CHAPTER I. A SKETCH OF THE TREASURY SYSTEM UNDER THE CONFEDERATION. The Constitution of the United States which gave shape to our national ideas, and determined the policy of our institutions, received the ratification of the nine States required for its adoption, and became the organic law of the land, in 1788. The first Congress elected under its provisions assembled in New York City, March 4, 1789, and at once addressed itself to the task of forming a new government. On the 2d of September, 1789, the President approved an act of Congress establishing the Treasury Department,* which is justly considered one of the most important enactments in the great body of laws passed at that session. The materials for the general plan were ready at hand. The following brief review of the financial legislation of the Continental Congress will show that many elements of our present fiscal system existed under the Confederation. The inception of the National Treasury dates as far back as June 22, 1775, (over a year before the Declaration of Independence) when the Continental Congress passed an ordinance which provided for the issue of a sum not exceeding two millions of Spanish milled dollars in paper money for the defense of America, and for the payment of which the faith of the Colonies was pledged. By an ordinance passed July 29, 1775, Congress provided for the appointment of Michael Hillegas and George Clymer to be joint treasurers of the United Colonies.§ On the 17th of February, 1776, a standing committee of five was appointed to superintend the colonial treasury. It was made the duty of the committee to examine the accounts of the treasurers, and, from time to time, report to Congress the state of the treasury; to employ and instruct proper persons for liquidating the public accounts, with the dif ferent pay masters and commissaries in the Continental service, and the conventions, committees of safety and other persons who had public funds in their possession, and, from time to time, to report the state of such accounts to the Congress; to superintend the emission of bills of credit, and to perform other duties specified in the ordinance.¶ Eight The number of treasurers was afterward reduced to one (id. 434). 263 days later, the committee were authorized to employ one or more clerks for stating and keeping the public accounts under their direction, and to provide books and a suitable office for that purpose. The ordinance of April 1, 1776,† established a treasury-office of accounts, to be under the direction and superintendence of the standing committee of the treasury, who were clothed with authority to settle and adjust all claims and demands against the United Colonies. These claims were then to be reported for the allowance of Congress, by a method very similar to that by which many claims are now reported to Congress for appropriations, and, having been allowed, were paid at the treasury-office. On the 3d of October, 1776, a loan of five millions, bearing interest at the rate of four per cent. per annum, was authorized, and the appointment of a Commissioner of the Loan Office was provided for each of the colonies, whose functions resembled, in many respects, those of the Assistant Treasurers of to-day.§ The subject of counterfeiting also received attention from Congress, and penalties were prescribed for counterfeiting the Continental bills of credit. In 1778, Congress remodeled the entire treasury-system. The following ordinance was passed Sept. 26, 1778.¶ "Resolved, That a house be provided, at the city or place where Congress shall sit, wherein shall be held the several offices of the treasury: "That there be the following offices, to wit, the comptroller's, auditor's, treasurer's, and two chambers of accounts: "That each chamber of accounts consist of three commissioners and two clerks, to be appointed by Congress: * "That in the auditor's office there be an auditor annually appointed by Congress, and two clerks appointed by the auditor: "That in the Comptroller's office there be a Comptroller annually appointed by Congress, and two clerks appointed by the Comptroller: "That the auditor. treasurer, and comptroller shall not be appointed unless by the votes of nine states, and they be accountable for the conduct of their clerks respectively: The succeeding sections of the ordinance directed the auditor to receive all claims against the United States, aud refer them to one of the chambers of accounts, the commissioner of which was to turn them over to his clerks for a careful examination. The accounts were then to be transmitted to the auditor, with the finding of the commissioner endorsed upon them. The ordinance proceeds as follows: "The auditor shall receive the vouchers and accounts from the commissioners to whom he referred them, and cause them to be examined * J. of C. 1, 273; Laws U. S., 1, 632. J. of C. 1, 301; Laws U. S., 1, €32. See act of June 14, 1878, 20 Stats., p. 150. § Journals of Congress, vol. 1, p. 505. J. of C. 1, p. 385; 3, 174, 175. ¶ J. of C., vol. 3, p. 70 et. seq. Laws U. S. ed. 1815, vol. 1, p. 633. and after careful examination of the account as shall transmit the account and vouchers to the * "The comptroller shall keep the treasury books, and seal and file all the accounts and vouchers on which the accounts in the said books are founded, and shall direct the manner of stating and keeping the public accounts. He shall draw bills under the said seal, on the treasurer, for such sums as shall be due by the United States, on accounts audited, which, previous to the payment, shall be countersigned by the auditor, and also for such sums as may, from time to time, be ordered by resolutions of Congress. When moneys are due to the United States, on accounts audited, he shall notify the debtor, and, after hearing him, if he shall desire to be heard, fix a day, for payment, according to the circumstances of the case, not exceeding 90 days, of which he shall give notice to the auditor in writing. "It shall be the duty of the treasurer to receive and keep the moneys of the United States, and to issue them on bills drawn by the comptroller as aforesaid, filing duplicates thereof with the auditor, day by day, as he shall make payment: on receipt of moneys, he shall give a receipt therefor, and transmit the same to the comptroller; and he shall draw out and settle his accounts quarterly, giving the same into the auditor for examination, by one of the chambers of accounts, to be from thence transmitted, through the auditor, to the comptroller, who shall compare the same with the treasury books, ascertain the balance, and return a copy of the same to Congress: "The comptroller shall receive from the treasurer all receipts by him sigued, and after making due entry thereof, by charging the treasurer and crediting the proper accounts, he shall deliver them to * * the party who made payment: he shall, every quarter of a year, cause a list of the balances on the treasury books to be made out by his clerks, and lay it before Congress. Where any person hath received public moneys, which remain unaccounted for, or shall be otherwise indebted to the United States, or have an unsettled account with them, he shall issue a summons in which a reasonable time shall be given for the ap pearance of the party, according to the distance of his place of residence from the treasury, of which he shall notify the auditor: In case the party summoned to account shall not appear, nor make good essoin, the auditor, on proof made of service in due time or other sufficient notice, shall make out a requisition which he shall send to the comptroller's office where the same shall be sealed, and then it shall be sent to the executive authority of the state in which the party shall reside: † "That it be recommended to the several states to enact laws for the taking of such persons, and also to seize the property of persons who, being indebted to the United States, shall neglect or refuse to pay the same; notice whereof shall be given by the auditor to the executive authority of the respective states under the treasury seal. This scheme corresponds, in very many respects, with the Treasury system of to-day. On the 11th of February, 1779, Congress created the office of Secretary of the Treasury, although his duties do not seem to have been de * Cf. Sec. 272, Rev. Stats. +Cf. Secs. 269, 3624, Rev. Stats. fined.* The treasury was, by the ordinance of July 30, 1779,† placed under the control of five commissioners, an auditor general and his assistant, two chambers of accounts, a treasurer and six auditors. In 1781, Congress added to the existing scheme the office of Superintendent of Finance, whose duty it was made to examine into the state of the public debts, the public expenditures, and the public revenue; to digest and report plans for improving and regulating the finances, and for establishing order and economy in the expenditure of the public money, etc. These duties were very similar to the functions of the Secretary of the Treasury under the present system of government.§ This position of high trust was conferred, by the unanimous vote of Congress, upon Robert Morris, of Pennsylvania. He administered the financial affairs of the Confederation with great prudence and ability. So great confidence did he inspire in the breasts of the people, that, by the ordinance of Sept. 11, 1781,|| Congress abolished the functions of the commissioners of the treasury, chambers of accounts, auditorgeneral, auditors, and their assistants and clerks, and entrusted the entire settlement of the public accounts to the Superintendent of Finance and his assistants designated in the act, namely, a comptroller, a treasurer, a register, auditors and clerks. This plan, which closely resembled that established by the act of 1789, continued in successful operation until May 1, 1784, when Morris resigned the position of Superintendent of Finance. On the 28th of the same month, Congress made the last important change in the organization of the treasury before the adoption of the Constitution. The ordinance of that date conferred all the powers previously vested in the Superintendent of Finance upon three commissioners, who were to be styled the Board of Treasury.¶ Such, in brief, is the history of the fiscal system of the Confederation. Its plan was frequently changed, but each alteration contributed to the permanent value of the system. It was pruned of its objectionable features, the amendments supplied all that was lacking in the original design; and when the people were ready for the Constitution, the ripened and perfected colonial treasury-system was incorporated, almost without change, into the new scheme of government. TREASURY DEPARTMENT, First Comptroller's Office, January 1, 1882. *Journals of Congress, vol. 3, p. 200. Laws U. S., ed. 1815, vol. 1, p. 636. tJ. of C., vol. 3, p. 330. Laws of U. S., vol. 1, p. 636. Ordinance of Feb. 7, 1781, J. of C., vol. 3, p. 575. Laws U. S., vol. 1, p. 640. § Cf. sec. 2, act of Sept. 2, 1789 (1 Stat. p. 65) now incorporated into Sec. 248, Rev. Stats. J. of C. vol. 3, p. 666. Laws U. S. vol. 1, p. 642. Journals of Congress vol. 4, p. 421. Laws U. S. vol. 1, p. 643. CHAPTER II. SUGGESTIONS TO PARTIES HAVING CLAIMS AGAINST THE UNITED STATES, AND TO THE ATTORNEYS OF SUCH PARTIES. Every person unfamiliar with the laws and usages relating to the allowance and prosecution of claims against the United States for the payment of money, and who alleges that he has such claim, for the payment of which provision should be, or has been made by law, will require the advice and aid of a competent agent, or attorney, either to secure the requisite legislation, or to obtain the allowance and payment of the claim. The first duty of the claimant in such cases is, to secure the services of such agent or attorney. Some considerations are herein presented in relation to the character of the law affecting such agency, and the forms by which it may be constituted, with a brief reference to some of the powers, rights, duties, and liabilities arising therefrom, or the sources of information on these subjects. The ablest attorney who may be employed and empowered to act for the purposes mentioned, will be required, to carefully consider, not only the law regulating the mutual powers, rights, duties and liabilities of the principal and the attorney, but the law relating to claims, the tribunals having jurisdiction thereof, the steps to be taken to prosecute them, the evidence which may be competent and requisite for this purpose, and the forms of procedure to be pursued. These considerations are herein presented, rather with a view to point to sources of informa tion than to refer to the law itself. The rules of the Law of Principal and Agent, as between private persons, are generally applicable to Attorneys and Counsellors at Law, to Solicitors in Chancery, to Proctors in Admiralty proceedings, to clients, to the relations which exist between the latter and the former, and to the rights, powers, duties, obligations and liabilities of them all. These rules may also be regarded in a large measure as a part of the Law of Contracts. Whenever, therefore, a question of law arises, growing out of the relation of Principal and Agent, or of that between Attorney, Solicitor, or Proctor, and Client, the standard elementary works on the Law of Agency, and of Contracts, and the decisions of courts and executive officers on these subjects, are to be consulted. There are some principles peculiar to that branch of the Law of Agency which relates to Attorneys and Counsellors at Law, Solicitors in Chancery, and Proctors in Admiralty proceedings. These will be found discussed in stand 267 |