Edwardsville spectator. [volume] (Edwardsville, Ill.) 1819-1826, 1824-06-22

'oeieu thS ueposltes there positively In1u-
rous to the Bank, for the following reasons"
viz,
q LIST. That the Offices had already extend.
ed their discounts in ONO and Kentucky. far
Their than was consistent with the Interests or
the Bank.
sd. That every dollar deposited in them
on account Of the government, that could not
be disbursed there. would have to be employ
ed IN discounts, or transferred TO the Bank III
Phliadelpila, or its eastern Offices
I" Sd. That owing to the state Of exchange,
transfers could onl! be made by transportation
OF specie across the mountains.
"4th. That, owing to the geographical po-
sltion of Kentucky and Ohio, the public ex-
pepd,idre would be extremely limited
18th. That the transportation OF specie from
the Western 70 the Eastern States, by the
Bank, invariably had produced and would con-
tinue to produce, irritation in the public mind
against the Bank"
IAN additional reason for endeayoring to
make state banks in that section of the Union
the repositories Of the public money, was to
Increase the receipts, by enabling The public
debtors to pay III the notes of specie paving
banks, which would mol be received by the
officers OF The bank, and which couia no, DO
received by them, without increasing that col.
lislon, which it Was my desire to diminish"
These views it Is believed, were too Just,
not to meetthe appreciation of the distinguish
cd individual who presided over, and of the
enlightened Board which then directed the
affairs Ut, that institution, Accordingly, Mr.
CheYes, in his ansM er of the 5th October, 1919,
thus expresses himself. "The Board entirely
concuis WIN yod IN lie views YOU take, as TO
tlie Government collections and deposnes III
the Western states, which they believe TO be-
calculated to case the. moneyed pressure on
that portion Of the country, as well as 10 meet
the interests of tie Government and relieve
the bank from embarrassing collisions with
| local insIitutons.'
Ii Happened, however. that in three of the
places where The banks were situated, with
which the Secretary had made these arrange
nents, BRANCHES OF The Bank Of the United
States were also established. BY the charter
OF that bank, ii WAS the duty Of the Secretary
| to have stated TO Congress, at its next session,
the reasons why he had directed depostes OF
The public money to be made in these three
| baaks. THIS statement, through inadvertence,
vas not made, as the Secretary has stated il
ms letter OF the 24th February, 1928, to The
select committee of the House. Bdt, as full
| explanation Of the motives OF these arrange.
lnents had been made TO the Bank OF the Unit
that provision to guard, and as that institution
had approved of the arrangements, and as the
| arrangements themselves bad been published
| my arious newspapers; aud as the facts which
| were to be reported 10 Congress were OF gee
neral notoriety II is submitted, whether the
sccfetary could have had any motive for With
| holding the formal COMMUNICATION of the infor.
inaiA5n % Congress
Ot the policy OF The measure adopted by the
Secfetsty m tie empl0l meht OF the Western
banks, II Is presumed there can be ID doubt
hat II has not been entirely successful, IS
considered to be subject rather of regret
ihan OF censure. But, that IT has been manly
beneficial, 1t is thought viii not be denied by
those who candIdly examine the subject IN ali
It's bearings. And, although very little utl-
mate loss IS expected, yet, if the whole sum
now due by those banks which have stopped
payment were 10 be lost, II is believed that the
advanl ages which have resulted 10 the country,
viii have been cheaply purchased nj tirat cost
AS some misunderstanding, IN respect TO the
special deposites, seems 10 prevail in the pub
iic mind, resulting iron the Interpretations
that have been made on the subject it may be
proper to take this occasion to remove it.
About the time thai the present Secretary
OF the Treasury took charge Of that Depart
ment, the special deposlte amounted to up
wards OF three millions OF dollars. being, on
the 3lst of December, 1916, S3,OSl ,459, all Of
which has since been converted INTO cash funds,
except S29lsoU3 AT the date Of the Secre-
tary's report Of the @1th OF February, 1928,
The amount OF special deposite was 1927, 10Y,
including the SSgl,oO3 above mentioned. of
TINS sum OF So9@I lVI, ABOUT Do4,OOU have since
been pad.s Hence, 1t appears, that of the
Whole sum now on SPECIAL deposlte, only about
o3l l,oUO including the sum due by the de-
faaitng Western banks have become special
during the present Secretary's administration
of the Department. When it is considered,
that this embraces period of about seven
years, during which great disorders have ex-