Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1824-06-04

letters, ndeed, nave the form Oh CircuilfS 10 al tie
banks ia which the public moneys were at that time
eposited that is to say, the banks which have been
employed by the Bank of the United States, dotug
the continuance Of its arrangement before mentions
cd, with the Treasury. The Bank of Missouri was
one of these. 1t was now informed, that, since that
agreement had come to an end OH the 30th of June,
ull deposited i'll the Bank of Missouri after that
time, be subject to the drafts of the Treasury
and would be drawn for, occasion should require,
IN the following manner, viz if in favor of indivi-
duals drafts To be paid sight; if in favor of the
Bank of the United States III sixty days drafts Of
the latter description to DC made that the money
should be drawn out and transferred gradually, and
not en- mdsse. The reason of this distinction be-
tween drafts to individuals and drafts to tue Bank
oil the United States, appears to be- that drafts in
favor OF individuals, being probably intended Tor
funds to be expended in the ncghborhood of the
bank, would be ordinarily paid in of tho ba nS
itself, other similar paper; but that those in fla
vor of the Bank ofthe United States, would be such
as required payment in specie, or i'll United States
Bank bills, or transfers Of credit to its branches I
operations which might reasonably require time
On the LIST of August, the Bank of Missouri sci.i-
fled its acceptance of the conditions of this PROPOSE
ton.
On the 21st of December, 1918, tho Secretary, by
letter. addressed to the President of the Bank of Ed
wardsville, signhed his disposition to employ that
bank also In receiving the deposites of the public
moneys; and on the LIST of February following that
bank asseuted to the terms. similar arrangement
was made, nearly at the same time, with the Bank
of Illinois, the Bank of Huntsville, & the Tumbcck-
be Bank.
Shortly afte, the date of these transactions how
ever, more general system of employing state
banks, for the purposes before mentioned, adop
ted, and conditions more precise, and which were
thought more favorable to the banks proposed.
The leading feature in this new proposition was,
that, as an Involvement to undertake the engage
ment, it agreed, the part Of the Treasury, to
allow to the bank, permanent; deposite of stipu
lated sum, not liable to be drawn diminished,
except III specified case. The use of this deposte
was TO be the equivalent for the responsibility of
ceiving and keeping the funds, aud the expense of
transferring them without further charge the
Treasury, to such places as might be agreed on,
required.
Arrangements of this nature made with the
Bank Of Stcubenve, Bank of Chillicothe, Franklin
Bank of Columbus, Farmers g. Mechanics Bank Of
Indiana, Bank of Illinois at Shawncetown, Branch
Bank of Kentucky at Louisville, Bank of Tombcck-
be at Saint Stephens, Planters g. Merchants Bank
of Cincinnati.
The terms, in general, agreed to between the
Treasury and these several banks were, in sub
stance:
1st That the bank should receive, in dcpositc, to
the credit of the Treasury, cash, from the Rcce-
public moneys all current notes of such banks
as maintain cash payments; with power, however,
to discontinue to receive the notes nf any particular
bank giving seasonablc notice of such intention
to the Receiver.
Cd. That the bank should pay, at sight, all drafts
from the Treasury; and should, also, transfer, re-
quest, ali sums ON hand beyond the amount of the
stipulated permanent dcposte, to the Bank of the
United States, certain enumerated Branches OF
that Bank, as before mentioned. permanent de-
posc, be transferred however, to the Bank of the
United States, i'll six months after the termination
of the agreement.
-u.nro a,tnI fnrS cl1,.
mcnt in the neghborhood of the banks, it might be
drawn for, sight such drafts might
reduce the permanent dcposite below the stpula
ted sum.
The amount Of this permanent dcposiie to be
increased, if it should appear that the bank should
receive and transfer such large that the cS-
pense thereof should not be considered as compen-
stated by the benefit of the dcpostc which had been
stipulated. 1t also, prescribed that the bank
should render to the Secretary of the Treasury,
to the Treasurer, duplicate monthly returns of it:
accounts with the Treasurer; and to the Secrcta.
ry confidential monthly returns of the state of it,
own affairs; showing, also, the credits of all public
officers i'll the bank; and alSo quarterly lists. or re-
turns, of all its debtors; the end that the Score
tary of the Treasury might determine on the pro-
Priety Of continuing the public deposite In such
| bank.
ashley were adopted s. entered into with the banks.
rbere ,r.re bo,,,r.r ---nt'"ns in other par
ticulars In the Bank of Steubenville, for instance
the public money in the bank, due from it at the
time of the arrangement, declared not to fall
within tho arrangement: in other instances, nothing
is said of such balances and in others, again it was
declared that they should be embraced by the agree
| ment.
The following table shows the amour, of the per-
manent deposite allowed each ba nk respectively
as the equivalent for the services rendered. or cx-
pectcd to be rendered, by it to the Treasury:
Bank of Steubenville, S $4,000
Bank oil ChIlhcothe, 100000
| Franklin Bank of Columbus DOOM
Farmers and Mechanics Bank Of Indiana 4OOO(
Bank oil Limos at Shawncetown, $4,000
Branch Bank of Kentucky at Louisville, 100000
Bank of Tombeckbe at st. Stephens, 100000
Planters Merchants Bank OF Huntsville T5OO(
Bank OF Missouri, 10000
Bank OF Viucenncs, T5OO(
Bank of Edwardsville, do oOn
Farmers 4 Mechanics Bank of Cincinnati 1OO ON
The amount of these permanent deposites is nine
hundred thousand dollars, the interest on which
sum, at six per cent. would be fifty-f thousand
dollars.
1t is alleged i'll the memorial, that this sum of IF
fy-four thousand dollars thus annually paid for
receiving and transmitting the public money a SER
vice which, it is said, the Bank of the u States was
bound TO perform without any compensation The
committee does not the ground Of this obIioa-
ton the Bank of the United States. That in
Siituton is indeed, bound to give necessary faci-
ties for transferring the public funds from place to
place, but this can only mean cash funds; and it is
bound also, to receive money in dcposite for the IT,
States but it is not bound to receive i'm deposi,c
cash, the bills of any banks whatever but its own
although they may within the provisions OF
the resolution of 1916. The committee does no,
perceive any thing in the principle of these arrange
meats with the banks, either in violation of law q,
contrary to the usage of the government; since the
Treasury has, for many years, had agreements with
more or less of the banks, by which the public mo-
neys deposited in such banks and dra,v, from