Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1824-05-18

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| :ient reason for disseminating the arrangement,
which had been made with 1t. The fact is.
that it was not until two years after the letter
| Of the President Of the Bank of Missouri re-
ferred to, that the Edwardsville Bank stopped
payment. But although this cha,ge is con-
sidered as sufficiently answered, the only re-
manning circumstance presented BY Mr. Ed
wards in its support shall also be noticed. He
represents himselfto have stated, in two let
tiers written by him to the Secretary, in Feb
ruary, 1899, that he had made such publica-
ton, that the Receiver had transmitted il, tina,
the Receivers letter containing IL had been
answered, and infers, from the Secretary's
silence On the subject, AN admission nf The fact.
That the Secretary did not reply to this, or
TO any OF the other matters contained in
those letters, resulted from his having declin-
ed any corr espondence with Mr.. Edwards
on the subjects to which they referred, in con-
sequence ola menace which the first If them
contained. This will be seen by the Secreta-
rvs answer, which, together with Mr.. Ed
wards's letters, are herewith transmitted.
The next principal accusation to be exam
ned, relates to the Secretary's transactions
with the Bank Of Missouri and charges him
with having, in the arrangements made with
that Bank, in regard to the public deposites,
allowed u advantages for which il rendered
no equivalent, and with having received from
It uncurrent bank notes, which he was neither
bound nor authorized Ia receive. The direct
connection between the Treasury and the
Bank OF Missouri began on the LIST Of August,
1913. Before that time the Bank had acted
as the agent of the Bank ofthe United States.
1T had fulfilled lis engagements with that
institution, with good faith; its condition was
considered sound and prosperous and its
reputation stood high, as we'll in the Atlantic,
as IN the western states. The large amount
OF money 10 be recei, ed from the sale Ofpuh-
lie land IN that quarter rendered connection
with such n bank not only convenient bnt
necessary.
In the first arrangement with the Bank, there
was no stipulation rs To what kinds of money
u should receive or pay for the Treasury. The
| Receivers were instructed to receive the notes
at such banks as paid specie on demand for
their notes, and no others and to drposite
| them in bank To the credit of The Treasurer.
| when public disbursements were to he made,
the Treasurer issued his drafts, and the Bank
discharged them in such funds as il had
received.
| On the esd Of June. 1919, the Secretary, in
he execution of general system, which had
been adopted with the appreciation OF the
President, for the reasons stated i'm his report
10 the House uf Representatives, Of the l4ih
Of February, 1897 and in his letter to the
| chairman of select committee ofthe House,
| of the 24th nf February. 1898. proposed new
arrangement 10 the Bank. BY this arrange
| meDt, the Bank WAS To receive the notes of
| such specie paying banks, as were in good Gre
dit, and in general circulation, and In account
| Tor Them as cash: tn transfer 10 the Bank of
me OnIird States, ar Ms branches, the surplus
ut the money which il might receive, that could
not be- disbursed at the Bank and for the
expense and risk Of making those transfers,
which were expected to amotint to u very con-
siderable sum, il was to have a standing de-
| posite of 100000, which standing dnposite
was always subject 10 b. reduced by any dis
| hursements that could h. made at the Bank
rms arrangement was accep pied ny the Bank
"a the 9th Of August. 1919. Ii was modified
~ August, 1890. by limiting the local bank
notes to he received, to those Of the Atlantic
cities, and OF the state of Missouri, and thus il
CONTINUED until he Bank stopped payment, on
| the 18th of August, 1921. To estimate, Just
| ". th' advantages offered TO the bank by this
arrangement, u is nrcessary 10 examine what
werT' The probable services to be rendered by
the bank underii: About the time when the
Secretary's proposition for allowing standing
deposltr was made to this bank, there was a
| balance remaining in bank, over and above
Whist could be expended there, of upward. of
] s Gao 0C0, and this, too, after the bank had
| transferred upwards of S 100000. This large
a
year. Taking into consideration the revival
| OF credit amOug the western banks which had
! then taken place, II WAS reasonable to sup
pose that the payments into that anItswould
| moi decrease more than one half during the
next year; upon this supposition, the amour,
| TO be transferred under the arrangement would
be about S 100000 year. The risk and cost
| OF transferring money from ST.. Louis to Lou
isville, which was the nearest point to which
It could be transferred, has been stated by ths
President Of the hank, in his letter of the Goth
| November, 1919, to be at least per cent
| which, upon that sum, would he 8 $500 and
| that was reasonably 10 be- looked to, at the
time the arrangement was made, as the value
| OF the service, probably, TO be rendered under
1t, IN this respect, by the bank, to the Treasu-
ry.
IL is true that, from not then TO he (oreseen
the subsequent pa,m into The bank fell short of
what had boon anticipated Bui i, is also true thar
the whole OF the Stimulated standing dcpssi'c was mi
always on hand has already been stated that This
| Standing Jeposite was, 1T all times, liable TO lie
dawn apoox by the Treasury. By the IRE -sure,, =
statement Of quarterly balances, ACCOMMODATING Tn
| Secretary's report To the House, Of Februa,, 81
1923, IL appears that IL had been 40 drawn unon an,
amount in bark FOR which drafts had no, acualiv e
issued, less than the stipulated amount of stand
ing deposue, by an average Of 20 900 dollars BY =
statemeut accompanying the ietie, from the Pres,
nrpt o, 'he BANK, OF Tue juno, 1921, appears
That al the close Of ten successive months &c the
whole in bank actually less tI,u The an,nu,,
OIL the stipulated deposiic 10y average of geo OeO
ana u, at all other times during the Two years con
'"nhnce oil the arrangement, the full amount were
~ bank, the average OF The actually i, hank du,-
| ing The Whole period would have been hut 40 OoO
dollars But, u is to- be observed that in es,;,,s,,,g
the value OF such deposiie TO hank The corain,v