Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1834-01-02

the Senate of the United States to say it he had
made any loans to any Of the State Banks, or 1t
he had made any Of the public deposites in those
institutions. In the year 1898, Mr. Crawford
answered this call, and gave the information
which was required OF him. II would not do Tor
gentlemen to say that vas when the Bank went
first into operation, and that these ought to be re-
garded rather reasons tor withholding, than Tor
withdrawing the depostes. This call was made
seven years after the Bank went into operation.
He would read an extract from the letter of Mr..
Crawford, communicated in reply to that call:
s.. 1t is the peculiar province, and it has been
the practice, of the Department OF the Ireasu
ry of the United States. to direct the moneyed
operations of the public, to the preservation OF
credit. by maintaining the equilibrium between
the moneyed institutions OF the country =
Again
. From my personal intercourse with Mr.. Gal
latin. | know he entertained the sentiments
contained in this letter, and, presume. they
have been entertained by all of his predecessors
and successors in office, and acted upon when
ever cases occurred which rendered it necessa
'ry." Again-page 8,
-. Tn that Report" dec. 10, 1917 cit Is
stated that deposire of S75, 600 had been made
IN the Farmers and Mechanics Bank OF George
town, to sustain it in its operations, immediate
Nv after assuming specie payments The prin
cipie and practice of the treasury IN sustaining
I the credit Of the Banks, disposedto aci correct
IN ,cas. IN fhiS communication. frankly disctos
ed TO Con greSS, aDhen NOT THE SLIGHTEST sYMP
TOM OF DISSATISFACTION WAS MANIFESTED, OR
sTHE RIGHT OR PROPEIETY OF THE PRACTICE
CALLED DIRECTLY OR INDIRECTLY IN CUES
'TIoN."
So that Mr. Crawford informed Congress that
he had in 1917 made his deposites in the local
banks, and that the act had not then been called
in question.
Many other instances could be enumerated
when the public deposiles were transferred -
They had been placed in the Bank OF Columbia,
in Georgetown, in 1924, and in the Bank OF the
Metropolis; and also, in the Mechanics Bank,
In Alexandria. 1t was stated in this report, that
they were placed in the Mechanics Bank, III
Alexandria When Commute Of the Directors
of that Bank called on Mr.. Crawford, and in
formed him that the institution in danger of
failing, unless it could receive some aid from the
Government, they were requested to call the
next day, as ii was necessary that the Secretary
should consult the President, and receive his or
der on the subject. On opening the subject to
the President the Chief Magistrate concurred in
the propriety of granting such assistance to the
Bank as would relieve the institution from the
pressure which placed ii in situation of peril.
But this assertion of power. and the exercise
Of that power, by MIR. Crawford, was not suffer
ed to pass unobserved twas not passed silent
~ over by Congress. The House must remem-
Der the celebrated memorial of Ninan Edwards,
making a number of charges against the Secreta
ry of the Treasury; ADD, amongst others, that
he had permitted money TO be deposited in the
local banks and TO remain there, in States, where
the United States Bank had their offices of dis.
81 anc
intended the Treasury was then before the coun
try, candidate for the highest office in its gift
When the letter containing these charges was
submitted 10 the House, it was referred to Com
mtree, of which distinguished gentleman from
Virginia was Chairman Evidence was ia that
Committee taken, and the Cashiers from distant
banks, as we'll as from those in the District OF
Columbia, were examined All this testimony
established the fact, that, in making these depo
sites, the Secretary OF the Treasury had acted
openly and undlsguisedly. All this evidence
was collected and embodied into report; and
the Committee reported by the hands OF their
Chairman. Mr.. Floyd, now Governor of Vlrgi
MA And what did he say, and what did that
Committee say?
as The committee does not perceive any thing
in the principle Of these arrangements with the
Banks, either in vioiaiion of La,o, or contrary
10 the usage VI Tue OONeIumeDl, since tne iTed
sury has, for many years, had agreements with
more or less of the Banks, by which the public
moneys we're deposited in such banks, con-
ditions as TO the mode of drawing being sti
'pulated, such as were thought beneficial both to
: the Treasury and the banks, &c.
There is much utility in recurring back to
these "reminiscences, and seeing what others
thought, said MIR P. Il was then thought by
Governor Flovd and the committee of the House,
that the dePosite Of the public money in the To-
cal banks by Mr.. Crawford, was an act which
was done without disguise or concealment. and
for which no censure was applicable to him.
Yet now, when similar act performed the
President had been denounced as tyrant and
an usurper, and the Secretary of the Treasury
as his plant instrument in an at of
tyranny and despotism. Yet the same power
had been asserted and exercised BY Mr.. Craw
ford and had then received the SANCTION of the
House and of the nation, Congress and all. No
man was to be found who endeavored to gainsay
what the Secretary had reported. The friends
OF the other gentleman. who was at that time a
candidate also for the Chief Magistracy, would