Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1836-12-22


nothing shall prtrem him from making trans
fers from State tn State, "When required tO
prevent large and incOnrtnicnt HccumhiN1ionss
IN particular places, or in order to produce u
due equality and pst proportion according to
The prorisions Of that aei," the general policy
Of the law to keep the deposits together, uR-
less under peculiar emergencies, remains un-
changed.
Under this law his duty was as clear Is
possible fIe was to rec that no Bank sliould
have deposit of more than three. fourth, OF
its capital. The revenue ia the gvcar cities,
then, should BE- divided among the Bonks in
those citics-there being in ench Of them SOL
vent Banks enough To receive il. There was
no necessity for sending dollar Of il out oS
those cities. In New York aloner says he,
''the operation will require Vie transfer OF
something like eight millions Of dollars from
the old deposit Banks to new ones. either in
the State or out erd." But why eas Of it az
all? Why could not the revenue already re-
ceivcd in New York and falling due in New
York, be divided among the New York Banks,
to support the trade of New York; Why not
let it remain active there up to rhc Inst hour
when it was payable to the States? But the
law required that there should be at least ono
deposit Bank in each State.-Be it So Them
make deposit Bank in each State il there
be not one already. and give it deposit.
which, while it satisfies the law, will nos car
ry AWAY into inactivity funds that might be
useful in places Of business. There was no
necessity to send dollar from New York. OF
the other compeIeial cities, merely for the
purpose Of preventing any one Bank from
having more than. three-fOurtbs OF It's capital
This is clear.
Nor was it more necessary for the purpose
e tho nj 'Nh.. Ia
says:
THAT the money which shall be in the
Treasury of the United States, on the first Of
January, 1887, shall be deposited with sScIs
of the several States as shall by law author
ze their TREASURER or other competent au-
thorites to receive the samc-and the Secre-
tury Of the Treasury shall deliver the same to-
such Treasurer or other competent authorI-
ties on receiving certificates Of deposit there
for" This is the whole law. Now what dses
it contemplate
I The money must be ia the Treasury on the
Ist Of January, 1887, because up to that time
it is not known whether the States will take
it. Technically and legally, the Treasury is
at Washington-practically the Treasury is
), wherever the deposits of the public monies
are. But the Secretary of the Treasury is
an official person whose only official residence
is Washington. Accordingly Treasures OF
State goes TO the Secretary at WasinngtDD
and presents to hIm the certificate of de-
post. The Secretary thereupon delivers"
10 the Treasurer his States quota. But how
/ does he deliver ii? BY an actual manuas
counting out of these dollars?-No. BY n
check on the Deposit Bank at Washingocns
No. But he delivers to the State Treas
nrer as he does to any other person reeeiv-
ing money, a draft for the amount or some
one or more of the repositories which com-
pose the Treasury. Is not sHcii n draftr the
usual and proper mode OF making public pay
ments?-Undoubted And then we come
to the real question. Was it necessary to-
make in advance any transfer OF funds what
soever into the several States merely because
they had the option, on certain conditions, Oh
receiving them: If there was no such mr.
ccssity then the 18th section OF the law makes
these transfers illegal. Now there Is clear
ly no such necessity. The money was to be-
deposited WITH the States, not IN them. il
was necessarily paid in Washington by drafts
on other places. II you say that the Secre-
tary must pay il into the Stnte Treasury,it il
not enough to bring it into the State-he
must take it to the seats of GovernIne ns.--
Pennsylvania must have her share;-not in
Philadelphia, but in Harrisburg. New York
must be paid in the city of New York ,bus
in Albany. If the place be not fixed by law,
the mutual convenience OF the parties wiifdc-
signatc it, Now there is no individual and
no State in the Union that would not prefer
I payments in New York or the north Atlantic
cities, to payments any where else; and tor
: this obvious reason-that money ~ wontfs
more there than any where else. IL the State
: of Ohio, for instance, had draft on New
; York, it could sell II to its citizens, usefully
to them and proftably to the Treasury. IL
does not want the money brought to Ohio
! Every mile it comes on the road lessons it's
value. We may safely conclude then that
there was no necessity for sending dollar Of
public money from New York or the com
mercial cities for the purpose either OF equal
izing funds among the Banks-or distributing
shcm through the States.
y The true theory Of the case, therefore, was
simply to let the excuses of revenue in the
several States be transferred, in the course
of trade, to the great commercial points, and
I then to paw the States by drafts on those
points. The deposit Banks at those points,
knowing what they had to pay, would have
heep ready to pay-and up to the hour %
!, payment wonld have employed the funds use
fully; 30 that in every stage OF that progress,
BUSINESS would be assisted, cd,-eommcrclef as-
: tivity stimulated, and parties be gamers
Even supposing these transfers at alb ne
ccssary--the funds should have been remit
ted by bills to the POINTS of oeeumnlaso.-
E blending these operations so insensrb'y with
the business Of the country as to be unieltex-
: ccpt in then benefits. =.
e B,,, what has the Secretary done? Instead
b of gradual preparations to provide funds al
: the distant points, the whole science eg the
> Treasury seems TO have consisted in draw
ing warIants--in taxing mp the columns OF
4 the returns and directing drafts from the