Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1873-11-13
AaEasUnY mrsnANAcE,rESr.

Va "o1uSsoh Sahy "noh AsiaSNt
continue to be developed, and the
more that Is known OF the case the
mora dlscreditable, II not criminal,
does 1t render the present Secretary Of
the Treasury. Since the administra-
tion Of the Treasury Department BY
the late Chief Justice Chase a. Secre-
tary, 1t has been a rule Of the Depart
ment to send to National Banks, in va
rlous parts Of the country, fractional
currency, In such Gums as desired, on
receipt OF 4 certificate OF such Bank
that an equal amount Of greenbacks
had been deposited to the credit OF
the Government In that Bank. The
United States Treasurer would then
draw the money or apply 1t to paying
Government liabilities In that locality.
1t appears that the fortunes Of the First
National Bank YER almost always in
a desperate condition, aud the cashier,
since dead, was continually in the
habit Of iuportuning Government Off
GERS, particularly discussing officers,
to keep their accounts at his bank. As
some Of these officers had frequently
millions Of dollars to their credit, it
may readily be seen that it was an OBJ
ject for the bank to retain such deposi-
tors.
Treasurer Spinner In a recent con-
versation with u correspondent as
serted that it had always been a very
hard matter to get the Government
money out of this bank, so much so
that he had frequently requested Gov.
ernment officers moi to deposit therein
so heavily. This annoyance became
so great that Congress was petltioned
by Treasury officials, and finally In
1866 passed 4 law prohibiting disbur-
sing officers from deposi:lng Govern
ment funds In any bank Of any city
wherein there was Government De-
posltory. This act, which bears date
Of June II, made 1t unlawful to de-
po,it Government funds In the First
National or in any other bark Of
Washington City, and compelled the
withdrawal of all Government funds
on deposit In such banks at the time Of
Its passage
The Secretary Of the Treasury is not
a disbursing officer, but 70 him was
due the responsibility Of the banks
having s2s7, 900 Of Government money
when It failed, with security for but
100000. The rule regarding the fur
nishing Of currency to banks on their
certificates did not apply In Washing
ton, for the banks there could In a few
minutes bring their gfeenbacks to the
Treasury and exchange them for
small currency without any expense
whatever, the only object OF the Ger
tificato aud exchange with banks at a
| distance being to facilitate business
and avoid the trouble Of sending
money both ways. Tho officers Of the
First National Bank when 1t was in
great need OF funds, often appealed to
the Secretary Of the Treasury, Mr..
Boutwell,, to change the rule. 80 az
to enable them to obtain currency
In the same manner as distant
banks, the object being to get posses
sion Of the currency and delay or post
pone payment on the Treasurer's
drafts. But the appeals were steadily
refused under the advice Of Mr.. Spin
ner who knew the difficulties In the
way Of collections, and the rule re-
mained unbroken until Mr.. Richard
son became Secretary Of tho Treasury.
Less than a week before the First Ma
slonal failed, application was made to
him by the banks to abrogate that rule.
In a measure, 20 as to enable 1t to re-
ceiyc money to which 1t was not enti-
tied, and this Mr.. Richardson did, as
is alleged. against the circumstances
of Mr.. Spinner and some Of his chief
officers, aud tho bank secured frac-
tlonal currency amounting, 1t appears,
to nearly 100000 II not to that ex-
act amount. There was but a very
small amount to secure this large ad.
vance, 20 that when the bank closed
some weeks ago the amount due the
Government, without . dollar to Sc
cure 1t. was $ls7. 900, although Trea,u-
rer Spinner had for some time previous
been making strong efforts to obtain n
portion Of 1t upon his drafts.
Secretary Richardson, 1t Is said, now
alleges that this $4,000 Is amply Sc
cured, but no one knows how. The
United States Treasurer 10 the official
keeper Of Government securities, and
he declares that neither has he any
such security In his vaults, mol has he
seen any. II Secretary Richardson
has this alleged security, he has no
| right to retain 1t In his own posses
sion. He had no right to advance the
money. It was against the spirit II
not the letter OF the Act Of 1866. No
one knows the nature Of this mythical
security. and 1t Is not In the proper
custody. The whole affair, as we
have before remarked. 10 dlscreditable
II not criminal. and taken in connec-
tlon with many other late evidences OF
incapacity, III nothing worse) calls
loudly for ventilation. We hope Con.
gress will look Into this matter. At
the best our financial matters are not
H. -.All-