Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-01-14

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TO It, But he states that the public interest does
not in conse quence suffer. No! What is done with the
PpSle moneys constantly receiving in the important pS',
from the Potomac to the Gulf Of Mexico? What with
the revenue bondsl II appears that he has not yet re-
ceved the charters from all the Banks selected places
OF deso.ite Can any thing be more inprovdent than
that the Secretary should undertake contract with
Banks without knowing their power and capacity to con-
tract by their charers That he should venture to de-
posite the peoples money in Banks, without full know
ledge oil every thing respecting their actual condition!
put he has ound some Banks willing TO receive ne puo
lie deposcs, and he has entered into with them
Aud the very first he has taken has been in direct vo
laon oil an express aud positive statute oil the United
States BY the Of the LIST May, 1920, sixth section,
is enacted, tha contract shall be hereafter made
by the Secretary of State OF the Treasury OF the
Department OF War, or of the Navy, except under
law authorizing The same, under on appropriation
adequate TO its fulmen; and excepting, also, contracts
Tor the subsistence aud clothing OF the army navy,
aud contracts by the Quartermasers Department. which
may be made by the Secretaries of those Departments
Now sir what law author lied these contracts with the
local Banks, made by the Secretary Of the Treasury
The argument, il understand the argument intended TO
be employed ON the other se is this that, by the Bank
charter the Secretary is authorized the public
deposites and that includes the power in question But
the act establishing the Treasury Department conhdes
expressly the safe keeping Of the public moneys OF the u
s. 10 the Treasurer OF the u S. and the Secretary
fidelity with which he shall keep them. The moment
therefore, that they withdrawn from the Bank Of the
United States they placed by law under the charge
and responsibility OF the Treasurer and his bond and not
OF the Secretary who has given bond. But let trace
this argument little further The power 10 the
depo'ites soys the Secretary from given place. implies
the power TO designate the place to which they shall DO
removed Aud this implied power to designate the place
TO which they shall be removed implies the power the
Secretary Of the Treasury with the Banks
OF deposite And, this third link, i'm the chain Of inn
pcaons fourth Is constructed dispense with the
press duties OF the Treasurer Of the Uncd States, de6n-
ed in positive statute; and yet t:h to repeal posi-
tive statute OF Congress, passed four years alter the pas
sage Of the law containing the OF this most
extraordinary chain Of atoms The exceptions in
the act Of 1920 prove xbi,y Of the rule which
Prescrbes Annual appropriations made for the clo
thing and subsistence OF the army and navy These
appropriations might have been supposed be Acuded
power to contract for those articles, notwithstanding the
prohibory clause in that act. But Congress thought
TONS 1t must be admitted that Clerk Gas Go.
Robinson, Of Louisiana, Of the purcst republic
have known, used 10 call Secretary OF the
treasury trsmp,es with very little ceremony upon the
duties Of the Treasurer, and OF the of the Congress
the United States, when they come in his way.
These contracts therefore, between the Secretary oil
the Treasury and the local banks are mere utilities and
absolutely void, enforceable in of justice whate
for two causes-lst Because they made vic.
aion Of the act Of the LIST May 1S20 aud 2dly
the Treasurer and not the Secretary Of the Treasury
alone had any federal officer possessed the power 10
contract with the local banks. And here again per-
ceve the necessity there for avoiding the pre- cpan-
cy with which the Executive acted, and for waiting the
meeting of Congress Congress could have deliberately
reve wed the previous legislation decided upon
diency Of transfer OF the public deposes, and if deem
proper, could have passed the laws adapted the
condition Of the Treasury. 1t could have decided
interest," duse the public deposites throughout the
United States among all their parts
ty OF benefits well as Of burhens, and provided for
pie for the safety oil the public moneys the
new repositories.
But let inquire whether the Secretary of the
Treasury has exercised his usurped authority in the for
nation of these contracts, with prudence discretion
Having substituted himself Congress the Ire
of the United States he ought at least TO shew
in the spuaiions OF the contracts themselves he has
guarded the public moneys, and provided for The public
Interests. will examine the contract with the Grard
Bank OF Phadelphis, which is presented a specimen
of the contracts with the Atlantic Banks The first sli-
puaion limits the duty Of the local bank de-
poie, on account Of the United States only the
OF Banks convertible into coin, Sin its immediate vicinity
which is, or the time being in the habit recev.
ing" Under this stpulaon the Grard Bank, for
ple will not be bound TO receive the Of the Louis
vile Bank although that also be Of the depoe banks
the OF any other bank in its immediate vi
entity, if it be depose bank AS to the provision
that 1t will receive the notes Of banks which, for the time
being is in the habit Of receiving, it is absurd pu
such stipulation in contract, because by the power
tanned change The habit for the time being,
soute nuly. Now, sir, how does this compare
with the charter and practice Of the Bank of the United
Saies That Bank receives every where and credits the
Government with the notes, whether issued by the
Branches OF bs aaRc valRbHk to Tie Government Bu,
the Government may be OVERLOOKING in distant bank notes
when they not wanted, and bankrupt al the
OF great expenditure, under this singular arrangement
With pect to the transfer Of moneys from place 10
place. the local bank requires in this that il shall
not take place but upon reasonable notice. And wha,
reasonable notice is has been left totally unde fined and
OF open future contest When after trans
fer is ordered, and the Bank unable TO make H. iher.
is nothing 10 do but to aliege the of the
notice. The local bank agrees 10 render the Govern.
men all the services now performed by the Bank of the
United States, subject however, to the restriction that
they required Gin the vicinity" of the local bank
But the Bank OF The United States is under no such re
strctoDs; lis services are coexensive with the United
States and their territories.
The local banks agree TO submit their books and ac
counts 10 the Secretary OF the Treasury or TO any agent
TO be appointed by him. but be paid by the local bsnLs
pro rata, far such examination admissible ,phout
aoioiaon OF their respective charters; how far that
may be- the Secretary cannot tell because he not
seen all the charters. He is however, to appoint the
agents oil examination, and TO fix the salaries which the
local banks are 10 pay And where does the Secretary
find the authority and fix their salaries
wi bout the authority OF Congress-?
But the most improydent and extraor.
binary provision in the contract is that which relates 10
the security When, and not until, the deposies the 10.
cal bank shall exceed one-ha Of the capital stock actual
Iy paid in, collateral security satisfactory the
OF the Treasury, to be given for the safety of the de-
posites. Why, sir, freshman, scbooboy, would moi
have thus dealt with his fathers or GUARDIANS money
Instead oil the security preceding is foo, the de-
Posite oil the Peoples money That is the local bank
capital and then it condescends to give securty Does
moi the Secretary know that when he goes for the
cury, the money may be gone aud that he may be en-.
uTey unable to get the the other? We have law
ii mistake not, which orbds the advance of any pubc
money, even to discussing agent Of the Government,
Of that law, at least of all common sense and common
prudence, the Secretary disperses upwards Of twenty
millions OF public revenue among countless number of
unknown banks and spulses that, when the amount Of
deposite exceeds half OF their respective capitals se
curity is TO be given!
The best stipulation in the whole contract IL the Last
which reserves TO the Secretary the Treasury the
these ncalb auk Al,