Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1834-03-18

reasons of his order, to. Congress, Immediately,
if in session; that is, he was clothed not with an
arbitrary power, but sound discretion over the
subject discretion to be exercised for good
cause, and under the supervisory control
of Congress; for it is absurd to suppose, that
the Secretary was required to report the
reasons of his conduct to this body, merely to
crafty the curiosity of its members 10 give
discretionary power to any officer, Is to give
power to be exercised according to his own
Judgment, not the judgment of any other; this
is an essential character of such power. The
President having resolved, that the public de-
posites should and ought to be taken from the
Bank and finding one Secretary of the Treasu-
ry so obstinate and refractory, that he could nell
Their be led nor driven into what the officer re-
garded as an abuse of the discretionary power
vested i'm him, dismissed him from office tor that
cause only, and appointed successor, who ne
knew concurred in his opinions, and was ready
to carry his purpose into effect
On the one hand, it is contended, that the
Treasury Department. is mere Executive ue-
partment and the Secretary responsible 10 the
President. and bound to conform his oflclal
conduct in all cases, with the judgment and Or
ders of his superior; the other that this is not
an Executive Department but Department
carefully distinguished by law from the EXecu-
tive Departments, bound to follow the directions
ofthe laws, whether conformable with the opln-
ions of the President or not and required to
the Department was so constituted, Tor the pur-
pose of keeping the treasure ofthe nation under
the control ofthe Legislature. On the one hand,
it is insisted that the Secretary OF the treasury
being at all events an officer of the Government,
without any stated term of office provided by
the constitution or laws, the President has, at
Sany rate, constitutional power to remove nm
at pleasure; on the other, that even supposng
the Department an Executive one, and the head
of il a mere Executive officer, yet when a spe-
cal discretion is vested in such an officer by
law by an act in which Congress and the Presl-
dent have conCurred, he cannot without viola
ton of the law and the constitution, remove the
officer merely because he refuses to exercise his
discretionary power at the Presidents bidding,
contrary to his sense of duty, his conscience, and
his oath of Office; as, for instance the President
cannot remove the commissioners OF the Sinking
Fund from that Commission for refusing, in the
exercise of the functions prescribed to them by
law, to follow his directions. On the one hand, 1t
is argued that the discretionary power given to
the Secretary over the deposites authorizes him
to change the depository of the public moneys
for any reasons of State policy whatever, ap-
he proved by his Judgments and on the other, that
was clothed with authority TO take the deposltes
from the Bank of the United States, only when
that Bank should become an unsafe depository,
or, at the most when the Bank should TAIL to
perform the services which it stipulated to per-
form for the Government. | only state these
points; do not mean to debate them at pre-
sent; only wish to call the attention of the Sen
ate to the sequel of the transaction.
The Secretary, under the authority OF the
President, having directed the public moneys to
be deposited no longer in the Bank OF the Uni
ted States, but in certain State Banks OF MS
own selection, under formal contract made
with them, or rather assented to by them on his
dictation of the TERMS and there being, at the
same time large balances due from the Bank OF
the United States to the Treasury; and large bal
ances due from the selected State banks, as well
as other State banks to the Bank Of the United
States; the Treasury, shortly after the removal
of the deposites, drew transfer checks to the u
mount of So 300 000 at least in favor of select
ed State banks, on the Bank of the United s.,
to be used on certain contingencies; and this
was done for the avowed purpose of enabling
these selected State banks to pay the balances
they owed the Bank of the United States, and
to carry on bank operations on the surpuses,
for the accommodation of the community. and
for the profit of these favored banks. Now,
look at the substance of the transaction, as man
Tested in its actual operation. Take the Man
haitian Bank of New York for example. When
it presented its check for 100000 at the Bank OF
the United States, it owed this Bank above
$4,000 and this debt was discounted from the
amount ofthe check. How was the balance of
the check paid2 do not positively know the
fact, yet have no doubt of it; and pray any
gentleman who may be better informed to cor
rect me ifI am wrong the Bank of the United
States gave the Manhattan Bank checks on
other State banks indebted to it for the balance
of the Treasury transfer checks; the other State
Banks got credit with the Bank of the United
States for the amounts drawn on them; and the
Manhattan Bank GOT credit to the same amounts
with the other State banks.
Thus the contents of this tranfer check Of
100000 dollars-money of the People of the u.
States-were applied to the payment of the ba-
ances due from the State banks to the Bank of
the United States; applied to the payment of the
balance due from the Manhattan Bank, directly
and of deliberate purpose; and applied to the
payment of balances due from other State banks,
consequentially, indeed but by an evitable con-
sequence that any tyro might have foreseen.-
Or, if any petty surplus was actually paid in
cash to the Manhattan Bank, that was lent to it
by Government as capital to trade on for its
own profit. This history of the transaction, in
respect of the Manhattan Bank is an exact his
tory, also, of the Treasury transfer checks drawn
in favor of the other selected State banks
Now, will any man point out to me the clause
in the Constitution or laws of the United States
which authorizes Congress to lend the money
of the People to any body, polite or natural, to