Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1833-05-24
POLITICAL.
BANK OF THE UNITED STATES.

"But, as l have already stated, the chief object of the in
vestigation, as the minority in their report declare, was TO
bring to light and ascertain the truth in regard to the
transactions Of the Bank, in relation to the proposed pay.
ment by the Government of a large portion of the public
debt' during the past year, and on the fisto OF January ult,
whereby the payment OF a portion Of that debt has been
postponed by the Bank, eyond tho period fixed by the
Government for its reimbursement" The unwarrantable
conductoi the Bank, in thus thwartng, as it did, the che
fished policy oil the government, the speedy payment OF
It's public debt, was elected and fully developed by the in.
vestigaton; and all the facts and circumstances are set
forth IN detail in the report Of the minority. can now
give but a brief summary OF the principal facts. The
Bank OF the United States, il is known, is the place OF de-
poite of the public money. The Bank has the use of this
puohc deposite without int crest, subject TO pay II out upon
demand, whenever the Government shall require il for the
public service. As early as October, 1881, the Bank,
knowing that the public funds would be ample for tina,
purpose, anticipated that during the year 1882, a large
amount OF the public debt would probably be paid off by
the Government, and that during that period the Bank
amount OF the public money. Having, used the public
funds OH deposite, the Bank at that period, October, 1881,
made an effort to curtail its business, to enable il to meet
the public demand, which il was certain would be made
upon 1t. That effort proved TO be unsuccessful. In
March, 1882, and on the 18th of that month, (fr having
examined the subject fully, l have dates at command
The Bank, without consulting the government, and with
out it's knowledge, commenced a secret negotiation with
the agents oil certain foreign holders Of a part OF the pub.
TIC debt, bearing an inieres, Of three per cent, whereby
an arrangement was sought to be made, whereby they
were 10 agree TO postpone the period of receiving payment
iora year and more beyond the period which the govern.
ment might fix for the reimbursement, and that the hold
ers should retain the certificates or bonds of the govern.
ment, constituting the evidence of the debt, Tor the Pc
Rod which might be agreed on between themselves and
the Bank, and not surrender them to the Government at
the time it might direct the payment to be made. Pend
ing tins secret negotiation, the Secretary of The Treasury,
on the 2ith OF March, wrote to the President OF the Bank,
nouiying him oil his intention 10 pay off one half Of the pub.
lie debt, (between six and seven millions OF dollars, bear.
ing an interest of three per cent, and denominated the
three per cent. stocks, on the first of July, 1882, and that
nc should give notice to the public creditors accordingly,
on the first OF April. Upon receiving this information the
PRESIDENT OF the Bank Immediately visited Washington.
and solicited the Secretary Of the Treasury to postpone the
proposed payment for three months longer,-to postpone
1t until the first OF October, 1882. The Secretary could
see no suiflclent reason Tor the postponement. The Co.
verhmeht would have the money in bank on the first of
July, and he was anxious TO pay off the public debt, and
stop the interest. He hesitated, and a, first declinod.-
Tue President Of the Bank, however, earnestly urged tho
postPonement from July TO October, and assigned as a rea.
son. that the importing merchants who had duty bonds 10
pay, would require increased accommodations from the
Bank TO enable them TO meet them, and to pay the reye-
nue. to the government; which accommodations the Bank
desired TO extend TO them, but which they could not, il tho
PuShc dspos,te was Withdrawn to pay the public debt in
July. FINALLY, the postponement asked by the Bank was
granted, and the proposed payment postponed from July to
October, npon the Banks undertaking to pay the quarters
Understanding to about SIS, 900. The PAYMENT was
then to be made in October but as October approached
The Bank, with all its efforts to curtail, found itself likely
10 De IN no better condition TO part with the public depo-
SITES IN October, than it was in July. The secret neeoti-
alton commenced in March, was continued up to july
but could not be cOnsummatedf for want of authority on the
part Of the agents OF the foreign holders. Early in July
INC Bank determined TO adopt another expedient TO effect
tho same object. And on the Goth Of July, a secret agent
was despatched to England without the Knowledge of Tho
Secretary OF the Treasury, or any member of the govern
ment; and without the knowledge of sny one of The Gve
Government Directors, with power and instructions TO ne
goha'e wan the foreign holders, an arrangement similar to
'ha' winch had been attempted with the agents i'm this
country, but which had failed and to make this ne gotta
ton TO the amount Of five millions OF dollars. This secret
0Se"t proceeded TO England and made the arrangement
accordingly, through the banking house of Barring, Bro.
Tiers q Co, with a part OF the holders, TO postpone receiy.
ing payment until October, 1888, and agreeing ON the part
oil the Bank that they should retain their certificate, q r. co
yernment bonds, until the LIST of October 1922 tIuor ~,
ting 1t out oil the power OF The Government to make the
payment for want OF the surrender OF the certificates or
government bonds; and thus enabling the Bank 10 re-.
tain the possession and have the use of the public mo.
ney to a very large amount, until October, 1888. For
'he part oil me hve millions which could not be thus
postponed with the foreign holders, the agent contract.
cd with the house of Barring, Brothers s Co. 10 adj.
vance the money for the Bank, and purchase i'm the Ger.
thcates, in direct violation OF the charter of the Rank :.
thcy retaining the certificates until the cost of them should
he reimbursed to them by the bank and for the balance
OF the five millions not arranged in these two modes, a
loan was 10 be made 10 the Bank by Barring, Brothers &
Go. The Secretary of the Treasury being ignorant of
this whole secret arrangement, had given notice on the
18th oil July, that the whole of the public debt denomi-
mated the . per cent. stocks, and amounting to upwards of
thirteen millions of dollars, would be paid by the Govern.
ment, one half on the LIST of October, and one half on the
LIST January. The 1stof October arrived, and an unusual
~ large portion OF the public debt, payable on that day.
was not called for by the public creditors. The reason
could not be told. The first intimation of this secret ar.
rdngemenf, which the Secretary had, was the accidental
publication in a N. York newspaper, on the IIih or 18th
OF October, OF a circular addressed by the English house of
Barring, Brothers & Co. to the foreign holders. STATING ;ba,
they had The authority of the Bank of the ". S. TO make il.
The Secretary Immediately dispatched his Chief Clerk
to Philadelphia, to ascertain the true state of facts in reIa.
ton to this secret negotiation. The Chief Clerk, after
having received the verbal explanation which the Presi.
dent OF the Bank had to make, requested him TO give 10
the secretary a statement III writing. Accordingly the
Secretary received All answer giving an equivocai and
imperfect account OF IL, and forwarding a part of the cor
respondence. The Secretary wrote back for a copy of The
contract itself, with certain other letters alluded TO i'm thai
portion oil the correspondence already furnished. These
were furnished by the President OF Inc Bank; and after.
wards In the Banks report to the Committee OF WAYS and
Means of the 10Th January last, a still further portion of
the correspondence was furnished and among others was
given an extract ola letter, the balance being suppressed.
from which IL was fair to infer that the part not given did
not relate 10 the subject. without going into further detail.
aud referring those who wish to be better satisfied 10 the
report itself, it appears that Notwithstanding all the efforts
Of The Secretary OF the Treasury TO obtain information, the
whole facts, and the most material facts, too, were never
developed until The investigation Of the committee of
Ways and Means took place. That committee ex-
smined the secret agent OF the Bank before them I'M.
on oath they examined the directors on oath they
called for the whole of the correspondence they re-
quired the original letter and refused TO have co.
pies. The whole truth at length come out, and among
other things II appeared that the part of the letter suppress.
ed, and from which an extract had been given, was, in
one view d the case, the most vital and important part of
the correspondence; showing that for many days after the
President OF the Bank was Informed of the arrangement
OF the secret agent, aud knew that one OF the provision
OF the contract was 10 express violation OF the chatter oil
the Bank, yet his authority TO make il was not disavowed,
nor was IL ever disavowed, until after the knowledge of il
was likely TO come to the public, by the publication OF the
circular of the Bafings in a N. York ne wspaper. So tina
the Bank Of the United States, either from is inability Il
pay over the public money when demanded, or for In,
purpose Of continuing in the use Of il for a whole yea
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