Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1834-02-10


Rod The bank expects the recall OF Its depo-
sites near the period of its expiration, and pre-
Mares itself accordingly. The operation, II
made gradually, produces, when thus conduct-
ed. the least possible disturbances In the busl-
ness of the community. Former experience
would seem to have held out salutary light for
the guidance Of the Secretary in this part OF his
official duty.
/ At the time of the expiration OF the charter
of the former bank Mr.. Gallatn was Secretary
of the Treasury, and the public depostes were
in the bank The charter Of the bank was to
end on the 4th of March, 1911, and 1t does not
appear that Mr. Gallatin thought it necessary TO
make any provision whatever Tor removlag any any
part of the deposites, except by drawing on theil
for the common uses of government, until late IN
the very month preceding the expiration OF the
charter A large amount OF those deposltes re-
NAMED, indeed, in the vaults OF the bank alter
its charter had expired, and unnl they were
wanted. in the general operations OF the Ifea-
surv. And why should it be otherwise? why
should that be done suddenly now, which the Sc
cretary thinks could not be done suddenly mere
after without great Inconvenience! Is II not
the lust inference, from his own argument that
the thing should not have been done suddenly al
all2 AS to the idea, that the credit OF the paper
of the bank will be deprecated, near the time OF
the expiration of its charter, or that II would De
inconvenient for it, at that time, to be called on
for the deposites the committee are utterly at
loss to see the slightest foundation tor such an
opinion. Experience is against 1t; ana all rea-
SON as the Committee think, is against 1t also.
There is nothing to render it in any degree DOUBT
full that the bills of the bank will be IN as good
credit the last day of its charter, and even al
ter that time, if any shall be outstanding as they
are now; and there is as little to render 1t doubt
full. that then, as now, the bank would be COM
petent to answer all demands upon it. In the
opinion of the Committee, the withdrawal OF the
fund was both unnecessarily early, and unne-
cessarily sudden. 1t might have been made gra-
dual; it might have been deferred, and II mlSht
have BEEN and ought to have been, as the Com
mittee think, not ventured upon at all, until the
attention of Congress itself had been called to
the subject The Committee therefore entirely
dissent from this first reason, reported by the
Secretary They see nothing which proves to
them the existence Of the slightest occasion Tor
taking this important step, at the moment 1t was
taken SO far as it depends on this reason, the
Committee think the removal was made without
necessity, without caution, or preparation; with
a suddenness naturally producing mischevous
consequences, and in unjustifiable anticipation
of the legislation Of Congress.
But the Secretary thinks there are other rea-
sons for the removal, growing out OF the man.
ner in which the affairs of the bank have been
managed, and its money applied, which would
have made it his duty to withdraw the depo-
Of these reasons, thus arising from the alleg-
ed misconduct Of the bank the first is, that ma
ny important money transactions Of the bank
are placed under the control of Committee OF
Exchange of which committee, no one OF the
public directors, as they are called, is allowed
to be member, instead Of being transacted by
a board of directors.
This charge consists of two parts; first, that
the discounts of bills are made by committee,
and not by quorum of the board; second, that
the public directors are not allowed to be Of
this committee
First. 1t is not alleged that, in the discounts
of bills by this committee, any ndiscretion has
been committed, or any loss incurred, or that in
consequence thereof any facility to the mercan-
tile community has been withheld, or any duty
of the bank to the Government violated. The
objection is, simply, that bills discounted by
committee. Surprising this to be an irregu-
larity, or Illegally, in the proceedings of the
board, how is it to be corrected by Withdrawing
the deposites? What connexion is there be-
tween the two things. 1t is not pretended that
this mode of discounting bills, endangered the
deposites; it is not pretended that it made the
bank either less able, or less willing, to perform
every one of its duties to Government. How
should the withdrawal of the deposites then be
suggested, by the discovery ofsuch an irregular
rity, real or supposed? The committee are not
able to perceive the least prOpriety, in applying
the power of removal, to proceeding of this
kind even if it were admitted to be irregular or
illegal But is the practice Illegal? 1t is believ-
ed to be not at all unusual. 1t is believed to be
quite common, in banks of large business, for
bills Of exchange, which are presented every
day, and almost every hour in the day, to be dis
counted either by committee Of the directors,
or by the president, or even other officers; act
ing under such general orders and instructions
as the directors, at their stated meetings, pre-
scribe. A large board Of directors cannot as
semble every day, perhaps not oftener than
twice week. If bills Of exchange could only
be discounted at these periodical meetings, the
business of exchange could not 60 on with the
prompttude and despatch SO important to COM
mercial men in such transactions.
The committe suppose the truth of these re-
marks will be at once admitted by all whohave
knowledge of business fthis kind.
The general management and control, the
authority of examining and supervising, of con-
tracing and enlarging the amount of daily dis
counts, according to the state of the bank and
of giving every other order and direction on the
subject, still remains with the directors, and is
constantly exercised by them They still man
age the affairs of the bank, in the language of
the charter although they NAV depute to COM