CHAPTER III.

TREASURER OF THE UNITED STATES.

THE ORIGIN, FUNCTIONS, AND OPERATIONS, OF THE TREASURER'S OFFICE.

Summary of the Laws relating thereto.

The office of Treasurer of the United States (second only in importance), being created by the first section of the act of the 2d September, 1789, "to establish the Treasury Department," the 4th section of that act says: "It shall be the duty of the Treasurer to receive and keep the moneys of the United States, and to disburse the same upon warrants drawn by the Secretary of the Treasury, countersigned by the Comptroller, and recorded by the Register, and not otherwise. He shall take receipts for all moneys paid by him, and all receipts for moneys received by him shall be endorsed upon warrants signed by the Secretary of the Treasury, without which warrants, so signed, no acknowledgment for money received into the Public Treasury shall be valid. And the said Treasurer shall render his accounts to the Comptroller quarterly, (or oftener if required,) and shall transmit a copy thereof, when settled, to the Secretary of the Treasury. He shall, moreover, on the third day of every session of Congress, lay before the Senate and House of Representatives, fair and accurate copies of all accounts by him, from time to time, rendered to, and settled with, the Comptroller, as aforesaid; as, also, a true and perfect account of the state of the Treasury. He shall, at all times, submit to the Secretary of the Treasury, and the Comptroller, or either of them, the inspection of the moneys in his hands; and shall, prior to the entering upon the DUTIES of his office, give bond, with sufficient sureties, to be approved by the Secretary of the Treasury and Comptroller, in the sum of $150,000, payable to the United States, with condition for the faithful performance of the duties of his office, and for the fidelity of the persons to be by him employed, which bond shall be lodged in the office of the Comptroller of the Treasury."

It has been perceived in the "summary of the laws" relating to the operations of the Secretary's office, (Chapter II,) that by the acts establishing the accountants of the War and Navy Departments, the Treasurer was required to disburse the moneys appropriated for the use of said Departments, in pursuance of warrants drawn by the Secretaries of those Departments, respectively, countersigned by their respective accountants, in derogation of the principle established by the primary act of 1789. By the act of the 3d March, 1817, "to provide for the prompt settlement of public accounts," the same innovation was continued, except that those warrants were, on abolishing the accountants' offices, to be countersigned by the Second Comptroller: but it is also perceived by the same "summary," that the act of the 7th May, 1822, reinstated the principle of making disbursements for the War and Navy Departments (in like manner as on all other accounts) by the Treasurer, in pursuance of warrants drawn by the Secretary of the Treasury; which, however, has, as also seen in said. "summary," been again departed from, in relation to the disbursements for the Post Office Department.

By the 1st section of the act 2d July, 1836, "for the reorganization of the Post Office Department, and to provide more effectually for the settlement of the accounts thereof," it is ordered "that the revenues arising in the Post Office Department, and all the debts due to the same, shall, when collected, be paid, under the direction of the Postmaster General, into the Treasury of the United States;"-and the 3d section of the said act says, "that the aggregate sum required for the service of the Post Office Department,' in each year, shall be appropriated by law out of the revenue of the Post Office Department, and that all payments of the receipts of the Post Office Department into the Treasury, shall be to the credit of the said appropriation ;"-and the 5th section requires, "that the Treasurer of the United States shall give receipts for all moneys received by him to the credit of the appropriation for the service of the Post Office Department; which receipts shall be endorsed upon warrants drawn by the Postmaster General, and without such warrants no acknowledgment for money received as aforesaid shall be valid;"-and the 6th section says, "that the appropriations for the service of the Post Office Department shall be disbursed by the Treasurer, out of the moneys paid into the Treasury for the service of the Post Office Department, upon the warrants of the Postmaster General, registered and countersigned by the Auditor for the Department, and expressing on their face the appropriation to which they should be charged;"-and the 7th section requires, that he shall render quarterly, to the said Auditor, his accounts for moneys so received and paid, on account of said Department, and that he shall transmit copies of the same, annually, to both houses of Congress." Such, then, would seem to be the straight forward course, first, of receiving the revenue arising in the Post Office Department; secondly, of accounting for it in the regular way required by law, through the accounting officers of the Treasury, and placing the proceeds to the charge of the

Treasurer, by the covering warrants of the Postmaster General; and finally, of disbursing it through the Treasurer, by his drafts under the pay warrants of the Postmaster General; of which receipts and disbursements the Treasurer is required, in conclusion, to render a quarterly account to the Auditor for settlement, and to report the same annually to Congress. But such is not the prevailing practice in all these respects, except as regards the proceeds of a few deposite offices; the great mass of postmasters being required to disburse the receipts of their offices under the direct drafts of the Postmaster General, and in most instances even before their quarterly accounts have been rendered. This incompatibility with the express terms of the sections just quoted, setting them all at naught, can hardly be supposed to arise out of the official wilfulness of the head of the Department; and yet such an incongruity in other parts of the law would hardly seem less strange. Still, it is possible the practice finds its sanction in the fourth section, which (by its successive provisos, if such be their true intent and construction) gradually dissipates all these restraints and regulations of Treasury accounting, with its wholesome checks and balances, to approach and consummate by indirection of provisos, the purpose of placing the whole of the revenue arising in the Post Office Department at the disposal of the Postmaster General's drafts, and that, too, before any account, if he list, has been rendered of them to the Auditor, much less placed in the Treasury; for which tortuous legislation, however, the best excuse that can be given, is the convenience, nay, the necessity, from short funds, of having the ready use of the accruing proceeds, to meet the expenses of transporting the mails, without incurring the delay of regular accounting, relying on the quarterly settlements of accounts current after the disbursements have been consummated, to find that nothing has gone amiss. The fourth section says: "The sum appropriated for the service aforesaid [the service of the Post Office Department] shall be paid by the Treasurer in the manner herein described: Provided, That the compensation of postmasters, the expenses of post offices, and such other expenses of the Department for which appropriations have been made, as may be incurred by postmasters, may be deducted out of the proceeds of their offices, under the direction of the Postmaster General: and provided, also, That all charges against the Department by postmasters, on account of such expenses, shall be submitted for examination and settlement, to the Auditor herein provided for; and that no such deduction shall be valid, unless the expenditure so deducted be found to have been made in conformity to law and provided, also, That the Postmaster General shall have power to transfer debts due on account of the Department, by postmasters and others, in satisfaction of the legal demands for which appropriations have been made, to such contractors who may be creditors of the Department as shall have given bonds, with security, to refund any money that may come into their hands over and above the amount which may be found due to them on the settlement of their accounts." Does this last proviso, or does it not, place at the disposal of the Postmaster General the whole Post Office funds, as they arise in the hands of postmasters, under the sweeping power granted him of transferring them to contractors, in anticipation of payment for their yet unascertained claims? nay, more, does this transferring of the proceeds to contractors, mean any thing either more or less than advancing those funds to contractors, thereby coming in conflict with another law, that explicitly forbids all advances of public moneys to contractors?

Summary and Classification of Functions.

From the establishment of depositories of public moneys, and since the separation of the revenue arising from duties on the transportation of letters and other intelligence through the mail, as a fund appropriated solely to the use and expenditure of the Post Office Department, the Treasurer of the United States is charged by the Secretary of the Treasury with the public moneys actually placed to his credit in AUTHORIZED DEPOSITORIES, OF constructively deposited, on account of the GENERAL TREASURY, in the same manner as if they were deposited for safe-keeping “in his own hands," the Treasurer having acknowleged the same by his receipt endorsed on the Secretary's warrant covering the same in the Treasury; and, in like manner, he is charged by the Postmaster General with the public moneys actually placed to his credit in authorized depositories, or by fiction so assumed to be deposited, on account of the TREASURY OF THE POST OFFICE DEPARTMENT, the Treasurer having acknowledged the same by his receipt endorsed on the Postmaster General's warrant covering the same in the Treasury of the Post Office Department. Accordingly, he now makes all disbursements from the General Treasury, under warrants of the Secretary of the Treasury, duly countersigned by the Comptroller and recorded by the Register, and directed to him, pursuant to appropriations by law and, in like manner, (but for the most part in form only,) he makes all disbursements from the Treasury of the Post Office Department, under the pay warrants of the Postmaster General, duly countersigned by the Auditor for that Department, and recorded by the same officer, and directed to him, pursuant to appropriations by law. Upon emergencies of deficient revenue, the Treasurer, under provisions of law for issuing Treasury notes, SIGNS the notes transmitted to him in blanks by the Secretary of the Treasury, under whose direction they have been engraved and printed; which, after they have been countersigned and registered by the Register, and returned to the Treasurer, and charged to him as money deposited in his hands representing the Treasury, he issues, or pays out, in satisfaction of public dues, under the pay warrants of the Secretary of the Treasury, in the same manner as other money, to be redeemed, however, principal and interest, at a future day. In discharge of his appropriate duties, and in pursuance of requirements

of Congress, or the Secretary of the Treasury, and the Postmaster General, consonant therewith, the Treasurer receives returns of receipts, and of deposites made to his credit, by collectors, receivers, postmasters, &c., and renders accounts, statements, and reports, as set forth in the "Tables of Details ;"-but he gives no instructions to these officers in relation to their official returns to his office, which it would, nevertheless, seem he might do, according to the practice of other Bureaus in analogous cases. The functions of his office may be distributed into sub-Bureaus, as follows, viz:

1. BUREAU RELATING TO REVENUE RECEIPTS AND STATEMENTS-Of moneys actually or constructively deposited to the credit of the Treasurer, on account of the CUSTOMS, including the performance of all other clerical duties appertaining thereto. See Tables of Details, (A) Deposites, 1. 1: 11. 1: III. 1. 3. 5: (E) Reports, IX. 1. 2. 3. 5: (F) Books 1. 1. 5.

2. BUREAU RELATING TO REVENUE RECEIPTS AND STATEMENTS-Of moneys actually or constructively de posited to the credit of the Treasurer, on account of LAND SALES, including the performance of all clerical duties appertaining thereto. See Tables of Details, (A) Deposites, 1. 2: II. 2: III. 2. 4: (E) Reports, IX. 1. 2. 3. 5: (F) Books, 1. 5.

3. BUREAU RESPECTING REVENUE RECEIPTS AND STATEMENTS-Of moneys deposited to the credit of the Treasurer, on account of PATENT FEES, including the performance of all other clerical duties appertaining thereto. See Tables of Details, (A) Deposites, IV. 1. 2: (E) Reports, IX. 1. 2. 3. 5: (F) Books, 9.

4. BUREAU RESPECTING (ANTICIPATED REVENUE) RECEIPTS AND STATEMENTS-Of moneys deposited to the credit of the Treasurer, on account of LOANS to the United States, including the performance of all other clerical duties appertaining thereto. See Tables of Details, (A) Deposites, V. 1. 2: (E) Reports, IX. 1. 2. 3. 5

5. BUREAU RESPECTING (ANTICIPATED REVENUE) RECEIPTS AND STATEMENTS--Of TREASURY NOTES, signed, countersigned, charged to the Treasurer as money, and paid away, including the performance of all other clerical duties appertaining thereto. See Tables of Details, (A) Deposites, V. 3: (C) Disbursements, VII. 3: (E) Reports, IX. 1. 2. 3. 5: (F) Books, II. 1. 2. 3. 4.

6. BUREAU RESPECTING REVENUE RECEIPTS AND STATEMENTS-Of money deposited to the credit of the Treasurer, on account of COINAGE, by the director of the mint, including all other clerical duties appertaining thereto. See Tables of Details, (A) Deposites, I. 3: (E) Reports, IX. 1. 2. 3. 5.

7. BUREAU RELATING TO THE TRANSFERS OF DEPOSITES-From one depository to another, by transfer drafts of the Treasurer, in obedience to the directions of the Secretary of the Treasury, including all other clerical duties relating thereto. See Tables of Details, (A) Deposites, I. 5: III. 6.

8. BUREAU IN RELATION TO RE-PAYMENTS-By disbursing agents and others, which do not increase or add to the revenue, but only adjust the debits and credits in such regard, including all other clerical duties relating thereto. See Tables of Details, (A) Deposites, I. 4: III. 2. 4: (F) (Book of Warrants and Counter Warrants,) 8.

9. BUREAU IN RELATION TO THE DISBURSEMENTS OF THE TREASURER-On account of the GENERAL TREASURY, including all clerical duties appertaining thereto. See Tables of Details, (C) Disbursements, &c., VII. 1. 2: (E) Reports, IX. 1. 2. 3. 5: (F) Books, I. 2. 3.

10. BUREAU RELATING TO REVENUE RECEIPTS AND STATEMENTS-Of moneys actually or constructively deposited to the credit of the Treasurer, on account of the POST OFFICE DEPARTMENT, including all other clerical duties appertaining thereto. See Tables of Details, (B) Returns, &c. VI. 1. 2: (E) Reports, IX. 4. 6: (F) Books, III. 1. 4. 5. 6.

11. Bureau in rELATION TO DISBURSEMENTS OF THE TREASURER-On account of the Treasury of the Post OFFICE DEPARTMENT, including all clerical duties appertaining thereto. See Tables of Details, (D) Disbursements, &c., VIII. 1. 2: (E) Reports, IX. 4. 6: (F) Books, III. 2. 3. 4. 5. 6.

TABLES OF DETAILS.

(A)-RETURNS OF REVENUE ON ACCOUNT OF GENERAL TREASURY.

I. Of Public Moneys received and actually deposited to the credit of the Treasurer, on account of the General Treasury, by Collectors and Receivers, viz:

1. The Treasurer receives from principal depositories of public moneys, at Baltimore, Philadelphia, New York, Boston, New Orleans, and a few other places, (being certain local banks or sub-treasurers,) weekly certificates of the moneys deposited therein to his credit, by COLLECTORS of the customs for those Districts.

2. The Treasurer receives from depositories of public moneys at St. Louis, New Orleans, and a few other places, (being certain local banks or sub-treasurers) weekly certificates of the moneys deposited therein to his credit, by RECEIVERS of the proceeds of land sales.

3. The Treasurer receives from authorized depositories, weekly certificates of deposites made therein to his credit, by the TREASURER OF THE MINT at Philadelphia, of specie coined on account of the United States; and, in like manner, certificates of deposites made by the TREASURERS of the BRANCH MINTS.

4. The Treasurer receives from authorized depositories, weekly certificates of deposites made therein to his credit, by disbursing officers or agents having surplus funds in their hands, not required to be disbursed, but consequently required to be replaced in the Treasury, to the charge of the Treasurer, by the Secretary's warrants.

5. The Treasurer, under the direction of the Secretary of the Treasury, TRANSFERS the deposites (in part or entire) from one depository to another, by issuing his transfer drafts on the depository holding, in favor of the depository designated to receive the same to the credit of the Treasurer-attended with letters of advice to the parties relinquishing, and receiving, the said deposites to his credit.

II. Of Public Money received and constructively deposited on account of the General Treasury, to credit of the Treasurer, by all other Collectors and Receivers having no public Depositories convenient to them, viz:

1. The Treasurer receives from all COLLECTORS who have no public depositories convenient to them, weekly statements of their accounts of public moneys in their hands; (which, upon being paid to the draft of the Treasurer to satisfy a warrant of the Secretary of the Treasury, in favor of a creditor or disbursing agent, is said to be constructively placed in the Treasury simultaneously with the act to disburse or place it out.) 2. The Treasurer receives from all RECEIVERS who have no public depositories convenient to them, weekly statements of their accounts of public moneys in their hands; (which, upon being paid to the draft of the Treasurer, to satisfy a warrant of the Secretary of the Treasury, in favor of a creditor or disbursing agent, is said to be constructively placed in the Treasury simultaneously with the act to disburse or place it out.)

III. Of Public Moneys received under Process of Law, and actually deposited to the credit of the Treasurer, on account of the General Treasury, by Collectors, Marshals, and Clerks of Courts, or Debtors under Suit, viz:

1. The Treasurer receives from authorized depositories (being local banks or sub-treasurers) weekly certificates of moneys deposited therein by cOLLECTORS, on account of duty bonds, fines, penalties, and forfeitures, paid to them by the debtors, in whole or in part, under legal process, before judgment, or before execution is in the hands of the marshal.

2. The Treasurer receives from authorized depositories (local banks, &c.) weekly certificates of the money deposited therein to his credit, by debtors (on any other than custom house account) paying in whole or in part under legal process, before judgment, or before execution is in the hands of the marshal.

3. The Treasurer receives from authorized depositories (local banks, &c.) weekly certificates of moneys deposited therein to his credit, by COLLECTORS, on account of duty bonds, fines, penalties, and forfeitures, paid to them by marshals, in whole or in part satisfaction of execution or warrant of distress for the same, the marshals not being required to deposite, in the like cases.

4. The Treasurer receives from authorized depositories (local banks, &c.) weekly certificates of moneys deposited therein to his credit by MARSHALS, in whole or in part satisfaction of execution or warrant of distress, on any other account than for duty bonds, fines, penalties, and forfeitures.

1. The Treasurer receives from authorized depositories (local banks, &c.) weekly certificates of moneys deposited to his credit, by COLLECTORS, of payments made to them by clerks of United States courts, to whom the same had been paid by the marshals, as moneys accruing under writ of sale, on account of forfeitures of vessels, merchandise, &c.

6. The Treasurer receives from authorized depositories (local banks, &c.) certificates of moneys deposited to his credit by his transfer drafts in their favor, from time to time, with which they are debited and the banks from which the transfers are made are credited.

IV. Of Public Moneys received and actually deposited to the credit of the Treasurer on account of the General Treasury, by the COMMISSIONER OF PATENTS, and by INDIVIDUALS, as Fees connected in various ways with letters patent for useful Inventions, viz:

1. The Treasurer receives from authorized depositories (being local banks or sub-treasurers) weekly certificates of moneys, as patent fees deposited therein, to his credit, by INDIVIDUALS applying for letters patent, renewals of patents, extension of patents, entering caveats, &c., &c.

2. The Treasurer receives from the authorized depository at Washington (at present the bank of Washington) weekly certificates of moneys deposited therein to his credit, by the COMMISSIONER OF PATENTS, as fees received by him from individuals applying for letters patent, renewal or extension of patents, entering caveats, &c., &c.

V. Of Public Moneys deposited to the credit of the Treasurer on account of the General Treasury, by INDIVIDUALS or COMPANIES, as Loans to the United States; and of the issues of Treasury Notes, a quasi Loan by extension of public credit, on account of the General Treasury, viz:

1. The Treasurer receives from the DEPOSITORS of loans to the United States, certificates of authorized depositories, that deposites of such loans have been made therein to his credit, by such depositors.

2. The Treasurer receives from the authorized depositories of loans to the United States, their certificates of such loans being deposited to his credit, by such depositors; whereupon the Treasurer issues in favor of such depositors his "certificate of stock" for the amount of said loan, which certificate may be superseded by a "transfer certificate," whenever the claim is alienated to other hands by the original depositors; and when such certificate of stock, transferred or not, is paid, with interest it is cancelled at the Register's office, by punching holes, &c., in the same manner as treasury notes are cancelled, and deposited in said office.

3. The Treasurer does not receive from any authorized depository, a certificate of the deposite of treasury notes to his credit, there being no such deposite made by the Register, (reputed to issue those notes,) but the actual disbursement of those notes by the Treasurer, under warrant of the Secretary of the Treasury is the constructive evidence only, of those notes having been in the Treasury-unless their being placed, by the Register, in the hands of the Treasurer personating the Treasury, after they have been signed by the Treasurer and countersigned by the Register, be so considered-of which placement the Register makes a weekly statement (equivalent to a notice of deposite) (25) to the Secretary of the Treasury, to enable him to charge the same to the Treasurer, and to order their disbursement by his

warrant or warrants.

(B)—RETURNS OF REVENUE OF THE POST OFFICE DEPARTMENT. VI. Of Moneys actually deposited to the credit of the Treasurer of the United States, on account of the Treasury of the Post Office Department, and of Moneys deposited by fiction, or constructively in the Treasury, on said account.

1. The Treasurer receives from authorized depositories (being certain banks, &c.,) weekly certificates of de(25) Having here arranged and assimilated treasury notes with money deposited to the credit of the Treasurer, and stated the official disposition of them before being put into circulation, as "equivalent to a notice of deposite," I have appended at the end of this chapter a very valuable extract of an official paper showing clearly the fiscal character of treasury notes, note (28),—which see.