The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-12
REPORT OF THE SECRETARY OF THE
TREASURY, ON THE FINANCES
TREASURY DEPARTMENT, I
September S, 1887.
Continued from our last. }


September S, 1887. /.
Continued from our iast)
vi. Settlement 10Th The former Deposiie Banks.
Another subject that appears require the early
ton of Congress the further indulgence which may
be pleased to extend to such Of the former deposite
banks still indebted to the United States.
The facts which supposed to be necessary to aid
Congress in forming correct decision this subject
will be fully submitted The perils to which those
banks were exposed had caused to the department
much soctude for several months before the suspension
of specie payments, and led some precautionary sug
gesons which it felt bound to make to them, far
appeared consistent with the usual principles Of bank
ing in this country and not calculated by creating sud
den alarm to hasten the catastrophe that has since hap
pened.
Besides the general cautions with respect to the ex-
Of bank issues, and the dangerous consequences
likely to ensue which detailed in the last Treasury
report several instances occurred where the Of
business OF some Of the repositories appearing from
their returns to be nudcous special letters of advice
were deemed proper, and written. A rigid sys-
tenn in requiring additional specie also pursued in
all cases OF unusual deficiency In regard to the effect
OF these steps the banks it affords the undersigned
pleasure to add that from the completion Of their selec
ton after the deposite act passed. to the last returns
before their suspension great reduction the crcua-
ton, well as discounts of many OF then had taken
place. and IN several cases, much larger proportion
OF specie was kept hand Indeed, considering the
extraordinary amount Of public money paid by them
between last November and May amounting to 20
millions more than their receipts during the pc
Rod, it is fact highly crcdabe their prudence and
ability, that the specie Of all reduced only from
about fifteen to thirteen millions and their circulation,
instead OF increasing fell from fory-one to thirty
seven millions.
As whole, their SPECIE compared with their circu-
ation, continued TO be almost large in May No
vember. IL averaged more than one to three, or
much more than has been customary with the banks
IN this country and double the relative guam
tty held by all the banks in England the PERIOD
and was 10 proportion onefourh larger than that in
the Bank Of England itself Their immediate means
compared with their immediate liabilities, were some
what stronger IN November than in May. but were at
both periods nearly 10 l2, greater than the usual
ratio, IN the best times, of most banks which have
large amount Of depostes in possession. (Seo ia
BILE o.
In this condition Of things the suspension Of specie
payment by the deposite banks event gene
rally anticipated
The policy since pursued by most OF them has been
favorable to an early discharge of ter engagements
the treasury, and to resumption of specie payments
Many have gradually reduced their discounts and circu
lation, as well paid over much of the public depo-
sites This may be fully in the tables annex
ed Statement OF few heads of condition in Novem-
Der, March, July, May, and August-see a. Since
the first Of May, their discounts as whole have been
reduced about $50 1888 776, their circulation S4 99l
79l and their pubic depostes Sl5,607,3l6; while
their specie has diminished less than So 600 900 OF
the numberof eighty six banks employed at the time Of
the suspension, eleven supposed have paid
over all the public money which then in their pos
session, to the credit Of the Treasurer In the custody
of more than half the Others aggregate Of less than
100000 remains adusted Several Of the res,
still possess large sums but many OF them have contin
ued promptly to furnish such payments from time to
time, for meeting the public necessities, that according
to the last weekly statement the whole balance his
credit remaining unpaid in all Of them was only Sl2-
4ls,O3. The amount thus retained by EACH may be
seen in the schedule annexed (R) -..'.
The course adopted respect the depostes OF dis
bursting officers, after the suspension OF specie payments
and with view to safety, well as TO encourage the
early resumption of such payments may be more
fully In the document annexed (See circular, 81
1t was considered proper proceed and attempt to
withdraw all the public money from the discontinued
agents, as fast it wanted for public purposes
and as new and suitable repositories could be procured
to receive any thing obtainablc beyond such amount
But while the former agents appeared be secure and
to be making proper efforts to such calls, it seemed
more conducive to the eventual safety of the money and
more consistent with true wisdom, well the con-
yenence Of the Treasury. to refrain from unnecessary
prosecutions and costs I'LL the early session OF Congress-
which had been called, in part for the consideration Of
this subject On the contrary, when any Of the banks
persisted IN negectlng to pursue the prudent Of
curtament and in making reasonable efforts TO dis
charge the drafts them acceptable manner the
department considered it duty, however unpleasant