The New York Herald Newspaper, December 24, 1854, Page 2

* ‘| 4th. Whether the amount of money in each de- made.” There is in the law to the beaks without or currency te diseqar- pent geet sot ceeniatlon, Be Tole, THE SUB-TREASURY, to Cocmeopenae itt the” umous witch ton prevent sad fends fom bang expired Aller having boon eat of hs soa or wen tee som PC ee fr ares the on ca relarns ” ‘making ough transfers; ‘ease brokace ot after passed from bavk to baak, they importa has been greatest have been thos J oa ak dopaaiince: I fend the amount of money | bankers fo, when publis money la pat into their | are freq eet rere, en’ wit thelr assis oer cones we ves ee Beate taht oemtinne pubject to the loases and | THE FRET NINE YEARS OF ITS OPERATION. | nich tne books sarna called for, cept that, hande for transfor a9 agents, mye the. said | brekem; but they are mover received back inte the | In the long run; the are more benefited by Siagpreatagne-to which thay are exposed ander, —- " | gt Pitteburg. In there was a clency of | money “by. way it ‘kind of pro- without a recount. the mosey being retained in the treasury a6: | 4 | ‘cansed bbery | or it, or without losses. from fire, thieves and , | than would be if it were placed in their own Itis that, our own mines yiel4.| Ppsetal Ropers of Weill OSE trenaattet | pat. AE ae pmmatiiod ome | perry ct, or deposit it'tm. amy banik,”, they render | the has socurty ia the strongth ef is | vault. If in ther veut, 1 would lead to new ta: | ing'se abundantly, no is made by the State e * ' tin am unfinished build | themselves to all’ the wet, in gs, vaults and safes, in the conshruc- | fistions; 4 im the , maore OF ur currency om a better the Treasury -mrxarox Cre, Nov. 27, 1854. hs sates eaves wots “The ar | the 16th rection of the act of August 6, 1640. ten of thels fasteniogs wad in the watchmen om- | of it w come Reta f gold ena at fan o,te ren than we fee Sooke Sim—In compliance with the fnstructions con- | Suietk ied vase’ vault in the room, but it was | If any clerk in the department, or other special d. 1 ie leas Se smcaxs pty: joa eeree oer a - tained in your letter of May 26,1 have examined | intended only forthe safe keovinn, of books. 1t | agent appointed to convey money from one public ‘or every receipt ‘and payment vouchers x 2 o pele beers any large, ae pi joener inheten, eens the treasury depositories st Little Rock, Arkansas; | was constructed of thin walls of , unlined wita to another, should stopom the way, and | ars sent to W: x every receipt and oe arte jiminiah — Lope a higher a ye Y the Nashville, ; $8. Louis, Missouri; Dubuque, | iron.- {t had two iron doors, but only the outer one of being six days, be six months in the Or, | evory payment is duly audited. eee Seca mpeneee womens Sate, | renee sie ton, ome Dome Sees Towa; Chicago, Iimois; Jeffersonville, Indiaaa; | hadany fastening, and that was of the mst com- | formance of his duty employing im the mean Once a week each peaibary makes a return to | the —— he gen P ony to —— leavin ito the State « te to renters Censor qo sere lands ke cits yer mt Tene tin lector of customs and deposi epee eee colioes to all. Not loss is | tere ee ep orn ee on | pean el from ny AR to the the evila which are of State governments creation, i rg, Pennsylvania; New York city an r. Hastings, collect a 3 and deposi- | impropr | u Batic, Now York; Detroit, Michigan; and B ston, ao pitbang, 94 he was on hie way ater hte | fee mrecpeiy ween is done by bankers and pa rents dnslog the week, the money on hand om 5 yen fae ge caenaatl be - ng ee Sean the pacar cf fod Massacdusetts. | fal ‘ity, was at q ” From gaoh of there places I addressed a letter to | footpads, and. near Dandered. “hey Took frog | . The favoritism to ‘such @ system may lead is Once » month at all the depositories those | daily Ne though its receipts from cus we te avoided by you, giving s particular statement of the condition | him bia ‘watch, nize hundred. dollars in money (his | also an objection to tt. By properly ming the trans: | at Washington city, Nashville, Ciucinnati, Pitt tone shoie’be dally Si Ml A Mg set of the deposi there situated. I bave not yet , private funds), and the key of the vault. On the | fer drafts, so that one lap im with another, the | burg, and , the books, aceounts a ere baa hap Al nt papier ‘h draft for the had me to visit the depositories in the Southern same night the public money was abstracted, but as | permanent use of one, two or three million dollars and money on hand are required to be examined by | tem contril eae pr sg cad pv a paw tine ations —_— States; but as these I have cxamined contain the the robbers shut the door of the vault and locked it | might be given to official favorites. officers designated by law for toss, parpaae. who | greater stability J aood on the tasamery ‘ot New York, in falft- far greater portion of the pablic funds, and as they | after they had attained their object, it was not | Another objection to this syétem of transferson make their returns to the ‘the Treasury | possessed. ins tine of thad are pong office by 4 in te te gr fen vy | Enel estmoning a ery ove | ana acral av ae rae | tr earned aetna | mabe tne ta amen : me, aa session of Couzress is a) aching, 4 jon rr H - 7 | iva Sebati rennis of nia tnqubsien oa for | Having been informed of the inadequacy of the | quired by La W yg 3 service, but because the | ames ta ae to make periodic | nominatiens, but of Cra loiter J ‘value, = ; ond 16 cond have, been. pa Je ee ee | Gitte wa pernareph of your letter. | defences in the Custom house at Pittsburg, the | agents employed in making them will thereby be examinations of , are, in common with the | which has the least mer ue ye ee periag saline The first point I was directed to inquire into was-- | Treasury Department had authorized the Collector | benehiacs other depositories, examined from time to time by | other. ane sarees he ancien mate- Warn ass tod tesa the Ye “Ist, Whether the safeguards against fire, thieves to employ two watchmen, though the sum then in Under the system of credit transters, the monthly Fined asi appointed by the Secretary of the | rial of which ch gold ant iver money rie er pa | ‘md burglars are sufficie:.t in the several doposi- | the ry was not large. Two watchmen were amounts appear to have been about three times as raf «| can be spp! use’ he a Oi hee pec ag age ge Psat pal prong tories.” gly employed, but they proved unfaithful | great as they were under the previous cash system. | may occur under any Lege but in | the arts. The material sae paper money on ae. bee 9 in When the constitutional treasury system waa | to their trust. ‘One of them wasdrunk and asleep— Eder the cash system the transfers to New Orieans such a manner are the acceunts of officers of bry Same eS Be! note | discoun' ane mer eee. first brought into operatioy,, it was under great dis: | perhaps had beem drugged; the other is strongly | were about $33,000 a month; under the credit sys: | the different ene checked by the different Ef pt nctions yee after Pee, bhea gtvies advantages. In butfew ©: the places where public suspected of havin; cided the robbery. | tem they swelled to $227,000. In like manner were | bareaus in Ws city that no mistake of any | which gold and s: ie PERN; a Leng = want Sey ea cell | Ro opt hd vce, ling iy ers we nfm ramen change ey grandam hy fom #100080 mamens cm eg mat incestared hong | toed ar bemor whine ended sera | hare ben Shomer orf bc acta a own; and where it ha® bui ‘3, in bul Ww of iver by le will cover amount 125 5 » them were suitable provisions for the eafe-keeping ese be but apenas will fall heavy ona worthy | Ifthe princl les of this mode'éf doing business be public officers applying | public. money to priv ported. It is owing to bare pe New Geant, saree y and ee ee Led ro Of the public fands. In the whole valley of the man. correct, the whole amount of money to the credit of uses, and not to repay it when the - | and the other States in whi iaaue Rane chant ae 5 . Pp - 54 Ohio—rich and populous as it ix--the United States Some useful lessons may be derived from this | the T.easurer of the United States may be kept roll- | lations in which they had been un- |‘noten ie allowable, there's 50 Wee specie tm cine. Acasive toning ot comeeecie,, cuptaten money was had not s building or a vault in which to deposit a mishap. If the double lock and key system, which | ing through the country, exposed to all the viciasi- | fortunate. Against abuses of this kind the consti- | lation, coneper ed wr Fema ane 1 but in the an it existed dojlar ora paper. In those parts of the country in is in use in the large depositories and some of the | tudes that attend the precarious business of brokers | tutional treasury law ides severe enactments. | States in w! . inane of ne os leas deno- Sot in the form af Pann of gold and which goverument had buildings of ita own, few of emailer ones, had been in use in Pittsburg, the foot- | a ony object Congress had in | If any depositary should be bold enough to trane- | mination bg ve aaen * Epapron . silyer—as no loans Yale ‘or paper issues had thew bad Tanita and piases of prog r construction. pads s would bave had to assail two men instead of | view dn pessing the tional Treasury act will Petty anne be nee So ea ee tablished thove in lite. active home demand foc | been based upon it--this large fecal transection Even iu t! it at P ad 4 there was butone one order jon of both 8, ADK sh ~ - money vault—one being all “chat, at the time that there is little pro| ai that both of the holders When the administration came into power Tf ap; should, through carelessness or apetiey - ge ae mee | maa no dake anneters oe eer mer et operations. = edifice was constructed, was avemed necessary. the keys would have ‘at one time in such a | it tcok the means to correct this evil. All those per- misconduct, lose aly part of the i entrusted to | the smallest 5 recta tee aaoear vo ‘“ Under these circunstances, the Treasury Dapart. | place or places as invite an attack. sons who had been employed in making the trana- | his care, the government has security in his own | for the occasional t of balances duejfrom one | jun million dollars to send abread, ‘eat appears to have made such ar, ments as it ‘Again, public depositories should be so con- | fers of the public money, on time, were required to | bonds and those of his sureties. bank to another. cog aes ~ @ould for the safe keeping of the public moneys. | structed the money in them will be secure, | pay up. In this way sums, large parts of whish ‘Since the law was passed, hundreds of millions of | only effective Cg Se es of banks But the fucds at its diaposal for this Purpose were | even if the watchmen employed prove unfaithful to | might have been lost, have been secured to the trea: | gold snd silver have the deposito- | demand for specie very limited; and, in not a few cases, the officers of | their trust. They should be so strong, and con- | sury. The only sum now ou! is the $170,000 | ries,.and not one cent thereof has by been lost| peipponde inte ye She’ depositories had out of tveir private means to stracted in such a way, #8 to bid defance to any a‘- | taken from the depository at New York, more than | by government. If lossea have been sustained | ene provide for the safety ci the public money entrust- tack which may be made upom them by auy combi- | four etre 280, to be transferred to New Orleans, trough collecting, , or transferring Mr. Nicholas @d to theircare. Thesecuritics they adopted were vation of burglars, in the length of time burglars | For the recovery of this, suit has been instituted. officers and , such losses have becn occasioned, | tendency of banks is to lend too mach such as circumstances forosd upon them, and were | would have to operate. The depository at Boston | Tien delight. Whether 9 sapitoeal as reo din but by departing from, the con- beget bean circulation.” They therefore require atimes quite original iu their character. One ia the resent ft wors this | n is necessary to prevent, at some future ry Gaveaitory in the Wertern country that I visited in pA Rad Reset, never S0y, lawees | day. a recurrence to the system of tranafors on time. | This sy! has now been in operation for | plied by the mig ey yer It ope- price i for rdmbarsing the hold ” 1819 reminded me more strongly of what Robinson wath: Whether anything farther can be done to | Perhaps a closer examination would show that, re- | between eight and nine years. | Fates, not a8 does the foreign at uncertain | Iie stocks. ominous wer sgpendes Cru:oe’a fortifications may be suposed to have promote the convenierce of those officers whose | quirirg certain thivgs to be done, and not atthe | The act was passed July 4,1940, At thet intervals of months and years, but any ee oe cpp te — Congress een, than anything I have scen either before or duty it in to receive, keep, pay and transfer the , same time providing proper means for doing them, | time the banks, in the greater part of the Union, | ly. And eee ete obje: tion to it is, that as | / DS, 1S come ie Sees crate § chanens since. A short description of it will be proper for public money, also the convenience of thdve to | has in this, as in other cos, led to a departare | had pap Gime ments. The public reve- | a check it is not atreng enough. in the operations a tates k, ros Ghe benefit of posterity, if not for the enlightenmeat whom payments are to be made.” | from the principles, if not the letter, of the act of | nue was dafichan ang as necessary to have re | eee ee — ie art ot apes ln tele dered ST ee ate f the present generation. torie inconvenience is 46. couree isaue and re-issue of treasury notes, banks stain ponte purp' national. Or the chief Gases th, Was Stik Swhet'the building iene rear ne wane ef suitable pein for | _ There sre seasons in which a Secretary of the | order to complete the public Payment The tions. It is by the whole amount of specie in the | fe The mother bank and La of i Denes helieved to alhrd the best security, and am apart- woshing ‘gold and silver, and various little conve- | Treasury has to exert great firmuess to avoid deviat- | government had to contend with all those difficul- country. The larger this ie, the more they can | bt omar not according to the tment adjoining the barre m was made a depository niences ‘might be supplied to the others, which ing from the stict line of duty. Owing to the na- | ties that attend on changes in the fiscal system of a draw into their possession by requiring payment | mands of tommeros f speaks, nevnctie? Seeeae of the treasure of the United States. Immediate ac- would greatly fecilitate ‘business. To enumerate | ture of our ay r money system, our banks are (even | large country. New places had to be provided for | from their debtors. ‘Through the operations of the | hoods, i} Ce) 548 oats on Pi eas from the barroom to tae depository was shut them here would be tedious, and is unnecessary, as the best them) occasionally exposed to great | the aafe keeping of the Se? Eine. and new modes Constitutional treasury ae amount of specie Aiesit Ie ‘coutbe of exstianies was thos off by closing the door of communication, and, a4 what is wanted at each depository is mentioned in | pressure. If in such cases they cam, by any contriv- | of business adopted. difficulties it bad to sar- | in the country has been more than doubled. Aud thus 5 Amn ier an cman produced further security, the partition wall was lined with my apecial reports. A moderate appropriation is | auce, get pocseésion of the money in the public | mount can be properly appreciated by those only | while it bas in one way diminished the number and | from Boston to New Orleans. rae < boards; but as the glass ligatsiathe communicating all that is required for strengthening the preseut tre it will afford them temporary relief. It | who know with what —_ roy eet amount of bank ‘‘promises to psy,”’ it has, in ano- | finally 8 ere the agenc tl Bee ae ec door weee left uncovered, in order that the Keeper depositories 0 ss to make them secure from fire, | would be thought stcange if a farmer or mechanic, ling, to established forme. But, notwi ding ther way, increased the meavs out of which the 3 Pert ‘er or ailver, but im of the public treasure might, when in the barroom, thieves and burglars, and fit them up with every when hard pressed by debts, should apply for | all it had to encounter, including an CG ogmopon from banks can, if so disposed, make payment according cre: i After oe odoocnele bee into his own apartmest, a determined burglar desirable convenience. ‘the ure of the public money. But banks and brokers | some cf the most powerful interests in the country, —— there was not one seornsd 4 gol el ver Cculd, ia a few minutes, have forced his way in. “6th. Whether anything more can be done to facil- Shink tar He entitled to poe me eceved the araitin, Nepreen ele Tay banee fd of the | a reat, indeed, are = Feargshed ee es pod the Ta the - po bank or - ap a the ‘The estracce into the depository was through a tate the tranafer of the public funds from place to by farmers and mechanice. times money anks ae specie, hut iteans do everything. It cannot pre- | Wasa mere transfer of credits from one individual k paarage under a@tairway. rhs ? ressures, duced the besdabe gn’ of the public receipts and were rtly | try. Sremptea to enter had to poe all he venation Pe ear rceniated enahere teen pl unmeces- barks) The Seorstare of the ‘Treasury is liable to be | in oi and Hite and Fartly in convertible ce er, | Vent or correct those evils which are produced by | to another, cr from one bank to another, dow, soem and Be ibe Pogo kway Cavan ovale nepal re Pe, outa ou ink detains | per ec ened npc ede py:, ea off iGtng run soume. Ga, Hare | endfor reat of ey bank et a ne inch ety nga: open xg pS ofc a Sogo aeemy avin lune ern Gye | Menthe lage Pa ems | AC Meee ears a canae | Gabe Sa ta i J y 5 f ublic - rs When ix the doy tory, the eltizen pd had ‘bust: ben at ine Flaoea “ware the ee onan, principle of making transfers a time be correct, the | was preserved, though the common currency was ing system. It cannot compel those who institute | _ How different is the action of the United States ness th:re it divided into two spartments by ase nct deemed sufficient. Transfars from these ks may be a:commoda‘ed with the use of the | degraded below standard. This measure banks with no other capital than stock notes, topay government in Beet the public debt under the a temporary partition. Ono of these was lighted by motives will be unnecessary, if the depositories be _ publio money to«lmost any amount, and for an in- | facilitated a general return to specie ts. | those notes in full in gold and silver. It cannot | Constitational treasury system. No one train of @ single window, defended iron grate@ of no strengthened in the manner above recommended. Botinite period. But even mpposing such a pro-| In August, 1841, owing to party political changes, | keep State stocks always at par, and thus enable commercial, cperations Ja in the least degree inguri- great strength. In this Sivisten of the room the —_It will probably be advisable before long to estab- ceeding to be legal, its Polley questionable. Let | so much of the act of July, 1 pemeconiiiee de- | the contrivers of “free ” to redeem their cir- officer kept the chief part of his silver in boxes; lish a depository in Minnesota, and another highup it once be understood that the Treasury Depart- its in banks, and the receipt and pa} of Culationon demand. It cannot cause an abundant | Circulation, no interference with the nataral course screening the boxes them+e'ves, as well ashe could the Missouri, if the Kansas and Nebrasks territories ment is to atretch forward a helping hand to the notes, was repealed ; but #9 much of it was re- | Circulation of gold and silver in those States in | of exchanges, no calling in of loans and from public view, by ovvering them witha wooden shall be settled as rapidly as is anticipated. This bsnks in times of exigency, and those exigencies | tained as prohibited bic officers from converting | Which the currency of small notes is allowed bylaw | When eereent of the public debt is made, it Casing, comewhat resembling in form a joined coffin. will save the riskand expense of transporting part will b> of frequent ocourrence. to their ome ne, o ding ia any way, the public | = ee et Ne acte pant seen Cen ie bay Pens ap! ~ their care. . titions systems of credit, most available form On the 6th of ‘August, 1846, the law of July, 1840, | having ‘heir origin in false principles of banking. 1 re-enacted with amendments, In the other division of the room, being that to of the money collected at the land offices in thefar Perhaps, in addition to the le; rovisons al- be % ; ot general, commercial uses, samely, ong se rs | cannot even prevent contrac A tion , bat dae provision Sen ¢ of gold x, ola of which there was entrance ander the stairway, there West to the present depositories at St. Loais and read, g, @ resolution requiri ‘Treasurer wos an irom safe in which the depositary kept his Dubuque, and aflerwurde carrying it back into to give once s year a statement of each transfer | was gold and so much silver ashe could store therein, defray the expenses of Indian agencies and other made during the year, with the name of the per- | was not made to carry it inte effect. A sufficient tions on the part of tl ‘rom the nature of | off, the amount the v: the bankas Around this apartment ran a low gallery, constract charges against the United Staton government in son and the time employed in making it, would be | appropriation was not made for proper fitting up | things this is impossible. The’ extent to which our | and the Unie ad is increased. In thia ed by the de; met he oom that, incase of at- those distant regions. all that would be neceasary to prevent the misap- ries ; and though ing officers ks can expand depends on the amount of pro- | way, —- cante into tack, he might, it in danger of being overpowered © Where tranafers of the public money are actually plication in this way of the public funds. were, in common with others, proh(bited, under | ducts we can sell sbroad, added to the amount we Ay] nas Bes pA some swenty or thirty mll- below, retire above, and shower down hia as- necessary. they can, in most parts of the couutry, “Tth. What disbursing offi ers Sih peer in | severe penalties, from lending, using for private | 08m run in debt abroad. The limit varies with every in foe ‘ani tof the sailaats stone bottles and other misailesof this kind, owing to the facilities which railroads and steam: the deposit and what the to their | purposes, or depositing in , the public money | great that takes place in the political or are payment of the interest on public debt. of whioh be bad provided an abundsat store. boats afford, be made from one depository to ano- credit; and, on the other hand, if any disbursing trusted to th care, oF from paying the public | world. So long as we can sell abroad | If the bahka are fiscal agents, the. whole of the pay- He aiept in this room, and gans, pistols and pikes ther with great despatch and at a very small ex- officers negiect to deposit, how they Keep the pub- | creditors gs bat and silver, no pl large amounts of our products doit san te ha — to no more than a transfer. of gompisted his aesortmen: of weapons, offensive and pense. But even this is,in many instances, made lic y money in th bands." ee ne ts | oe providedtor them in which to deposts long inal rata thon do not Eig to) wast ored wiry Se arate pobe oer ante cae te Hl | them, ment of interest wei jefeusive upnecessary by the use of the transfer drafts. my spe: reports I gay nam: fonds. great irregularit | Sot ng Reet app ee 3 By onal In this fantastical fortification was kept for years For example: a person in Ws ton City wishes pr officers that kept their funds in the de- | not a few cases the government has been collectin; in succession, hundreds of thousands or dollara of to ewan of iaoeey in New York. He deposits positories that I visited, with the amount to the and silver from the people for the benefit the United States money, simply beoause Congress the gold or silver in the treasury office at Washing. | credit of each. I found that in those neighborhoods banks, and through the agency of its disbursing | | had made na appropriation to provide anything ton, and receives an orderim reture for an equal the disbursing. officers, with but few exco| » | officers, and the banks yy them, has been can the banks go on increasing their with the other ex; of government, better. This wos not in an obscure pert of the amount of goldead silver on thoasistant treasurer | kept the money omtrasted to charge, in Wes the public creditors Dank notes instead | raising prices, making money plentiful in every Ten et her circeetae cant abe pl ry, It at Jatteynoneiita. Indians, im. ot New Vor Tm thie way the gowernment is-caved | public d > Im enma ae lt parte } uf eo. ‘uf ths. States, man’s pocket, and ie man to run in | creditors, not with ci: y but cir Soeilstely opposite Louisville, tue largest clfy in theexpense of bringing gold and sliver from New | of Arkansas, ding at a distance from | Me fhe imperfeet nmaner in which | bg Sahipd meg ay enlating debt, for this is the true chiracter of the Kentucky. York to Washington City, and private individasls any depository fands in the iron chests | the law wascarried into effect, it did mach good. | But let a take place. Let our domestic og medium the banks create. Under the In my are, Thave given an exact de- the expense of aor gold and ailverfrom Wash | of the merchants, with the understanding that they | All the receipts for lands, customs, and other public | exports bring a low price al |, or let our foreign | constitutional system the public creditors Let ava scription ofeach depository that I have visited. ington City to New York. The government is per were not to be used by these merchants. In other | dues, were in gold and silver and Notes; | creditors prees us for what we owe them, or even re- Wi cocci Gae coeial, or sack is gold and silver. ‘That at Boston is the oply one with all the strength fectly secure, for it does not issue the transfer draft . cases it was reported that certain disbursing of- | and all the payments by the Treasurer of the Uni- | fuse to grant us new and additional credits, Then | If it be objevted that the goverament can and security which a dep vitory ought to have, till the gold or silver is ac paid into the Trea- | ficers ited fa baske the public moneys intrust- | ted States were in , silver Cg notes. | & demand for specie for export commences. Thon | back to the nothing bat what it has - when it is intended to bea place for the perma- suryoffice. The private individual rans no risk, for | ed to their care, azd ch on them as they | In this way a of gold and silver was | the banks are obliged to contract. Then prices | ously rec from the this may be ad- nent asfe keeping of millions of the public mouey. the gold ard silver on which the draft is drawn is would on their private fonds. None of the offizers | crested—a limited one from the | fall. Then becomes scarce; and debta con- | mitted. But ft is not one of the least merita of the At the other obief depositories the ions for actually in the Assistant Treasurer's office. At the | who were ssid to pursue such a course were under | public depositories to the , and back again | tracted during the previous expansion cannot be | constitutional ‘that ft bas, by its own action, nafety moy be said to be gond, th such as to same time these drafts are for such amounts that , the control of the Departarent. - } from the banks to the depositories. But, as | paid. 0 increased stock of metals in the admit of improvement. Such improvements as they do not becomes partof tae circulating me- Under the United States and State bank de- | the banks are the of our practical mo: | gq Enowe who that the fluctuations of a | country as to sustain, not ita own operations, would be of a costiy character canbe deferred tiil dium. They are simply contrivances to prevent the pcsit systems, dial as well as collecting offi | system, keeping them or ina state ap- | “mixed currency” are no greater than those of » | bat, to a certain extent, the operstions of the banka, the tima comes for alt the public buildings in unnecessary transportation of specie from place to cers were allowed to employ in their private speca- | proaching te soundness, is an object of | purely metallic currency would be, are under an illu. | and also of private individuals. thoss places, or for erecting new ones in tteir place. , | lations the public funds to care. The | great moment. The effects of the tion- | sion. eign Apa g to PY. on demand CAUEES OF PRESENT HARD TIMES. To a considerable extent the cost of transpo! consequence was, that very large sums were thereby | al system are to be of, not so much by the | acts to some: asa checl it is not as effestive fragt or troubles in the money market are It has been reealved to build a number of newcus the public funds from one Wepository to another Jost to the public treasury. To prevent such losses | amount of solid pA it causes to be retained in | S8mapy have been periods in our gisttg fly to the following causes: tom houses. If in each of these adequate prcvision be alr avcided by means of these transfer drafts, in future was one of cts Congress had in view | the , a8 by! stream of gold and silver , history in our “ ” hasbeen | 1. rapid extension, under a fresh supply ef made tox thevaste keeping of exch undsas maybe and will be toa greater extent as soon as the sys: in passing the act of August6, 1846. Tho which, it, is constantly flowing into the | more than doubled, while, under the circumstan- | gold, of a paper money banking system, which rests there collected and brought there from other places, tem is more generally understood. it imposes on disbursing officers who lend abl: treasury, and the other stream which is constantly _ ces then existing, the variations of a me- | on principles ‘unsound, especially in sans- &@ moderate appropriation Congress will enable Immigrants and others are now subject to some money, use it for their private purposes, or depiait | flo out, The aggregate is the whole amount of | tallic currency would not have am to fle per the issue of notes of email denominations. the department to make sil the nece arrangs- riek and expense in money intended forthe it in banke, are jast as severe as those it imposes on | receipta and payments by government in the course i. 2. wars in the East, that have caused ments for the proper keeping of the public moneyin purchase of lands far into the in! » There the collecting officers. But while the law provided | of each year. | | A little reflection will convince any man that itis | to flow from to Asis, instead of taking the preseat depositories. money.is paid into the land offices, and then it has suitable places of deposit for collecting officers, it | _ It wass time of war; large loans were necessary. | impossible for 8 government to prevent ruinous | usual course from to America. It is & proposition too plainto require proof, that to be brought back by the government to someone made none distinctly and ey diaburaing | They were all effected without calling in the agen>y fluctuations in a currency resting on such principles. | _ 3. The att tomake, in a few }, RamerOUs in the treasury offices, at least,as good provision ofthe depositories before it can be applied to the cfficers. These, and other the law, were | of bank notes and bank credit; and the important Ita vapiinn condition is dependent more on the | and extensive lines of railroads, would, ia” ich keeping of th lic bhi ice. This cartingand recarting of mone; inted out by Mr. Walker in tbree of his annual | and extensive fiscal operations of the United States state abroad than on the state of at | reason, ire peut them. should be made for the safe keeping of the public public service. eg y poin' ry ope! dh gs re require many omit. money as brokers and bank 81 ceesary for might be avoided by a provision that parties wish- reports as Secretary of the Treasury; and also by | were carried on without least the home, and is therefore beyond the reach of ordina- in wild lands, caused the fonda ia their possession. "At present our ing to purchase Vande might payment Ae teredith Tred he dled the same office. Bat action of the banks or the merchants. Loans ofbank | Ty on. by reducing the price of the public lands, and by twenty-four public depositories contain about half for the seme in advance at any depository, this produ.ed no new action on the part of Con- | credits to theamount required in the Mexican war | | What, however, the United States government has measures, have thrown iato the market asmuoch specie as our twelve hundrod bauks: but and receive a certificate for the amount, which | grees, and as a consequence the disbursing officers | would have der d | had pewer to do it has done. It has withdrawn the | in a few years as mach land as wil! supply the de- there are in some of the depositories less adequate certificate should be receivable in full pay: were left to do pretty much as they chose with the In cther ways m_ has done much good. | support it used to yield to money banks. By | mand for cultivation for many provisions for the safe kee toy ot large minan of gold ment at the land office therein designated, if public money. py them conscientiously | Through the Tacrease production of gold and sil- | refusing to let them have public money to wack If there has been any excess of imports, that ex- and silver than the banks deem necessary for the presented within a stipulated period. ere would obeyed the law in all its parts, providing iron chests ver the mecie level has been raised; but in times of _ upon, and by refusing to receive their notes in Pay. cess has been caused wholly and sol: yby excess of safe keeping of relativeiy small sums. be no more danger of such certificate becoming a ard other safeguards at their own expense. Others | prosperity the paper level rises above the ‘ie, | ment of public dues, or to pass them to the pul “2d. Whether the books, ascounts and returnsare ‘circulating medium,” than there isof the scrip compiicd with the provisions of the law so far only | just 2s natarally as oi) rises above water. The creditors, fh es expansions being as tas | like extrar in living, and all the other evils kept ia that accurate and uniform manner which the now issued by the land office becoming such. Toa as to themselves seemed convenient, or was deemed | have ¢: eatly; and the cause that they | they would otherwise be, and thus diminishes the law prescribes.” certain extent this prinsiple has already been ated by them expedient. Nota few, se there is reason | have har en led more is to be; found in the ruinons consequences of the ieee contraction. Im the Treasury offices the business cf aczount ov. If made general, it would prove aconvenience to belive, deposited the money, not indzed in in- | constitu get # alone If the public mo- Havicg itself entirely per money Not one of the causes singly, but the whole foar keeping is much more simple than it is in large both to the government and to those wishing to corporated banks, but with officers of these institu- | mey had been deposit ith them, they wouldhave | banks, the United States government is no longer | coinbined, have produced the high rate of interest. suecasitie establishments. The depositories have purchase public-lanés. tions, or with private bankers and brokers, receiy- | made it the basis of new issues and new discounts. | responsible for the evils they produce. Forthecor- | To euppose that any mode of managing its fiscal nothiag to do with profit and Icsa, and other tasti- ‘This principle might be apolied more extensively, ing, e:ther directly or indirectly, come compensgtion | Our impcrtations of foreign commodities would | rection of those evils the le must look to the | concerns which the tious accounts, their main books are in reality ard has been already in some cases. Merchants in tor its use. bave been much greater than they have been, and state. governments by whi ‘h these institutions have | adopt could counteract such causes, is a folly wf 80 1asay cash books, in which the daily receipts are inland cities—such, for example, as St. Louia and If all disbursing officers should purane this course, | the attempt to pay for them would have drained been created, and by which they are sustained. The | which no rational man will be guilty, Nothing bat entered ouone page, and the daily payments on Cincinnati—msy occasianally find it more conve- the whole of the public revenue would—not at one | the country of its specie, The constitutional trea- | action of the United States government is necess- | the constant influx of gold from California has pre- the page oppesite. Yo the large depositaries, where vient to make their payments of duties at the sea. time, but in succession— inte the possession of | sury system, and tbat alone, bas saved the country serily negative in its pature, and consiata in having | vénted general pprrehe ig and if the regular su; there are several cash receives, cash keepers and ports through which the gooda ate introdaced inte the banks. It would t! be exposed to risk of | from écenes of inflation aud specula‘ion, such ss we | nothing to do with the fabricators of pap»r money. py from that quarter should be interrupted only cash payers, several cash books ate required. and the country, than at the places where they actually _ loas from bank failures. It would be made the basis | bad in 1835-36, which would necessarily have been | The action of the State governments may fryer for a few months, it would, so tevsely has credi theee are all so arranged as to serve ascheckson reside. Taore engaged in the construction of rail- | of new expansions of paper currency, which must | followed by scenes of distress and disaster, such as__ tive, and apply the axe to the root of the evil. been strained, be followed by the most disastrous One another. In the smaller dep sitories, where roads, also, though the iron imported from abroad inevitably be followed by new contractions. It | we had from 1837 to 1843. This truth is admitted | If the tate governments wal, vee ate dae no- | reeults. there is but one officer, and wnere ihe transactions “ may be consigned to the far West, may find it more would lead to the payment ot public creditors, not by many who were once the active opponents of tice of the change intended, simply prohibit the is- | _ It is no more in the power of tho general govern. aresmall,a singie cash book isallthat is neces- convenient to pay their duties at the seaports in the in gold acd silver, but in bank notes. tl | sue of notes of a leas denomination than ten dollars, | ment, by any fiscal aystem it may adopt, to coanter- Ey whence they derive most of the a for + is obvious that, unless disbarsing, as well as Some complain cf the money in the treasury | the wi of wo! men will be in gold and act causes of such @ nature ag those above meu- g their railzoads. If allowed to pay their du- collecting offi.ers can be made to obey the law, it | offices as lying dead and unproductive; the use | silver, the specie of the banks be widened and | tioned, thanfit would be to correct the evils tha: g sary. Besides these cash books the officers keep letter books, registers of drafts drawo on them, receipt ties at the port of oe they would be saved never can produce the fall effect intended. Duly | to which, cir opinion, goli and silver should be strengthened, and flactuations of paper cur- | result from the want of industry, economy and books, &c,; but all these are mere anxili to the expexse of carrying the name to the West,and impressed with the importance of thie, the present applied being that of supporting pape: credit. But | rexcy will not be entirely prevented, they will be | prucence on the part of individuals. Bat if the their cash books or records of receipts and pay- government saved the expense of biinging it back administration, soon after it came into power, made money in the treasury offices is no more dead | lees eudden, leas frequent, and less violent than they | constitutional Leone | system is faithfully carried mente. agtin. prov'ston, by virtue of the authority veated in ii by | aud unproductive tham are the goods in the ware- | have hitherto been. out in all its parts, it will produce the following The out the oe ona principle is ad- it is a Gxed principle of policy with the United | the sixth eection of the act, of suitable places of | houees of the merchants, or the grain in the grana- Some inconvenience would attend a change from | effecte:— hered to in keeping the accounts, though the num States government to grant every facility that can | deposit for disbursing offlosrs in the depositories in | ries of the farmers. In a country suchasoursthere | 8m uneound to a relatively —_ pete but it ine will increase the amoustef gol4 and silver e evils wit vaults ber of books kept necessarily varies wita the extent be gratted with propriety to thove having payments | ¥hich the treasurer keeps his account. They have | ought to be somewhere a reserved fund of gold and | would be small compared with which of the banks and the pockets of the and natore of the business dove at each. [n all that to make into the public treasury; and though much | now therein sre convenience which the | silver, and no more sapropuate place can be found | the country will continue to be afflicted, 80 long as | people. I visited I found the books and retacna kept in such haa already been dove in this way, all, perhaps, has | banks could afford them, and have no longer an ex- | for such a reservoir than the United States Treasury. | &+mall note currency is sanctioned or tolerated. 2, Though it cannot control the banka, it will, te & way 9s to make their tran-actions easily usder- not been done that might be done. cuse for violating or evading the law. 80 much cf this morey a3 is appropriated to mint | The gold now hoar isp equal in amount | s certain extent, oheck them in their ¢xpansizas, , thongh in some of the smallerones tie xco- ‘There is one way of making transfers of the pub- _It is true that disbursing officers residing in acme | uses is, in reality, 90 much devoted directly tocom- | to the one, two, three and five dollar motes in cir. | end thas weaken the foros of their subsequent coa- Ocunts snd moneys of ths officcr, asa treasury de- lic funds which appears to be highly objectionable. distant pazts of the country cannot have the benefit | mercial and not to governmental purposes. Through | culation. Probibit the issue of notes of a less de- 8. itary, were not kept as distinct as they ought to It is that of assigning transfer d-afts to bankers, | of there depositories, and that the duties of others | ite means some fifty millions of gold and iver coin gold will 8. I¢ will prevent those loases which 80 fre ve been from his accounts and moneys a3 a collec- brokers and others, and allowing them the use of | are of such a character that they have to carrytie |'are anndally thrown among the people, with a | drawn from its hiding places. Suppose the amount | qucot in former , and which ave ae juences 8 F : H E E z tor of oostoms, or as a land office receiver, the money for such time as it may be supposed will | public money with them in their travels. The dut; romptzcss which, under any other arrangement, | not avffictent, and we can supply what is wanted berriy:| suffering public officers In the large depositories the cash is balanced compensate them for the txpeune of trarsporting | of seeing thet these disbursing officers obey the ay Pond be im possible. y. er by detaining in the country prodact for only | with the public fuzds to apply them to their private pS ia the smaller, generally about once a spe ie from one Gepeaacey Sv Snoeine, | wil devolve on the heads of the departments to | Deduct from the money in the treasury the | oe half year of our mines in California. vees, - week. ‘An experiment of this kind was made during the | which they are Teapectively attached. Such of | amount appropriated to mint uses, aud it will be There is bat one way in which we can detain in 4, It will give the governmont at all times the co- | “3d. Whether the examinations which the 12th Mexican war. but it was followed by such conse- | therm as keep their fucds in the treasury deposi- | found that a 1 Bo exorbitant sum remains for a govern: | tbe count Se eee the gold of Califor. | trol of ite own funds, so thet it oan apply them to section of the law requizes are regularly made, and quences aa to little encouragement to repeat tozies will require no such close supervision. ment whose jurisdiction extends over three million | nia, and that is by ene oe active demand for it. | the public service just when and where it choossa— in such manner as to fulfil the intentions of the it. In October. 1860, however, this mode of making "The depositories that receive the m: of disburs- | equare miles of territory, and embraces within its | There is but one way in which this active demand | & control it could not have if it should depesit the law.” transfers on time was redaced to something like a ing officers, and pay out the same, that they | bounds tw five millions of People. ow y Money in the banks, and tae ebould This section declares that, in addition to the ex- — In the Lasher oad months thatensued, can perform this duty with much more ease than, It is true, by transferring money to the their cuatomers. ‘Sminations to be made by special examiaers,as pro. the transfers made ia way amounted inthe without experience, would have been supposed to be | banka the operations of those institutions would for The policy It will prevent those derangemsats of wided for in the eleventh section, ‘it shall be the agers ite to between fifteen and sixteen millions possible. atime fo Me peep Bat to what extent 9) are Guty of each naval officer and surveyor, as a check di , and the money was ou of the treasury “ 8th. Whether the different requirements of the | would the of sucha pi Snegurnateg Ss ya caused by governmen loam Gpoo the sssistant tressurers, or the collector of depositories for an average of about sixty days. In law, and the tre: ror disoege yee 35 rerwtssce our paper credita increased? According to their the Gat of in bark credits, and otf ehe pabltg an customs of their respective districts; of each regis- some cases, s<curity in the form of daposites of of the law, are ly adhered to, including that | returns nearest to January 1, 1854, the beaks had deposits medium of bank agency. ter of a land office, asa check upon the receiver of stocks waa taken from the broker or banker employ- Bg which requires public to credit | then notes in circulation to the amount of two hun- | mort; for the “ultimate” security of thelr is- 6. it camnot prevent frequeat explesiena bis land office; and of t¢ director and superintend- ed to make the transfer, but in other cases no seou- United States with any premium recsived on | dred and four miliion, while their bank book credits | sues. “ aitimate” security is, it may bead- | of banka resting on insufficient capital, and osa- ént of each mint and branch mint, when ecparste rity wea required. drafts.” (loosely called deposits) amounted to one hundred | mitted, better than no secarity at all. The mischief | ducted on wrong principles, it will, it is believed, offices, ag a check upon the treasurers respectively + the commencement ofthe , SOME seven- Ta none of the depositories that I visited had any | and \ty-eight ion, and the sum due to other | is, that it is least available when most wanted. The | unless under very ciecumatancas, of the said mints, or the persons acting as such, ty or cp ow were allowed a money drafts been sold for a premium. banks to more than fifty million. All are | very causes which prevent the banks from redeem. | prevent s general suspemsion of specie payments. ¢ close of e&ch quarter of the year, and as much from New York to New Orleans; bat the time was In the large depositories I found the different pro- | parts of their current credits; for tho bank check | ing their issuee promptly, cause a fall in the value of 7. If@ general suspension should urfortunstey a ‘as they shall be directed by the Se- gradually prolonged, a0 that from one hundred to © visions of the law, and the treasury orders iswued in | serves the same purposes in trado that the | the stocks Co te tot “the ultimate security” | occur, it will afford a standard by which the depre- the to do s>, to examine the one buogred and thirty five days were consumed In pursuance thereto, strictly attended to. In someof | bank note serves in retail trade, and the bank draft | of which their notes have been issued. The “ uiti- | ciation of the currency can be exactly accounts, returns sod money on hand of the tomperens S ae money from the depository the emalier ones they have not been so carefully ob- | serves the same in adjusting accounts be- | mate se " may avail something to the broker | and greatly facilitate a retara to a better atate of treasurers, collectors, receivers of land at New York to the depository at Wi city. served, but will, it is to be hoped, be more exactly | tween traders in towns, that the bank check | who bujs them at's discount, and can hold on to ber . offices, treasurers of the mint oud each branch mint, In one instanee a Mr. Wm. Minor, the president obeyed hereafter. These tréasuty ordern, the object | does smong traders residing m one and the same | them for months or years; but the laboring man “Te lesa government hes to do with backs, and and persons acting as such, and to make afull, ac of an inceeporsied Cnapesy in Ohie, was six hun- of which is to promote method in business and in- | town, The total of the currest credits of the banks | who has notes of these “state security banks in | the less banks have to do with government, ths care, and faithfal return tothe Trearury Depart- and four days in ring $25,000 from the de- | sure an crderly keeping of the public money, are not | was four huecred and forty million—all restiag on | poasetsion, finds, when they stop payment, that | better for both," if isbe aot adage it ought to te meant of their condition.” itory at Boston to the deposi at New Or- | of so much importance in the small depositories as | specie in their vaults of the amount of about sixty | ‘' the ultimate security” for their tion does | one. “ bay Bog ad made,” said Mr. Wa- At Washington city, D. O., Pittaburg, Pennayi- This came gentleman, on the 24 November, | in the large; but they all form pert of one system, | miliions. If thirty million of hard money hed been | "0! prevent his losing twenty-five cents, fifty cents, | Ham Jones, first ident of the United States vania, Cincinnati, Ohio, Nashville, Teanessee, Rich- | 1850, recetved $100,000 from the deposit at New | and we cannot have sets of rules for their | trareferred to them from the , and the | or even seventy five cente, in the dollar. Bank, “bea convinced me that every for- mond, Virginia, and Buffalo, New York, there are York, with the omnes pare ing it’ government. banks bed increased their issues and ta in ina citcalatiag mediam we something more | midable difficulty with which the bank (that is, the “ no officers resident charged with this ‘daty. The to the depository at New Orleans: but the money __ (reat advantsges have been found to result from | proportion, we four hwudred and | than ‘‘altimate security.” We want, alao,‘imme- | United States Back) baa had to contend, has been de ies in those places are subject to exami. | lias never yet reached the at New Or. | that treasury r which requires the specie to be fort millions of had six | diate” eccurity; we want security that is good to- | produced by ite agency for the government, and Ly special examiners appointed by the leans, and it is to be feared never will. kep: in an orderly manner. Where it is duly ob- | bi ard sixty million, U1 gach a, | day end will be good to-morrew, and the next day, | particularly tas too rapid roductioa of more tham T apai In the other depositories Under this aystem, government fands weretrans- served, the amount of money in a de; , | prices wonld have been raised so high at home as to | and forever thereafter. This seourity ia found in | eighteen miltions of the public debt between the visited ane Se preiotio examinations required by ferred without direct vost to nt; but the though it be eight or ten millions, crn deter- | make the ex of domestic products unprofit | go’: and silver, and in these only. months of June, 1817, and November, 1818. It the section, and which by orcer from tho ordinary expenao of traaaporting gold and eilver mined, within a small sum, ia a few minutes; | able, while import of foreign commodities | If the State governments will persist in emoour- | waa the connection of bank and State that Depaztment are to be made once a month, by raifrond and steamboat is ao emall,especially though it, of courses, takes time to verify the ao- wronld hare boon grestiy increased. Buoh a drain of aging the estabiiahment of banks in pinves where, | © tho Baak of England’ to suspend apecie ‘ im such @ manner as to falfil the intertions _ when express companies are the agents, make count, by sei J of weighing the contents of | gold and silver would have ensued that a gen- | 98 the peopie ne to and me | paymects in 1797, and to continue ia 6 siate or the law, senering 0 few of the smailer depasi- all that oan be savad tn this way unworthy of con- each bag, box parcel. for there ts no | Of auszeoaion fir more than twanty yosrs. It tories, in which 7 nagi , but sideration. Go carefal are the officers of the large deposito- - | was the connection of bank and Btate that caused our {1 which, there is reason to believe, it will be nog: ‘The law requires that whsa tranafeesof the public riesto gaard against mistakes, that Ceoret or rearreag: an oat ce a.ccle paymenta in 1814, aad yected go longer. { money are oriored, tacy shall ‘'be prowiptly aad baring on Chem the trepeury aoal are received +yotems can counteract thie tendency cf aa inflated | cial places, solely that thele Couaders Gey get the | egnia ia 1397, both whiousaspscelons were follewed = i : 2 g 3 f E EG -4 f i is it