The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1890-07-18
OUR TREASURY SYSTEM.
1t was the Creation of Alexander Hamilto,

H 1 e. FL
1t Was the Creation of Alexander Hamilton
and L. the Best In the World.
No nation has better Treasury sys
tenn than the United States. When its
regulations are enforced, 1t practically
guarantees the Government against loss
by error or fraud. 1t involves the di-
vision of the department into bureaus,
each directly responsible to the Sec.
Rotary, having little connection with
each other. and at least three of which
must approve o claim before 1t can be
paid, each thus acting as q check upon
the other. 1t recognizes the fact that
the subordinates in bureau, subject to
removal by its chief, will obey the
orders of that chief, although they may
involve violation of law. so thatchecks
within bureau are unreliable. But If
the payment of claim requires an ex-
animation by three persons in as many
bureaus, and the approval of the heads
OF each, conspiracy to defraud becomes
difficult and practically impossible.
Frauds upon the Treasury proper have
been extremely rare. The assistant
treasures are abnormal growths not
subject to the checks, and fraud upon
them involving large losses have conse-
quently been common. The manufact-
ure and issue of the postal and frac-
tional currency was another experience
permitted to attach itself to the system,
and the account of that issue can not
be verified. 1t was the only issue of the
war about which there existed any
doubt 1t may be correct, but it is quite
possible that some millions of dollars of
that currency more than the amount
shown by the books of the Treasurer
were put in circulation. 1t might have
been done without detection, under a
single head, without supervision or the
cooperation of any other department or
person.
Originally adapted to an expenditure
OF S25, 600, 600 per annum, the Treasury
system had the capacity of indefinite
expansion withoutimpairing its security.
In March, 1861, it regulated an expend-
iture averaging about $4,000, 600 per
month. Within sixty days it increased
to more than $1,000, 600 per day, and
ultimately to more than 81, 600, 600, 600
per annum. Yet the system required
no change except an increase of clerical
force. Thus it happened that during
four years of war more than S., 600, 0O0,-
900 was received and covered into the
Treasury, and an equal value of securities
issued and delivered to those who were
entitled to receive them, without the
loss of one dollar by error or fraud.
This statement rests upon absolute
demonstration, and not upon evidence
alone. The amount is as far as infinity
beyond ordinary human comprehension.
The statement and the system which
verifies it are wonders of finance in a
country convulsed by civil war.
The Treasury was the creation of
Alexander Hamilton. 1t will live as
long as the Nation exists, and every one
who comprehends it will accept it as
of the financial ability of its
author. 1t may be criticised by those
who do not understand it as an institu-
ton of red tape, but no experienced
Treasury officer ever advised the re-
moval of one of it's checks, or the re-
Taxation of one of it's stringent provis-
IONS L. E Chittenden, in Harper's
MAGAZINE