Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1866-03-30
TEE UNITED STATES TREASURER ON
MR.. FREEMAN CLARKE.
TREASURY DEPT OF THE UNITED STATES,
WAsHINGrOS, March %, 1856.

! TREASURY DEPl OF THE UNITED STATES, 3
WAsHINGrOS, March %, 1866.
To the Editor Of the Chronicle:
The communication Of Hon. Freeman
Clarke, Comptroller Of the Currency, in
regard to the condition of the Treasury,
published in your paper Of yesterday, is
| of such a character that l consider it q
duty | owe to the country, to myself, and
especially to the Secretary Of the Treas
ury, who must rely upon the figures fur
nished him by his s~ubOrdinates, to point
cut some of the errors into which the
| Comptroller has fallen. ! pass the first
paragraph in the communication, in
which the material words currency
values" are interpolated in a quota
ton, without comment, further than
to note the fact. The next two
paragraphs find fault with Hon.
Mr.. Hooper and his subcommittee
of the House of Representatives.
because it failed to make application to
the Comptroller in its search Tor Informal
ton, and an opinion is ventured that the
report made 10 the House by the Com
mittee is neither more nor less than a
hasty, uncOnsideTed Endorsement of the
statements of the Secretary of the Treas
ury and an intimatiOn is thrown out
that ifany 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 ques-
ton. 1t not only examined me and nv
books, but the clerks in my office, and It
! came to the conclusion that the Comp
troller would have reached had be, like
the Committee, gone to the only place
( where the information sought could be
obtained. In that case he, Ike the Com
mittee, would have been satisfied that
the published statements of the Secretary
was substantially correct
Next, the figures Of the Treasury
statement are given substantially cor
rect. Immediately following is this
statement: Amount on deposit in coin,
SIS, S70,S7S IS. Total amount oil deposit,
SI65, SIS, 237 80. Drafts drawn out and
payable but not yet reported paid, Sl0,-
62l,5s7 II. Balance subject to draft,
SIS, SG7 1858 II. As this, the first item
excepted, is no part Of the Tr~easurer's
monthly statement, as it is alleged it is,
all the allegations and deductions drawn
from it fall with il. The deposits in the
national banks are entered weekly, as
the certificates and reports are received,
and included in the cash in the treasury.
Thediscrepaney between the bank reports
anCtheT reasurystatemen arises from the
fact that the banks are charged weekly
withthe amounts deposited with them by
revenue officers and others, and are cred
tied daily with whatever checks are
drawn on them. Hence it occurs that
the amount due the Government, accord
ing To the books of the banks, will differ
-. Tori 1lvv from tho ha1unaa= naaCrNTnn
to the books OF the department. For in
stance, the Treasurer may draw to-day
on the different deposit banks for twenty
million dollars; the bankswill, of course,
be credited with the amount OF the
checks drawn upon them respectively,
while they cannot charge the Govern
ment until the checks are presented,
which may not be for days or weeks
after.
No one ought to have known better
than the comptroller of the currency that
a country bank may, according to its
own books, overdraw its correspondent
in a commercial city, while, by reason
of the cheeks in transitu, il will have a
daily balance to its credit on the books
of its correspondent. During the sub
scription to the seven-thirty loan, very
heavy deposits were made with the Ma
tional Deposit Banks. These de-
posts were, under the direction
of the Secretary of the Treas
ury, drawn upon rapidly; but 50
large were the balances, and so distant
were many Of the banks, that Il was I'M (
doubtedly the fact tbat there were at
times in process of collection from $40
100000 to $4,000, 600, credited to the
banks, by reason of being drawn against j
but not charged by the banks an the
Government uatil the chsuhs were aetu-
ally paid. 4Eere have been, in the /,
course of the ysar, many days in which
the balances due the Government BY the
deposit banks, according "a Their books
have been over S2000h00A larger than
the real balances according to the books
Of the Treasury
To show bow fallaciOus conclusions. !
drGwn only from the returns male by
deposit National RapRs to the comp
Of the Currency, are, it Is only
necessary 10 give one of the statements
his Communication, Was Themonthly
statement, made up to the lst Of June,
shows that there was that day in the
Treasury, including coin, So, las, 200,
there was more than twice thst
amount on deposit u the National Banks.
at this time there 9ere drafts and orders
upon these banks for an amount
exceeding thirty-thfee million dollars.
So many elements enter into siie state
nents Of the ramifsd business of the
Treasury Department that it is imEossi-
Die for any one who does no. examine
The books OF the department. 20 ascertain
he real state Of the balances in the
Treasury, The amounts deposited in the
various Offices 10 the credit of disbursing
,hlcers are 50 large that it often occurred
Turing the war that the TreasuEyaecount
proper was overdrawn from 500, 000, 900
o $50, O0O, 600, and by which several mir
ions Of dollars Interest was saved 20 the
Government and people.
The difference in the statement OF coin
out by the Comptroller Of the
currency arises from the fact that the
Assistants Treasurers are charged with
he amount of coin certificates Issued by
hem, and no credit can be given tAem
" the Treasurer on the books of the de-
)artmeHt for any such gOlG certificates
hat NAV by either of them be redeemed
Until reimbursement may be made by
warrant. In the meantime all such
,edeemed and paid for coin GER
ifieates mast be counted as gold cash
In the statement Of coin on hand
made up for the Secretary the amount Of
,old certificates redeemed is deducted
IaiIy, so as to show the amount of avail
BILE eDin on hand. The $50, SIG, 40 of
referred to are certificates issued.
mt that have been redeemed and paid
Or, and necessarily appearing in the
tatements Of the various offices as coin
n hand, and which must so Hemain I'M
er existing laws until reimbursing war
ants issue for the amounts.
These explanations seem to cover all
he points In the Comptroller of the Cur
communication, and take leave :
T the subject with the remark that the
tatement made by me on the 10Th inst,
hitch was by the Secretary Of the Treas
~ transmitted to the Speaker of the
louise Of Representatives, showing the
alance in the Treasury TO be S57, 799,- :
p 81 in coin, sos, 623, 9G4 "a in currency,
t which latter amount 81, $50, 35S So
as ia national hanks, is in all respects
Very respectfully yours,
+. T. SPINNER,
Treasurer Of the United States. :
~. 49, In - Che m,,sn.-se-