The Sun.
London, England, 1833-01-03 00:00:00

444.

power rate of duty after the 3d of March. But if
it be the intention of Congress -so to extend the
operation of the section, it is respectfully suggested
that, as it .will in that case necessarily embrace
goods upon which the duties must have been ac-
counted for and paid over to the Treasury, an ap-
propriation be made for repaylthe amount of such
duties out of the Treasury: • "
With a view to obtain reasohabld'etirtaitity in the
financial operations of the Govermile"ni-,' ttikitt,tite
suggestion of the collectors as to the tierie.nWessary
for the duties to be performed by them in "executing
the lgth section, a regulation was adopted fixing
the time to which goods might be deposited at the
Ist of January next. It is, however, the intention
of the department to extend the time, if it be found
that the duties of the collectors will admit of it.
The alteration in many of the rates of duty and
the repeal of orhers, which have been effected by
__*

the late acts of Congress, seem to require some col•
responding modifications of the provisions hereto-
fore made for ascertaining and securing the duties.
But, as these details might be better brought to

the attention of Congress in a separate communi-
cation, if such be its pleasure, that course will be

adopted.
In the exposition of the public debt, presented
in this report, it has been assumed that the Three
per Cents., advertised for reimbursement on the Ist
of October last, have been actually paid, because
the Treasury has provided ample funds at the dif-
ferent loan offices for that purpose, which, upon the
presentation of the certificates, should have been
applied to their payment. It has recently been
understood, however, that, on the 18th of July last,
the Bank of the United States, on the ground, as
stated in the letter of instruction, " that the spread
of the cholera might occasion great embarrassment
and distress in the community, deemed it expedient
for the Bank to keep itself in an attitude to afford re-
lief should its interposition be necessary, and also
to mitigate the pressure which the reimbursement
of the Three per Cent. Stock, 11,1 d by foreigners,
might produce in October," and despatched an
agent to London to make an arrangement with the
house of Baring, Brothers, and Co., for the post-
ponement of three millions, for which they were the
agents of that house, and also for two millions in
addition.
It had not, at that time, been decided by the
Government at what period the whole of the Three
per Cents, should be paid ; and the agent of the
Bank was authorized to make an arrangement for a
postponement for six, nine, or twelve months after
that period—the Bank agreeing to pay the interest
in the mean time.
Under this general authority, the agent concluded,
on the 22d of August, 1832,a contract with Messrs.
Baring, Brothers, and Co., to buy up the Three per
Cent. Stocks on the best terms at which they can
be obtained both in London and Holland—the cost
thereof to be placed to the debit of the Bank, and
the certificates of the Stocks so purchased to re-
main with Messrs. Baring, Brothers, and Co. It was
also stipulated, that, if the amount of Stock so pur-
chased and of that retained by the holders should,
together, be less than five millions of dollars,
Messrs. Baring, Brothers, and Co. should make up
the deficiency in case the Bank should find it de-
sirable to draw for it or any part of it :--the whole
advance to be reimbursed by the Bank in October,
1833. Purivant to this contract purchases of the
Three per Cent. Stocks were actually made on ac-
count of the Bank to the amount of 1,474,827
dollars 33 cents.

It is also understood that the Bank, by a letter
from its President to Messrs. Baring, Brothers, and
Co., dated the 15th of October; 1832, disavowed
so much of the arrangement made by its agent as
related to the purchase of the Stock, on the ground
of that provision in the charter which declares that
" the Bank shall not be at liberty to purchase any
public debt whatever." In lieu of the stipulation
in the contract in regard to the amount purchased,
it was in the same letter proposed that the certifi-
cates should be transmitted without delay, that the
Bank might receive payment for the owners, with-
out which it would not be in actual possession of
the funds ; and that the stock being thus reimbursed
to the stockholders, the amount should be passed to
their credit on the books of the Bank, and they
continue to receive an interest of three per cent.,
payable quarterly, until the Ist of October, 1833.
It is supposed to be optional with Messrs. Ba-
ring, Brothers, and Co., and with the stockholders
who have stipulated for a postponement of payment,
to consent to the change proposed by the letter of
the president of the Bank of the 15th of Oct., or to
insist upon the performance of the original arrange-
ment ; and should they pursue the latter course
the certificates cannot be finally surrendered before
Oct. 1833. However this may be,and notwithstanding
the Bank has disavowed the authority of the agent
to purchase, it is certain that a delay for a consider
able period of time has been, and must yet be, oc-
casioned in the surrender of the certificates of Stock
to a large am cunt; and it is not perceived that
therei any sufficient justification in the grounds of
the transaction, as assumed by the Bank, for an ar-
rangement in any form by which so large an amount
of the public funds should be retained by the Bank
at the risk of the Government, after it had directed
their application to the payment of the public credi-
tor. It is apparent, however, that the apprehension,
arising out of the arrangements, as it is understood
to have been concluded by the agent of the Bank,
and of the consequences to which it might lead,
more especially should the parties in Europe insist
upon its fulfilment, not less than the great amount
of the Bank's transactions, especially in its western
branches, together with other matters connected
with its dealings, which have occupied the at-
tention of one branch of the Legislature since
the last autumnal report from this Depart-
ment, have tended to disturb the public con-
fidence in the management of the institution;
and these, taken in connection with the necessary
arrangements in anticipation of finally closing its
business, have suggested an inquiry into the security
of the Bank as the depository of the public funds.
The obligation of the Government, however, in-
curred by the notice for the payment of the public
debt in October and January at the several loan
offices, rendered any change in this respect inexpe-
dient,—at least without such an examination into
the actual condition of the Bank, as justice to the
institution, not less than to the community at large,
required. Such an examinaton as this department
is authorized by the charter to make, has been di-
rected ; and it is submitted to the wisdom of Con-
gress to decide whether it shall be extended further.
The Act of the 10th of May, 1830, which 'directs
the annual report from the Secretary of the Treasury
would seem also to require that he should, in that
communication, give information to Congress of any
matters, either existing or apprehended, which seri-
ously concerns the collection of the revenue. And
in the discharge of that duty it is his painful task
to advert to the measures now in agitation in the
State of South Carolina, altogether to prevent, at
an early day, the execution of the present revenue
laws within that State. _ .

M
C-
L

Such steps as are authorized and required by law
have already been taken to the due collection of the
revenue. But, if the extraordinary measures which
have been commenced by those exercising the
authority in that State should be carried out to the
extent which, unhappily, there seems to be too
much to apprehend, it is clear that all the aids
which the existing laws afford will be inadequate to
that object. Until, however, those measures shall
be further matured and more distinctiy and officially
known to the Executive, it is deemed proper to
abstain from more specific reference to the subject
in this report; though its great importance and the
deep solicitude which it has excited, have already
lirected the attention of the Department to the re-
pihich that contingency may require.
The notice of Congress is respectfully invited to
thd'.accompariOig Report from the Commissioner
of 'the,Geneitil Land Office, showing the transac-
tions in that -branch of the public, service during the
present-year And exhibiting 'both its present condi.

\,]kt

:ion and the means deemed necc,sary by that officer
'or its proper and successful administration.
All which is respectfully submitted. -
LOUIS M'LANE, Secretary of Treasury.
Treasury Department, Dec. 5, 1832.