The Alexandria herald. [volume] (Alexandria [Va.]) 1811-1826, 1824-05-19


avaricious speculator. I am sorry to b.
constrained to say, that their apprehep
SONS are but too Justly predicated, an,
that they represent facts
These are letters which have present
ed themselves on hasty reference to thu
hies OF the department. Ii Is well re
membered, however, that numerous and
earnest personal representations were
made by other gentlemen in congress
both as to the pecuniary distresses of the
western country, and necessity of Z
change In the existing regulations. Re
presentations like these, could not b,
received with indifference. 1t is to be
recolleCted, also, that at the time wher
this state of things existed, the debt due
tor public lands amounted to about TWEEN
ty millions of dollars /; the greatest par
| OF which had been contracted during the
suspension of specie payments. Upon
mature reflection, therefore, and with the
appreciation of the president, il was deem
ed advisable to make the arrangements
with the western banks, which are the
subject OF Mr. Edwards's condemnation
The details of these arrangements are
SO fully exhibited in the secretary's for.
mer communications on the subject, that
It is not thought necessary here to explain
them.
AS tar as the interests of the people,
and OF the treasury, were concerned. it is
believed that those arrangements were
not merely defensible, but commendable.
As Tar as the measure affected the inte-
rests OF the bank Of the United States, il
is believed to be equally deserving of ap~
probation. In letter written by the
secretary to the president of that ins,itu-
uon, on the 18th Sept. 1919, he thus
explained the motives, which, as far as the
bank was concerned, Influenced his
course on the subject.
1T has been my constant endeavor, for
more than 10 months past, to prevent, as
lar as practicable, all collision between
the bank of the u. States and the state
banks as far at least, as that collision
might be connected with the transactions
OF this department. tits not any intention.
therefore, TO give drafts upon the state
banks Tor public money without previous.
ly arranging with them the mode of paw.
ment.'
Acting upon the same principle, I
nave endeavored, in the course of the
present year, TO make arrangements with
the state banks in the western states. Inv
wnich they should become the deposi,o
RES OF the public money collected in that
section ct the union. l considered the
deposites there, positively injurious to the
bank, for the following reasons viz.
list. That the Offices had already ex-
tended their discounts in Ohio and Ken.
lucky, farther than was consistent with
the interest of The bank.
sd. That every dollar deposited in
them on account of the government that
could not be disbursed there, would have
10 be employed in discounts, or transfer.
red to the bank in Philadelphia, or its
eastern offices.
sd That owing TO the state of ex>
change, transfers could only be made by
he transportation of specie across the |
18th. That, owing to the eeopranbical |
position OF Kentucky and Ohio, the pub
&c expenditure would be extremely limi.
ed.
'oIh. mat the transportation of specie
rom the western to the eastern states, by
ne bank, invariably had produced, and
would continue to produce, irritation in
ne public mind against the bank
AN additional reason for endeayorinp
make state banks in that section or the
InloD the repositories of the public mo.
ey' was to increase the receipts, by ena {
ling the public debtors to pay in the I
totes OF specie paying banks, which
'ouid not be received by The officers of {
ne bank, and which could not be receiy. a
d by them, without increasing that COLI
ION, which it was my desire to diminish Z
These views, it is believed, were too {
1st, not to meet the appreciation of the |
lsIlngulshedliDdiviGual who presided over t
M OF the enlightened board which then
lrected the affairs Of, that institn,ion,-l {
accordingly, MIR. Cheves, in his answer I
the 9th Oct. 1919, thus expresses him (
ELI 'Ihe board entirely concurs with {
GU ID The views you take, as 10 the 90.
eminent collections and deposites in the t
'estern states, which they believe to be I
aiculated to ease the moneyed pressure .
n that portion ofthe country, as well as /
, meet the Interests Of the government,
no 20 relieve the bank from embarrass.
% collisions with local banking institc- p,
oDs.'
IL happened, however, that in three Of c