Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1833-12-07

gress, december 4th, 1888.
Treasury DEpARTMENT,1
December 5, 1885.
In pursuance Of the power reserved to
the Secretary Of the Treasury, by the Act OF
Conyress entitled, 80 An act to incorporate the
subscribers TO the Bank of the United States" |
have directed, that the depOstes OF the money OF
the United States shall not be made IN the said
Bank. or branches thereof, but In certain State
Banks, which have been designated Tor that pur-
pnse. And | now proceed to lay befure Con.
sress the reasons which induced me 10 give this
order and direction.
The sixteenth section Of the law above men
toned, is in the following words: " And be It
further enacted, that the deposltes Of the money
OF the United States, in places in which the said
Bank and Branches thereof may be established,
shall be made in said Bank or Branches thereof,
unless the Secretary OF the Treasury shall at
any time otherwise order and direct, IN which
case, the Secretary Of the Treasury shall imme-
dla,ely Law before Congress, If in session, and 1t
not. Immediately after the commencement OF the
next session, the reasons Of such order or direc-
ton"
II has been settled by repeated adjudica,i
that charter, granted by State to corporation
like that of the Bank of the United States, is a
contract between the sovereignty which grants
il, and the tockholders. The same principle
must apply to a charter granted by the United
States, and consequently the act Incorporating
the Bank IS to be regarded as contract between
the United States Of the one part aud the stock
holders OF the other; and by the plain terms Of
this contract, as contained IN the section above
quoted, the stockholders have agreed, that the
power reserved to the Secretary over the dePo
sites shall not be restricted to any particular con-
l.. sI.fnn
far as their interests are involved in the removal
The order, therefore. Of the Secretary Of the
Treasury, directing the public money to be depo-
sited else where, can in no event be regarded as
violation Of the contract with the stockholders,
nor impair any right secured 10 them by the char
ter. The Treasury Department being entrusted
with the administration OF the finances Of the
country, it was always the duty OF the Secreta-
ry, in the absence Of any legislative provision on
the subject, to take care that the public money
was deposited in safe keeping. in the hands OF
faithful agents, and in convenient places, ready
to be applied according TO the wants OF the Go.
vernment The law Incorporating the Bank has
reserved 10 him, in its full extent, the power he
before possessed. Ii does GOT confer on him
new power, but reserves to him his fnrmer au
thority, without any new limitation. The obi
CATION to assign the reasons foe his directinn to
where, canuo, be considered as a restriction of
the power, because the right ut the Secretary TO
designate the place Of dsposite was always nroes-
sariy subject TO the control OF Congress. And
as the Secretary Of the Treasury presides over
one of the Executive Departments Of the Gov.
ernment. and his power over this subject forms
part Ut the Executive duties Of his office, the
manner in which 1t il exercised must be subject to
the supervision of the officer TO whom the Consti
tuition has confided the whole Executive power.
and has required to take care that the laws be
faithfully executed.
The faith Of the United States is, however,
pledged, according TO the terms OF the section
above stated, that the public money shall be depo
sited in this Bank, unless Z" the Secretary OF the
Treasury shall otherwise order and direct."-
And as this agreement has been entered into by
Congress. in behalf Of the United States, the
place Of deposite could not be changed by lie.
gisa,ise act, without disregarding pledge,
which the legislature has given; and the money
of the United States must therefore continue to
be deposited 10 the Bank, until the last hour Of
its existence, unless 1t shall be otherwise order
ed by the authority mentioned in the charter
The power over the place OF deposite for the pub
lie money would seem properly to belong to the
Legislative department OF the Governments; and
il is difficult to imagine why the authority to
sively to the Executive. But the terms of the
charter appear to be too plain to admit of ques
ton: aud although Congress should be satisfied
that the public money was not safe in the care OF
the Bank, or should be convinced that the int.
rests OF the people Of the United States impe.
riousy demanded the removal, yet the passage of
law directing it to be done, would be breach
Of the asreemen, into which they have entered
Assuming this to be the true construction ut the
charter to the Bank. it must be the duty of the
Secretary Of the Treasury TO withdraw the depo.
sites Of the public money from that institution,
whenever the change would IN any degree pro-
mote the public interest. Ii is not necessary
that the depos,tes should be unsafe in order to
justify the removal. The authority to remove Is
not limited TO such contingency. The Bank
may b. perfectly solvent, and prepared to meet
promptly all demands uponit 1t may have been
faithful in the performance OF its duties. and yet
the public interest may require the deposites to
be withdrawn. Aud as that cannot be done with
out the action Of this Depar tment, the Secretary
of freas ury ySouid hptray tho trusf cnn Eiad