The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-20

mittee from that body 10 a committee from this
board and reported by the latter at the last meeting;
and ailer some time spent in considering the same,
certain notifications were made, ana the commillee
ON the part of this Bank authorised to agree 10 the
propositions as modified, as follows viz:
THE committee Of the Bank of the United States
respectfaly submit the following notifications of the
propositions received from the committee of the State
Banks viz:
ISL That the incorporated banks of New York,
PHILADELPHIA, Baltimore Richmond and Norfolk,
engage on the 20lh Of the ensuing month, 10 com
mence and thenceforth to continue, specie payments
for all demands upon them, and rseiprocdy support
he credit of each other in their several DISTRICTS upon
any emergency until The balances existing between
them shall finally be paid of.
sd That the whole OF the public balances in the
receiving banks Of New York Philadelphia Balli-
more, Richmond, and Norfolk, be Immediately trans
ferred to the Bank of the United States and retained
In its vaults Except so much thereof as may be re-
quired by the Secretary OF the Treasury TO meet the
current expendture) until the LIST of July next when
the same shall be paid of together with the interest
thereon.
"3d The payment of the balances which may ac-
cumulale against the aforesaid banks subsequently
to the transfer OF the balances first mentioned, shall
not be demanded by the Bank of the United States,
until the said Bank and its branches shall have dis
counted for individuals (other than those having du
ties TO pay) the following sums, viz:
For those in New York, two Millions
For those in Baltimore, one and a half millions;
For those in Virginia, live hundred thousand dol
lars Provided that il the said Bank shall be willing
to discount and shall not have the required amount
of good paper offered within the Of sixty days
from the Goth of the ensuing month"; at New York,
Philadelphia and Baltimore, and within the same
term after the operations Of the Offices of the said
Bank in Virginia shall have commenced the afore-
said banks shall, al the expiration of that time, at
the aforesaid places, respectfully pay TO the Bank Of
the United States the balances due by them respect
lively, together with the interest thereon.
9Th That the Bank of the United States will
engage TO discount the required amount, al the re-
spective places, and within the time mentioned in
the preceding articles, provided good paper 10 that
amount be offered.
9th That in the event of the Bank Of the United
States and It's branches not having sufficient amount
of good paper offered at the respective places men
toned in these articles, within the period therein
stipulated then the Bank of the United States will
engage TO discount for the said banks the amount of
the deficiency at the respective places, according 10
the amount Of the capitals Of the said banks respec
lively.
eth That the banks aforesaid shall engage, re-
specvely, and in proportion which their loans may
bear TO their capitals, to reduce the amount of the
said loans in the ratio of the discounts required OF
the Bank of the United States and its branches and
thai the said reduction shall take place by the LIST of
July next
9Th That the Bank of the United States will in
terchange pledges of good faith and friendly offices
which may menace the credi, of any of the afore
said banks, will cheertnly contribute its resources
to any reasonable extent, in support thereof, con-
fding in the Justice and discretion OF the banks re-
spectively, to circumscribe their affairs within the
lust limits indicated BY their respective capitals,
soon as the interest and convenience OF the commu-
nifty will admit.
18Th That upon the mutual agreement of the par
ties to these sipuatons the same shall be submitted
to the Secretarv of the Treasury, for his decision
upon those points that involve the public balances;
and, when approved BY him, shall be obligatory
all the contractingParlies.'
It's proper to remark in relation to the "2d"
foregoing stipulation, that with regard to the
present deposite banks, Congress has stipulat-
ed, by law, the time when their balances shall
be paid, by instalments, viz:
On the lst Of July, 1898,
j." do. January, 1899,
do. July, 1910.
As to the undertaking of the Bank Of the
United States, in the g. Sd" stipulation, to dis
count sundry millions for individuals, &c.
it will be recollected, that the agreement was
not fulfilled.
To show what the RATE OF EX-
CHANGE, and the PREMIUM on SPE-
Gle, were, at the time the banks in 1916
were making arrangements to resume specie
payments, we shall take the whole of that
year, as follows:
AT NYork AtPhilahia AT Baltimore