The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1839-01-15

Bank proposed, and the Secretary of the Treasur,
agreed 10 Two instruments of 500 900; and the las
Of quite amounting to that But il was
soiemnly stipulated that the interest should be
stopped while the sums should be deposited IN
bank to the credit Of the Treasurer. This cannot
be defended except on the plea OF necessity and
will any urge that the Treasury in such
strait, as to require the anticipated payment oil thai
bond, which in six months, must have been paid
in full with interest. Why, at this very time, the
boast was that large amounts OF Treasury notes
won Id be redeemed and the real state of the
case was that the Secretary got money from the
Bank al q per cent to pay oil Treasury notes,
which bore an interest of tao0, one, and mW per
cent. tn is aoasa Spiendid financial operation =
quite soorthy (said Mr. Rves) Qfhe acsdOm that has
presided ocer the Treasury Department Jor some
years past
bring the procee DIS of the second bond into the
condition of those of the first and put them on de-
post in Bank 1t was one link in the cham of pro-
ceedings by which the Administration designed to
restore the connection between the Bank of the
United States and the Federal Government.
Mr. Rives then went into a very minute and crit.
| icaI exam nation OF the correspondence appended
to the Secretary report (o which Will hereafter
ask the attention o.! your readers in dctalD aud
showed conclusvely that every allegation he had
made was fully sustained
1t was proved, he had alleged, that the sale of
the Bonds not naIed transaction but was
connected with stipulatons that the proceeds should
be left deposit in the Bank as any other general
deposit.
Tor the payment being made at different distant
points Ii proved that the distant dlsburse-
ments to be made in notes of the Bank, or
by checks Of discussing officers on the Banks a
gents.
The advanta ges derived by the bank from these
arrangements obvious. IL has The Government
deposes to the amount of two millions Tor hive
months and all the advantages OF the exchanges,
and Of discussing the public money in its own
notes.
r5sThe country has been entirely deceived by
the representation that the only sums of public
money deposited in the Bank OF the United States,
have been those derived from the payment or sales
Of its bonds. sED
There was one sum- al least Ct is notorious TO
those who have looked into these aairs) of no less
than 100000, raised out Of debt due from the
Bank of Kentucky, which placed in the Bank
OF the United States
The account given of this item by the Secretary
is lost disngenuous. The deposits is said to have
been made by the Bank of Kentucky. But the
documents directly contradict the miserable pre-
tence. The cashier transferred 1t here; and the
acting Secretary of the Treasury caused 1t TO be
deposited in the Bank of the United States.
Mr. Rves dwelt with great power on the accu-
muated proofs of q closer connection between the
Bank and the Government Than tho Admnstra-
ton party wish to acknowledge. Some OF tho sup
porters of the Administration have declared that
if the transactions between the Treasury aud the
Bank had gone beyond the mere sale and purchase
of the bond, they would Join Nj RIves IN denounc.
ing these transactions. MI Buchanan was one. l
have good reason to believe that Mr. Calhoun ex-
avoWed that such transactions were without his
appreciation Mr. Rives appealed to
M. Buchanan in a.highiy animated strain, 10 Judge
whether he had not made out his In the
course of mis- remarks he paid some compliments
to Mr Buchanan and declared he would be glad to
see him at the head of that department.
Mr. Buchanan, (smiling) "fou never Will see
Mr. Rives. "Perhaps not In The present rotten
condition Of the concern il would be well to keep
out OF it =
He urged upon these gentlemen, who had ex
pressed themselves in the manner have mention
ed, the question, whether they could consent 10
sanction union between the Bank and the Gov
arnment, depending SIMPLY on the discretion OF
the Executive, aud without any sanction OF law.
The Bank is reinsated Che malntained) MS heal
agent of the Government throughout the whole
Union. Ii spreads its Briarean arms every where.
The whole OF the public money, out of the Mint,
and not in the Bank Of tho United States, does
not amot to 5000, 900 ! The correspondence be- E
ween Sec re tary Woodbury. and Mr. Biddle now,
reminds us of that between Mr. Crawford and Mr.
Cheves as to the courtesy and harmony No
more do we find the rough irony and clumsy at
empts at sarcasm, formerly made by Mr. Woodbu- s
~. No do discover the polished, high,
patrcian dsdain which Mr. Biddle exhibited for the
rude "democrat." They now "Rlght Trusty,
and Right Well Beloved Cousins, both
In drawing 10 a close, Mr. Rives denounced in
the severes the Secretary miserable attempt
to delude the people by his talk about especial
Deposlte." He Justly said it specimen of
paltry Juggling, unworthy of necromancer in the
the people and tamperng with the dignity of the
Sena,e--the old trick of cheating the people with
a mere name-with humbug.
The object is to make the country believe that
the present system of deposites is different from
any former one. But the Bank treats with con-
tempt all reference to special credit of the Treas
urer and speaks Of the depostes as being of the
nature of general deposites.
In conclusion Mr. Rives impressed on the Senate
the moral of all these transactions of the Govern
nent tho Banks are admitted by the Admisra-
L1f ,tnf,t and fhn cnIn
gents for conducting its fiscal affars-and these fs
cal agents ought, therefore, to be established by
law, and not lett to Executive discretion.
Mr. Niles of Connecticut rose to reply to Mr.
Rives-und the company forthwith dispersed.
The House was engaged during the whole day
on private bills.
WASHINGTON, Jan. T.
The principal subject before the Senate to day,
was the bill for reducing and graduating the price
of the public lands.
The committee to whom it referred back on
Friday, at the instance of Mr. Clay of Ky. with in
tod tbac II,,s 4,