Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1824-06-01

Their gentlemen in Congress, 10th tie pecunia
~ disresscs of the Western country and the neces-
sity of change in the existing regulations. Repre-
sensations like these. could not be received with in
difference. 1, is bc recoccted, also, that, ut the
time when this of things existed the debt due
for public lands amounted 10 about twenty millions
of dollars; the greatest part ef which had been con-
tracted during tho suspension OF specie payments.
Upon mature reflection, therefore, and with the APP
probation of the President il was deemed advisable
to make the arrangements with the Western Banks,
which are the subject of Mr.. Edwards condcmna-
| tons.
The details of these arrangements are so fully
hibitcd in the Secretary former Communications
the subject that it is thought necessary here to
| explain them.
As for as the Interests Of the people, and of the
Treasury, were concerned, it is believed that those
, arrangements were not merely dciensblc, but CONF
mcndnble. As far the measure affected the ute-
rests of the Bank of tho United States, is believed.
to be equally deserving of APPRECIATION In let CIR
written Nv the Secretary the President of that in
stution, the lith Sept. 1919, ne thus explained
the motives, which as far as the Bank was concern
! ed, influenced his course on the subject.
Z" II has been my constant endeavor, for more than
twelve months past, to prevent, far practical
bic, all collision between the Bank of the u. States
and the State Banks far-at least, as that collisi-
might be connected with the transactions Of this
Department. 1t is not my intentions, there fore, to
give drafts upon the State Banks for public money,
without previously arranging with them tho mode of
payment"
"Ac,ii,g upon the same principle, l have cn.lca-
voured III the course of the present year, make
| arrangements with the State Banks IN the Western
States. by which they should become the lcpos,o-
RIGS of the public money collected in that section of
the Union. considered the dcpositcs there, posi-
lively injurious to the Bank, for the following rea-
sons" viz:
"1st. That the Offices liad already extended their
discounts i'll Ohio and Kentucky, further than was
consistent with the interest of the Bank.
I'd. That every dollar deposited in them OIL ac-
count of the governments that could not be dsburscd
there, would have to De employed in discounts. or
transferred to the Bank in Philadelphia, or its East
| ern Offices.
Sd. That. owing 10 the state of exchange, trans
fers could only he made by the transportation of
specie across the mountains.
" 18th. That, owing to the geographical position of
Kentucky and Ohio, the public expenditure would be
extremely limited.
18th. That the transportation of specie from the
Western to the Eastern States by the Bank, invar-
ably had produced, and would continue to produce,
irritation in the public mind against the Bank
=" An additional reason for endeavouring to ma ke
State Banks III that section of the Union the epos-
tories of the public money, was to increase the re-
ccipts, by enabling the public debtors pay in the
notes spccic-puying banks, which would not he re-
ccircd by the officers of the bank, and which could
not he rcccvcdb by them, without increasing that COL
lisicT, which was my desire TO diminish"
These views, il is believed, were too lust not TO
meet the appreciation of the distinguished individual
who presided over, and of the enlightened Board
which then directed the affairs of that institution
Accordingly, Mr.. Chcyes, in his answer of the 9TH
October, 1919, thus expresses himself g The Board
entirely concurs with you in the views YOU take as
to the Government collections and dcposites i'm the
Western States which they believe to he calculated
TO ease the moneycd pressure on that portiofsiNLc
country, as we'll as to meet the interests of the gl
crnmcnt, and relieve the bank from embarrassing
collisions with local banking institutions."
lthappcned, however, that in three of the places
where the banks were situated, with which the Sc
crctary had made these arrangements, branches of
the Bank of the United States also established
BY the charter of that bank, it was the duty of the
Secretary to have stated Congress, mt its next s,s
sion, the why he had directed depasites of
the public money TO he made i'll these three banks
This sta ,ecnt, through nadvcrtcice was not ma de-
as the Secretary has stated i'll his letter of tho 9th
Feb. 1925, to the select committee of the House.
But, as Il full explanations of the motives of these
arrangements had been made to the Bank of the IT,
states, whose interests il the object of tina; pro-
vision III the charter 10 guard, and that institute
on had approved of tile arrangements, and az the
arrangements themselves had been published i'm va
rIous newspapers; and as the facts which were to
be reported TO Congress of general notorisfE1
1t is submitted, whether the Secretary could have
nlca'on of the Information to Congress.
OF the policy of the measure adoptcd bv the Sc
crctary IN the employment of the Western be nks it
IS presumed there can he doubt. That it has not
been entirely successful, is considered TO be a sub
Ject rather OF regret than ofccnsurc. But that
has been mainly beneficial, it is thought will not be
denied Ivy those who candidly examine the subject
III all IFS bearings. And, although, yerv Etl, ulti-
mate loss IS expected yet, if the whole sum now due
by these banks which have stopped payment were
to &c lost, it is believed that the advantages which
have resulted to the country, will have been cheap
ly purchased at that cost.
AS some misunderstanding in respect 10 the speci-
al dcpoitcs, 10 prevail i'll the public mind re-
Sutng from the misrepresentation that have been
made on the subject, it may be proper to take this
occasion to remove IL.
About the time that the present Secretary of the
Treasury took charge of that Department, the spe-
ca dcrosItc Amounted to upwards Of three millions
OF dollars, being, the 3iSt of December, 1916
$3,o3l,459 all OF which has since been converted
into cash funds, except 1901 1903. At the cate of
the Sccrctarys report ofthc Goth of February 1928
the amount of the special depose was SJ27 10Y in
GLIDING the S29I,8O3 above mentioned. Ofthis sum
of 5J21,lOI, about Sjl,000 have since been paid 4
Hence IT appears, that The whole sum now ON spc-
cial depositc, only about SJ7 GOO including the
sum due by the dcfaultug Western banks Ina We be-
come special duiins the present Secrctarys adni-
nistraion of the Department. When il is consider
eo' tha ms embraces period of about years
during which, great disorders have existed and
great revolution nas been effected in the currency
aud during which, upwards of ON, hundred and g;
ty-thrcc millions of dollars have been paid into the
treasury, exclusive of loans and Treasury notes
and tia OF this sum. upwards of twemtv-one millions
and half OF dollars having been received from ,l,r
sale OF lands, and internal duties and taxes must
have been collected in those portions Of the country.
where tile greatest disorders existed whom thcSe
circumstances arc considered it is believed that tho
sum which has become uucurrcnt during the Secre-
! tarY-s administration Of the Trcas..r. $3.50 r