Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1824-07-27
TESTIMONY AND DOCUMENTS
The Report Of The Special T. onmit,s o,
The House Of representatives,
ON THE MEMORIAL OF NISIAN EDWARDS

accompanying The Report Of The Special T. onit,, Of
The House Of Represegtatirss,
ON THE MEMORIAL OF SiSIAN EDWARDS.
(Continuedl
"The amount Of these permanent depcsites
is nine hundred thousand dollars the inter.
est on which sum at six per cent. would br
fifty four thousand dollars" And aII.pr. in
support Of my first charge, that, by means of
il, the Treasury ofthe United States was made
to pay to the state banks enumerated, the sum
of $4,000, annually, for receiving and trans
| ferring the public money service which the
Bank ofthe United States was bound, by the
provisions Of its charter, az we'll as by the a.
greement ofthe early part Of 1917, to perform,
without compensation.
This allegation the Committee declare 10 b.
unfounded. They consider that the Bank of
the United States was hound In tr,nsf.r mn
other description of public funds. fbnn ccsb
funds and in order to sustain their declare.
ton, they affirm that the Bank of the United
States Was not bound to receive i'm deposit.
"as cash, the bills Of any banks but its own"
| In 'his aihrmation there appears To me to be
something OF fallacy, the detection of which
may. perhaps, induce the Committee to
The doubt the correctness of their construction
| OF this obligation of the Bank of the United
States. BY the circular Of the Treasury 10
| me state bank, under date of the lst of July
1915, announcing the termination Of the agree
,nent between the former and the Bank of the
United States. and expressing conditions. up-
ON the acceptance OF which the advantage of
deposite and the services of transfer between
the former and the Bank of the United States
We're extended 10 these Banks, they are in
structed IN relation 10 all sums deposited sub
sequentiy to the S0th June, 18iS,-the period
nj which the asi ssInent with the Bank Of the
United States expired" To enter them, as
heretofore, 10 the credit of theBank of the u
nited States, for the use Of the United States"
And IN his letter Ia this institution of the SOth
June, The Secretary maintains, earnestly and
successfully, the existence of IA complete right
IN the Treasury 10 hold the Bank of the Uoit-
ed States responsible for whatever "moneys
were deposited To its credit ia the state banks -
and, after remarking that " an examination of
the returns made by the Bank TO the Treas,i-
ry, Ut the public money in its possession. for
which the Treasurer of the United Siat.sli is
icredltea, supports this position" he alleges, in
Illustration of il, {" Tor whatever the Bank has
charged itself, in IFS accaunt with the Treasu-
~, except for the special deposi,cs it is pre-
sumo in point Of law and common sense res.
psnsihle. The special depostes were entered
TO the credit Of the Treasury, upon the express
stipulation that the Bank should not be ac
Gle. or into bills admitted by the Bank to he
equal tn specie" He adds. below, az am
persuaded that the facts, and differences drawn
from them, in the preceding pages, will be
sufficient to shew that the responsibility. deem
ed so extraordinary by the Directors, has been
assumed from the date of the arrangement.
and continues TO the present moment unim-
paired"
These extracts establish the following con.
illusions, viz That, up to the moment when
The Secretary permitted the obligation af the
Bank of the United States to expire las he
says IN his circular at the LIST of July follow
ing; Shy agreement" that institution was res
ponslbie in cash for all the public funds receiv-
ed by j. on deposite, except such in regard to
which the contrary was expressly stipulated,
aod that, consequently, it was bound to trans
fer them at the will of the Secretary of the
treasury, free Of expense and without COM
prnsaiion. This, il is admitted by the Com
mi'tee, il WAS bound TO d. in reference To
cash funds"-a description from which il
VIII 6e difficult 10 exclude all sums, not held as
special deposites; for all other funds were en-
tered by The Bank, ~ the Secretary declares,
and IS the returns of the Bank prove, to the
credit of the United States; and of course re
presented such an amount of ready money. mr.
pecuniary force, at the disposal Of the Secre
'ary, on the books Bank. Cash funds is a
phrase not restricted TO coin, or the precious
metals for 20 one will deny that ready mo-
ney is cash, and that $1,000 in United States
Bank notes is $1,000 cash.
These extracts further exhibit the proper and
admitted distinction between general and spe-
cIai deposites. They shew, as would appaar
er NJ terRiini, that all sums not received ex
pressiy rs special deposites, we're considered as
general deposies, were credited to thu. Unit
ed States as cash, and under that DESCRIPTION
were embraced by the obligation Of the Bank
to transfer the cash funds ofth. United States,
AZ the request or order of the Secretary of the
Treasury. 1t follows, then, that, according
TO the Secretary's own shelving, the Bank ofI
the United States was under an obligation IN
the United States To transfer all public funds.
other than special dtpoSifeS, received bv il or
IT'S branches, or by the state banks il had de-
sgnated, at the request of the Secretary of the
Treasury, free of all expense, and without
compensation aud It can hardly be denied
that, when the Secretary of the Treasury "by
agreement" as he declares, permitted the bank
to Withdraw from this obligation, and agreed
TO allow certain state banks $4,000 annually,
a fact which IS not disputed; for performing
the very same services, he voluntarily increas-
ed the annual expenditure of the Treasury bv
that amount; relinqushed "by agreemrpt.nI
right which by the charter of the Bank ofl
the Uuited States, and its own engagements
with him, he held 10 the fiscal services of thai
institution, and then gave to the state Banks
$4,000 annually, for right to command the
same fiscal services from them.
This new agreement ipjudiciously extended
and careIessly executed. l have yeotured ia
denominate, 10 what the committee consider
my FIRST charge, mismanaging the public
funds" nor am now able to devise a more