Iowa news. [volume] (Dubuque, Upper Mississippi Lead Mines, Wisconsin Territory) 1837-1841, 1837-12-23

ing of portions Of the revenue. This discre.
ltionary power might be continued, if Congress
deem it desirable, whatever general system
lmay be adopted. So long as the connection
lis voluntary, we need perhaps anticipate few
fof those difficulties, and little Of that depen-
ldence on the banks, which must attend every
such connection when compulsory in its ma.
ture, and when so arranged as to make the
banks fixed part Of the machinery Of Gov
eminent. Ii is undoubtedly in the power Of
Congress so to regulate and guard it as to pre-
vent the public money from being applied to
the use, OF intemingled with the affairs, ofin-
diyiduais. Thus arranged, although it would
not give to the Government that entire control
over its own funds which ! desire to secure to
il by the plan have proposed, it would, lit
must be admitted, in a great degree, accom-
| plish one ofthe objects which has recommends
| ed that plan to my judgment---the separation
iof the fiscal concerns Of the Government from
those Of individuals Or corporations. With
these observations, / recommend he whole
matter to your. dispassionate reflection; conf
IDENTIFY hoping that some conclusion NAV be
reached by your deliberations, which, on the
one hand, shall give safety and stability TO the
consistent on the other, with the genius of our
institutions. and with the interests and wishes
|of the great mass Of our constituents.
II was my hope that nothing would occur to
make necessary, on this occasion, any allu-
sion to the National Bank. There are circum-
stances, however, connected with the present
state Of affairs that bear so directly on the char
acter of The Government and he welfare Of the
that / should not feel myself excused
in neglecting 10 notice thsm.---Ihe charter
which terminated its banking privileges on the
fourth Of March, 1886. continued its corporate
powers two years more, for the sole purpose Of
closing its affairs, with authority s.io use the
corporate name, style and capacity, for the pur-
pose of suits Tor 6Hai settlement and liquida-
ton of the affairs and acts of HE corporation,
and for the sale and dspositionof their estates,
real, personal and mixed, butfor no other pur-
pose or in any other manner Whatsoever Just
before the banking privileges ceased, its eff
tects were transferred by tie bank to new
State institution then recently incorporated, in
trust, for the discharge Of its debts and the set
Element Of its affairs. With this trustee, bv 4
authority of Congress, an adjustment was sub
made 1.-The large interest which the
Government had in the stock of the institution.
The manner in which a trust unexpectedly Gre
ated upon the act granting the charter, and in
volying such great public interests, has been
executed, would, under any circumstances, be
a fit subject Of inquiry; but much more does
it deserve your attention. when il embraces the
redemptions to which the authority and credit
Of the United States have given value. The
two years allowed, are now nearly at all end.
1t is we'll understood that the trustee has not
redeemed and cancelled the outstanding notes
of tne bank, but has issued, and is actually
since the Sd of March, 1886, the
notes which have been received by it to vast
amount. According to its own official state-
ment, SO late as The first Of October last, nine
teen months after the banking privileges given
by the charter had expired, it had under its
control uncancelled notes of the late Bank of
the Limited States to the amount of twenty Zoo
ven millions five hundred and sixty-one thou
sand eight hundred and sixty-six dollars, of
which six millions one hundred and SEVENTH
five thousand eight hundred and sixty zone dol
lars u ere actual circulation, one million four
hundred and sixty-eight thousand six hundred |
and twenty-seven dollars in State bank agen-
cies, and three millions two thousand three
hundred and ninety-nine dollars in transitu;
thus showing thatupwards often millions and
a half of the notes Of the old bank were then
still kept outstanding. The Improperly Of this
procedure is obvious: it being the duty of the
trustee to cancel aud not to put forth the notes
OF an institution, whose concerns it had under
taken to wind up. 1.-THE trustee has right to
reissue these notes now, can see no reason
why ltmay not continue to do SO after the ex-
plratlon OF the two years. As no one could
nave anticipated course so extraordinary; the
prohlbltory clause of the charter above quoted
was not accompanied by any penalty or other
special provision for enforcing it, nor have we |
any general law for the prevention of similar
acts in future.
but 1t IS not IN this view of the subject alone that
your lnterposition is required The United States,
IN settling with the trustees for their stock, have
Withdrawn theirfunds from their former direct lia
bity 10 the creditors ofthe old bank, yet notes of
the Institution continue 10 be sent forth in its name,
and apparently upon the authority of the United
states. Inc transactions connected with the en-
ployment of the bills ofths old bank are of vast ex
tent; ana should they result Unfortunately, the n-
terests Of individuals may be deeply compromised.
Without undertaking to decide how far, or in what
form, II any, the trustee could be made liable for
tne notes which contain no obligation OH its part
or ihe Old bank, for such as are put 10 circulation
after the expiration of its charter, and without its
authorlty; or the Government for indemnify, IN !
ease ofloss, the question still presses itself upon
your consideration, whether it is consistent with
duty and good faith OH the part of the Government,
70 "ithess THIS proceeding without All effort to ar
rest it. s
4 The report of the Commissioners of the General
Land Office, which will BIS laid before you by the
Secretary THE Treasury. will show how the affairs
OF that Office have been conducted for the past year