Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1833-12-21

CONTINUITY cOnsderabla eumg. iLs
process requires some deieacy in recalling from distant
parts OF the United States much as NAV the i'm
mediate exsency yet not enough to press Disadvantages
ousiy on the community This the especial function of
the Bank How well il has succeeded may be inferred
rom the testimonial: Of the successive Secretaries OF the
Tue 18Th oil December, 1928, Gays:
" In this manner, heavy payments of The debt are in
erect made gradually, Instead Of the whole mass being
produce injurious shocks So prdenv in This and o,ner
respects does the Bank aid the operation of paying oil the
ueo', mat the community hardly has consciousness that
And Mr. lngham, in like manner, OIL the llh of July,
1929, says: W. ''
take occasion express the great satisfaction Of the
treasury Department at the manner in which the Presi-
deut and Directors OF the parent Bank have discharged
Their thus, in all the immediate relations 10 the Govern
men so Lar as their transactions have come under my
notice, ana especially in the facilities afforded i'm trans.
ierihg Tue funds OF the Government and in the prepa.
, ,G J"r me heary payment Of the public debt,
me "st instant chc has been effected by means of the
prudent arrangements IF your board time of severe
depression on all the productive OF the coun.
Try without causing any sensible additions to the pressure
State Banks" " ''
FINALLY the President HIMSELF in his Message to Con.
gress oil December 1929, says:
was aPprehs ended that the withdrawal Of so large
sum from The Banks in which il deposited, time
Vi pressure on the money market, might
INJURY 10 tue interests dependent on Bank
daons But this evil wholly averted by an early an.
hepaon OF at the Treasury aided by the udcios ar
rangements OF the officers Of the Bank of the u S,aesn
had thus become the habtua policy OF the Bank at
me approach OF any large payment preparations
period IN advance, so as to collect its graz
uuay anu 10 distribute its isburse over as wide
sphere as possible.
In the year 1882, the country was heavily indebted 10
Europe or me large impora,ons Of the year 1884, and
was particularly desirable TO give to the community leisure
10 pay that debt out Of their annual earnings and 10 pe
vent any addition 10 the foreign demand in 1882 Now
There were more than twenty five millions and hall of
NE principal and interest Of that debt payable i'm the wear
iS32-om Dec. 81 1884, 10 Jan. IS33-of which more
than fifteen millions were TO be paid in nine months and
oil 10 fOreip Ihe Rank
uy prepared TO make the first payment the LIST Of Oc
The State Banks of Philadelphia, New York,
and Boston, owed to this Bank 80 2so OOo
It's specie at these places alone was, 3 200 600
It's funds in Europe were 29s2 600
Making oil cash in hand, its equiv alens 1862 600
WIN on open credit in Europe, which to
Besides not less than twenty millions ofdebs to be used
Iot inns purpoe-whe the whole public debt to be paid
on the lst October, was SS ,634 9SS 81.
In this state the Bank, had it considered only lis own
interest would have been perfectly passive since il was
perfectly at ease But it had other and higher interests
10 consult. From The communication with the Treasury
In Jny was probable that the funds of the Government,
might be insufficient TO pay the debt advertised to be maid
anu 'hat even II these funds adequate the opera
ton would exhaust all the the Government and
require that the community should repay the whole amount
OF the public funds distributed among them II was fur
Their manifest that the ability of the Government, N moo,
It's engagements depended entirely the punctuaI paw
ment oil the revenue in the commercial cities from JuIv
10 January, which was estimated about twelve millions
OF dollars. '"'
That resource threatened with the greatest danger
ny me appearance of the Cholera, which had already be-
gun us ravages in New York aud Philadelphia with eve
ny indication OF pcrvadng the whole country Had il
continued as began, aud all the appearances in july war
raheu me belief OF its continuance, there can be no
doubt would have Frustrated all cr,di, ard
seriously endangered the public revenue az in New VI
ana Philadelphia alone, the demand account of the TO-
reign 'hree per cents was about FIVE millions
he Bank, therefore, made arrangement with the
foreign owners oil this stock to the Of il75373
% 10 ieaVe 'her money In the country for another year.
@ anK assuming 10 pay the interest instead Of the Co
'einmeh' favIng settled this, the Bank resumed its
us"ai iaciii'es oil business 10 the community. or the
"hoe TOUR millions postponed, the interest on them has
ceased, and at this the only certificates NOT ye,
actually returned, those in the name of two persons
amounting TO $i2375 81, and is remarkable that while
oil The whole amount OF SAL 1878 90 purchased and
Pos,poned mere remain unpaid only owners holding
S42S7S 9l the of the postponed tire still out,
standings hive or ten times So that in fact as
was anucpated In the report of the Committee of WAYS
payment ''0
= al these things were fully explained by the Committee
o, ways and Means, TO whom that part OF the Presidents
message was referred, and that Committee accordingly
reported follows: sS
"The arrangement made by the Bank for a temnorarv
Posponemen with the of the holders of The nav
ment oil hive millions OF the three per cent debt being now
substantially closed by the surrender to the
VI me ceruncates oil stock except for small amount and
the whole debt ITSELF far the Government
PAID at an earlier period than it is probable it would other
WISE oeen lhis question seems longer present
any important or practical object OF inquiry or to call for
or admit any action OF Congress upon it,"
This ought TO be satisfactory yet is the subject now
revived WIN the addition Of distinct errors in non f
iact The hrst is that the Bank "was conscious that at
INC emu oil the quarter it would able to nav over
the deposites whereas the state of the Bank az above
explained proved its entire ability make this payment
ana mat lis inteposon exclusively dictated nv The
desire TO avert an additional trouble at season of nest
renee ne second is that the part of the
maue WIN me agent OF the Bank was not dsavowed un-
vi some incidents connected with this secret ne ociaon
accidentally came to the know ledge of the public and ,
fact is that as that part of the
arrangement which seemed 10 conflict with the charter
was received the determination made to decne eye
euing before any publication of any sort was seen or
known III regard 10 ii.
The evidence OF this clear and so short tina, Il do
serves to be cited example of the general inaccur
cy oil 'his manifesto. The Committee of Excbanoe L,
her report 10 Congress in January 30 1888 declare as
follows: - O' "'' 10
But when the contract itself reached the Bank nm Tho
IN Oh ocooer and II appeared from the communication
OF Messrs Barring Brothers Co.. that the stock was IN
be purchased on account OF the Bank they were mme
adeiy instructed, on the 18th OF October that the Bank
"du no authority 10 become owners Of the stock" &c
When TWO oil the members of that committee were ex
ahmed on oath, before the committee of avs and Means
'pey confirmed the statement as follows:
Questi0n--fiad the President or Exchange Commues
any intention TO dsavow General aader autho,;,
make The contract he did, until after the IN
he new fork papers Of the Ih 18th October last NJ
circular OF The Bari0gs 10 the Foreign holders of the
" ., per cent Stocks announcing them, that thew
mao Inc authority Of the Bank purchase or negotiate
pos'ponement OF the stocks held by them? Answer of
Mr.. Manuel Eyre: can say yes, positively. 70.
collect II perfectly well. Wben first read this letter
SAID IL was not proper, and disavowcJ IT,
Answer oil MIR. Matthew L. BevAn. I never did see
myself the Aoice referred to in the New York papers I'm,
wen fecohect the moment the letter was received giving
Information Of the procee ceilings in relation IN III,
of tho