Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1833-12-10

serving its conduct, which the law had P'o.'o."
for the safety Of the public money conhdeu 20 ns
care; and that there is sufficient evidence 10 sho"
that this arrangement on the part OF the nans
was deliberately planned and IS sun Pe's'''e'
jn. for the purpose OF conceaiment. :,
sd That il has also, IN the case at the three
oer cent. stock, and Of the Bill Of Exchange on
France, endeavored unjastly 10 advance its own
interests. at the expense of the interests and the
lust rights of the people Of the United States
If these propositions be estab ished, It IS very
clear that man Of ordinary prudence, IN private
life, would withdraw his funds from an agent VINO
had thus behaved himself. in relation to his prln
cpal; aud it follows, tina, il was the duty OF the
Secretary Of the Treasury to withdraw the tunus
of the United States from the Bank
4th That there is sufficient evidence to show
that the Bank has been, and still Is, seeking 10
obtain political power, and has used its money
for the purpose of influencing the election oil the
public servants; and II was incumbent upon the
Secretary of the Treasury, on that account, 10
withdraw from its possession the money OF the
United States which it was thus using Tor imPro'
per purposes. Upon the whole, | have felt my
self bound by the strongest obligations, to remove
the deposites. The obligation was imposed upon
me by the near approach of the time when TINS
corporation will cease to exist as well as ny the
course Of conduct which it has seen ut to pursue
The propriety of removing the deposites being
thus evident, and it being consequently my duty
to select the places to which they we're to De re-
moved. it became necessary that arrangements
should be Immediately made with the new dePo-
STORIES Of the public money, which would not on
" render il safe, but would at the same time Sc
cure to the Government and to the community at
large, the conveniences and facilities that were
intended to be obtained by Incorporating the Bank
of the United States. Measures we're according
ly taken for that purpose, and copies OF the con.
tracts which have been made with the selected
Banks, and of the letters of instructions to them
from this Department, are herewith submitted.
The contracts with the Banks in the interior, are
not precisely the same with those IN the Atlanuc
cities The difference between them arises from
the nature of the business tran ,ac,ed bv the Banks
IN these different places The State Banks sc.
Iec,ed. are all institutions of high character and
undoub,ed strength. and are under the manage
ment and control of persons of unques,ioned pro
bity and intelligence And in order to ensure
the safety of the public money, each OF them is
required, aud has agreed to give security, when
ever the amount of the deposite shall exceed the
half of the amount of the capital actually paid IN;
and this Department has reserved to itself the
right to demand security whenever II may think
it advisable, although the amount on deposlte may
not be equal to the sum above stated. The Banks
selected bave also severally engaged to transmit
money to anv point at which it may be required
by the direc,lons Of this Department, for the pub.
Inc service, and to perform all the services to the
Government which were heretofore rendered by
the Bank of the United States. And BY agree
ments among themselves, to honor each others
notes aud drafts, they are providing general
currency at least as sound as that OF toe Bank OF
the United States, and will afford facilities to
commerce, and in the business Of domestic ex.
change, quite equal to any which the communi'
ty heretofore enjoyed There has not been yet
sufficient time to perfect these arrangements;
but enough has already been done, to show that
even on the score Of expediency, Bank OF the
u. States is not necessary, either for the fiscal
operations OF the Government, or the public con.
venience;-and that every object which the char
ter to the present Bank was designed TO attain.
may be as eff.ctualy accomplished by the State
Banxs. And, If this can be done, nothing that
is useful will be lost Or endangered by the change,
while much that is desirable will be gained BY it.
For 10 one Of these corporations will possess that
absolute and almost unlimited dominion over the
d, operty Of the citizens Of the Uniled States,
which the present Bank holds, and which enables
il at any moment. at its own pleasure, to bring
whenever 1t may deem i. useful to its interest to
make its power felt, The influence Of each Of
the State Banks is necessarily limited to its own
immediate neighborhood, and they will be kept
~ check by the other local Banks. They will
not therefore be tempted by the consciousness Of
power to aspire to political influence, nor likely
to interfere in the elections Of the public servants.
They will moreover be managed by persons who
reside in the midst of the people, who are to be
Immediately affected by their measures; and they
cannot be insensible or Indifferent to the opinions
aud peculiar interests Of those By whom they are
daily surrounded, and with whom they are con.
stantly associating
These circumstances always furnish strong safe.
guards ssainst an oppressive exercise Of power,
and forcibly recommend the employ ent Of State
Banks in preference TO Bank of the United
States, with It's numerous and distant Branches /
corporation of the latter description, is con.
finally acting under the conviction of its i'm
mense power over the money concerns of the
whole country, and is dealing also with the for
tunes and comforts Of men who are distant from