Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1824-05-28
Public DOCUMENT.
ANSWER
ANSWER
tlrtke Secretary cf the Treasury, to he address
Of .Ntniaa Ed,eards.

t,rtkc Secreio'ycf the Treasury, to he address
Of .Ninioa Ed,odrds.
CONTINUED.
1t is true that, from causes not then to be fote-
seen, the subsequent payments into the bank fell
short of what had been anticipated But it is also
true, that the whole OF the stipulated standing de-
posite WAS not always on hand. II has already
been sto,ed that this standing deposits was, ut all
tunes, liable TO be drawn upon by the Treasury
BY the Treasures statement of quarterly balances,
accompanying the Secretarys report tu the House,
of February 81, 1898, it appears that it had been
SO drawn upon and that, Ut the close of six diior-
emit quarters the whole amount in bank for whiel,
drafts had not actually been issued, less than
the stipulated amount of standing deposite, by ali
average of $4,000. BY statement Il. accompany
ing the letter from the President of the ba nk OF the
Goth June, 1921, it appears that, at the close OF
ten successive months, the whole sum in bank was
actually less than the amount OF the stipulated de-
posite, by an average OF $4,000; and if, ut all o.
ther times during the two years continuance of the
arrangement, the full were in bank the ay .
eruge of the actually in bank during the whole
period would have been but 100000 dollars. BUT,
it is to he observed that, in estimating tho value of
such dcposite to bank, the certainty of its con-
tnuance, for given time, at least, to be taken
into consideration. In repect TO this standing de-
posite there was no such certainty it depended
wholly Oh the convenience of the Treasury. 1t
was constantly subject to drafts for any part, or
even the whole, and il was frequently drawn upon.
The idea, therefore, that this stipulation in regard
to the standing deposite equal an allow ancc
to the bank OF 1900 dollars year, is wholly fall
lacious.
1t is proper to look the other hand, to the SER
vices rendered by the bank During the continue
ance OF the arrangement, the bank transferred, at
ats own risk and cost, 4540o0 dollars in cash, aid
about $4,000 dollars in notes, IN kind. Calcula-
ting, ten the value of the transfers the rate sta
ted for transferring to Louisville, which was the
nearest point, at three per and tho value of the
standing deposte, actually on hand, ut six per
cent year, the rate Of interest it appears that the
Services actually rendered by the bank in transfer
ring the public money, may be estimated to amount
to 1890 dollars; and that the benefit enioycd by
the bank from the standing depositc, without ma
king any deduction account of its unccrtaintv,
may be estimated at 1000, thus leaving n baiauce
In favor of the bank. But, allowing the advantages
and the service to- be equal, in this respect nothing
then remains but the advantage derived by the
bank from the temporary and uncertain possession
of the surplus which sometimes remained over and
above this deposite, rs compensation for all its o.
ther services, in becomgng responsible for the notes
received ny II, III converting thcm far was re-
guisite, into such funds might be transferred To
the U. States Bank, night be required in paw
Hent of Treasury drafts, which were ALWAYS de-
raandable in specie, or its equivalent, and which,
appear by the letter from The President of the
bank, of the 30th June, 1921, were always so paid
Hence, il appears that not only no undue adj
vautages intended to be granted to the bank by the
arrangement, but that, suppesing the puymcat OF
the debt now due by it 70 be secured with interest,
as believed 70 he the case, the bank has actually
enjoyed no advantages under the arrangement for
which it will not have rendered an equivalent
1t is true, this bank has failed. But it appears
by document produced and relied upon by Mr.
Edwards, thai. after thorough cxeIainafion, by
order of the Missouri legislature that its failure
not attributable to any act of dishonesty on the
part OF the Directors but that cause ONLY winch
has produced general suspension in the Western
Country;E and that, "with reasonable INDULGENCE
il will be enabled to redeem its notes, ard pay all
ITS debts" The sum due by it TO the Treasury. Is
already i'll course of payment, and its Ultimate
discharge with interest, is deened by persons who
are well acquainted with the security, TO be well
secured.
The correspondence which, lex to the reception of
tas CIic1rrent notes, which Mr.. Edwards has
charged the Secretary with having improperly re-
ceiYfN frop the -Hapk of Missouri, commenced with
II letter Of me President OF the Bank, of the 9th
August, 1919. lie there proposed, among other
transfers, transfer $4,000 il such paper of North
and South Caroline and Grargia as was autho-
rzed to be received $4,000 in note~s of the Bank
of Virginia, $l03,0O0 in notes ofthe Bank Of Ken
lucky aud its branches; $4,000 in notes of the
Bank of Vincenncs and $4,000 in notes Of the
Banks of Tennessee, such as authorized To be
received, and $4,000 in such Ohio notes as were
authorized TO be received; al Of which were then
IN bank.
1t is be observed, that the letter in which this
proposition was made is the same letter which con-
fains the acceptance, by the bank of the arrauee-
rnen, under which il was, for the first time to be
responsible in cash for all the public money which
it might receive. If, then, il can he shown, that
cheese notes had been previously received on account
of the Treasury, and were at that time hand the
agreement Of the Secretary to receive the whole or
any portion of them so FIR from being subject OF
blaine, was an obligation of duty.
Ii is, also, TO be observed that all the notes which
the bank here. proposed to transfer, were not ac-
tuaIly transferred. Before the Sccretarys answer
was received, the bank had on its own account o.
therwise disposed Of great portion of them and
there were finally transferred the following:
Of the Bank of Tennessee and branches 40 81
Nashville Bank and branches, 298I1
State Bank OF ". Carolina, $4,000
Certain District notes, VIZ.
Mechanics Bank Of Alexandria, 500
Franklin Bank, 285
Certain Ohio notes, viz
Farmers 81 Mechanics Bank of
Cincinnati, 1885
Miami Exporting Company, 8,66l
Bank of Cincinnati, 1876
Bank OF Huntingdon, 291
Farmers, Mechanics & Manufac-
turefs' Bank OF Chicothc, $50
Bank of Marietta, 4
Bank Of S.eubeHyle, T
Making together, $I38, t79
The Kentucky bank note; mentioned in the Sc
sfctary s letter of the ID of March, 1920 were not
transferred, having beer otherwise disposed of bv
tie bank. Nor were the Georgetown bank notes
mentioned III the letter, then tran,ferrcd and
is ouly within few days that the Treasurer has