Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1831-03-24

SIS 81
See, NJ President, what masses OF money +! .ad al
ways on hand The piper is covered all over with
mi'cns. nd yet TO- all these vast sums no interest
allowed, no compensation is made TO the United States
Ths B"k Of England for the undrawn balances of the
public money, hiss mAds equi' able saton Ia
the British government, namely, permanent loan Of
halt mill sterling. temporary loan Of three m,i
fo,. for twenty years. without interest. Yet, when
moved fer like compensadn to the United States the
proposition utterly rel ,cted by the Finance Coz
ms", au9 treated az an attempt to violate she charter
oil the Bank!--At the same time, il is inconsisble iba
the United Safes have been these untrawp
balances from the Bank. and paying nerest upon
their o' n money think ndsut fy one of these
Loan Let us try. Ia May 1924 Congress au,horiz,d
loan OF five millions OF doare pay tho awards und.,
the treay with Spain, commonly called the Florida rea
y The Bank OF The u States took that loan, and paI
the money for the u. s. 10 January, and March 1928
In looking over the statement OF undrawn balances Il
VIII be seen that they amounted 10 near four millions
the end oil the first, and six millions the end of the
second quarter OF that year The inference irresistible
and leave every Senator 10 make III only adding that
we have paid 81 i69,315 in interest upon that loan eli
Their to the Bank, or its ranseroes. This is a strong
case, but have stronger one. Ii is known to every
body that the United States subscribed seven millions
TO the capital stock of the Bank, for which she gave
her stock note, bearing interest of five per cent per
annum. have statement from the Register of the
Treasury from which il appears that up 10 the 3Oth
day OF June last the United States had paid i725 900
In interest upon that note when it is proved by the
statement OF balances exhibited, that the United States
for the whole period in which that interest was
ing, had the half the WHOLE and once the double o.
these seven millions in the hands OF the Bank. This il
stronger case than that OF the five million loan but IL
Is Rot the strongest The strongest case is this: In the
year 1917, when the Bank went into operation the u
nited States owed, among other debts, sum of about
fourteen millions and three quarters, bearing an inter-
est of three per cent. In the year the Commits
soncrs Of the Sinking Fund authorized by an act
OF Congress to purchase that stock 65 per cent which
then its market price Under this authority the a.
mount Of about one million and half was purchased
the remainder, amounting TO about thirteen millions and
quarter has continued Impoverished TO this dav. and
after costing the u Statesabou six millions in interest
since 1877 the stock has risen about four millions in va
lue that is to say, from 65 TO nearly 95. Now here is
clear loss OF ten millions of dollars the u States
In 1917, she could have paid off thirteen millions and
quarter Of debt, with eight millions and a half OF dol
lars; now after paying six millions of interest would
require twelve millions and half TO pay off the same
debt. By referring to the statement of undrawn ba-
ances, it will be that the United States had during
the whole year of 1877 average sum of above ten
millions OF dollars in the hands of the Bank, being a
million and half more than enough TO have bought
in the whole oil the three per cent stock. The cues.
ton, therefore, naturally up, why was il not an.
piled to the redemption of these IL millions and quar-
ter, according to the authority contained in the act of
Congress OF that year, Certainly the Bank needed the
money; for ii just getting in operation, and was as
hard run to escape bankruptcy about that time as any
bank that ever saved from the brink destruction
This is the largest injury which have sustained on
account Of accommodating the bank with the gratutous
use OF these vastdeposites; but, 10 shew myself Impair
ual, will now state the smallest case of injury that
has come within my knowledge. Ii is the case If the
bonus of fifteen hundred thousand dollars which the
Bank was TO pay TO the United States in three equal an
nua instruments for the purchase of its charter No
mnaly this bonus has been paid, but out of what mo-
MES! Certainly out Of our own; for the statement
shews money there; and further shews that il
is still there for, the Both day OF June last which
is the latest return, there still 50 55O66i in the
hands of the bank which is above $3.50 900 more than
the amount Of the bonus.
One word more upon the subject of these balances
IL is now two years since made effort TO repeal IN,
4th section Of the Sinking Fund act of 1877 sect;on
which was intended TO limit the amount of surplus mo-
ney which might be kept in the Treasury to two mil.
lions OF dollars but, by the power of construction was
made TO authorize the keeping of two millions in addi-
ton TO the surplus wished to repeal this section
which had thus been construed into the reverse of is
iDteniion and 10 revive the first section of the SINKING
Fund act OF 1870, which directed the whole Of the sur
plus on hand TO be applied, at the end Of each year. to
the payment Of the public debt. My argument was
this, that there was necessity to ke3 any surplus.
that the revenue coming in as fast il went out was
like perennial fountain, which you might drain IN te
last drop, and not exhaust; for the place Of the as
drop would be supplied the instant IL was out. And
supported this reasoning by reference to the annual
Treasury reports which always exhibit surplus of
lour or five millions; and which equally in the
Treasury the whole year round on the last lav of a.
very year. This the argument; which, i'm fact =.
vailed nothing; but now, | have mathematical proof of
the truth et my position. Look at this statement of ba
lanccs; look for the year 1S0 and you will find but
100000 hand for that year. look still lower for 1921
and you will find this balance but $192,000 And what
was the consequence Did the government stopl did
the wheels OF the state chariot cease to turn round in
those years for want Of Treasury oil? not at ALL Every
hlng went on as we'll as before; the operations of the
treasury were as perfect and regular in those two
years OF insignhcant balances, in 1917 and 1878
when five and ten millions on hand This is proof
This is demonstration: II the ndubabe evidence Of
the senses, which concludes argument and dispeJs i'm
certainty and as my proposal Tor the repeal Of the An
section Of the Sinking Fund act of 1917, was enacted
into law at the last session Of Congress- upon the re-
commentator Of the Secretary Of the Treasury. VII
gilani and exemplary officer, trust that the repeal will
be acted upon, and that tho Bank platter will be wiped
as clean Of Federal money in 1881, il was in 1921
such clean taking from that dish will allow or three
millions more to 90 TO the reduction Of the public debt
ana mere can be no danger in taking the last dollar
reason and experience both prove But 10 ouet every
apprehension on this point, to silence the last sugges
ton OF possibility OF any temporary deficit, Tccur
TO provision contained in two different clauses in the
Bank charter, copied from amendment in the char.
ter Of tho Bank Of England and expressly made at the
instance Of the ministry, 10 meet the contingency Of at