Vandalia Whig and Illinois intelligencer. [volume] (Vandalia, Ill.) 1832-183?, 1834-01-22

TIC uuty Vi Tie DeCTetdTy OI tlIc lTedsuTy
to withdraw the deposites of the public
money from that institution, whenever the
change would in any degree promote the
public interest. 1t is not necessary that
the deposites should be unsafe in order to
Justify the removal. The authority to
remove is not limited to such contingen,
Icy. The bank may be perfectly solvent.
and prepared to meet promptly all de-
mands upon it. 1t may have been faith
ful in the performance of its duties, and
ldeposltes to be WithdfsWn. AYE as ma:
can not be done without the action OF this
department, the Secretary of the Treasu-
Try would hetray the trust confded to him,
lf he did not cause the deposites to be
made elsewhere, whenever the change
would advance The public interests, or
public convenience. The safety of the
deposites-the ability of the bank to meet
its engagements-its fidelity in the per-
formance of its obligations only a
part of the considerations by which his
Judgment must be guided. The general
interest and convenience of the people
uiuSl regulate DlS CONDUCT
This principle was distinctly asserted
by Mr.. Crawford when he was the Secre
tary of the Treasury, soon after the bank
obtained its charter. In postscript to his
letter to the President of the Mechanics
Bank OF New York, dated February 18th,
1917, he says:-"The Secretary of the
Treasury will always be disposed to sup
port the credit Of the State banks, and
will 'nvaria bly, direct transfers from the
|deposites of the public money in aid of
their legitimate eXertions to maintain their
credit. But as the proposition of the Bank
OF the United States excludes the idea If
pressure on its part, no measure of that
nature appears to be necessary at this
time" Other passages IN the correspond
ence of MIR. Crawford with the banks, a.
bout the period above mentioned might
be referred to, equally indicating the same
opinion; and at that day no doubt seems
TO have been entertained OF the power or
OF the duty Of the Secretary in relation to
this subject. 1t does not appear to have
been then even suggested, that the right
of removal depended on the solvency OF
the bank, or the safety Of the public mo-
ney committed to its custody. On the
contrary, in the passage above quoted, the
superior safety OF the State banks is by no
means regarded as necessary to give him
tie right to make the trarsfer to them.-
For he declares that he will give the de
posites to the State banks, OH account OIL
their weakness, aud to protect them from
the Bank ofthe United States, if by means
of its superior strength, 1t sought 10 op
press them. Nor eau any distinction be
taken between the transfer of part, and
the transfer of the whole sum, remaining
on deposite. The language OF the char
ter recognizes no such distinction, and
the principle asserted by Mr.. Crawford
would have led him to the removal OF the
whole amount Of the public money to the
State banks, if a pressure on the part OF
the Bank of the United States had len
support the State banks in their legitimate
exertions to maintain their credit.
The language of the law, therefore, and
the usage aud practice Of the government
under it, establish the following principles.
lst. That the power OF removal was Ill
tended 10 be reserved exclusively to the
Secretary of the Treasury, and that ac
cording to the stipulations in the charter,
Congress could not direct it to be done.
Cd. That the powers reserved to the
Secretary of the Treasury, does not de-
pend Tor lis exercise merely y" the safety
of the public money in the hands OF the
bank, nor upon the fidelity with which it
has conducted itself; but he has the right
to remove the deposites, and it is his duty
to remove them, whenever the public in
terest or convenience will be promoted by
the change.
Taking these two principles as uaques-
tionable, | proceed to state the reasons
which induced me to believe that it was
necessary for the interest aud convenience
of the people that the Bank of the United
States should cease to BE- the depository
of the public money.
The charter of the bank will expire,
according to the existing law on the sub
ject, on the third of March, 1886; and for
two years after the termination OF the
charter. it is authorized to use the corPo.
rate name for the final settlement and Ii
quidation Of the affairs and accounts OF
the corporation, and for the sale and dis
position of their estate-but not for any