Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1824-07-27


GESTURE IFS proper proportion To the issues of tn.
institution. This step might be beneficial to The
"'hrf creditors, aud friendly in regard to thu
s'ocAhviders aud officers, but, except in thi,
ocnr'"ient light, would certainly be consider
~ Jolly on the part OF the creditor. The pro-
portion, then, between the capital and the cir
euiaiion oi THIS bank, upon the ftne8 Of which
me committee declare The prudsDe of accu-
initiating S726,o00 ofpubIic n,onS3 in 1t, de-
pende'., is No, as S36O,0oe is to 4Se, 1000 but as
100000 Is to $50 600; and the amount ha-
zarded IN d-poste, by the Secretary of ths
Treasury, stands.reiated to the capital of the
ba"k I" which 1t was confded, not in the pro-
portion $4,000 To 100000, but IN that of
$4,000 TO 100000 and this 10000, endan-
gered ny ITS disadvantageOus and Inadequate
proportion 10 an admitted excessive amount of
issues. Eesides, this nominal capital Of {, 900
dollars was subjected 10 the pressure of other
!exhausting operations. The discounts of the
Stockholders aud directors were made ON a
pledge OF their stock, SO that, to this extent.
that species of financial capacity, which 800 of
capital may represent, and authorize $50, in
issues, Was destroyed.
As this proposition Of the commit.se cam
not be sustained, the force Of my st3tem.nt.
which 1t was intended To obviate, sill bear
| upon the conduct Ufthe Secretary, and demon
| s,ra!es that, in his intercourse with the Bank
oi missouri, he not only was guilty ofnegiect-
ing has dNty but Of msinanaging the public
| funds.
| In my address to the House, it was alleged
mat the Secretary had neglected to exact
monthly returns, and quarterly lists its deb
tors from this bank, aud thus dsregarded th,.
| means III ms power Of understanding the con
di'ion o' me bank, and of providing against
any loss which might occur To- the United
States rum he han a..
Of this institution. This fact is admitted by
the committee to its fullrxtent, but is not
viewed ny them as evincDg neglect Of dutv. or
censurabie inattenton to the INTERESTS 6f the
Cniled States, although, in the SecreIary's
contract with this bank, as represented bv In.
committee) these returns, &c. are carefully
insisted IN, in order Z" solely to aid the S.cre- !.
tary IN determining the propriety Of con,inu
ing or disseminating the arrangement with the
bank"
In considering my statement, which falls
"nuer no'h charges, and imports that the Sc
| cve'ary received a large amount Of uncurrent
paper from the Bank of Missouri, the commit
| tee declare this institution was not bound. by
| The condition proposed 10 il by the Secretary
previously to the 9Th August, 1919, to receive.
as cash, on account of the United States. such
| sums AS the Receivers should deposit. in
| Il, but was responsible for the same only in hind
But this, IT correct, does notdiminish, but only
| removes, 10 an earlier point, the mismonuge-
| ntent OF the Secretary. 1t appears to place
| him in dilemma. If his contract with th.
Bank Of Missouri did not, as is stated. secure
to him the right Of general deposite add trans
Ter, to the same extent, that, by the charter of
the Bank OF the United States, and his con-
| tract with that bank, he possessed that right.
it follows that he was indiscreet in PERMITTING
the Bank of the United States to Withdraw
| from this obligation, before he could impose
It ON another hank And if, as may be Inferred
from the observations of the committee, II was
proper that the Secretary should receive, IN
fiad, notes which, under the contract with the
Bank at Missouri, had been, for months. de-
posted to the credit of the United States, be-
cause, at the time they were deposited. they
were good, il would seem that a c,,sto m house
bond might be discharged, when it BECAME
dur, IN notes, however deprecated, provided
they had been good at the date of the bond.
10 justify THIS unwise and irregular pro
ceeding, upon the ground that. from the con
lectures OF the Secretary, no ultimate loss viii
be sustained by the United States, on the un-
current paper SD received, would he To pro
coed upon principle which would allow of
every species of speculation, on his part, with
the public funds principle at war with in
tegrity and prudence in fiscal operations and
| with the practice and regulations of this and
other countries.
in the British House Of Commons, the first
charge brought against Lord Melville, was, not
Tor the loss or waste of the public funds, but
| Tor permitting this mismanag ment by snbor-
| climate officer, who had deposited them in prI-
vate banks, IN a manner similar, in all respects.
| TO the operations of the mercan Secretary nl
the Treasury, with this only difference. that
| the British Government sustained no loss bv
ihs malversation of Mr.. Trolier. Ii was tb.
practice, and not The euent, which was denounc
ed before the House of Commons. clam
appalled, (said Mr. Whlibread) at the reflection
Of no less than thirty four millions of the pub.
lie property having passed through Lord Mel:
vIi'e's paymaster'i hands. Why, sir the re-
port states, explicitly, that upwards of eight
millions had been in the hands of his privofe
bankers, and seariy seven millions more are
allowed to have passed through the same
channel. cannot but think that this nsgl
gent crlmInaty is deserving of the severest
apprehension"
Mr.. Pitt, the warm and powerful advocate
oil Lord Melville, was forced by sense of
truth, To confess that this permitted misapsIi-
cation OF The public moDry, contrary to law.
though" toifhout actual loss 10 the sfote w,s
not To be- justified !" was constrained tn .dy;s.
the erasure Of his friends name from the lie,
Of Priyy COunseors; and thus expressed IN
| his admiriDg country, the conflict bctween the
tenderness of his friendship, and the subImity
| ofhis patriotism. " ! am not (said that mag.
| unanimous man. assumed to confess, that
have not given this advice without a bitter
pang. will moi erase from nv bosom the
feelings Of private friendshp.n
When the report Of the Committee was
framed, the only evidence which was known
4 ia ~ nj n