Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1837-01-18
rrnm the N.tioual Gasette-Jan. 8.

some light on Two or tnree oDJeclS OF
inquiry proposed in Mr.. Garland's re
solution. II is a circular letter, adj
dressed by R. M. WHITNEY to the of
fcers Of certain deposite banks, and
conclusively shows the close po-
litical connexion between that gentle
and the Government, the nature
of some of his duties, and the means
by him deemed legitimate to effect the
objects of his agency.
Should any curiosity be excited as
to the authority upon which this COM
munication is made public, It will be
for us TO suggest, that 1t may
to some of the officers OF the
institution to which it was addressed,
that their agent has o%verstepped the
line oil his duty in forgetting the true
objects Of his appointment, and lntrigu'
ing against the continuance Of a fair
and legitimate regulation. Should such
prove to be the case, we applaud their
independence. If the surmise is I'M
founded, and Mr.. Whitney's proceed
ings are unexceptionable, no injury
can accrue to him. II, on the contra
ry, he has mistaken the limits Of his
office and his duty, the people will be
enlightened, and the country benefited
by a knowledge of the proceeding.
WASHINGTON, Dec. Z, 1886.
Dear Sir: | should consider that |
was remiss in discharging the duty
which | owe to those banks which en-
ploy me to reside here TO attend to
their interests, were | to remain mac
tive on the present occasion. You will
have seen that the President, in his an
nual message to Congress of yesterday,
in relation to the operation of the law
ofthe last session of Congress regula-
ting the deposite banks, says it is be-
lieved that it " operates GENEROUSLY and
unjustly upon many of them in many
respects" He justly recommends a
modification of that law, SO as to re-
move such operation.
| believe that few Of the banks are
aware what they are chargeuble with
under that law. | will explain all
sums, while in transitu, are chargeable
with interest for instance, a bank at
New Orleans, which is required to
transfer money to Boston, must pay
interest upon it until it IS placed at the
credit Of the Treasury at that place,
although it may be money transferred
10 New Orleans from st. Louis or Nat
,hez. This is not all {; the New Or
cans Lank must pay interest upon this
money, while in its possession, altho'
t derives no use of it, but is employed
in making preparation to transmit it
to the point ordered.
The same in cases where transfers
are ordered from New York to North
Carolina, South Carolina, Georgia, and
Virginia.
This must certainly be pronounced
an unjust operation of the law"
What is considered an Generous"
part of the law, is the exaction of any
interest at all. The Bank of the Uni.
ted States lever paid any interest on
the public depositcs, and for ten years
prior to 1888, they averaged eight
millions of dollars. That institution
rendered no greater service than the
deposite banks do to the Government
in performing the duties of disbursing
agents.
The services rendered in the way of
transferring the public money from n
place TO another by the deposite banks
are nearly fouriold those rendered by
the Bank OF the United States in any
one year; and that too by a small
number of the deposite banks.
1t is believed that the greatest sum
ever transferred by the Bank of the U.
in any one year, was in 1892,
amounting TO $16,000,0 600. During
year ending the LIST of October,
1886, the transfers actually made and
paid by the deposite banks amounted
to $39,319,s94, and the amount trans
and paid between the 1st of DC.
tober and the 9th of November, was
S., 1899, 900, and the amount of trans.
fer warrants outstanding at that date
was $l4,450,000, making an aggre.
gate of $50, l6S, 1894. This, | venture
to say, is without a precedent in any
country. The transfers
made by the Bank of the U. States
were generally between the Atlantic
or from east to west, in all of
which cases, if there was not a profit
growing out of making them, they
were not attended with loss; while mil.
lions of the transfers made by the de-
posite banks have been in an inverse
direction, and have been attended by
both a heavy loss and risk to the banks
that have been called upon to make
them.
1t is a remarkable fact, which shows
the ability Of a small number of the
State banks to perform all the fiscal
duties of the Government, that nearly
all theSa troncfarc hoya haap noaJo -,