Edwardsville spectator. [volume] (Edwardsville, Ill.) 1819-1826, 1824-12-07


Treasury OF the United States was made
to pay 10 the stale banks enumerated, the
sum OF $4,000 annually, for receiving
and transferring the public money a
service which the Bank of the United
States was bound by the provisions OF its
charter, as well as by the agreement oil
the early part of 1917, TO perform without
compensation.
This allegation the committee declare
to be unfonnded. They consider thai
the Bank of the United States was bound
TO transfer no other description of pub.
lie funds, than cash funds and, in or.
der 10 sustain their declaration, they sf.
firm, that the Bank of the United States
was not bound TO receive in deposite
6 as cash, the bills Of any bank but its
own" In this affirmation there appears
10 me to be something Of a 'fallacy, the
detection of which may perhaps induce
the committee 10 doubt tie correctness
of their construction Of this obligation OF
The Bank of the United States. By the
circular OF the Treasury to the state
banks, under date of the Is, of july, 1918.
announcing the termination of the agree
ment between-the former and the Bank
OF the United States, and expressing con.
ditlons, upon the acceptance of which,
the advantage OF deposile, and the ser.
vices OF transfer between the former and
the Bank of the United States, were ey-
tended to these Banks, they are instruct.
ed, IN relation to all sums deposited sub.
seqnentIy 10 the S0ih June, 1918. (the
period at which the agreement WITH the
Bank of the United States expircd9 {" to
enter them as herefofore, 10 The credit
OF the Bank of the United States, Ter the
uae Of tie United States" And in his
aetter to this institution, of the 9oth
! une, the Secretary maintains, earnestly
aud successfully, the existence of com :
plete right in the Treasury to hold the
Bank OF the United States responsible
Tor whatever "moneys were deposited
TO ITS credit in the state banks and, after
remarking that, +" an examination Of the
returns made by the bank to the Trea-
sury, and the public money in its pos
session, for which the Treasurer of the
United States is credited, supports this
position; he alleges in Illustration Of it,
6 for Whates er the Bank has charged it.
self In Its account with The Treasury, er-
ce1t for the shecfai detositeg. it is, pre-
sumo, in point Of la1v and common sense,
The special deposites were
entered TO the credit Of the Treasury,
uhoa The erflresS Stihnia5ioa, that the
Bank should not be accountable until
they were converted into specie, or into
bills, admitted by the bank to be equal
TO specie" He adds below, 81 am per-
snaded that the facts and differences drawn
from them, IN tie preceding pages, will
be sufficient TO show, that the re
spoDsbllity, deemed SO extraordinary
by the directors, has been assumed from
the date OF the arrangement, and cont
naes TO the present moment unimpaired."
These extracts establish the following
conc iosions, VIZ: That, up to lie no-
ment when the Secretary p<rmited he
obligation OF the Bank of tie United
States to expire { as he says in his cireu
lar Of the Isl July following "6y agree
meat," that institution was responsible
IN cash, for al! the public funds receiv-
cd by it on deposite, except sucli, in re.
gard to which lite contrary gvas e.r1lreas-
ty STIMULATED, and that, consequently, it
was bound TO transfer them, at the will
Of the Secretary of the Treasury, free of
expense, and without compensation.
This, it is admitted by the COMMITTEE,
II was bound to do, in reference TO
. cash funds" description from which
il will be difficult to exclude all sums,
not held as s5aeciat dehosite8 for all
other funds were entered by the Bank,
as the Secretary declares, and as the re-
'orlIs OF the Bank prove, TO the credit Of
The United States, and, of course, repre-.
sented such an amount ofready money !,
or pecunlary force, at the disposal of the
Secretary, on the books of the Bank.
Cash funds is a phrase not restricted
TO coin, or the precious metals, for no
one will deny that ready money is cash,
and that $1,000 in United States Bank
notes is $1,000 cash.
These extracts further exhibit the pro-
per and admitted distinction between ge-
neral and shecial dehosites They
show, as would appear, &c vi fermini,
hat all sums not received expressly as
sfeciGI defcsites, were considered as
peneral denasites were rreditad tn the
United States as cash, and under that
description were embraced by the obi
CATION of the Bank 10 transfer the cash
'unds of the United States, at the re-
e