Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1837-12-13

proposed, u Wouio, II InuSl Do huhhlto",
in q great degree, accomplish n oil
the objects which has recommended
that plan to my judgment-the sePara-
ton of the fiscal concerns OF the Co.
vernment from those of individuals, or
corporations. With these observa-
tions, | recommend the whole matter
to your dispassionate reflection ; conf.
IDENTIFY hoping that some conclusion
may be reached by your deliberations,
which, on the one hand, shall give
safety and stability to the fiscal opera.
tons of the Government, and be con-
sistent on the other, with the genius of
our institutions, and with the interests
AMI wishes OF the great mass of u
constituents.
1t was my hope, that nothing would
occur to make necessary, on this &c
sion, any allusion TO the late National
Dank. There are circumstances, how.
ever, connected with the present state
of its affairs, that bear SO directly on
the character of the Government and
the welfare OF the citizen, that | should
not feel myself excused in neglecting
to notice them. The charter which
terminated its banking privileges on
the fourth of March, 1896, continued
its corporate powers two years more,
for the sole purpose ofclosing its affairs,
with authority "to use the corporate
name, style and capacity, for the pur.
pose of suits for a final settlement and
liquidation of the affairs and acts ofthe
corporation, and for the sale and dispo-
sitlon of their estate, real, personal and
mixed, but for no other purpose, or in
any other manner whatsoever" Just
before the banking privileges ceased,
its effects were transferred by the
Bank to a new State Institution, then
recently Incorporated, in trust, for The
discharge ofits debts and the settlement
of its affairs. With this trustee, by
authority of Congress, an adjustment
was subsequently, made of the large
interest which the Government had in
the stock ofthe institution. The man.
ner in which "A trust unexpectedly crea-
ted upon the act granting the charter,
and involving such great public inter.
ests, has been executed, would, under
any circumstances, be a fit subject of
inquiry but much more does it de.
serve your attention, when it embraces
the redemption of obligations to which
the authority and credit of the United
States have given value. The two
years allowed are now nearly at an
end. 1t is we'll understood that the
has not redeemed and cancelled
the outstanding notes Of the Bank, but
has re.issued, and is actually re-issuing,
since the third of March, 1886, the
notes which have been received by it
to a vast amount. According to its
own official statement, SO late as the
first of October last, nineteen months
after the banking privileges given by
the charter had expired, it had under
its control uncancelled notes ofthe late
Bank ofthe United States to the amount
of twenty.seven millions five hundred
and sixty-one thousand eight hundred
and sixty.six dollars, of which six mill
lions one hundred and seventy-fve
thousand eight hundred and slxty.one
dollars were in actual circulation, one
million four hundred and sixty.eight
thousand six hundred and twenty-seven
dollars of State bank agencies, and
three millions two thousand three hum
drcd and ninety dollars in trdnSitu -;
thus showing that upwards Of ten mil
Ions and a half of the otes Of the old
Bank were then still kept outstanding.
The Improperly of this procedure is
obvious it being the duty of the trus-
tee to cancel and not to put forth the
notes Of an institution, whose concerns
it had undertaken to wind up. Ii the
trustee has a right to reissue these
notes now, | can see no reason why il
may not continue to do 50 after the
expiration of the two years. AS no
one could have anticipated n course so
extraordinary, the prohibitory 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 pre-
vention Of similar acts in future.
But it is not in this view Of tho sub
ject alone, that your intcrposition is
required. The United States, in set
thing with the trustee for their stock,
have Withdrawn their funds from their
former direct liability to the creditors
OF the old bank, yet notes of the insti-
tuition continue to be sent forth in its
name, and apparently upon the author
ity ofthe United States. The transac-
tons connected with the employment
Of the bills of the old bank are of vast
extent and should they result unfor-
tunately, the interests Of individuals
may be deeply compromised. With
out undertaking to decide how far, or
in what form. if any, the trustee could
IN NN,IA ialIA F. a wk.-I @a- -