Year: 1879

|


| AN ITEM OF UNCLE SANS ASSETS WHICH HAS
| BEEN ovERLooKED-THE UNITED STATES DE-


Pos1r FUND AND ITS HIsroRY-THE SURPLUS
MONEY IN THE NATIONAL TREASURY THAT
WAS RETURNED TO THE sTATEs-wAs IT A
GIFT OR A LOAN?


1t is hard to realize in these days Of great national
debts when our own little burden is in excess Of
81 000 000not to mention the period just at the
close of the war; when the nounted to not far
from S. O00 600, ,O0Othat the United States
not only ont of debt. but was at one time the pos
SCISSOR OF q surplus which on the LIST day
| Of July, 1887. according to the records of
the Treasury Department. amounted to
than s43.oOo.0oO With population at that
time of not far from 15.Ooo.OOo every man.
woman and child was the owner Of about So in the
| common treasury instead of being, now. about
$50 in debt This sudden acquisition OF wealth by
Uncle Sam set him to thinking what to do with the
money. To return 1t as loan to tho people from
whom it had been collected by taxation was the
most natural way of disposing Of it. Indeed. he
had taken time by the forelock for in the year 1885,
when the Treasury surplus was even considerably
less than the maximum to which 1t attained before
the panic of 1887. his solons il Congress had been
discussing bill to distribute the money in some
u
law the 23d Of June. 1885, carrying out this pan
By the provisions of this law the Secretary of the
Treasury allowed to withhold of the money
in the Treasury only $5.00O.OOO for the cur
rent uses of the government. The remainder
in excess of the $5.0o0.00O was ordered to be de-
posted with such OF the several States in proportion
to their respective representation in Congress. as
should by law authorize their treasurers or other
competent authorities to receive the same on the
usual conditions Of pledging the faith of the State
for its safe keeping and for its repayment whenever
the Secretary Of the Treasury should upon certain
terms, demand its return. The loan was made to
the States without interest. Even the chief condi-
ton attending its acceptance by the States was SO
modified that when the money any part Of it
should be wanted by the Secretary Of the Treasury
to meet appropriations by law the same should be
called for in ratable proportions within year as
nearly as conveniently might be from the different
States with which the money was deposited. and
should not be called for in sums exceeding $4,000
from my one State in any one month without pre-
notice Of thirty days for every additional sum
Of $4,000 which might at any time be required.
For reasons which manifest in the facts of the
great panic Of 1887 the succeeding Congress SO
amended this law as to take from the Secretary of
the Treasury the privilege Of calling at his discretion
for the return of the money. Congress invested this





stirred up the subject SINCE least with any effect
and the money has reposed undisturbed in the pos
session Of the States. Indeed, 1t passed SO COM
plctely out of the possession Of Uncle Sam that in
the year 1910 tho Secretary Of the Treasury, who
heretofore had embraced this loan in the Of
the Treasury. dropped 1t out OF the account alto
gether, and we find the ''balance on hand" for the
corresponding fiscal year suddenly reduced to
mere million two. No Secretary OF the Treasury
since that time seems to have readopted IL into his
ledger, and, may be seen by observation, it is
wholly ignored in Secretary Shermans catalogue OF
the governments resources


The amount distributed to the States and now
due from them is in all about s2s O0O. 600. The
amount which hrst scheduled for distribution
was about $37. .0O000O; but the division was
ordered to be made in four quarterly payments
during the year 1887 the Treasury found itself
denly embarrassed by the panic and the consequent
loss of moneys in the government banks and de-
positores and by the falling of OF the revenue. The
result eventual contraction OF the amount
distributed less than $29 OOO There was some
intermediate backing and filing in the figures in
consequence OF the great monetary crisis but in the
official reports for 1889 the exact amount outstand
ing put down at $2S 10l GA 97 This the final
figure, for in LAO the item OF the loan is dropped
| altogether from the Treasury accounts.


The action OF Congress in ting the money
| proved very popular and hailed with delight.
by the terms OF the law each State had pass an
II.
quick to pass this law which rendered to New York
the neat little OF .04. $40 II loan of
indehnite duration. FREQ OF interest Congress re-
quired simply that the States should agree and
pledge their faith safely keep and to repay when
| they were asked the amount deposited. The words
used In tho act OF Congress are 'deposite" speled
with Anal 81 and deposited" This enabling act
was passed the very first thing at the beginning Of
the session OF the Legislature OF 1887. TO comply
with tho spirit Of the act OF Congress it authorized
the Treasurer of the State "to from time to
time the proportions of the public money to be de.
| ed wit and IN kaeo tba
for the State as the public funds of this State
kept, until otherwise directed by law. and further
authorized him to sign and deliver to the Secretary
the Treasury Of the United States certificates OF
deposit. to be countersigned by tho Comptroller,
which certificates the faith of the State shall be
pledged for the safe keeping and repayment OF all
the Treasury from time to time shall require the
same to be repaid under the provisions OF the act of
Congress aforesaid"


The, seems 70 be no doubt that tho United States
deposited the money loan. without interest, and
that the States received 1t as such and not gift
the distribution OF pool, to which they
all entitled pro rata OF population. AL doubt on
this point ~ to New York state is settled by tho
title and terms Of the providing for lending the
money to the people. The several States made vari-
OF tho money. New Jersey put 1t In public
joining the Hudson River being partially constructed
with 1t. New York loaned 1t out on bond and
gage, that being then the most popular way of dis
posing of It, tor the reason that the speculation in
1887. the panic of which year essentially real
estate panic. left OF farms aud city and
lots high aud dry from the subsistence OF public credit
and the stringcncy OF the money market. The four
millions OF Uncle Sans money at such "a crisis
as a most welcome this class debtors. Tho
distributing the money is entitled, "An act au-
thorizing loan OF certain moneys belonging to the
United states deposited with the State OF New York
for safe keeping" and passed April 4, 1887 It
directs that the money shall DO apportioned among
the several counties of the State according to the
population thereof. and provides for the appoint
ment by the Governor. In the usual way, OF two
commissioners for each county. to be known as
'The Commissioners for Loaning Certain Moneys of
the United States" &c. These COMMISSIONS are
usually newly appointed by each incoming Cover
nor. The gentlemen holding the Office for this
county Messrs. n. q. Thompson snd Ambrose