Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-01-02

understanding Of those who chartered the bank; the
power oil the Secretary In relation to IT, and the power
the President over him. have the books at hand but
Tor my greater convenience, have drawn off COPIES of
those psssagesio which wish to refer, aud which will
now read to the House.
The first which shall call the attention Of ,hs Ho,.e
an extract Of letter from Mr. Secretary Craword to
che Bank OF the U y, January l6, 1871 The SecretA.
ry speaking IN relation to the transfer OF the from
the State to the s. Bank says: "There eau be no oh.
me state Banks which shalt be subject the revision ~
me PTes'den Again, (Which will he submitted to the
prestden for his ultimate decision" Thus clearly adj
'ng the supervisory powerof the President over the
subject. az unders God by Mr.. Crawford.
In Mr.. Crawfords letter of 2sh January 1877 to the
state Banks Of Pennsylvania, &c., he he power
.ot the Treasury Department to control Its Gthe IT, s.
BANK proceedings at any moment, by changing the de-
In his letter Of February 49, 1917 to the Aiechanics
n'nk o, New York, Mr.. Crawford Says "The right to
windraw The deposites. with vieto to equaxe the be-
"hy as the situation IF the several Banks might re.
q"Fe, trds expressly reserued Again, (page lS) In
:rueied by the presiien, Of the United States. have
instructed the Treasurer OF the United States to draw up
on the Banks OF New York with which the public mo.
ney Is Deposited. aud generally through the United
States. In favor Of the Bank the United States for the
amount Of the public money deposited in those Banks"-
Aud nSh postscript to tn letter he says: The Secre
tary OF the Treasury will always be disposed to supoort
the credi, OF the State Banks. aud will inv sraLv Jrsc
transfers from he deposites OF the public money in aid
their Legitimate exertons to main,ain their credit
nut as the proposition Of the Bank Of the United States
excludes the idea Of pressure its part measure of
mat nature appears to be necessary at this time"
IN ms letter o. l7h March. lsi7, he states. that, "by
cnafer the public money deposited in places where
the Bask OF the United States or its branches are est,
oshed, must be deposited in them. except when there
are urgent reasons to the contrary. In places where
there no Bank OF the United States there is no obga
ZION to deposis the public money them. transfer
Ito them ~hen deposited" Letters OF the same impor
written between the years 1917 and 1924 might be quo
led out unnecessary will just call the o.
the House TO the letter OF Mr. Crawford. OF December
~" iei7' communicating TO Congress his reasons far
mot dnyerring the public moneys deposited in certain
Sate and other local Banks. to the Bank of the United
Stdtss." (See Ex. Doc. LIST session, 18Th Congress-
Doc No. D, in VOL Mr. c. states, that previous 10 Isl
January 1877 ga proposition been submitted by this
department to the State and other local Banks. Tor the
purpose OF inducing them to resume specie payments on
the 20h OF February following. As the public money
deposited in them was intimately connected with the
Proposuon Dds deemed insrpedent to transfer those
balances TO the Bank Of the United States, until the
result offhe proposition tpos knotcn"
Again "ln order to induce the Banks in this District 20
resume specie payments simultaneously with the banks
already enumerated Chose of New York, Philadelphia
and kichmond)i IL became necessary for the Treasury
Depdrfmentfo gue them assurances of support during
ne FIRST months succeeding such resumption"
I'm consequence Of this assurance, consde rabie po
Georgetown were permitted TO remain until the lst day
OF July last On the 18Th day Of March, of the same
year, depo'e Of $4,000 icds made IN the Farmers
and Mechanics Bank Of Georgetown, WHICH HAD
NOT PREVIOUSLY DEEM ONE OF THE pEposIro.
hIEs OF THE PUBLIC MONEY, which sum trans
the deposites which had been previously made in the
banks OF Washington and Georgetown, were trans.
Dos'on') considerable sum Of the public deposite
assigned for the discharge of the Treasury notes which
had been made payable at that place."
Again: "a considerable sum left with the Bank of
ehsyWania, upon the ground that removal OF IL TO
me sank oil the Unied States would be inconve nent 10
.ne holders Htcas therefore, determined to continue
10 employ that bank as the agent Of the Treasury for
aspes1s,ng the outstanding Treasury notes demandable
BY regulation of the Bank of the United States the
bs OF State banks refused except those of banks
established in places where they respectively ten
In oofs a.. Al
ec'ors Of the District of Columbia Of Virginia. and Mary
ad made their deposites in the Metropolis Bank Of this
cy' anu he sums SO paid remain still principally with
Pennsylvania.
Again; '' In declining to transfer the balances which
remained in the banks OF this District the time that
the Office in this city CONNIE ed business and in the
cases stated to have occurred in Philadelphia and Bos-
'on cas influenced by consideration of the pres
sure leH 6y the State and local banks, during several
months subsequent to the resumption of specie pau
ments, and Of the Sc. vces rendered 10 me Government
ny nose banks during the period that they ,cere used
as places Of public deposite 6y the Treasury An i'm
mediate transfer OF the public money deposited in them
would probably have produced upon the debt
os OF those banks. which might inflicted upon them
evils greatly beyond the benefit which would have re
States" " 80 ~
ihese reasons were comnunc ed to Congress, and the
Mhoe tongress acqniesced in their properly The Bank
The Bank had mol then iiseif up in an antagonist III
tude against the Government. When these reasons were
assigned there was no one in all the country, doubt
60 hat hey we're satisfactory and sufficient. What did
these reasons establish?
ist That II is sufficient for retaining the pub
lie money from the Bank Of the United States and max.
Ing the depose in State Banks that il is done TO enable
the latter to resume specie payments.
I'd That the Treasury may give support 10y depote
OF pubic money! 10 the State Banks TO enable them
pay specie.
3D. That deposiles of public money may IN ade in the
Banks which have not been before public repositories TO
enable them to sustain their credit, the of the
deposte in the Bank OF Georgetwn.
4ih That State Banks Gas in the Boston and
be I'M ed asa nts NJ Tho
sury, when the public convenience requires il.
o. That the deposrs may be made in State Banks TO
relieve any upon these Banks or in alton
OF services previously rendered by them; and
o. 10 prevent pressure by the State Banks upon their
debtors. $500
nrer than this; seven after the Bank charter
eu, ana had been in fu operation the Secretary Of the
treasury was called on by the Senate Of the United
states 10 say II he had made any loans any OF the State
D'nks or ~ he had made OF the public depoes in
those institutions In the year 1928, Mr. answer
ed this CALI and the information ch required
OF him. IL would not do for gentlemen say that this
was when the Bank went first into operation, and hat
these ought to he regarded rather for withhold
ing than for Withdrawing the dcposes This call was
made years after the Bank went into operation
lie would read an extract from the letter Of Mr. Craw.
lord, communicated in reply TO that call:
at Is se peculiar province and has been the prac
lice, OF the Department Of the Treasury Of the United
States, TO direct the moBeyed operations Of the public,
70 The preservation OF credit by maintaining the equi
Drum between the moneyed institutions OF the coun-
try" Again
''From my personal intercourse with Mr.. GELATIN
KNOW ne entertained the sentiments contained in this let
ter and presume they have been BY all of
his predecessors and Office and acted upoo