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


twenty doais OF which the effect would be, produce
another accession to the metallic circulating medium
The ordinary channels OF c culaiion being thus supplied
with gold and silver, the government woud be prepared
without hardship to the pubic creditor 10 require pay
men OF its dues Ia specie aud thus realize REFORM than
which could b. more deeply ntere stng in every
aspect, TO the safety and prospect OF the country
SIR here is obi worthy eng ge the ,o,i
labors OF the patriot and sman aud ieel ne,sn,J.i
that, with 1.-THE OF the effort and talent daily expended
in the epheneal contests OF party should see happ
y accomplished l eoniure gentleman. then, with sLi.
ues so eineniy hued tor this great work. leave the
Bank OF the United States TO is t,ea fate already pro
nounced by The voice OF the nation called Tor by
inquest considerations connected with the safety OF
ee suions aud to bring forward their powerful aid
IN an effort to restore the Government 10 It's true coasu
,ion,' character aud desuaon-,hat Vi simple, solid,
nara money Government.
But, l shall doubtless be asked, Mr.. President if in
this instance. the public f has been broken, and the
Rights OF the Bank violated. will repse the brea
aud redress the wrong! Sic, il such we're the ease
would; but IN my humble judgment, and hope TO be
able TO show H. the public faith has no Violation:
we o,"k no wrong: and this brings to the consdera-
,on OF Tue rights vi the Bank secured by its charter
"en'emen have argued as il the Bank, by the bonus
which II paid Ct million and half OF dola1-. had pur-
chased right to the drposes OF the public money. But
nothing is more obvious iron, the face OF the Bank char
yer ITSELF and especially from the Report Of the Sccreta
ny OF the Treasury, (Ar. Daiias) which transmitted
ana explained it, than that the bonus the considera
uoh not Tor the public deposcs, but the charter grant
for the act Q incorpOrdtion conerrng Oh the subscr
oers to that Bank the faculties and privileges of bodv
polite aud corporate, empow cred as such IN carry on
the ade oil banking with capital of SO millions of dollar,
nou properly 10 Tie amount OF So millions, to make by
laws the government OF the corpora TO Of
mces OF discount and deposite in any OF the States or
Ienore. OF the Union, aud fo the express stipulation
pedging the faith OF the United States that no oth.r RI
should be established by Congress during M.
oil the said corporation
shese evidently were the "ercusre privileges and be-
he's conferred by The aci, OF cooperation; in cosi
deraton OF which, the bonus was to be paid -and were
they not OF value enough, Mr. President of character
seeny Important to merit and justify the price to be
pau LOT hem' why sir among them great SOW
power granted TO this corpora,on-,ha, Of .s,ahsh,o
subordinate banks within the Jurisdiction OF the STATES i'm
uepehuen oil the consent, aud exempt from the lepisJa
ton OF the States in which they may be
power which, Mr.. Madison declared m the debates on the
creation of the first Bank ia 1891 fought not to b. dee
gofed 10 any set Of men under the SUM-" The depo.e
Of The public moneys in the Bank OF the u States can
WIN no prope'y be con idered San exclusive privilege
or benefit conferred the Bank the United States bv
the act oil ncorporaton; nasmuch as that act expres.y
reserves 10 The government by its financial officer The
should think proper TO do so.
Let sur The document have ready referred to- the
report oil me Secretary Of the Treasury transmitting to
congress the plan OF the Bank be examined aud ,h;nu
eau appear clearer Than that the true and
contract between the government and the Bank is thai
Whch nave saied the giant of the important corpo.
rae 'acuiies ana privileges already mentioned on the one
side, and the payment OF The bonus OH the other The
provisions IN regard TO the deposie of the public monev,
3 government and The transfer aud distribution of
Wy 'he bahk were tea ed as being OF an "incidrn-
M kna, and regarded in the light OF .'nu,ual eouiva-
'ens (thc one compensation Tor the her) GROWING
ou OF he hscal bet zen the Bank aud The
public treasury" SO long AZ the pubc n,ons,. .ho,,J
be deposited in the Bank of the Initial States M RI
would be bound to transfer and distribute them a. the ext
sehces OF me government should require. When they
ceased TO be depo-ited there the Bank woud b.
from that obig aion The depostes being under
the discretionary control of the government which could
continue or wi hhold them at its Measure couS M, r
uonaiy form part of the considerations for which n
red and Interchangeable equivalent to be paid in the
form OF n bonus. ~
is, moreover, 10 be remarked as IL shown like wise
oy the important document which have referred tbt
az me 'me oil he establishment of the Bank, the depo.
Pr'cege or advantage to the Bank but also as dv or
charge Ii is evident that they were rot con, emva,ed
R W. as source LOT eniarsing the discounts OF the
oahk' 10 me erfent to Uhch they hare been aciuaHv
used Jor that purpose. Ii had stated ty Mr. Gal
a In report made by him Secretary ofe Treasury
on the I'd OF March, 1909, that stLe Bank" (tbe 6r
Bank OF the u S) "has not any degree
used the public deposes Tor the purpose of extending its
DISCOUNTS; aud the came course was doubless sxpsc,
ell oil the new Bank Ii certainly could have been
supposed or intended, that the Bank Tor is ecn advan
tdge should lend out the moneys OF The United states
committed TO its keeping, 10 such to be una
Bile, Gas will be hereafter shown TO have been ON seye
raj occasions TO meet the calls OF the Government for
lis own funds when required TO discharge the public en-
gagemeDts.
But sir, if it could be shown as is now contend
dby the Bank that the public depostes and not the
faculties and privileges conferred on il as Banking cor
POrdtton, the Iteration for which stipulated
TO pay and did pay, the bonus Of million and hall OF
dollars, 1t cannot by virtue OF this alleged contract claim
contract have given them. Now, what are the te,gs
OF this alleged contractl The 18Th section of the Bank
charter furnishes the answer Ihe depoites
'othe u Satesn placesin whch the Bank and branch
les thereof may be established shall be made i'm said Bank
or branches unless the Secretary of the Treosr, shall
at any time OtheToise order and direct in which case
&c &c What are the true nature aud extent Of the right
given by this section? Is il absolute and rip Int
10 the public deposites; rather, is il not a right
Them f right it may be calIed oniv so Ionr 40 The
Government by its fiscal organ, the Secretary the Tea
sury, may not " otherwise order and direct" If il he
otherwise ordered and Directed, the rig ht by the terms
OF the contract ITSELF ceases.
admit that this discretionary authority i'm the Secre,a.
y OF The Treasury is not mere capricious votion Ii
so be exercised Tor reasons which shall appear TO him
Congress. But an extraordinary attempt Is now made
against the clear import OF the language used, to
limit the power 10 the single Of the public funds
being deemed unsafe in the keeping oil the Bank
)f such had been the intenioB, nothing could have
been easier than 10 have adopted form of expression
poses, SC. shall be made in the Bank OF the w. STATES
unless the Secretary 0Ate Treasury shall at anu time
consider them unsafe there" But, instead of This re
siced phraseology, which would naturally have oc
cured il the intention had been such now spposeJ
The discretionary power OF the Secretary is reserved i'm
the broadcast and most general terms which the
can suppy"niess the Secretary Of the Treasury shall
at any time otherwise order and direct" By what as
ingeu process Of interpretation so large soon.
have been contracted into narrow meaning am q,
loss 10 conceive.
The honorable Senator from South Carolina (hIr Cal.
houD) indeed has commended that power over the de.
pOses, even il il had been retained the fullest
by Congress itse sis from its uery nature limited solely
to the sale keeping Of the public unds But sir il the
public deposes be so important a benefit thew have
been represented, TO the Bank hing to be more
natural than bat the power Of Withdrawing this
should be reserved by the Government aeans of con-
troll oUer the conduct II The Bank well as TO provide for
sal ri he mil