The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1890-07-16
THE TREASURY SYSTEM OF TIL
UNITED STATES.

L. E Chfttenden in Harper's for July.
No nation has better treasury system
than the Udited States. When its regu-
lations are enforced, it practically guar
antees the government against loss by
error or fraud. 1t involves the division
of the department into bureaus. each di-
rectly responsible to the secretary, bav-
ing little connection with each other, and
at least three of which must approve a
claim before it can be paid, each thus
acting as a 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 that checks within a bureau are
unreliable. But the payment of a claim
requires an examination by three per-
sons in as many bureaus and the APP
proval of the heads of each, conspiracy
to defraud becomes difficult and prac-
tically impossible. Frauds upon the
treasury proper have been extremely
rare. The assistant treasures are alb
normal growths and subject to these
checks, and frauds upon them involving
large losses have consequently been
common. The manufacture and issue of
the postal and fractional currency
was another eXCrescence permitted TO
attach itself TO the system. and
the account of that issue cannot
be verified. 1t was the only issue of the
war about which there existed any
doubt. 1t may be correct. but 1t 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, for the
white paper was turned into money
ready for issue by a single department,
under a single head. without supervision
or the cooperation of any other depart
ment or person.
Originally adapted to an expenditure
of S25, OO0,O per annum. the treasury
system had the capacity of indefinite
expansion without inpairing its security.
In March, 1861, it regulated an expendi-
ture averaging about $1,000, 900 per
month. Within sixty DAYS it is increased
TO more than s.. 100000 per day. and
al imately to more than 81, 000, 900, 900
per annUm. Yet the system required no
change except an increase Of clerical
force. Thus II happened that during
four years of war more than s., 900, O0O.-
600 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 denOnsrra-
ton. and not upon evidence alone The
amount Is as far as intinity beyond ordin-
airy human comprehension. The state
ment and the system which yerifies it
are wonders Of finance in country con-
vulsed by civil war.
The treasury was the creation of Alex
ander Hamilton. 1t will live as long as
the nation exists. and every one who
comprehends it will accept 1t as a monu-
ment OF financial ability of its author.
1t may be criticised by those who do not
it as an institution OF red
tape, but no experienced treasury officer
ever advised the removal Of one Of its
checks. or the relaxation OF one of it
stringent provisions.