Staunton spectator and vindicator. [volume] (Staunton, Va.) 1896-1916, 1900-02-02

- III UAS "
Because these banks, totally indie
pendent of the Treasury and thrice
responsible because of their enormous
resources and their superior manage
ment-because these banks offer the
government unquestionable guarantees
in every way, the Secretary OF the
Treasury has been criminal in making
them the repositories of the public
funds and should be driven from public
office and private respect and conf
dence."
But surely this defense il not the
defense The Post would make if it
undertook on principle to support the
transaction. For what purpose is the
government seeking a safe depository,
let the banks be thrice responsible? ?"
It cannot be their superior manage
ment," which argues that they, and
not the Treasury OF the United States,
be intrusted with the public money ?
The government, as we understand It,
gets NO return for this money, hence,
superior MANAGEMENT cuts no figure.
That the baxks offer the government
''unquestisnAble guarantees" cannot
be the reason for this action, because
a private individual might offer even
better. BE might pile government
bonds as high as the Monument, and
30 might anybody other than q nation
al bank, corporate and incorporate,
and not a cent could any one of them
get.
Why, then, Oh principle, should the
Treasury Of the United States furnish
the banking capital Of any national
bank? In the first place, can any de-
dository be safer than the United
States Treasury? In the second place,
what superior management" than its
own can the government desire or ask,
without surrendering the job altogeth-
err? In the third place, why should the
people be taxed to create a fund on
which any bank may do business2 In
the fourth place, what principle OF
morals or finance is subserved or
heightened by placing a Secretary Of
the Treasury in a position that be may
be approached by these Organizations
with their enormous resources" and
dealt with or tempted by them.
Why, in other w~ordssshould not the
government and thesessOrganizations''
be divorced and the revenues 90 into
the Treasury vaults, to be paid out
by the proper officers, free from the
faint or suspicion of favoritism, corrup-
ton of fraud2 The common people
cannot understand why their money
is wrung from them by taxation and
then turned over to the banks to spec
ulate on. This they positively cannot
get through their heads. They cannot
see why, if their money is taken from
them in quantities in excess of the
needs of the government, it cannot be
intrusted by the Secretary of the
Treasury to bis W ~safe-keeping, in
stead of being carted about over the
country to such points us he may de
sire, and be put in charge OF a national
bank, an institution which in times
past has been known to fail, and which,
| II reports in recent years be true, they
fear is getting dangerously close to
the government.
Without any attack on any Secreta-
ry or any imputation of improper
conduct on the part of any, we would
be glad to have you answer the fore
going questions, because they are ques.
tions which we have never seen ans
wered with d%irectness, and this is a
subject which since the recent panic
has been uppermost in the public
mind. r. S. TURK.
Staunton, Va, Jan. Is.
The foregoing communication was
printed in the Washington Post of the
21st ult., and while the Post did not
undertake to answer the questions
propounded, the Secretary OF the Treas
ury on the next day forwarded direct
to us q copy of the reply made by him
to the House resolution calling for
copies OF all letters, &C., relating to his
depositing funds in national banks, the
amount so deposited and his sale of the
Custom House property of the gov
eminent in New York city to the Ma.
tional City Bank.
We have read the reply of the Sec
rotary with great care and interest,
and We find his right to deposit funds
in national banks arises under Sec.
5153 Of the Revised Statutes of the
United States and reads as follows in
part
"AI national banking associations, |
for that purpose by the
Secretary OF the Treasury, shall be de-
positaries OF public money, except re.
from customs, under such reeu.
latl0ns az may be prescribed by the
Secretary; and they may also be en-
as financial agents of the gov
ernment; and they shall perform all !
such reasonable duties, as repositories
of public moneys and financial agents
IF the government, as may be required
Them"
1t was not so much the object of our
luest to find the LAW under which he
acted as the REASONS which support
he law. We knew of course that there
vas law, but we doubted then and
till doubt the policy. We were not
;riticising the Secretary, but the law,
ind not so much the law as the prin-
;iple on which the law is founded.
therefore searched carefully the
'eport to find on what ground the
Secretary supported such transfer.
Mr.. Gage says: For more than half
century it has been the established
Of the government to contribute
whenever it may toward the avoid
nee of commercial Disaster Quot
ng Secretary WINDOWS report 1890
which says: The policy of a~ffording
relief to the money MARKET now SO
ouch criticised in certain quarters, il
y no means a new thing. II has been
he uniform policy Of the government F.
Ghen possible in all commercial crises !
rom 1916 to the present time.n The
'ecretary therefore supports the poll :
y by law and long custom. These G
night then be sufficient to shut off 9
riticlsm If the very instruments which .
reduce panics, were not the instru- +,
1ents which profit by them. It will t
70 seen by that report that there are q
ow in the hanks, whether one or many !.
no difference, about $40, 900 900 q
the interest OH that vast sun is t