Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1834-01-23
MR.. RIvEs' SPEECH,
ON the, Removal Of the Depos'tes.
IcoNTINuED.]

Sir, think that one tundaniehaai -,
30 ~ 70 tbe question is, that it has been assum-
ed that the deposite Of the pupilc money IN .ile
Bank. was the principal conslderaton Tor the
bonus paid by the Bank TO tne Io q.
Nov SIR # is perfectly clear that the deposltes
rera No mart of the consideration for that bonus
the honns wasa consideration allowed IN return
forhankino privileges. The charter granted all
the privileges of the monopoly OF an american
institution. and it involved much more IMAM re-
moval Sir, were they not large ehough!-
They REQUIRED more than bonus OF one ana
half millions as an allowance for obtaining
them: they were larger than they ought TO De
and larger than those of any other bank. Inc
hank had another important privilege, accord
ing to the opinion of Mr.. Madison, IN 1871, an
authority equal to that of any man-the prlyl-
leee or power of establishing subordinate banks
in every part Of the United States. Sir, are not
all these privileges equal in value to bonus or
one and a half millions of dollars, when the OLD
bank ofthe United States was ready to pay one
million two hundred thousand, for the renewal
of it's charter and when the deposltes OF the
public money in its vaults snould exceed thIee
millions, to pay, in addition on the who're illlel-
est of the excess over that amount. Inc depo-
sites were not then considered as source OF
profit to any coincident extent, to be regarded
as consideration for bonus. -
The Secretary is to say what are the prlvl-
leges, and what are the duties in relation TO the
depostes; and he puts the deposltes in the Bank
rather in the way Of an imposition OF duty, IMAM
oc granting a privilege. There is another cir
cumstance which goes to show that the depo-
sites are not put in for the purpose OF bestowlng
a privilege; the Secretary yields the pfohts 10
the Bank; and to the State Institutions, and the
old bank of the United States, it was not an ad-
vantage to have possession OF the pubic depo-
sites.
Under the circumstances, believe that the
! hot Mates
was created, reserved to itself by the sixteenth
section of the charter, the absolute control over
the depoStes, to withdraw or retain them as II
pleased. The argument OF the Senator from
South Carolina, seems to resolve Itself INTO q
begging Of the main question. he follows the
principle, that the trust and the power OF aching
on that trust, was designed alone for the safe
keeping Of the public money. Sir; this is the
very question in controversy; the question Whe-
Their the deposites should be made in the Bank,
not only on the ground of security, but on that
of the conduct of the Bank. That such was the
object to secure both the safety of the deposites,
and the good conduct Of the Bank, will be made
manifest to the House, by perusing a speech de-
livered by the same honorable gentleman from
Souh Carolina, in 1914. (Here Mr.. r. read an
extract from that speech) Pray, Sir contnu-
ed Mr. II. what has been done2 The Govern
ment, by that part of the charter which relates
to placing the deposites in the vaults OF the
Bank, has reserved to itself the power over It's
receipt of notes and deposites, as security for
its good conduct; this object of the provision
fails, if the Secretary has not authority for any
reasons to remove the deposites; II he cannot
do it for the illegal conduct Of the Bank
Sir do not think it necessary to inquire with
regard to the sentiments of Mr.. Crawford, and
the authority which his course has given, as
precedent for the late removal of the deposites;
but must say that he acted on the same grounds
as did the present Secretary Of the Treasury
Mr.. Ingham also, in a report to Committee
of the other House, in 1919, took the same view
Of the subject; that the Secretary of the Trea-
sury has general authority over the public mo-
ney; he withheld or withdrew the deposites from
the Bank, whenever he thought proper; and his
reasons were satisfactory to his own mlnd, ana
the minds of Congress. Sir, would not this De
an instance of the most extraordinary concur
renee of opinion, that this limitation was so ge-
neral in its import if it really so strict as
the Senator from South Carolina, has stated.
Sir it is not only case of the safe keeping OF
the moneys but any thing may authorize the &C
ton Of the Secretary; the object in view is at
tanned at once, on ground the largest ana
broadest possible; the deposite was to be made
in the Bank, unless the Secretary should order
otherwise, and his action was discretionary
without limitations.
| say Sir that any reasons growing out Of the
conduct of the Bank would justify the exercise
of the Secretary's authority; and he at once
lets us into general review of the conduct OF
the Bank; the Bank sustains two important re-
lations to the Government and the community.
In relation to the Government, it is bound to re-
ceve, and to pay out the public money, as the
Government may require, to aid the operations
of the Treasury; and another important branch
of its duty, is to observe the charter, to look to
the conduct ofthe Bank in its several relations,
and see whether it will justify the Secretary in
continuing the deposites.
| beg leave to recall the attention of the Sc
nate, to matter now old, but not yet fully de-
veloped the subject Of the three per cent stock,
which was required to be paid off by tie Bank
Ita failure 70 10 so as required, was, in my
opinion, alone sufficient to forfeit the confidence
and favor ofthe Government. In the capacity,
| by a solemn contract of fiscal agent Of the
| Government, the consideration was not alone,
| whether the Bank nsolvent, whether it
could pay the money, but whether it was ready
at all times to pay it, as the contract required.
Sir, is not this subject exemplifed in the trans
actions of society at large? When an ndividu-
al is to meet contingencies in the course Of his
business, the consideration in lending his money,
is not merely, whether the person to whom the
loo iS adj ic cafn hl1tx ybptba ba