Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1824-05-25

~ Air Edwards in its support shall also be noticed
He represents himself have stated, in two letters
written by him to the Secretary, in February, 1922,
tho, he had made such publication, that the Re-
c;vcr had transmitted it, that the Receivers letter
containing it had been answered, and infers, from
the Secretarys silence on the subject, adIns-
sion of the fact
That the Secretary did reply to this, or to any
of the other matters contained in Those letters,
suited from his having declined any correspondence
with Mr.. Edwards on the subjects to which they
ferrcd, i'm consequence of menace which the first
of them contained. This will be seen by the Secre-
tary's answer, which, together with Mr.. Edwardss
letters, are herewith transmitted.
The next principal accusation to be examined,
relates the Secretary transactions with the Bank
of Missouri; and charges him with having, in the
arrangements mnde with that Bank, in regard To the
public deposes, allowed it advantages for which it
rendered no equivalent, and with having received
from il uucurrent bank notes, which he was neither
bound nor authorized to receive. The direct con-
nection between the Treasury and the Bank of Mis-
souri, began the 1st of August, 1915 Before that
time the Bank had acted as the agent of the Bank
of the United States. 1t had fulfilled its engage
ments with that institution, with good faith; its
dition was considered sound and prosperous /;
and its reputation stood high, well in the Allan
tic, us in the western states. The large amount of
money be received from the sale of public land in
that quarter, rendered connection with such
Bank not only convenient but necessary.
III the first arrangement with the Bank, there was
no stipulation to what kinds of money it should
receive pay for the Treasury. The Receivers
were Instructed to receive the notes of such banks
as paid specie on demand for their notes, and no
hers and to deposte them in bank to the credit Of
the Treasurer. When public disbursements were
to be made the Treasurer issued his drafts and the
bank discharged them in such funds it had rccei-
we'd.
On the Odd June, 1919, the Secretary, in the exc
cutionof a general system which had been adopted,
with the appreciation of the President, for the
sons stated in his report to the House of Repfesen.
tatves of the 18th February, 1890, and i'm his let
ter to- the chairman of select committee of the
House, of the 18th February, 1928, proposed new
arrangement to the bank By this arrangement,
The bank was to receive the notes of such specie
paying banks were in good credit, and in general
circulation, and 10 account for them cash: to
transfer to the Bank ofthc U. States its branches,
the surplus of the money which it might receive,
that could not he disburscd at the Bank and for
the expense and risk of making those transfers, which
were expected to amount to a very considerable
sum- 1t was to have standing deposite of $150OO0
which standing deposte always subject to be
reduced by any disbursements that could be made
at the bank. This arrangement was accepted by
The bank on the 9th of August, 1919. 1t was modi-
fed in August, 1890 by limiting the local bank
to be received to those the Atlantic cities, and of
the state of Missouri, and thus it continued until
the bank stopped payment, on the 18th of August,
1871. 10 estimate, justly, the advantages offered
to the bank by the arrangement, it is necessary
examine what were the probable services be ren-
dered by the bank under it
Aboutthe time whenthe Secretary's proposition for
allowing a standing depose was made to this bank,
thefe was balance remaining in bank, over and a.
oove what could be expended there, of upwards of
So4oooO, and this, too, after the bank had transfer
red upwards Of 100000. This large balance had
accumulated in rather less than year Takine
into consideration the revival of credit among the
western banks which had then taken place, il was
reasonable to suppose that the payments into thar
oank would not decrease more than one half DURING
inc next year; upon this supposion, the amount to
DC transferred under The arrangement would be a.
oout S3>o,OUO year. The risk and cost of trans
ieffing money from St. Louis to Louisville, which,
was the nearest point to which it could be tranfer
mas oeen stated by the President of the bank in
's 'e'ief me 29th November 1910, he at lras,
per cent which, upon that sum, would be $4,000;
ana that was reasonably to he looked to- at the time
the arrangement was made, the value of the SER
VICE. probably, to be rendered under it, in this res
pect, by the bank, to the Treasury.
To be continucdl