Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1866-03-28

|
States, has written the following letter In
defense of Secretary McCulloch, against
the allegations of Comptroller Clarke:
TREASURY OF THE UNITED STATEs,l
~ ,g WASHINGTON, March20, 1866. !
! To The Editor OF. the Chronicle:
The communication Ofthe Hon. Freeman
Clarke, Comptroller of the Currency, in re-
gard to the condition of the Treasury,
published in your paper of yesterday, Is OF
such a character that | consider it duty L
owe to the country, to myself, and especial
ly to the Secretary of the Treasury, who
must rely upon the figures furnished him
by the subordinates, to point out some OF
the errors into which the Comptroller has
fallen. l pass the first paragraph of the
communication, in which the material
words "currency values" are interpolated in
a quotation, without comment, further than
to note the fact. The next two paragraphs
find fault with the Hon. Mr.. Hooper ana
his subcommittee of the House OF Repre-
/ sentatiyes, because it failed to make ap-
plication to the Comptroller in its search
for information, and an opinion is ventured
that the report made to the House by the
committee is neither more nor less than a
hasty, unconsidered Endorsement OF the
statements of the Secretary of the Treasu-
ry; and an intimation is thrown out that If
anv information was obtained it was from
| an irresponsible person. Now have this
to say-that the committee did just what
the Comptroller should have done before
he called the statements of the Secretary OF
the Treasury in question. 1t not only ex-
amined me and my books, but the clerks in
nv office, and it came to the conclusion that
the Comptroller would have reached, had
he, like the committee, gone to the only
place where the information sought could
! hn In fDp p0m-
mittee. would have been satisfied that the
published statements Of the Secretary were
substantially correct.
Next, the figures of the Treasury state
nent are given substantially correct. I'm
T, / mediately following is this statement:-
| Amount on deposit in coin, $75,S70,878.l8.
Total amount on deposit, $l65,57S, ,237.99.
Drafts drawn out and payable, but not yet
reported paid, $10,625,5S777. Balance sub
iect to draft, $l5S,S6 ,36S.ll. AS this, the
first item excepted, is no part of the Treas
turer's monthly statement, as it is alleged it
is, all the allegations and deductions drawn
from it fall with it. The deposits in the
,l National Banks are entered weekly, as the
certificates and reports are received, and
. included in the cash in the Treasury. The
discrepancy between the Bank reports and
! the Treasury statement arises from the fact
: that the banks are charged weekly with
the amounts deposited with them by reve-
! nue. officers and others, and are credited
daily with whatever checks are drawn on
/ them. Hence it occurs that the amount due
: the Government, according to the books OF
the bank, will differ materially from the
balances according to the books OF the De-
partment. For instance, the Treasurer may
Q draw to-day on the different deposit banks
h for $20,000000; the banks will, of course,
o be credited with the amounts of the checks
{ drawn upon them respectively, while they
y cannot charge the Government until the
checks are presented, which may not be fOI
days or weeks after.
No one ought to have known better than
the Comptroller of the Currency that a
M country bank may, according to its own
= books, overdraw its correspondence in COM
mercial city, while, by reason of the checks
in transitu, 1t will have daily balance tC
its credit on the books of its correspondent
During the subscription to the 7-3O loar
very heavy deposits were made with tht
N national deposit banks. These depos t.
& were, under the direction of the Secretary
h of the Treasury, drawn upon rapidly; bu
d so large were the balances, and so distant
were many of the banks, that it was un
ID doubtedly the fact that there were at time
T. in process of collection from $2O,0O0,00O tt
id $40OO0,OOO, credited to the banks, by reason
ir of being drawn against, but not charged by
OF the banks to the Government until th'
checks were actually paid. There hav'
been, in the course Of the year, many day
in which the balances due the Government
by the deposit banks, according to thei
books, have been over $200O0,0OO large
than the real balances according TO Till
Treasury.
IN To show how tallacious conclusions
OF drawn only from the returns made by de
| al ho lie tn 10 mntrnllpr
IN the Currency, it is only necessary to Civ
G. one of the statements in his communica
,a ton, viz /: The monthly statement mad'
n, up to the first of June shows that there wa
that day in the Treasury, including coin
"a "a S25, ,14S702, while there was more thai
or twice that amount on deposit in the Ma
tional banks. At this time there wer
drafts and orders issued upon these bank
: for an amount exceeding $33, 3,OOO,0OO.
So many elements enter into the state
ments of the .ramitied business OF th'
Treasury Department that 1t is lmPosslol
n for any one who does not examine tn
= books of the Department to ascertain tn
~ real, state of the balances in the Treasury
"a The amounts deposited i'm the various OF
:. / fees to the credit of disbursing officers ar
I, | so large that it otter occurred during tn
nd war that the Treasury account proper wa
oil overdrawn from $20000000 to $3O,0OO0O(
and by which several millions of dollars in
ng terest was saved to the Government ant
people. ,g,, ....g.s
, pointed out by the Comptroller of the Cur
rency arises from the fact that the Assist
ant 1reasurers are charged with the amour
g of coin certificates issued by them, and n
o credit can be given them by the Treasure
. | on the books of the Department for an,
Esuch. gold certificates that may by either Q
:. them be redeemed until Reimbursement
: NAV be made by warrant. In the meantim
y, ali such redeemed and paid-for coin certit
Gates must be counted as gold cash items
D. In the statement of coin on hand made u
he for the Secretary the amount of gold Ger
on tificates redeemed is deducted daily, so a
q, TO show the amount of available coin o.
IA hand, The $20,Sl6, ,440 of coin referred t
ne are certificates issued, but that have bee
th redeemed and paid for, but necessarily ap
ne nc pearing in the statements of the variou
offices as coin on hand, and which must S
on remain under existing laws until reimburs
nd inc warrants issue for the amounts.
90 These explanations seem to cover all tn
bic noints In the Comptroller of the Currency
on Communication, and take leave OF the sub
ay iect with the remark that the statemen
HnS made by me on the 10th inst, which was b
,p- the Secretary of the Treasury transmitte
to the Speaker of the House of Representa-
tives. showing the balances in the Treasur
To he S57, 100 691 81 in coin and $50, $685. 1854
: 54 in currency, of which latter amour
$2l, ,7SO, 1858 55 was in National banks is !