Hopkinsville Kentuckian. [volume] (Hopkinsville, Ky.) 1889-1918, 1896-01-17
THE PUBLIC MONEY.
Financial Operations of the United
States Government.
Many Millions of Dollars Annually Man.p-
ulated by the Treasury Ohlclals--
National and Depository
Banks.

By the public money of the United
States we mean that which is not il
circulation, and is therefore not par
of individual possessions, but is held
by the government itself for the pur
poses of the nation. This fund is 6
tiuctuating quantity. 1t amounted
nominally, at the last report of the sec
rotary of the treasury, to about $780,.
100000; but only comparatively small
proportion of it was really disposable
money, in the strict sense of the term,
for any public purpose.
The government carries on all its OPP
erations, involving the actual use of
money, through three channels-frst,
the treasury of the United States at
Washington, which is under the charge
of the custodian called the treasurer.
not the secretary of the treasury; sec
ond, through nine subtreasury offices,
in as many leading cities of the coun-
try, which are branches of the treasury
at Washington, and are in charge of Off
GERS called subtreasurers: and third.
through large number Of national
banks called depositary banks, which
hold government money subject to tho
draft of the treasurer. fH
The greater part of the vast amounts
of money held by the treasurer and sub
treasurers at any given moment is gold
or silver, kept there for the purpose of
redeeming or securing the paper notes
issued by the government. But there
are at all times large sums of money in
coin or in legal-tender paper, which may
be said to be merely passing through the
governments hands. There are many
millions coming in as receipts from Gus
toms and taxes, and many millions more
being paid out for expenses; for the
yearly expenses of the government of
the United States approach very nearly
half a billion dollars, and at present ex-
coed the receipts.
To facilitate these passing transac-
lions, the government has for many
years kept constantly-varying amount
of ready money in the hands of the de-
positary national banks. For the last
ten years the amount of public money
held by these banks has averaged about
$22, OOO, 900; though at one date it rose
to about $50, OO0, 600, and at another fell
to $10,000,000. "
With respect to this money, the gov
crnment is in q much better position,
as to security, than other depositors In
the bank. For although it receives no
interest on it's money, it holds certain
amount of it's own bonds, owned by the
bank, as security for the deposits. A
recent general return Of the national
banks showed that there were more
than $2s,O00,0O0, par value, OF govern
ment bonds held by the treasury as Sc
curity for such deposit. .
There were, at the latest date, 1S5 OF
these depository banks, out of about
$500 national banks in the country.
Their custody OF large sums of govern
ment money is to them, of course, a
source of profit; and although the de-
posts of the government are at all times
subject to the treasurer's draft, IL is
well known that the government could
not, in practice, withdraw these depos-
it's without causing panic or at least
creating a stringency in the money mar
ket.
Various projects have been put for
ward to enable the government to REAP
the benefit which goes to the banks
with these funds; but no scheme OF
the kind has been adopted by congress-.
There is no law which enables the gov
eminent to collect interest on its funds
which may be in private hands.
1t is very seldom indeed that so much
as dollar of public money is lost. All
officers through whose hands 1t posses
give bonds for greater amount than
the sum that they hold, and if they
prove dishonest, which is very rarely
the case, their bondsmen are held.
No depository bank has caused to the
government any loss, unless the failure
to pay interest on the deposits may be
deemed loss. The public money is
practically not liable to the casualties
which constantly threaten the funds OF
private individuals; nor, indeed. should
it be.--Youth's Companion.