Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1834-02-08


rho corono;ttee on Finance to whom was re-
ferred the report of the Secretary of the Trea-
s,,rv of Sd of December, 1888, on the reno
val of the public depostes from the Bank OF
the United States, and a resolution, submitted
70 the Senate by an honorable member from
Kentucky, declaring that the reasons assigned
nv the Secretary for the removal of the said
deposites, are unsatisfactory and insufficient,
have agreed on the following
REPORT:
The act incorporating the Bank ofthe United
states. as is Justly remarked by the Secretary,
;s contract, containing stpulations on the part
of the Government, and on the part OF the cor
noration, entered into for full and adequate con-
sideration.
The Government became party to this con-
tract bv granting the charter, and the stockholo-
ers nv accepting it. " In consideration" says
the charter. " of the exclusive privileges ana
benefits conferred by this act on the SAID pank,
the president and directors Thereon shal pay 70
the United States, out of the corporate luhoS
thereof, one million and tlve hundred '9 10
dollars in three equal payments" and IN ano-
tber section il declares that during the CON
t;nuanee of this act, and whenever required py
tba Secretary of the Treasury, the said corpora
ton shal rive the necessary facilities Tor trans
ferring the public funds from place 10 pace
within the United States or the territories theIe
of and for distributing the same In payment OF
ths nnbIic creditors without charging commits
s;ons or claiming allowance on account OF OH
fsrence ofexchange; and shall do and perform
e. several respective duties of the COMMISSION
ers ofloans for the several States, or any one or
moe of hem, Whenever a. led by law
The section immediately following tnlS pro
vision. is in these words and ne u Juftnef
enacted That the deposites of the money OF the
limited States. in places in which the said bank
and branches thereof may be established, snail
he made in said bank or branches, unless the
Secretary of the Treasury shall at any time,
otherwise order and direct; in winch case the
Secretary of the Treasury shall immediately
lay hef,re Congress, if in session, and II not,
;nomadiatelv after the commencement OF the
next session. the reasons for such order or d.
II is not to be denied or doubted, that this Gus
todv of the public depoSiteS was one OF the
"beneftsn conferred on the bank by the char-
ter. in consideration of the money paid, ana the
services undertaken to be performed oy the DanK
TO the Governments and to this custody the oahk
has lust right unless such causes have arisen
as NAV have justified the Secretary in giving
an order and direction for changing that custo-
DIV Any order or direction, therefore issued
under the provisions of this law, necessarily IN
wolves a consideration OF the Just extent OF
the Secretary's power and OF the rights OF the
bank.
But Congress in making this provision, I'M
nmestionablv had in view the safety OF the pup
lie funds and certain important hnancial Cd
tjects, as well as the making OF a Just consoerd-
ton to the bank, for the sum pald, ana the ser
vices undertaken by it; and with this view, al
ca If has expressed its will, that the deposlteS
h All continue TO be made in the bank, until good
cause shall arise for ordering otherwise. vi
this good cause, the Secretary of the treasury,
in the first instance, and Congress, ulumatey
and conclusivey is constituted the Judge. Eve
rv order. therefore of the Secretary, for chang
inc the deposites presents for the examination
ofCongress, question of general political pro.
priety and expediency, as Wen as question OF
right and obligation to the bank
These questions may be considered togetner
They are intimately connected; because the
right of the bank to retain the deposltes, ana 10
enjoy the advantages to be derived thereifoin,
cannot be denied unless case is shown to nave
arisen within the just power ofremoval, vested
in the Secretary. and which made 1t his duty to
exercise that power. The Secretary Is only 10
remove the depoSteS for reasons he Is TO give
an account to Congress; If they be lnSufnclent
to Justify the removal, the bank mas rlght d.
So to expect that, in that case, the puollc urea
sure will be restored to its former place OF SAFE
ty.
The Secretary having removed the deposltes,
and having reported his reasons to both Houses,
the whole subject is now before Congress, by
way of appeal from his decision; and the ques-
ton is, whether that decision ought to stand or
ought to be reversed.
The power of the Secretary under the law, is
evidently but provisional. 1t is power which
ne NAV exercise in the first instance, but its exer
else is ultimately referred to the wisdom OF
Congress, and by Congress it must be judged.
He is authorised to do the act, but Congress is
20 examine it when done, and to confirm or re-
verse it. The Secretary may change the depo-
SITES but when changed, Congress is to decide
on the causes of such change, with authority Ell
ther to sanction the removal, or to restore the
deposites, according to its own Judgement OF
right and expediency
In order to decide whether the act of the Sc
cretary ought to be confirmed, it is requisite IN
the first place. to form just opinion OF the true
extent of his power, under the law; and, in the
second place, to consider the validity OF the rea-
sons which he has specially assigned Tor the eX-
ercise of that power in the present case.
The opinion of the Secretary is, that his pow
ar over the deposites, so far as respects the
rights of the bank, is not limited to any parhcu-
lar contingencies, but is absolute and uncondi-
tional. If it be absolute and unconditional, so