Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1837-12-14

the fullest extent, which my views OF 'he
Constitution and my sense of duty VIII per-
nit.
1t is obviously important to this branch OF
the public service and to the business and
quiet of the country, that tho whole subject
should in some way be settled and regulated
by law; and, if possible, al your present ses-
sion Besides the plans above referred to,
am not aware that any one has been suggest
ed, except that of keeping the public money
in the State Banks in special deposlte. This
plan is, to some extent, in accordance with
the practice OF the Government and with the
prese nj arrangement Of the Treasury Depart
ment; which, except, perhaps, during the
operation of the late deposte act, has always
been allowed, even during the existence OF
National Bank, to make temporary use Of
the State Banks, in particular places, for the
safe keeping OF portions Of the revenue
This discretionary power mi ght be continued,
If Congress deem it desirable, whatever ge-
neral system may be adopted. So long as
the connection is voluntary, we need perhaps
anticipate few Of those difficulties, and little
of that dependence, on the banks, which must
atten nd every such connection when compul-
sorry in its nature, and when so arranged as
TO make the banks a fixed part Of the machi-
merry Of Government. 1t is undoubtedly in
the power Of Congress SO to regulate and
guard it as to prevent the public money from
being applied to the use,or intermnglcd with
the affairs Of individuals. Thus arranged al
though it would not give TO the Government
that entire control over its own funds which
desire to secure to it by the plan ! have
proposed, it would, it must be admitted, in q
great degree, accomplish one Of the objects
which has recommended that plan to my judg-
I nff hn NO
Of the Government from those of individuals
or corporations.
With these observations. recommend the
whole matter to your dispassionate reflections;
confidently hoping that some conclusion may
be reached by your deliberations, which, on
the one hand shall give safety and stability to
the fiscal operations Of the Government, and
be consistent on the other, with the genius of
our institutions and with the interests and
wishes of the great mass of our constituents.
! 1t was my hope that nothing would occur
to make necessary on this occasion, any al
lusions to the National Bank. There are cir.
cumstaDces, however, connected with the
present state Of its affairs, that bears so d.
rectly on the character of the Government
and the welfare Of the citizen, that should
not feel myself executed in negecting to no.
tice them The charter which terminal.
ed its banking privileges on the fourth OF
March, 1886, continued its corporate powers
two years more, for the sole porpose Of clos
i ing It's affairs, with authority 'to use the cor
porate name, style and capacity, for the pur-
pose Of suits for final settlement and liqui-
dation of the affairs and acts Of the corpora
ton. and for the sale and disposition of their
estate, real, personal and mixed, but for no
other purpose or in any manner whatsoever
Just before the banking privileges ceased, Its
effects were transferred by the bank to new
State institution then recently incorporated
in trust, for the discharge of its debts and the
settlement Of its affairs. With this trustee by
authority Of Congress ,an adjustment was sub.
scsuently made of the large interest which
! The Government had in the stock of the insti
| tuition. The manner in which trust unex
| pectcdly created upon the act granting the
! ah"'tvI,u aud Involving such great public inter
ests has heen executed would, under any cir
cumstanccs, be fit subject Of inquiry bn
! much more does it deserve your attention
when it embraces the redemption of obliga
! lions to which the authority and credit Of The
United States have given value. The two
| years allowed are now nearly at an end. /
is well understood that the trustee has not re-
deemed and cancelled the outstanding note:
reissuing, since the Sd of March, 1926, the
notes which have been received by it to
vast amount. According to its own officia
statement, so late as the FIRST of October last
nineteen months after the banking privilege.
given by the charter had expired,t had unde,
its control uncancclled notes Of the late Banl
the United States to the amount Of TWEEN
| ty-scvcn millions five hundred and sixty -one
thousand eight hundred and sixty six dollars
of which six millions one hundred and seven
! Ity-fve thousand eight hundred and sixty .ont
dollars were in actual circulation, one million
four hundred and sixty-eight thousand si
hundred and twenty seven dollars at Stat
! Bank agencies, and three millions two thou
, sand three hundred and ninety dollars in tran
s,tus; thus showing that upwards Of ten mil
lions and half Of the notes of the old ban
were then still outstanding. The mproprie
ty of this measure is obvious it being the du
ty the trustee to cancel and not put fort
the notes Of an institution, whose concerns j
had attempted to wind up. can see no rea
son why il may not continue TO do so afte
the expiration OF two years. AS no one coult
have anticipated course so extraordinary
the prohibltory clause Of the charter abov
quoted was not accompanied by any penalt,
or other special provision for enforcing il
nor have we any general law for the proven
} ton of similar acts in future.
But it is not in this view Of the subject q
: lone that your interpositon is required. TIL
United States in settling wit, the trustee fc
: their stock, have Withdrawn their funds frol
4 their former direct liability to the creditors
the old bank, yet notes Of the institution cor
d tinue TO be sent forth in its name, and apr,
rcnly upon the authority ofthe United State
g The transactions connected with the employ
e ment Of the bills of the old bank are of va
: extent and should they result unfortunatel