The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-01-19
SUBSTANCE OF THE
SPEECH OF Mr.. RIVES,
or VIRGINIA.

or VIRGINIA.
ON Ais second cali for Information respecting The FISCAL
ARRANGEMENTS Nth the Bank ofthe United STAIRS,
and TerielriBg The Report of NE Secretary o. ne
Treasury IN dasi1er 10 his first call DefiU'red IN
The Senate Of the United States, lih 81 January,
1889
The following resolution. introduced yesterday by
Mr.. RIyEs, having been read
Resoipsd That the President be requested TO COM
municsie the Senate at early day practicable,
the terms Of any agreement" informal or otherwise,
which may have been entered into between the Secre-
iary OF War and the Bank OF the United States respect
ing the sale or payment Of one or more bonds OF mat
institution, held by the United States relative TO me
proceeds OF the depose thereof in said Bank The Pc
RODS when aud the proportions in which. they were TO
be drawn out, the places where 10 be psd, ana tne
manner IN which they were TO be dlsbursed the tne
when such arrangements entered INTO, ana whenei
with the Bank directly with agent or agents OF the
Bank and in the latter case the name or names OF sueh
agents, together with all the correspondence which may
have passed between the Secretary oil War ana inc
Bank its agents. in relation thereto Also copies OF
all circulars issued instructions gwen by any branch
Of The War Department relative 10 the mode OF medium
which the money arising from the sale or payment o.
the said bond any part thereof 10 DO dsbursed
and as far can be conveniently stated the amount
which has been discussed in the notes OF the BANK u
der the said Instructions and the objects for which such
disbursements were made; together with oil cores
pondence communications which may have taken
place between the Secretary Of War and the BANK oil
the United States, or it's agents, between him and
any other Department Of the Government on the SUD-
ject-nater Of these instructions
| Mr. RIVES said il was proper he should explain TO
the Senate the motive Of the additional ea for nforma-
on respecting the late Transactions between the Go
vernment and the Bank Of the United States which is
contained the resolution Just read II would be per-
cewed that the first part OF the resolution calls upon the
| President, to 10 be communicated TO the Senate
/" the terms Of any sgremeentn which may have been
entered into between the Secretary Of War and the
Bank, relative the sale Of more Of its bonds
and the deposi,e OF the proceeds thereof the Bank
Among the most singular and curious developments
contained ia the very curious document, sent TO by
the Secretary of the Treasury in to the original
call for information, 10 the extraordinary fact that al
though the Secretary Of the Treasury himself the
responsible financial officer Of the Government was the
person authorized and directed by the iare to effect
sale Of ono Of the bonds of the Bank. yet the
negotiation OF sale was actually made by the Secretary
OF War The mere Jormaiiiies Of the sale, II was
true. were signed by the Secretary Of the Treasury
but the real agreement and conditions of the sale, were
negotiated by the Secretary of War without the know
ledge or participation Of the former. Mr. Woodbury.,
from some cause or other had been unceremoniously
showed from his stool first Lord of the Treasury, and
Mr. Poinsett had inruded into his place to perform
function expressly delegated to the Secretary Of the
Treasury by law Mr.. Woodbury.. in short il now APP
pears from the documents, in signing his name to the
formal articles Of sale, was, however nconsciousy
himself at the mie mere ministerial eafs-paw in the
hands Of his colleague.
The story is very curious one and will give it TO the
Senate, from The documents themselves The sale
was concluded bya letter from Mr.. Woodbury. to Mr..
Manchester he agent Of the Bank) dated the 3Oh Of
July in answer TO letter Of the agent bearing date the
2ls Of July On the face Of these papers, the trans
action naked and unconditional sale Of the bond
on the terms prescribed by the law. In few days,
however the Treasurer began by the direction of the
Secretary Of the Treasury, TO draw the Bank for
portion of the proceeds Of the bond sold He had
drawn to the amount Of $3.50, 900, payable in Pladel
phia and good part of Tin favor Of officers and agents
residing there Though there nothing in this, in
consistent in the degree, with the terms Of
sale concluded by Mr.. Woodbury., yet the 18th
Of August, less han fortnight after the sale
cluded, Mr. Biddle, President of the Bank sat down
and addressed letter to the Secretary Of the Trea
sury complaining Of these drafts " an entire depar
ture from the terms of purchase and then tells him
what were these terms Of purchase, settled between
him and Mr.. PoINsETT! will read to the Senate
small portion OF this extraordinary letter the disclosures
Of which have startled Mr. Woodbury., not little
lie says to the Secretary, "You could be Of
what had occurred between this Bank and the War
Department, In respect to the bond OF 1889, (he bond
sod); and think it, therefore, due you state pre-
cisely the footing upon which that matter stands Be-
fore making any offer for this bond had the disnctss-
snrance from the Secretary Of War that although the
the bond cannot be legally transferred the Of the
War Department, but you may rely explicitly on the
strict performance Of the terms Of agreement which
may informally enter into with you, and, &c" He then
proceeds to detail the terms Of agreement, which
cteally entered into between him and the Secretary Of
War, and which were he commended, departed from
by the drafts of the Treasurer made PAYABLE Phaadet-
phid Mr.. Woodbury., in answer to this communica-
ton, expresses great surprise" at the disclosures
made by it-ccclares he made agreement Of the
kind himself, with the agent Of the Bank--and never
suspected" the existence of any such arrangement
as having been made by Mr. Poinsett. Still, these
terms OF agreement as entered into by the Secretary OF
War, were acquiesced in and adopted by Mr.. Wood
bury finally carried out, TO the letter. and form,
shall hereafter show, the true agreement between the
Bank and the Government respecting the purchase Of
its bond
1t appears also, that the Secretary Of War, not only
made the original agreement with the Bank for the sale
Of the bond, but entered into spuations with respect
ing the of that agreement, with regard, part
cuary to the in which the proceeds Of the bond
be disbursed by the agents Of the Government,
and the medium in which those disbursements were to
be made The second part Of the resolution therefore,
requests the President to communicate to the Senate
any circulars issued, instructions given by the autho
rty of the Secretary of War; relative to the mode and
medium in which the public Disbursements on account
Of that department. to be made, together with CO.
pies Of all the correspondence which may have passed
between that officer and the Bank or others respecting
the subject matter of those Institutions as well as of the
original agreement made by him with the Bank for the
sale Of its bond These documents are obviously ne
cessary to supply chasm in those already communi-
Gated, and to complete the history Of transaction which
is destined to form of the curious, as well
important, chapters tho financial annals Of the conn
try
Having explained the nature of the information
SOUGHT by this additional call, and the reasons for
making It, Mr. Rives said he should now proceed to
examine the report made by the Secretary Of the Trea-
sury in to the former CALL and to show that il
fully sustained every inference and allegation he had
made, in relation to the recent transactions between
the Government and the Bank. He held it perfectly