Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1834-11-20

already great. Of " unavailable funds >, the
purchaser OF public lands, and debtors TO
the Government generally, win he put to
inconvenience; the Treasury will be sub.
ject 10 greater risks Of loss, and the U s.
Bank. the party aimed at. will benefit by
keeping longer IN circulation these very
bank checks; as every one knows tina,
bank notes not available as current money
or for deposite, are by that very circum.
stance kept longer out. This may give a
notion OF the lcisdom Of thus indalging spite.
~ y Amer,
Ii appears that ever since the founda.
lion OF the Bank-one of the purposes NJ
which was to establish uniform circula.
ting medium, the impossihility of execu.
| ting that purpose was apparent, while the
notes were signed By single person, oc-
cupied as he was with other and more i'm.
portant duties. To overcome the difficult
ty, the bank resorted TO the expedient of
issuing small drafts drawn by the Branch.
es on the parent Bank. which answered all
! The purposes Of notes for small circulation
Before adopting this plan it was submitted
to three Of the most eminent lawyers in
the country, MIR. Binney, Mr.. Webster,
and Mr.. Writ then holding the office Of at.
tOrney General of the United States. Their
views were as follows.
Extract from the opinion Of II. Binney.
Esq. dated March IS, 1877, on the sub
ject Of Branch Drafts:
al am unable to discover any legal oh.
lection to the plan proposed, and, since Il
will facilitate The exchanges of the coun.
try, and secures The public and the bank
from frauds, it seems TO me as expedient
as it is lawful
(Signed) Fl. BISssY.n
81 concur entirely in this opinion.
(Signed) ID. WEBSTER"
can see no possible legal objection n
the practice above stated, and concnr an,
tirely in the opinion.
(SignedD WIN. W,Rr.n
When the Drafts began to circul.,s
the receivers applied to Mr.. Rush, the Sc,
cretary of the Treasury, to know how
they were to treat them, and he reouested
information from the President of the bank
1t was given in bis answer, dated Jan. 10
1873, of which the conclusion is as folIow,'
Having thus explained the history and
the nature Of these Branch Drafts. / have
only to add, that, as material part of the
design in issuing them was to facilitate the
collection of the public revenue, thew are
placed on the same footing Of negoiiabiE.
| ty as the notes signed by the President
and Cashier of the Bank and that if re-.
ceived on account Of the Government thew
efectually bind the Bank, and will be maid
IN the same manner as notes Of similar
denominations signed by the President
and Cashier now are, or hereafter NAV be.
paid. ~
Whether, under these circum stances. il
IS expedlent TO receive them, is a question
for the exclusive consideration of The Depart-
ment"
To this Mr.. Rush replied as follows:
"TREAsURY DEPARTMENT, Jan. 81, 1928.
Sir have had the honor TO receive
your letter of the 10th inst. with its enclo.
sures. As you state that the amount of .
any OF the drafts 10 which il refers, which
may he received on account of the United
States, will be paid in the same manner
as notes signed by the President and Cash.
Ter oil the Bank. Ihave feH no hesitation in
directing that such drafts be taken in pau.
ments TO The United States.
The specimens which accompanied your
letter are herewith enclosed.
have the honor TO remain, very re-
spectfully, your obedient servant,
RICHARD RUSH.
N. BIDDLE, ESQ.,, President of the Bank
United States, Philadelphia"
And SO the matter has continued 10 The
present day.