
) of our legislation, and TO this extent has
y promoted deterioration rather than improve
S ment Of the circulating medium. Tho pa
Q per thus paid into the different Treasures
D. is, at best, only the representative of money
Al. r Al,