Edwardsville spectator. [volume] (Edwardsville, Ill.) 1819-1826, 1824-09-07
DOCUMENT


Edwards.
Replication to ,Ffr. Cin,e1ar's communication to
Tie COanitee.-L Concluded.]
The anxiety which the Committee ma
niiess, and mus SO naturally feel, to &c,
through with this investigation, and my
continued indlspositlon rendering it inn
possib.r to proceed vito my rep iication
10 Mr. Crawford's communication, as |
had intended, so as 10 finish it within the
time which could reasonably hope to
prevail upon the committee to wait,
isel myself compelled to postpone, to a
future occasion, which will not be ne
elected, a full answer to all his rem rss 5,
and, at present, to content myself with a
few observations upon those Of them
which are most prominent, and seem to
demand the most immediate attention.
Commencing bis Justification for re-
ceiving SO much uncurrent paper, some
OF which was, greatly below par, from
certain local banks, with history of the
commencement of the direct connection
of the Bank Of Missouri with the Trea-
sury Department, on the lst August,
1918, ne says: 8 Before this time the
Bank had acted as the agent ofthe Bank
of the Upitcd States. 1t had fulfilled its
engagements with thai Institution with
good faith, &c. ****. The large
amount of money to be received from
the sale Of public lands in that quarter,
rendered connection with such bank
not only convenient, bat necessary. \
- The Receivers were instructed TO
receive the notes OF such banks as paid
specie on demand for their notes, and no
others, and to deposite them in the bank
to the credit OF the Treasures" But
(says ne) ~ this arrange !ent with the
Bank, "there was no stiHulafion as 10
what kinds OF money it should receive or
pay for the freasnry." These, there
fore must nave been general deposi.es,
and having been made at the soIlcuauon
OF the Bark, without any special agree
ment, il thereby imposed upon i,elf the
highest obligation in regard 10 them,
that the acceptance Of an unconditional
and general doposlte could create upon
any bank whatever.
But besides this general principle,
there was contract WHICH excludes
every construction which could have
imposed upon him any obligation, mo-
raj, or legal, to have taken from the
bank any paper that was not o! as much
value as the deposile, al the time it was
made.
This bank was continued depository
Of the puoic money on the same terms
on which II had been temployed as The
agent OF the Bank Of he United States,
except that, the deposltes being subject
10 the drafts OF the Cashier of the Bank Of
the United States, they were, ON this
second arrangements, TO be drawn out,
from time 10 time, by Treasury drafts. y
In both cases they were 10 be drawn
for as occasion might require, subject
to the following conditions, viz:
LIN favor OF individuals, 70 DE paid at
sight.
Q. In favor Of the Bank Of the United
States, payable in sixty days.
1t appears from Mr. Crawlord's own
reports, that in 1917, an arrangement,
was made between himself and the Bunk
of the United States, by which the pubic
funds were to be deposited in the branch
cs of that institution. in all places where
such branches existed; and whare there
was no such branches, the Bank was 10
designate certain State Banks, for which
it would be responsible, and in which
such public moneys should be deposited,
&c."
In conformity with this arrangement,
the Bank Of the United States, having
selected and employed the Bank Of Mis-
souri, as depository Of the public mo-
ney, became responsible to the Treasu-
ny Department to pay cash for all mo-
neys therein deposited. This it could
have had no motive for doing, without a
correspondent obligation on the part OF
the Bank Of Missouri. Who could be
better Judges of what could create such
an obligation, than the enlightened Pre-
sident and Directors Of the Bank Of the
United States! Their disinterested OPT
MON ON the subject is practically demon
strated BY the adoption of measures
which they must have considered fully
adequate to secure their own interest,
and impose upon the Bank Of Missouri
the correspondent obligation above re-
ferred to. Their, therefore, not roquir-
ing = stipulation as to what kinds Of
money the Bank Of Missouri should
pay," is The best proof that they did moi