Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-02-08

VIC PuoHc ueposies. The Senator IRON south Carolina
(Mr Cs,honn) remarked that 1t not the Conduct oil
The Bank, tut the conduct OF the Secretary, which
under review. The honorable gentleman however, will
permit me to say. that as the justification OF the Seere
tary depends the reasons furnished by the conduct Of
the Bank ior the exercise OF HE authority, inquiry
into the duet OF the necessarily involves a review
oil the conduct OF the oih-r.
tiitre MIR Calhoun rose, ao said he did not deny The
rsh OF the Secretary To bing the conduct OF the Bal
under review far the SAFETY of the deposifes
concerned, bat no Jdrther.1
hope have sho~u, 'epied NJ r, that f. ON The ma
"ie aud terms OF the antho reserved the ~ etary
OF Tue Treasury, the tchoe conduct the Bank, in
ueh'rge oi AL ats du@s is properly 10 consiera
u' anu shalt now proceed to inquire INTO its conduct in
INSTANCES, which appear To me to furnish ample
Jusulicaon Tor Withholding bo the depositrs # the
public money La confn'ng myself TO these instances,
DO not wish be understood thinking there in nothing
else in the conduct OF the hank thy of blame or Justly
ncurring he nnimadversion OF the Governments On m.
contrary ,hnk there Is much mo- =: hut con;n. -, s,
TO those instances because believe tina, they alone are
abundsny sufficient to justify the wthdra iiy OF the de-
p"s;es; aud because am willing to occupy the time of
| the enae unnecessarily with details Of this sort
i"e eonu"ct aud duties ot the Bank. AR. President,
may oe viewed IN t"o great relations LIST to the Govern
"e"', 2"d, To the community a, large.
In the rst OF these relations its duties are two fold
hscai agent oil The Government receive and disiri.
quite The public moneys. ai TO have them realty for the
pm lie service. whenever and erever they may be call
ed for by the as corporation deriving
us existence from the law, 10 observe aud conform to all
e CONDITIONS and securities Imposed by the OF
o' NOW sur let us hrst inquire how u has performed
The first named OF these duties Has il been always rea
uy a"i prompt 10 render the public moneys committed
/
me pubhc engagement! This Grafton hold TO be
OF the highest Importance. Ii is not sufficient that the
pubic moneys should be ultimately safe in the hands OF
me Bank; or, in other words, that the Bank be ultimately
sOirem But il is that IL should be ready TO
NEE, promptly ani/aHVuhy every call made upon j, by
Ue government Tor the public funds, when required for
The public service. This is daily exempli6ed in the al
LARS OF private life. When Individual has accumu,.
ell Sun" o money which he w-hes to Put out at interest,
10 await an expected CALL opportunity OF pro6table
nvestmen,uis leading consde ration with him TO nut
his money hands Of some one who will NOT merely s
| ana ceidhiy. whenever called upon
Has The Bank of the United States sir displayed these
fundamental qualities oil prompfifude fdeu in rem.
derlng up the public funds Tor the public use when call.
cd Tor by the Government! confidently appeal to the
history oil the pos ponements Of the per cents redemp
uoi 10 sustain me in the assertion that il has not II il
III the recollection OF the Senate that eary in the Spring
OF assz had been determined to pay off six and halt
ons OF TIE per cent stock on the ensuing day OF
July, and that respondence took place in the month
o, march, between the Treasury Department and the
Bank with view 10 that operation IL soon became
evident that the Bank not la situation 10 meet the
"per"'ion-so largely had IL used the public funds in
Unprecedented its discounts LAS will he
seen lere"fter) TO promote its interests and views
In 's state oil things, various preexts and sugses-
ions were urged by the Bank to induce the Govern
eh' 10 postpone The contemplated payment; and pos
Ponement to the month OF October finally Yielded the
BANK undertaking to- pay the interest the debt the
mean time, and holding out (which IL did not
jul, oil accommodations the porting 10 EN-.
abe them the better 10 pay the accrung revenue to the
Novernnen' The Bank has resoe,ed to great deal OF
sPecdi pleading TO show that, the argu
mehts 50 aiousy urged the Governme nj il neither
sought Tor nor requested" the postponemeut Blu,
"hd sara the committee OF invesiiga OF 1882 before
whom The matter thoroughly md aninrd,
lbe committee are fully Of opinion that the Bank
neither sought for requesfed the postnonenen,
Ceturning thus the language Of the President of nh.
BANK yet ii such postponement had no, been made
me Bank would not on the LIST OF July have the
d6'hty to have met the demand, without ca,sig scene
81 great distress in the commercial communities
Now, Mr. President while the Bank was thus unable
TO meet the demand oil the United States for their own
money what was the state Of the between it and
the public Treasury! Why, sir, on the lst of AnrI
looI weh the nonce was proposed to be issued of the
contemplated payment there in the Bank TO the credit
OF the Treasury Tor public moneys on deposie the sum
oil ooo and on The ls OF July. when the payment
was 10 have been made, the sum of 80 SII 600 more
than three millions OF the public money over and above
the sum proposed TO have been called Tor !
But, SIR this was ALL When the month of J,,,y or
rived the Government determined and issued notice Of
ITS intention TO pay, the first OF October following Two
rds oil The whole amount OF the per cent stocks and
the remaining third the LIST OF January The
Bank, feeling that il could not, any pIausbiIv an
peal Ito the further indulgence of the Government bu, be-
SUI unprepared TO meet its call Tor public funds in
e'e" 'e'et hegoeiauon, and actually ted
an arrangement with the foreign holders Of the STOCK not
10 come forward with their certificates the periods de-
signated TO leave the amount due still i'm the Bank
Oh an agreement that the Bank should nav them ,b in
teres but the Government continuing bound in conse
quence oil The detention oil the certificates for the prnc
pal oil the debt. Here the conduct OF the Bank tron
negative, became positive delinquency IL was mo
longer OF readiness and ability o ,,v mn ,I
pubc funds, when required for the public service but
AN active aud unwadntabie inerpositon contrary TO
ry principle oft duty fiscal agent ohe to
final ex,inguishment OF the public debt.
When the existence aud result Sc ret
became accidentally known, the Bank 10 undo
what had been agreed be DONE and TO procure ie sr
render oil The cerIhcaies which it had pre- viousy made
an arrangement 10 have held up But this in no manner
lessons the improPrety and character of M
original act, and leaves the Bank Justly exposed TO the fall
iorce oil the nputations of ahiessness and iIlegatv
which its conduct, in this Transaction has incurre3 /,
awaits as little TO refer 10 the declaration of The Committee
oil Ways and Means OF the House OF =,
the close OF the last session OF Congress- that a. .e
ter Is now substantially closed by the o
the whole OF the certificates il longer nts nyoc
teal ohjec, OF inquiry call admit any action o
Congress upon it,. The committee exnci,Iv nro
nounced the condemnation OF the Transaction in
as II DID, "tha the Bank had exceeded its Ieqitimats
'nony and had no warrant for in the
OF The Secretary Of the Treasury" In the state of the
question now presented this transaction being refer
rcd by the Secretary Of the Treasury one of his rea
sons Tor ordering removal OF the public deposes il ne
cessariy becomes " practical object inanrv de.
inaniiHg the serious consideration il not e action of
Congress-; aud none, in my estimation, could more sg
nahy Illustrate the delinquency OF the Bank i'm its reIs-
uons OF hsca agent 10 the government While these Sc
cret negotiations were going to Withhold the public
FUNDS from theiT legitimate destinstoDhe payment of
the public debit appears that there was i'm te Rant o
LIST day OF October 1882, after deJucting The whole
amount OF debt designated Tor on that dav clear
surplus OF the public revenue Of SO 222,792
Upon calm review Of these Transactions Mr. pre.;
dent think must be admitted by all that the ,nk by
an improper OF the public money for its own aava,
tage, had disabled itself with promptuds and
punetualty, the calls OF the Tor the pubIic
nnd committed TO its keeping, that il had not opy failed
to have those funds forthcoming when for the ,uh
lie service but that. bys secret aa aranabe utter