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

appointed to that office in October, 1916.
| In the carly part of the year 1917, it is repre-
scented by the Secretary, and appears to be
true, that an arrangement was made with the
Bank OF the United States, by which the pub
lie funds were TO be deposited in the branches
of that institution, in all places where such
branches existed; and where there were no
such branches, that bank was to designate GER
tain state banks for which it would be respon-
sible, and in which such public moneys should
be deposlted and notes of all banks, which
the Bank of the United States would receive
in deposite as casa, and none other, were to be
received on sales of the public lands
| Il lis farther represented, that, in the execu-
ton OF this arrangement, difficulties and con-
troversies arose between the Bank of the
United States and the state banks thus en-
poyed in receiving the depostes of the public
moneys; and, ere long, the Bank of the Unit
/ ed States siglifed to the Department of the
| Treasury, that it could not continue such ar
rangement, and that, thenceiorward, it could
receive nothing in deposite, as cash, but the
! legal currency OF the country, its own notes.
| The agreement OF the Bank of the United
| States terminated, tor these reasons, on the
! 5Uth June, 1918.
| 1t would appear, that many of the state banks
which had, in 1917, resumed specie payments,
soon after this period that is to say, in the lat
ter part OF 1918, discontinued such payments ;
| and the debt due to the United States, on ac-
=. count Of the sales of the public land, had very
| greatly increased, amounting, in the early part
| of loi9 to not less than 100000 of dollars
| The pubic expenditure in the western states
was not such as to require, within those states,
the disbursement of the money received on
account of this debt; but much the larger
! part was to be RENTED, either to the seat of
! government, or to other places i'll the Atlantic
,eAles
| About this period, also, the Bank of the
! United states issued orders prohibiting is
western branches from issuing any OF their
own notes FOR circulation, even in exchange
! Tor, or on &c poste Of, specie.
Cnder these circumstances, the Secretary
OF The Treasury appears 10 have entered ar
rmgements with SOME Of the local or state
Dsnks, generally those which bad acted as
agents or the Bank OF tie United States, for
| lie purpose vi employing theu as dcposito-
mes OF Inc public money, and IN the transfer
| OF such money, when required, 10 places
| where 1t nlisht be wanted IN The course of go
.yefnlnent disbursements.
| Among the earliest OF these, was that pro-
| posed to the Bank Oh Missouri, by letters from
| The Secretary, OF the LIST ANA the lth of July
| 1915, lhilheatlciy after tie termination of the
agreement before mentioned. with the Bank
o. the United States; which letters, indeed,
! have the form OF circulars to all the banks in
| which Tue public moneys were at that time
deposited, that is TO say, the banks which have
| peen employed by the Bank of the United
States, ddrhg the continuance of lis arrange
inent before mentioned, with the Treasury.
The Bank of Missouri was Que Of these. Ii
Was now informed, that, since thai agreement
bad come to an end on the 5Jth OF june, all
sums depostedin the Bank of Missouri after
that time, must be subject to tie drafts Of the
| reasury, and would be drawn for as occasion
should require, in the following manner, viz.
| If in iavor OF individuals, drafts to be paid at
sight; il in favor of the Bank of the United
States in sixty days. drafts Of the latter de-
script n to be 50 na,lc that the money should
be drawn oat and transferred gradually, and
not en- 8iasSe. The reason of this distinction
between drafts to individuals and drafts 20 the
! Bank OF the United states, appears to be. that
drafts III favor of individuals, being probably
intended tor funds to be expended in the
! neighborhood Of the bank, would be ordinari-
| iy pad III the notes OF the bank itse i, on other
similar paper; but that those in favor of the
Bank of The United States, would be such As
required payment in spetic. or in United statcs
Bank bills, OF transfers ofcredit to it's branches
operations which might reasonably REQUIRE
Time On che LIST of August, the Bank Of Mis-
souri, signified its cccptance of the conditions
Of this proposition.
On the 2lst OF December. 1918. the Score.
tary, by letter, addressed to the President OF
the Bank of Edwardsvillc. sienifed his dspo
siton to employ that bank also in receiving
the deposites Of the public moneys; and on
l "a !,
sented to the terms. A similar arran,e ,nent
| -. .v...Jl..