Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-01-04

BANK, on aecosn OF their woakness aud 10 project them
nom tue Bank oil the u States by means OF lis superior
Strength II sought Cypress them. Nor any dis.
uncuon be taken between the transfer Of part and the
transfer oil the whole sum remaining on deposie The
language OF the charter recognises distinction and
the principle asserted by Mr. Crawford wouiJ have lea
him to the removal Of the whole Of tue public mo.
ncy to the State Banks, pressure on the part OF the
Bank Of the United States had rendered ,urh mc.ure
necessary in order to support The State Banks in their e
gitinae eNerous 10 maintain their credit
have transcribed the whole passage in order that
mere may be no mistake about the principle which,
s'aeu, una, "f Crawford had distinctly asserted II
Is SIMPLY this that in exercising the pow or Of remova
reserved 10y the charter TO the Secretary OF the
the safety oil the depositesthe ability Of the Bank TO
mee, Us engag-men's-is fidelity In the performance OF
us ooigauons-are only part OF the by
which his judgment must be guided. The general inter.
and convenience of the people must his CON
from the Bark, Whenever the general and conve
nience people of the United States shall reonr II
This being IA. principle which have said that Mr.
Crawford distinctly asserted quoted the passage from his
his letter Of February 49, 1917 con,ained nv renort in
order to prove it, proceed now TO show that other pas
ROD me n'ioncd, equally indicate the same opinion
Tue oouy oil the letter above referred TO- in speaking
Of the propositions he had made the State Banks TO n
1.-The right to transfer The depo.irss with view 10
sqnaiise The benefits resulting from them among The
banking community, as the situation ofhe several tanks
| mtghf require, was expressly reserved"
The report Of Mr. Craw ford the Senate of the 25,
OF February 1928, hereinbeiore mentioned is in the 18th
'oume OF The Senate REPORTS 2d session the 18th Con.
gress. document No. 40 Many Of his letters to banks
were communicated to the Senate with tba, report and
are TO be found in that document. Among them IA IN.
circular TO the State Banks alluded to in the above extract
| dated Dec. 20, 1916, (page 43 of the documents1
Az me same volume; and part OF the same report,
page AZ ) there Is another circular letter from Mr. Cr.w
lord to the banks in the States of Delaware
and Maryland in which the public moneys were deposit
was authorized 10 receive from them tho public money
which had been deposited with them His letter is dated
'sanr.y IS lsi7 In this letter he says:
The deep interest which that institution nh. R,n .,
me United Satc must feel for the paper system and he
intimate connection with the Government are considered
sufficient guarantees for the Intelligent and
manner in which this operation will effected ndepen
dent OF the power OF the Treasury Department. 10
us at any moment, by changing the deposites
Asan: In his letter of July 81, 1920, to the prss.
uent OF The Bank of Darien to the House
ed document, No 40, session lst 18Th Congress r.
371 oil the document he expresses his opinion Of ,S
oil Tie Secretary OF the Treasury the following
1.-The Bank of the United States has, by its charter
right TO The public deposte.. The Secretary OF the
Treasury has, indeed, the right of directing the nub
money be deposited in the State institutions but tben e
Is bound TO communicate Immediately TO Congress the
grounds upon which such direction may be given This
restriction was doubtless intended to prevent the
| OF the power capriciously."
IL, ~ should be suggested that the letters of 1916 and
1871 relate the resumption of
payments yet the opinion he in the sso
TO the President OF the Bank of Darien cannot be con
suffered as In any way, connected with that particular
event besdes, the power he claimed and
the deposi'es in order produce the resumption o
payments was claimed, and exercised under the NOW
reserved TO him by the charter TO the Bank of The t
| States and not by virtue of any other law or reo,;
of' IN ms report to the Senate and House of
ives OF D-eemoer H. 1917, (prined document No. g. SEES
n ISL ioh Congress stating what he had done i'm re-
a"on TO the change of deposites TO induce the State
banks TO resume specie payments, and stating also various
nePoes winch he had made for that purpose in diff.
Banks IN this District he begins his report by recng
provision the 10Th section OF the charter TO the Bank of
States and the power thereby reserved TO him
changing the deposltes OF the public money! And II
WIN DC 'ound on examining this report that he does moi
REFER Tor his authority TO any law resolution except the
clause OF the charter above stated. $50
Indeed IL is impossible that he could have looled n -
subsequent law resolution the source of his abo
or, IL the power he asserted not reserved TO the Sc
crey OF The treasury by the charter 10 the full extent
winch he claimed, and exercised it, il could no, n, We
oeen gwen by subsequent law or resolution without
vo'aung the agreement which Congress had made Win
the stockholders. 1, cannot be supposed that Con.
Intended to disregard the pledge they had given in The
Incorporating the Bank by exclusive power of the Secre
s !ssy ne aeees .s,S seysad m;
rfrs o h mem 20 nave done so, and in his report he
| ter itself '''u !" VIC char-
Again, in the latter end of 1918. and the winter and
spring OF 1919, difficulties in the western coun,
between me Bank OF the United States and the STAT
hanks' which produced much embarrassment The CO..
respondence Of Mr. Crawford with various Stat. RI
ABOUT 'nis hme was communicated by him 10 Consress
IN The different reports herein before. ntoned J -
from THIS correspondence that depostes of public
money 10 large amount. made in State BapLs in
piaees where the Bank Of the United States had establish,
ed branches 1t would extend thi, communicate - a.
~, a, cns'h IL were TO give extracts from,
all the different letters. directing these deposites 70 he
made and indicating thereby the opinion have attributed
W MN us moreover, unnecessary, because the
are areauy among the printed docume nts and ,,. o
n'oh Oh Mr. Crawford, to his power is suficientI,
snown ny his letter TO the Committee of the House ~
representatives OF February 24b, 1929 Dish Compress
ses document No. 139, page 32 The docum.n,S ~
this letter, he mentions difficulties which had arissn h
tween the Bank of the United States and the Stale RnL
n the western country, and the evils which had arsen
from me course determined by the former and ,ha,
some OF the western Banks had stopped payment and az
yer saung mat IN consequence OF this condition of ,b,gs
so maue deposites III various State Banks three of
Wnch, appears, were in places where the RANT of ,h
United States had established branches he procesd. =;
me following paragraph, to explain why he had no, 20
ported his proceedings to Congress- in LANGUAGE NIL
eVideny shows that he made the n,s q, i, ~
hree Banks above mentioned by virtue of the aufori,
reserved IN the charter and that he did NOT afemof n, &
rive " from any other source. " "
1.-The arrangements made with the Farmers, an, AZ,
chanics Bank oil Cincinnati the Bank of Cbco,be asd
e branch oil the Bank Of Kentucky at Louisville Yhar.
ounces OF The Bank OF the United States had been
co. by winch the public moneys collected at the Land OF
hcesin the vicinity those Banks were ed i'm d.,
NV communicated 10 Congress at the session al
Ter her date, from nadverance TO the orovi;on f
the charter to which the resolution refers ,rbev 49,,
however matters oil general Dotoety not only in ,he
western states but in the other parts OF the Union O;s
sions OF ths nature have frequently occurred in be ~
Pai'mens and is presumed will occur hereafter ,y
omcefs me most attentive The notoriety yL;c
attended these arrangements with the Banks IL ia nre
ed, will satisfy the Committee that there was , p
WISH OF intention to withhold from Congress, the ct nj %
founded" ~ WIG measure was
The letter Of Mr.. Crawford of March g. 1910 coo,,;.
we agreement proposed to be made with the Fame,
and Mechanics Bank Of Cincinnati and /, a,na,.. 10
he NJ an m