Jenifer, Howard, Buchanan, Bell, Welch, Chand-
ler, Lloyd, Sherwood of Talbot, Colston, Golds-
borough, Constable, Miller, McLane, Tuck,
Bowling, Spencer, Grason, George, Wright,
Thomas, Shriver, Johnson, Biser, Annan, Sap-
pington, McHenry, Magraw, Nelson, Carter,
Thawley, Stewart of Caroline, Hardcastle,
Gwinn, Stewart of Baltimore city, Brent of Bal-
timore city, Sherwood of Baltimore city. Ware,
Neill, John Newcomer, Harbine, Waters, An-
derson, Weber, Hollyday, Fitzpatrick, Parke,
Shower, Cockey and Brown— 59.
So the amendment was not adopted.
Mr. THOMAS moved the previous question, and
being seconded,
The question was put on the adoption of the
first article of said report as amended; and
Determined in the affirmative.
The second article was then read and adopted,
The third article was then read,
Mr, DORSEY moved to amend the article by
striking out in the sixth and seventh lines these
words, "upon warrants issued by the Comptroll-
er, he shall make arrangements for the payment
of interests of the public debt."
Mr. DORSEY wished to call attention to the
situation in which this provision placed the Trea-
surer. He knew nothing of the commercial
world, and could not distinguish a good bill of
exchange from a bad one. It would be a miracle
if he did not lose a large portion of the money ex-
pended in their purchase. He must confide in
the broker whom he employed to buy them. If
he went himself to purchase them in the large
cities, his business would necessarily be neglect-
ed during his absence. The Legislature had de-
cided in 1834, that the commissioner of loans
was the proper person to transact this business.
The very commissions paid to brokers would be
over $50,000; but the commissioner of loans, be-
ing the President of a bank, would be able to
furnish them without this expense. The broker
would buy the bills as low as possible, and dispose
of them to the State as high as possible, taking a
commission from both parties; and perhaps furnishing
bills which he could sell to no one else
If the Convention did not arrest this dangerous
power, he would not raise his voice again upon
any question whatever.
Mr. DONALDSON said, that he was somewhat
astonished by the suggestions of his venerable
friend and colleague, (Mr. Dorsey.) The Treasurer
could neither receive nor pay out money
without the knowledge of the comptroller. The
comptroller could not pay the interest of the
public debt, because he was never to have the
handling of accent of the money. The only way
in which the interest could be paid, would be by
the Treasurer upon the warrants of the Comptroller.
The Treasurer would go to Baltimore
and ascertain the rate of Exchange in Baltimore
Philadelphia, New York, and Boston; and would
then procure a bill of Exchange payable in London
at such a date for so much. No fraud could
be committed. The intervention of no broker
was required. If the Treasurer could not by
bills of Exchange at the current rate, be would |
not be competent for his station. But how would
the commissioner of loans buy it? He would be
the President of a bank and interested in these
very rates of Exchange. He might charge a
premium above the market rate, if he had them
himself to dispose of, while the Treasurer could
have no other interest than the interest of the
State.
Mr. MCLANE regarded this feature of the bill
as providing the most essential security for the
State. If this provision had one object more
than any other, it was to keep the Treasury out
of the hands of the broker. It was now in the
hands of the president of a bank—a broker, pro-
fessionally, dealing day after day in bills of ex-
change, This was the most profitable branch of
banking operations. The banks could raise or
depress the rate of exchange, at their pleasure.
The bank of the United States, when in opera-
tion, could raise or depress the rate of exchange
as much as five per cent. at pleasure. The ques-
tion now was whether the Treasurer should go
into the market and procure the bills of exchange
at the market rates, or whether a broker should.
be employed to furnish them at such rates as he
thought proper to charge. If the Treasurer,
with a salary of $2500 a year, was not able to buy
a bill of exchange, he must be exceedingly in-
competent. And it was lo be remembered, that
while this president of a bank assisted in fixing
the rate of exchange, his power to affect that
price would be increased by placing in his hands
one or two hundred thousand dollars of State
funds to operate with. He regarded this feature
of the bill as indispensable, if there were no
Comptroller, he should still constitute the Trea-
surer the purchaser of bills of exchange.
Mr. TUCK said that there seemed to be two er-
roneous ideas in the minds of gentlemen who op-
posed the plan of the committee: first, that because
the Treasurers heretofore had been honest men,
they would therefore of necessity continue to he
so in all time to come; and second, that because
the Treasurer was honest, every body else was
dishonest. The gentleman from Anne Arundel
(Mr. Dorsey,) seemed unable to understand how,
by any possibility, an honest man could be found
to be Comptroller. The system of accounts
adopted by the Convention, was very perfect and
well managed. They had a paying clerk, and. a
committee on accounts, while the President of
the Convention was a check upon both. The pay-
ment of the interest of the public debt had been
spoken of; but how was the principle to be paid?
It was by the sinking fund, and that whole fund
was under the control of one officer, the present
Treasurer. He gloried that Maryland had produced
such a man for such a place; but he might
be succeeded by one who was incompetent or dishonest.
The best of Governors could not act as
a complete check upon him. His bank book
would show what he had deposited, but it would.
not show what he had received.
He (Mr. T.,) was unwilling to place the sinking
fund under the control of any single individual.
He trusted that the Convention would not neglect
these mutual checks and balances which were |
