The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-17

"The transfers Of the public money are now so
much greater than they ever were before, and has
become so onerous aduly TO the banks called upon
10 perform that service, that they will require all he
Indulgence and tender treatment from the Treasury
Department that IL may be in its power 10 extend 10
prevent serious Inconvenience 10 them, and extensive
embarrassment 10 the communities IN which they are
located.
"When Mr. Crawford gave to the Bank of the
United States four months to make transfers on
account of the Government, from Its distant branch
es the whole sum then required was not only ex-
ccedingly limited in amount, but then the whole
business was managed BY one and the same concern.
Now it is different Done BY distinct and sepa-
rate institutions each of which must manage its
own finances without relying upon others.
"If the Department thinks proper to withdraw the
transfer warrants upon the deposite banks al New
Orleans and direct new ones TO be issued, payable
at the period when be done with the proceeds
of the coming crop, great sacrinces 10 the banks
will be saved, an advance on the price OF North
ern exchange will be undoubtedly avoided, and
an increased arrangement in the commercial in
tercourse between that place and The Northern
cities he prevented; all of which, In my opinion,
inevitable in the payments OF the drafts shall
be persisted in"
strances caused, led TO some modification of the
terms Of some of the transfer warrants But, lest
may msrepresent the Secretary of the Treasury, |
will give his representations relating to some OF
my intercourse with him.
MIR. Garland was chairman, Of the llth 81 January
last, find the following: I" | think no farther ex-
PLANTATION desirable as 10 the official connexion be.
tween the agent for some Of the deposite banks and
this Department unless it be to add thar in deciding
so many embarrassing questions OF law and fact, as
have arisen in respect 10 those banks, well as In
deciding the various other questions on the other
ardnous subjects brought before me by other agents,
have been obliged, occasionally, to differ widely in
opinion from tbs ageat well most of the others.
In such cases have often been requested to call on
the Attorney General for his opinion as TO points
connected with the claims of the banks, as well as
other claims, and hare had my decisions appealed
from, 10 The CHIT Erscntipe Magiar0te.p
In the answer given by the Secretary 10 the forty
fourth interrogaory propounded to him by the com
mee, find illusions made TO the very eases OF the
Ohio and New Orleans Banks, which the correspon-
dence quoted has reference to. In relation 10 the
Commercial Bank of Cincinnati, he says, The
agent urged that the time granted, in several cases,
was less than that formerly allowed under other cir
cumstances TO the United States Bank TO make trans
fers." The time for some OF the transfers, which
seemed too short, proposed to extend as long as
seemed to me proper He horcrer, declined taking
sch crieasioR in behalf Of The Bank antess ieonid
rake Hloager thinking ii could not be useful 50 hue
crteRded"
In relation 10 one Of the Banks at New Orleans,
after referring 10 the difference which appeared TO
exist between It's statement Of the amount OF money
in its hands, for which transfers had been issued,
and the records ofthe Department, the Secretary in
the same answer, says: He myself seemedto be
satisfied the bank was right Whether any extern
sions were given in this case, do not remember but
know that none given beyond the period Of the
quarterly payments TO the States far trhieh purpose
these transfers had been Seds0na5iy 0rdered."
Ii must be borne in mind, that 1t was in the month
of August when these things occurred and that the
first quarterly payment 10 be maze 10 the etates
the LIST of January following.
The onerous and expensive duties of transferring
the enormous amounts of the public money from
ell x
si2seen of the Oldest selected banks They were
called on TO transfer moneys from State TO State, and
also to pay over 10 the newly selected banks in their
own States and cities. ...
In majority of cases ofnewy selected banks under
the act of Congress- they demanded specie upon the
warrants of the Treasury, issued in their favor
the old banks. Some pursued this course to rein
force themselves in specie funds, which they were
called on TO do by the Department. others APP
peared 10 have no distinct object in view and others
had evidently no other object than 10 produce embar
rassmen to those who the payers of the drafts
Instances occurred in which the payees of Treasury
transfer warrants required the payers to transport
the specie at their expense and risk, many hun
bred miles, and place on the floor of their banking
housed Other instances occurred, when specie vas
demanded on Treasury drafts, that Bank checks on
the same place TO which the specie to be trans
ported were offered in payment and refused, and I'M
mediaely thereafter were forwarded, and the specie
drawn on them and put on its way back before the
specie, drawn on the Treasury warrant, arrived at
the place on which the bank checks which had been
refused in payment, were drawn,
The effects of such system before the month OF
November of 1886 caused nearly every one of the
banks subjected to make transfers of public money
to complain either directly indirectly, of the Sc
verify of the operation of il upon them, and through
them upon the community. That community be-
came distressed in their moneyed operations. The
whole country literally coarnised in its monetary
affairs. A clamor was raised against the "Spccie
Circular as being the cause of it. Few disbaliev-
ed it.. None contradicted it. ILL.,.
In ten OF the States, in which there is at any time
but very small amount of revenue collected of any
sort, and in which there was at the credit of the
Treasurer of the United States at near the pas
sage of the act of the Odd June about two millions of
dollars; that amount had been augmented on the LIST
day of December following by transfer drafts issued
and paid, or running 10 maturity at that time out
standing, to about eleven millions and half dollars,
This too, while the whole amount Of the surplus
which all those States entitled to under the act
amounted in the aggregate to only about fourteen
millions, the first insalment of which was not pay
able until the first of January, amounting to about
three and halfmlions; and the other three install
ments quarterly thereafter the last of which, the pay
ment was delayed, by act of Congress at its late ex
ira session. Wy.
What amount of other transfers or payments to
banks in the same States were made to meet the re-
QUESTIONS of the department during the same period
| have not the means of ascertaining. Doubtless
they were large. On the LIST of December the
amount of transfer drafts then outstanding was over
thirteen millions and three quarters of dollars
1t is well ascertained fact, that in ordinary
times, the mere decrease by the Bank of England Of
only single million of pounds of lis circulation is
seriously felt throughout the whole kingdom. Can
any one, on learning that fact be surprised at the
disastrous consequences resulting from the measures
of the Treasury Department upon the community
under the operation ofthem as have dcscribed7
The effects on the country Of heavy transfers had
been in operation some time previous TO the passage
of the act Of the Odd June; but they much less
felt; because they were made through and preserv-
ed in the natural channels. The whole amount
transferred and actually paid during the year end
ing LIST October, 1886 was thirynne millions and
quarter. The amount between the LIST of Oct and
the 9th day of November five millions and quarter
and the amount of transfers ordered and then runS
ming to maturity was fourteen millions and half of