Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1833-12-10

IN
without giving shock TO the currency or producing
distressing pressure upon the communtyl am con.
WINGED that the time which remained the charter In
after The LIST October, (he day on which the frs, mr.
der for removal took eect) than WAS pro-
per to accomplish the object with safety 10 the
nny Aud IL II had dependedupon my judgment, n
earlier PERIOD should have preferred and should have
taken longer time. Enough however, is yet lett pro-
vided no adopted by the Bank for the pur.
pose OF infctDg unnecessary suffering upon the country
Apart therefore, from any arising othe
conduct of the Bank and looking merely 10 the near an
proacb OF the day when II would exist, the with
drawai OF the depostes appeared to be required by the
public interest, at the time when the first order
val was given by this Department
This opinion confirmed by the ground taken in favor
oil the renewal Of the charter December session. 1881
II was then urged that the short period which yet remain
ed oil It's corporate existence and the necessity OF prepa
ing TO wind up its concerns If the charter TO be
renewed made proper that the question should once
be decided. Very little than half of that time vet
remains And although do no, concu in the opinions
then expressed aud believe that the application was i'll
timed, and premature, yet the then relied on bv
many whose udgmen, is entitled to respect afford strong
grounds for concluding, that the adopted is
Objectionable the score Of tme and that the
deposites were not TO continue in the Bank until the
nination Of its charter their withdrawal could not with
proprety be longer delayed.
There is, however, another view of this subject which
IN my opinion male 1t impossible further TO postpone the
removal About the first OF December 1892 had been
ascertaned that the present Chief Magistrate
elected and that his decision against the Bank had thus
been sanctioned by the people. At that time the dis
counts OF the Bank amounted 10 $61 57l 625 66. AL
though the ISSUE which the Bank took much pains TO
frame, had now been tried, and the decision
against it, yet steps taken to prepare for its an
preaching end On the contrary il TO enlarpe
its discounts; and the 2L of August, 1888, they
amounted TO S64 160340 H. being increase of more
than two and half millions in the eight months immedi-
atey following the decision against them And from
preparing to arrange its affairs with view up it's
business seemed, from this of conduct the
design OF the Bank itself in such attitude that at
the close Of its charter the country would be compelled
10 submit 10 its renewal, TO bear all the
oil currency suddenly deranged and also pres
sure for the immense outstanding claims which would then
be due TO the corporation. While the Bank thus pro-
ceeding TO enlarge its discounts Agent was appoint.
ed by the Secretary OF the Treasury to enquire upon
what terms the State Banks would undertake perform
the services TO the Government which have heretofore
been rendered by the Bank the United States: and al
so ascertain their condition in four OF the principal
mercia Cities for the purpose Of enabling the Department
TO judge whether they would be safe and de-
posories for the public money. Ii deemed neces-
that suitable fiscal agents should be prepared in due
season. and was proper that time should be allowed them
to make arrangements with another throug hout the
country in order that they might perform their duties in
concert, and in manner that would be nent and
acceptable to the public 1t was essential that change
important in its character and extensive in its ope
ration upon the financial OF the country, should
not be introduced without timely preparation. There
nothing in this proceeding, the condition the
Bank which should at that time have produced sudden
and entire change OF its policy. For addition to the
ordinary receipts from bonds given previous
importation, the hand when cash duties
on woollens might well be expected TO be very produce
tve these two sources the receipts from the
customs were in fact, unusually large, and the amount
OF the public deposiies in the Bank proporonaby bea
w The capacity Of The Bank therefore, this time, TO
greatly superior to what had been for time ore
aud the nature OF the inquiry made of the State Banks
confined as was to the tour principal cities
showed that the immediate Withdrawal of the entire de-
poses from the Bank to distress it, not contem
plated And II any apPrehensons to the contrary
iet by the Bank an inquiry this Department would no
doubt have been promptly and satisfactorily cred And
certainly was the duty Of the Bank before adopted
course oppressive TO the whole country TO be
ground OH which il acted II justified for
inaicng public injury, by alleging mistaken opinions of
its own, when the obtaining information absolute
its CHI no
change was always designed to be gradual; con-
duct OF the Bank itself has since compelled to
portion OF the deposes earlier than originally in
tended. There nothing, therefore, in the INQUIRY
before mentioned in the views OF the Executive De-
par tnen norin the condition of the Bank which justified
sudden and oppressive change in its policy.
The situation of the mercantile classes also rendered
the usual aids OF the Bank more than necessary TO
sustain them in their businesTher bonds for previous
mPortaons before stated, constantly becoming
DUE and heavy cash duties almost daily be paid
The demands of the public upon those engaged in
commerce, were consequently unusually large aud they
had just claim to- the most liberal indu from the
hsca' agent OF the Government, which had for many
years been reapng harvess OF profits from depoes
oil the public money But the Bank about this time chang
ed its course.
BY the monthly statement of the Bank, dated I'd Au-
gust 1888, appears that its loans and domestic bills OF
exchange, purchased and on hand, amounted to
BY the monthly statement of the End Sep
tember 1888, they appear 10 have BEEN 653 1859 so
BY that oil 2nd October, 1888, they were 2O2 90
Reduction in two months, 4O66,I46 FL
by the same papers appears that the pub
lie deposites, including those for the re-
demptioD of the public debt, the Trea-
surer's and those OF the public officers
were, in August, $7599,93i ~
In September, 9,1S2,I73 Is
In October, 9s6s 435 IS
Increase of The public deposites in two
months, So 26S ,50l IL
Total amount collected from the commu-
nifty, Sc, 334 $50 80
Thus upwards Of six millions Of dollars were withdrawn
from the business Of the country by the Bank OF the Unit
ed States, In The OF two months This OF itself must
have produced pressure the money market aGe citing
all commercial Transactions But the curtailment In the
Bank accommodations OF the community was much larger
The policy adopted by the Bank Of the United States com
PEELED the State Banks TO take the course in selde
fences aud the Bank OF The United States appears to have
resorted the expedien OF drawing the State Banks
the balances due in specie and to have boarded up the
article in lie vaults.
In August 1885, that Bank had in specie, $40 023 677 SO
In September, O2O7 GAO 20
In October, 1863 IA 81
Showing increase Of specie in months of 1850 76I IS
This sum- sbclieved was chiefly drawn from the State
Banks TO iorify themselves, those Banks
PEELED TO call on their debtors and cua their
daons; and large proportion Of these calls always
paid IN their notes, that TO obtain 100000 in specie,
they probably obliged call for four five times that
amount To replace The specie taken from them by the
Bank OF the United States aud provide for their own
Sts,o R,uk have oit.d