Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1834-11-14
r1,p r.ANCH CHECKS

from the w OloOC tii0 I'll
We6f the Secretary of the Treasury, and
CYL comments thereon by the official paper
of the Government. forbidding the receipt on
public account Of the checks of the United States
Bank.
This proceeding is in character as to motives
and wisdom with all that has been done by the
Government on the subject Of the bank. Inc
motive is spite, and the character OF the spite
will be found much like that of the attronted chlld
that auarrels with its bread and butter. Instead
of undoubted bank checks of universal curren[
CIV. the public dues will be paid IN the notes OF
local banks some of which, sooner or later, VIII
90 TO swell the amount already great OF " una
valuable funds" the purchasers OF puoilc lahus
and debtors to the Government generally, VIII
be put TO ACKNOWLEDGEMENTS treasury VIII De
subect 70 greater risks of loss ard the U. 5. Bank
sbe narty aimed at, will benefit by keeping long.
CIR 10 circulation these very bank checks; as ev-
ery one knows that bank notes not available as
current money, or for deposte, are by that We
nv circumstance kept longer out. This may
give notion Of the a1isttom OF thus INDUCING
spite-N }. Amer.
Ii appears that ever since the foundation OF the
Bank-one Of the purposes of which was to es-
tablish a uniform circulating medium, the inn
possibility Of executing that purpose was appa'
rent while the notes were signed by single per-
SON occupied as he was with other and more
important duties To overcome the difficulty,
the Bank resorIcd to the eXpedient OF issuing
small drafts drawn by the Branches on the IA
rent Bank, which answered all the purposes OF
notes for small circulation. Before adopting this
plan it was submitted to three ofthe most eminent
iawyers in the country, Mr. Binney, Mr.. w ebster,
& Mr.. Writ then holding the office Of Attorney Ore
neral of the United States. Their views were
as follows.
Extract from the opinion Of Fl. Binney, Esq,
dated March 23d, 1927, on the SUBJECT OF branch
Drafts:
Il am unable to discover any legal objection
to the plan proposed and, since it will faclitate
the exchanges of the country, and secures the
public and the bank from frauds, It seems 10
me as eXpedent as il is lawful
(Signed) H. biNNEf'
"Tconcur entirely in this opinion.
fSigned) DAM WEBSTER"
"Ic can see no possible legal objection to the
practice above stated, and concur entirely IN
the opinion. (Signed) WIN WRIT.
When the Drafts began to circulate, the re-
ceivers applied to Mr.. Rush, the Secretary OF
the Treasury, to know how they were 10 treat
them, and he requested information from the
President of the Bank. II was given IN his an
swer, dated January 10, 1923, OF which the con-
clusion is as follows:
"Having thus explained the history and the
nature Of these Branch Drafts, have only to
add that as a material part of the design in is
sizing them was to facilitate the collection
of the public revenue, they are placed on
the same footing Of negotiability as the notes
SIGNED by the President and Cashier of the
Bank; and that if received on account Of the
Government they etfectually bind the Bank,
and will be paid in the same manner as notes
ofsimiar denominations signed by the President
and Cashier now are, or hereafter may be,
paid.
"Whether, under these circumstances, it is
expedent to receive them, is a question for the
exclusive consideration Of the Department"
To this MIR. Rush replied as follows:
"TREAsURY DEPARTMENT, Jan. FL 1884.
Sir-I have had the honor to receive your let
fer of the 10th inst. with its enclosures. As you
state that the amount Of any Of the drafts, to
which it refers, which may be received on &C
count of the United States, will be paid in the
same manner as notes signed by the President
and Cashier of the Bank, ! hare felt no hesita-
ton in directing that such drafts be taken IN pay
snents to the United States.
The specimens which accompanied your let
ter are herewith enclosed.
have the honor to remain, very respectful
ly, your obedient servant,
~ RICHARD RUSH.
NICHOLAS BIDDLE, Esq. President of the Bank
United States, Philadelphia"
And so the matter has continued to the pre-
sent day.