Edwardsville spectator. [volume] (Edwardsville, Ill.) 1819-1826, 1824-06-29

TO be transferred, however, to the Bank of the
United States, in six months after the termina-
ton of the agreement.
Sd. That, if the money werewanted for dis
bursement in the neignborhoodof the banks, it
might be drawn for, at sight, Notwithstanding
such drafts might reduce thepermanent de-
posite below the stipulated sun.
The amount of this permanent deposite was
to be increased, if it should appear that the
bank should receive and transfr such large
sums as that the expense thered should not
be considered as compensated by the benefit
of the deposite which had beei stipulated.
1t was, also, prescribed, that the bank should
render to the Secretary Of the Treasury, and
to the Treasurer, duplicate monthly returns
of its accounts with tie treasure; and to the
Secretary, confidential monthly rsturns Of the
state of its own affairs; showing, also the Gre
dts of all public officers in the bank and, al
so quarterly lists or returns of all its debtors
to the end that the Secretary of the Treasury
might determine on the propSiety of continu-
ing the public deposite in such bank.
| Such was the general nature If the arrange
ments as they were adopted and entered into
with the banks. There were, he viewer, varia-
| tions in some other particulars. I'm the Bank
OF steubenvlle, for instance, the public money
in the bank, or due from it at thekme of the
| arrangement, was declared not dtail within
| the arrangement; in othes instances. nothing
is said of such balances /; and in Others, again,
il was declared that they should be embraced
! by the agreement
| The following table shows the amount ofthe
permanent deposte allowed to each bank, re-
spectiyely, as the equivalent for the services
rendered, or expected to be rendered by it to
the Treasury:
Bank of steubenville $4,000
Bank OF Chllicofte 100000
Franklin Bank OF Columbus $1,000
Farmers and Mechanics Bank Of In
diana 10000
Bank OF Illinois at Shawneetown $1,000
Branch bank o. kentucky at Lpuis-
vile 100000
Rank Of Tombeckbe at st. Stephens 100000
Planters aud Merchants Bank of
Huntsville $4,000
Bank Of Missouri 10000
Bank of Nincemes 5000
Bank of Edwardsviile 1900
! Farmers and Mechanics Bank ofCin-
cnilati 100000
The amount of these permanent deposites
is nine hundred Thousand dollars, the interest
on which sum. at SIX per cent. would be fifty
four thousand dollars.
1t is alleged i'll the memorial, that this sum
of ftty-four Thousand dollars was thus annually
pad for receiving and transmitting the public
money; a service which, it is sad, the Bank
OF the United States was bound to perform
wi.aout any compensation. Tie committee
does not see the ground of this obligation on
The Bank OF the United States. That instit,.-
ton is, Indeed, bound to give necessary facili-
ties icrtfansiefriug the public finds from plice
to place, but this can Only mean cash H. = 4,
and it is bound, also, TO receive money ID ue-
posite for The United states but II is not
bound To receive in deposte, as cash. the bills
OF any banks Whatever out lis own. although
they may come within the pra, isions Of the
resolution of 1916. The committee does not
perceive any thing 10 the principle of these
arrangements with tne banks, either In viola
ton cf law, or contrary % the usage of the
Government; since the Treasury has, for riil-
ny years, had agreements with Eiore or less OF
the banks by which the public moneys were
| deposited in suchtbanl,s, and drawn from them
| when wanted; certain terms and conditions,
q y the mode OF drawing, being stipulated,
e as were Thought beneficial both to the
| 4 lsury and Banks. Indeed, it may be pro-
| per to observe here, that it seems to have
been assumed, by different officers at the he al
of the Treasury Department. that il was th cir
duty to direct its operations to the support Of
different monied institutions whenever then
affairs required support, 50 as TO defeat com
hinatlons against them, and preserve an equi
librium of credit among diem. And the prac
| tice appears to be in conformity with this prn
cple from very early day. That benefit may
I result, and has often resulted from such ope
ratipns, is evident; buttlls is no legal employ
ment OF pubic funds. Il is nothing but gri,
tiitous loan. The existence of the practice
however, as well as the avowal of the prnci
| pie by different officers at the head Of The
Treasury, will be found by referring to a let
ter from the Secretary OF the Treasury TO the
President Of the Senate, of the 25th Febru
airy, 1928, in answer to resolution of tina
body. Such, however, was not either tho
object, or the character, OF the agreement
with the state banks, which are the subjects
OF this examination.
On the lst of August, 1920, the Treasury
issued circular Instructions TO the Receivers d
public moneys, authorizing them to receive
iii addition to specie and bills of the Bank o
the United States and its branches notes Of
the incorporated banks in Boston, New-York
Philadelphia, Baltimore, and Richmond, anc
in the states of South Carolina and Georgia
(except the City Bank Of Baltmore,) and Of
those specie paying banks in the state in which
the Land OF lice is situated. "This instruction.
it is added, " supersedes those which have
heretofore been given on the subject, except
in so far as they prohibit the receipt of this
paper of any bank which does not discharge
its notes, on demand, in specie; and that pro
hibition must, in every case, berigidly adhered
to-"
Among the banks with which these negoci
atoms were made, the attention of the com