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

Bank Of Vinc-anes rs o0o
Bank of Edwardsviie 40'0oo
Farmers and Mechanics Bank of Gin
cinuati tOn ono
The amount ct these permanent depusilrs
is nine hundred Thousand dollars, the INTEREST
on which sum, "a, six per cent. would b. fity
four Thousand dollars.
1t Is alleged in the memorial that this sum
OF ffty-f"ur thousand dollars was thus aonu-
ally paid for receiving and transmitting the.
puniic money a service, which, it is said, the
Bank of the United States was bound to per
form without any compensation. The com
mttee does not see the ground of this obIya-
ton on the Bank of the United States. That
institution is, indeed bound to give necessary
facilities fur transferring the public funds from
place To place. but this can only mean cash
funds and IT Is bound, also, tn receive money
in d-posite for the United States but it Is
NOT bound tn receive In depOste as cash, the
bills OF any banks whatever but its own, al
though they may come within the provisions
oil the resolution of 1916. The committee
does not perceive any thing in the principle Of
tnese arrangements with the banks, either ian
violation OF law, or contrary to the usage ofth..
Government: since The Treasury has, for ma
ny years, had agreements with nlorp or less
"f the banks, 10y which the public moneys
were deposited IN such banks, and drawn
from them when wanted certain terms and
conditions, as to the mode Of drawing, being
Stipulated, such as were thought beneficial
both 10 the Treasury and the banks. Indeed,
II may be proper To observe here, that it
seems to have been assumed, by different Off
GERS at the head of the Treasury Denart
ment, that II was their duty to direct its one
ratiOns 10 the support Of different monied in
st'tutiOBs whenever their affairs required sup
port, so as To defeat combinations against
'hem' ana preserve an equilibrium of credit
among them. And the practice appears to
have been In conformity with this principle
from very early day. That benefit NAV &C
caslonaily result, and has resulted from such
operations, is evident but this is no legal en-
pioynen ofpublic funds. 1t is nothing hut a
sratuiious loan. The existence of the prac-
ice, however, as well AS the avowal of the
principle by different officers al the head of the
treasury, will br found by referring 40 letter
from the Secretary of the Treasury to tn.
fresident OF the Senate, of the 25th February,
1873, IN answer TO a resolution of that budy.
ouch' however, was not Fit 'er the object,
or The Character, ef the agreements with the
state banks, which are the subjects Of this ex-
animation.
on the LIST OF August, 1920, the Treasury
issued circular instructions to the Receivers
of Public Moneys, authorizing them To re-
ce''e, In addition to specie and bill. of tb.
Bank Of the United States and its branches.
notes OF the Incorporated banks in Boston, ".
York, Philadelphia. Baltimore add Richmond.
ana IN The states of Snuth Carolina and Geor-
ga, Except the City Bank of BaIiimorp.) and
Ot those specie paying banks in the state in
winch the Land Office is situated. This in
s'ruction," It is added supersedrs those
which have heretofore been 9 /, en- on the sub
Ject, eScept In sn far rs they prohibit the r..-
ceipt OF the paper Of any bank which does not
discharge its notes, on demand, IN SD. c- and
,nat prohihi'l"n must, IN every case, be rigid
ly adhered to-
Among The banks with which these nepo-
t'ations were made, the attention of The com
"'!re was Called, particularly, Ia the Farmers
and Mechanics B.nk OF Cincinnati the Bank
oil Chiihc"the, and the branch of the State
Bank oi Kentucky, al louisville, AS forming
the subject ola charge that does not appiy
TO me others. In the several places where
THESE banks were situated, the Bank ofthe u
o'a'es had Offices Of discount and depusite,
and the law Incorporating that institution as
has been before observed. creates AN obIisa-
'i"n on the Treasury Of the United States to
use them as places ofdePosite, in preference
10 any other banks, unless the Secretary shall
Tor special reasons, otherwise direct and, in
mat case, such reasons shall be laid before
congress rs ITS then, or next, session The
charge Is, that no such communication was
made to Congress. This omission is acknow-
'eoSeo by the cretary, who says il VAS
owing 10 ihadvertrnce, and thai the inattrntion
10 the provision of the law was unimportsnt.
inasm"ch as the provision was intended, ob,i-
ousiy, Tor the benefit Of The bank and the
Bank had full notice. The nolorieiy Of tie
TACT Is also relied on, to show that no improp-
er conduct, or desire to conceal If. produced
the omission.
The committee sees no reason 20 doubt this
statement, or to attribute any improper mo-
i've TO the Secretary, in this inattention 10 the
directions ofthe act.
The charges relative to the Bank of Missouri
are, in substance,
mat tins bank was unworthy of credit at
the time the depnsites Of public moneys were
suffered to accumulate in it To a large and inn
proper amount:
That the permanent depOsite allow ed il was
Illegal. and unreasonably large:
That those returns and statements of its af-
fairs, which thr Secretary had himself consid-
cred essential, were not exactrd
Add, linaIIy, that, in payment of its debt,
large amUuDt of uncurrent notes was receiy-
ed, some OF them not " ortiz twenty-five cents
IN the dollar, contrary To the positive njuDc-
tons OF the resolution of 1916.
j, Inc committee thinks it very probable that
me Bank OF Missouri did make an improper.
perhaps an excessive, issue of its paper al
though the mode adopted in the address, of
ss'''nal'nS that excess, appears not altogether
correct, as " omits to mention the permanent
lepnsite of the government in calculating the
luod ON which the emission might be made
IL the capital Of the bank were as is stated.
3 100000, and its permanent deposte from
government s 100000, surprising it to have
no other deposes, discount to the extent