Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1834-01-30

! the Isl May, lS2U, and 9diy, because IN,
Treasurer, and not the secretary Of IN,
treasury. alone had. if any federal Office
possessed. the power TO contract with III,
local hanks. And bore again we perceive
the necessity there was for avoiding th
precipitancy with which the Executiv
acted, and for waiting the meeting Of Con
| gress. Congress could have dehberatel
reviewed the previous legislation. decide,
upon the expediency OF transfer Of III,
public deposites. and if deemed proper
could have passed the new laws adaptet
TO the new condition Of the Treasury. Il
could have decided whether the local bank.
should pay any bonus, or pay any interest
or d,tluse the public depositcs throughout
The United States. so as TO secure among
all their parts equality Of benefits as wei
as Of hnrthens, and provided Tor ample
guarantees Tor the safety OF the public mo.
neys IN their new repositories.
But letus now inquire whether the Sc
cretary Of the treasury has exercised bis
usurped authority. in the formation Of
these contracts. with prudence and sliscrc
ton. Having substituted himself TO Con
gress and 10 the Treasurer Of the United
States. he ought at least TO show that. IL
the supulations of the contracts themselves
he has guarded the public moneys and
provided for tho public interests. l win
examine The contract with the Crard Bank
oil Philadelphia, which is presented rs a
specimen OF the contracts with the Allan
tic Banks. The first stipulation limits The
local Bank TO receive in deposites, on &C
count Of the United States, only the notes
oil Banks convertible into coin, in its in,
mediate vicinity or which it is, for the
time being, in the habit of receiving
Under this stipulation, the Girard Bank.
for example, will not be bound TO receive
the notes of the Louisville Bank, although
that also be one of the deposite banks. nor
the notes Of any other bank, not in lis i'm.
mediate vicinity, even If it be a deposite
Bank.
As to tho provision that il will receive
the notes OF banks which, for the time
being, II is in the habit Of receiving. 1t Is
absurd TO put such stipulation ia con.
tract, because by the power retained to
change the habit. for the time being. ii is
an absolute nullify. Now. sir, how does
thlscontract compare with the charter and
practice OF the Bank Of the United Statesp
That Bank receives every where; and Gre
dts the Government with the notes, whc-
Their issued by the Branches or the princi-
pal Bank.
The amount Of all these notes is every
where available TO the Government But
the Government may be OVERLOOKING in
distant bank notes when they are not want
ed, and bankrupt, at the places Of great
expenditure, under this singular arrange.
ment.
With respect 10 the transfer OF moneys
from place TO place, the local bank re
CURES in this contract that il shall NOT
take place but upon reasonable notice -
And what reasonable notice IL, has been
left totally underlined. and OF course open
to future contest When hereaftera trans
fer is ordered, and the Bank is unable TO
make II, there is nothing to do but 10 al
lege the nnrcasonab lcness Of the notice -
ihe local bank agrees to render the Go
verDment all the services now performed
ny the Bank Of the United States, subject,
however. 10 Inc restriction that they are
required IN The vicinity of the local bank
But the Bank Of the United States is I'm.
der no such restrictions; lis services are
CO extensive with the United States and
their territories.
The local banks agree 10 submit their
books and accounts to the Secretary Of
the Treasury, or 10 any agent TO be APP
pointed by him, but TO be paid by the 10
cal banks pro rata. as far As such exami
nation Is admissible ,cithom cioiation Of
their respective charters, and how far that
may be the Secretary cannot tell. becaui 0
he has not yet seen all the charters. He
is, however, TO appoin; the agents Of exa.
animation, and 10 fix the salaries which
the local banks are 10 pay. And where
does the Secretary find the authority TO
create offices and ix their salaries, with
out the authority Of Consress3
But The most improyident, nnprccedent.
ed. and extraordinary provision 10 the
contract is that which relates TO the secu
rity. When, and not until, the deposites
in the local bank shall exceed one half of
the capital stock actually paid in, collstc
raj security, satisfactory TO fbe Secretary
Of the Treasury, is to be given for the
safety OF the deposiies. Why, sir, a fresh
man, schoolboy. would not have thus
dealt with his fathers or guardians mo-
ney. Instead Of the security preceding, Il
is to foiio,o. the deposite Of the Peoples
money! That is. The local bank gets an
amount Of their money, equal to one half
of IFS capital. and then il condescends to
give security Does not the Secretary
know, that. when be goes for the security,
the money may be gone, and that he may
be entirely unable TO get the one or the
otherp We have law, il mistake not,
which forbids The advance of any public
money, even TO a discussing agent Of the
Government, without previous security. -
Yet, in violation OF the spirit of that law,
or, at least, Of all common sense and com
mon prudence, the Secretary disperses
upwards of twenty Eve millions Of public
revenue among countless number Of un.
known banks, and stipulates that when
the amount Of the deposite exceeds one
half OF their respective capital. security is
to be given'