Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1824-06-01

.eu STATES on account OF the sales Of public
land. had very greatly increased; amounting.
IN the early part of.lSl9, to not less than
io'Ooo'ooO oil dollars. The public expendi-
tuie IN the western states was not such "a 70
require, within those states, the disbursement
OF the mnney received on account of This
debt but much the larger part was to be re-
United, either to the seat Of government, or Ia
ether pieces in the Atlantic states.
About this period, also, the Bank of the IJoi.
leo states issued orders prohibiting its western
branches from issuing any Of their own notes
ior circulation, even in exchange for, or on
deposits at, specie.
Under these circumstances, the Secretary of
the treasury appears to have entered into ar
engagements with seme Of the local or state
banks, generally those which had acted as
agents of the Bank Of the United States. fo,
the purpose Of employing them as Repositories
Of the public money, aud 10 the transfer of such
money, wnen required, to places where it
might be wanted in the course Of Government
disbursements.
Among the earliest of these, was that pro-
posed TO the Bank of Missouri, by letters from
The Secretary, at the LIST and llth of july.
1913, immediately after the termination of the
agreement before mentioned, with the Bank
Oh the United States which letters, indeed.
have the form of circulars TO all the banks in
deposited, that is TO say, the banks which have
been employed by the Bank of the United
States, during the continuance of its arrange
Inent before mentioned, with the Treasury
The Bank Of Missouri was one of these II
was now informed, that, since that agreement
had come an end on the 3Oth of June. al, sums
deposited in the Bank of Missouri after that
time, must he subject to the drafts of tn.
treasury, and would he drawn for, as occasion
should require, in the ing manner, viz: if
.n.avor o'ndi''unals, raftsto be paid at sight !;
il in favor Of the Bank ofthe United States in
sixty days; drafts Of the latter description Tn
be SO made that the money should be drawn
OUT and transferred gradually, and not en-
mdsSe. The reason of this distinction hetw cen
drafts To individuals and drafts to the Bank
n' Inc United States, appears to be, that drafts
III favor OF lndI' iduais, being probably intend.
rd Tor funds to be expended in the neighbor-
hood of the bank, would be ordinarily paid in
the notes at the bank itself, or other similar
parrr nut that those in favor Of the bank of
'he United States, would he such as required
payment IN specie or IN United States Bank
niiis, or transfers oil credit tO its branches one
ra'ions which nigh, reasonably require INN.
On IN" Isl of August the Bank of Missouri
lsgnlhed ITS acceptance Of the conditions of this
proposition.
On the 2ist of December, 18I 8, the Secre-
tary. by letter addressed to the President Of
the Bank Of Edwardsville, signifed his dispo
slii"n Z" employ that bank alsu in receiving the
deposifrs the public moneys and on the
,9i February following, that bank assent
ea me terms. A similar arrangement was
tnaue' nearly al the same lime, with the Bank
Of Illinois. the Bank uf Huntsville. and the
T"mbeckbe Bank
| Shortly after the da!e Of these transactions
however, more general system of employing
state banks, Tor the purposes before mention
eu, was adopted, and conditions more precise
anu whlcA were thought more favorable TO
the banks, vera proposed. The leading fra-
'nre 10 this new proposition was, that, as an
Involvement To undertake the engagement. il
was agreed, on the part of the Treasury. TO al
low Ia the bank ii permanent deposite Of
stipulated sum, not liable TO be drawn out or
diminished, excerpt IN specified case The
use OF tins drposlte was to be The equivalent
Tor the responsibility of receiving and keeping
The funds, and the expense of transferring
them, without further charge on the Treasury
To such places as might be agreed on, or re-
! qnred.
Arrangements of this nature were made
with The Bank Of Sieubenvir, Bank of Chr
lir"ihe, Franklin Bank of Columbus, Farmers
and Mechanics Bank of Indiana, Bank of Iii
n"'s AT Shawneetown, Branch Bank of Ken
lucky at Louisville, Bank of Tombcckbce n,
81. stephens, Planters and Merchants Bank
"i Hunts, HE, Bank of Missouri, Bank Of Via
crnnes, Bank of Edwardsvillr and Farmers
and Mechanics Bank of Cincinnati.
The terms, in general, agreed TO between
me Treasury aud these several banks were. i'm
| substance
LIST. That The bank should receive, in demos
ite, to The credit OF the Treasury, as cash.
| from the Receivers of public moneys. all cur
rent notes Of such banks as maintain cash nav
rnents 4; with power, however, to discontinue
to receive the notes of any particular bank on
giving seasonable notice of such intention To
the Receiver.
End. That the bank should pay, at sight, all
n'A's from The Treasury and should, also
transfer, on request, all sums on hand beyond
he amount the stipulated permanent depos-
Itr, Ia the Bank of the United States, or GER
la'n enumerated Branches of that Bank and
tlia' hxed SUN should remain in the bank, AS
pe!ore mentioned, as permanent drposite,
t0 oe transferred, however, to the Bank of the
United States, in six months after the termi
nation of the agreement.
Sd That IL the money were wanted for dis
bursement in the neighborhood Of the banks.
VI might he drawn for, at sight, notwitbstand
ing such drafts might reduce the permanent
drposIte below the stipulated sum.
The amount Of this permanent deposife
was TO he increased, if it should appear that
the bank should receive and transfer such
large sums as that the expense thereof should
not be considered as compensated, by the ben
Eft of the deposite which had been stipulated.
Ii was, also, prescribed, that The bank should
render to the Secretary Of The Treasury, and
10 the Treasurer, duplicate monthly returns of
its accounts with the Treasurer, and TO the
Secretary, confidential monthly returns Of the
r 81. IF, H.