Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1836-12-30

eu WItnUt any arrangement oi trdue' uUu
without The movement of q single dollar
in specie. That this not only could be
done but has actually been done, you will
find in the public documents of 1899.
10 that year the new administration Of
Mr.. Jackson, anxious to appropriate every
disposable dollar of the revenue to the re-.
duc,lon of the public debt, sought and OBJ
tanned the aid of The Bank of the United
States. Notice was accordingly given on
the 3lst If March. 1929, tina, on the LIST Of
July, the debt and interest, amounting to
S8,7l5, 462 81, would be paid At the Pc
Rod of the notice the whole available
means Of the Treasury we're only six mill.
iohs, scattered throughout the U. States,
and these, with the accruing revenue in
the interval, were at notice of ninety
days to be collected, 10 pay nearly nine
mil lions. So closely was the Government
pressed that, after paving these sums. the
actual balance in the Treasury throughout
the whole United States, vas reduced to
Sl64, 1865 %. The Bank, however, under
took tbs arrangement. with what success
may be seen in the following part of the
message of Mr.. Jackson to Congress, in
December. 1899. THE payment on &C.
count ofthe public debt, made on the list
of July last, was S8,7l5,462 81. It. was
apprehended that the sudden withdrawal of
so large a sum from the banks in which it
was deposited, at time Of unusual pres
sure in the money market, might cause
much injury to the interests dependent on
bank accommodations. But this evil was
,holl cd h,, In, Mi ci nj
it at the Treasury, aided by the judicious
arrangement of the officers of the bank of
the United States" The respective shares
of the Bank and the Treasury may be con.
iectured from the Secretarys letter of the
18th of July, 1922 in which he takes occn,
sion 10 express "the great satisfaction OF
the Treasury Department in the prepara-
ton for The heavy payment of the public
debt on the LIST instant which hos been
effected by means of the prudent arrange
ment of your Board, at time Of severe de-
preston on all the productive employmen,s
of the country, without causing any sens-
Bile addition to The pressure, or even visible
effect upon the ordinary operations Of tine
State Banks"
If. then. nine millions. being almost the
la st dollar in the Treasury, could be thus
dist ributed--two millions Of tito foreigners
at a time Of unusual pressure. how hap
pers it. hat with funds equal to fifty mill.
ions, and with six months notice, nine mill
ions cannot now be OBSERVATION-DISCLOSURES
" among our own people-at time OF
great abundance. without hazarding a con.
vuls,on The answer is to be found in
the difftrent modes of operation. This
may be seen BY contrasting what the Sec
rotary of the Treasury might have done
with what he has done.
The distribution law assigned 10 him two
duties, both simple and both easy-the di.
vision of the funds among the banks, and
the division among the states. AS to the
first, he was $50 select as soon as may
be practicable, and employ as the deposl-
tories of the money of the United States
such of the Banks as may be located at.
adjacent, or convenient TO the points or
places at which the revenues may be COL
lected or disbursed that Of
least one such bank shall be located in each
State o. Territory"-"and that no bank
shall have deposit, more than three fourlhs
Of its capital"
Here is no authority whatever to distrib
ute he money from The banks Of one State
10 the banks Of another state. On the
contrary. by the twelfth section oil trans
fers TOR ANY other purpose whatever, ex'
cept 10 facilitate the public disbursement
and to comply with the provisions of this
act, are hereby psohlbted and declared Il
be illegal" and lin such cases where
transfers shall be required for purposes o
! equalization under the provisions of this &C
in consequence Of too great an accumula
ton of deposits in any Bank--snch trans
fers shall be made 10 the nearest deposi
banks which are considered safe and Sc
cure;" and although the supplement say
that nothing shall preuent him from making
transfers from State 10 State, "when re
ouired to prevent large and inconvenien
Accommodations in particular places, or il
order to produce due equality and jus
proportion according to the provisions o
that act" the general policy Of the law t.
keep the deposits together, unless undo
peculiar emergencies, remains unchanged
Under this law his duty was as clear a
possible He was TO see that no ban
should have a deposit of more than Tire
four,hs of its capital. The revenue in tn
great cities then, should be divided amon
he banks in those cities there being j
zach of them solvent banks enough to re
ceive it. There was no necessity for send
inc dollar Of It out OF those cities. l
New York alone, says he, 'rhe operation
will require the transfer of something lk
eight millions of dollars from the old dc
post banks to the new once, either in tn
State or out of it," But why out of it a
all?--Why could notthe revenue alread
received in New York and falling due j
New York. be divided among the Ne'
York Banks TO support the trade of Ne'
York! Why not let it remain active there
, up to the last hour when il was payable
, the states, But the law required thu
there should be at least one deposit ban
} in each state. Be it SO. Then make
, deposit bank in each state, if there be NJ
, one already, and give it a deposit, whic
, | ,,kuo 10 eotis6es the law. will not carl