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

the end Of its corporate lie, or be removed al
some earlier period. Informing my opinion on
this subject, could only inquire which of these
measures would most conduce to the public
good.
II is obvious, that the interests Of the country
would not be promoted, BY permitting the dePos'
ties of the public money to continue IN the
Bank until its charter expired. Judging from
the past, it is highly probably that they Will a..
WAYS amount to several millions OF do'lars
would evidently produce serious inconvenience,
If such large sun we're lett IN possess'o" VI
the Bank until the last moment Of its existence;
and then be suddenly withdrawn, when It's In
mense circulation is returning upon II, I" De re-
deemed, and its private depositors removing
their funds into other Institutions. The ability
of the Bank, under such circumstances. 10 DC
prompt in its payments to the Government. may
be we'll doubted, even If the ultimate safety OF
the depusites could be relied upon BESIDES
the principle circulating medium no" IN the hahus
of the people, and the one most commonly useu
in the exchanges between distant places, con-
sists of the notes Of the Bank OF the United
States and its numerous Branches he SUD
den withdrawal OF its present amount OF circu'
Ia,ion or its sudden depreciation, before any
other sound and con, enient currency vas SUD-
stituted for it. would certainly produce extern
si,e evils and be sensibly felt among all classes
| of society.
1t is we'll understood that the superior credit
heretofore enjoyed BY the notes oil The Bank OF
| the United States, was not founded on any par
ticular confidence in its management or soidity.
1t was occasioned altogether by the agreement
on behalf of the public in the act OF incorporation.
TO receive them in all payments to the On'ted
States; and It was this pledge on the part OF the
4 hirh
| notes payable at renute Branches. The same
engagement, in favor of any other monied Institu.
uon, would give its notes equal credit. and make
them equally convenient Tor the purpose oil com
merce. But this UblgatIan on the part OF the
United States, will cease on the Sd OF March
| 1886, when the charter expires; and as soon as
this happens, all the out standing notes OF the
Bank will lose the peculiar value they now pos.
sess, and the mites payable at distant places be.
! come as much deprecated as the notes OF local
Banks.
| And if, in the mean time, no other currency IS
! substituted in Its place, by common consent, 1t
is easy to foresee the extent Of the embarrass.
ment which would be caused by the sudden de-
rangement of the circulating medium. 1t would
be too late, at that time, to provide substitute.
which would ward off the evil. The notes OF
the Bank Of the United States 10 circulation on
of the latest return before me when the order for
| removal was given, amounted to S18, 2S7
OF, scattered in every part of the United States.
And If a safe and sound currency were inme.
d,ately provided, On the termination OF the char
| ter to take the places Of these notes, 1t would
| still require time TO bring II into general use,
and, in the interim, the people would be subject
ed TO all the incon, cnlenoas and losses which he
ccessarily arise from an unsOund state OF the cur
rency. The evil woold be SO great and the dis
tress SO general, that il might even compel Con.
gross, against its wishes, to re.Charter the Bank:
and perhaps mrre ef'ctuai means could hardly
be devised, tor insurns the renewal OF the char
ter Ii IL evident that a state OF things 80 much
to be deprt Gated can only be avoided by timely
preparation, and the continuance OF The depo
sites eau ony be- Justified BY the determination
To renew the charter The State Banks can, l
have no dpub,, furnish general circulating me
dunn, quite as uniform ~ value, as that which
has been afforded BY the Bank OF the United
States. Prnbab more 50. For II IS well known
that. in snnr of the cities, the Branches OF the
Bank have been IN the habit, whenever they
thought proper, Of refusing to honnr the notes ut
their own Bark. payable a, other Branches. when
they were not offered in discharge Of debt due
to the United STATES. But currency founded
on the notes Of State Banks could not he sudden
Nv substituted for thai heretofore furnished bv
the Bank of the United Stares. and take the
place of it at the mompni, in every part OF
the Union. II l, essential tina, tho change should
be gradual; and sufficient time should he allow
ed to suffer it To make ITS way by the ordinary !
operations OF commerce, without requiring a
has'y and v,oent effort.
In this view Of the subject. It would be highly |
injud,cious to suffer the deposItes to remain in
the Bank Of the United States, until the oiose uf
It's corporate existence. And as they cannot be !
Withdrawn without the action Of the Secretary
of the Treasury, il must unavoIdabIy become his
duty, at some period Of time, to exercise the
power Of removal Laying aside. therefore, for
the present, all the considerations, which the
misconduct OF the Bank has furnished, the ques
ton presented to this Department was, how
long could the removal be delayed consistently
with the public interestsl 1t is question Of
lime only. The duty must be performed at
some period; and could not be altogether omit
ted. without justly mourning heavy respon-
sihillty to the community, for all the conse.
Quences that might follow. And il is, | think,