The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-01-19

as disclosed by the documents II must be borne 10
mind that only one Of the bonds 10 wit that due the
3Oth September, 1889, was sold The other bond EN-,
braced in the transactions between the Treasury and
The Bank--ihat which fell due the 30th September
last. OF which shall speak hercsfteIwas not sold
hut an arrangement made for anticipating the pay
ment OF part Of il, aud posiPonlng the payment Of
another part In regard to the bond sold, We must re-
cur to the authority under which the sale was made
The ACT which was passed the subject, during the
last session OF Congress authorized The Secretary Of
the Treasury to sell one, OF the bonds Of the
Rank ON the best terms which could be had J0r money
m hand. Now, what was the import Of this phrase
II is very peculiar one, and have 10 recollection oil
ever having met with il before Ia any act OF legislation
II might even seem TO have been suggested by sebs-
live jealousy Of any renewed fiscal connection between
the Government and the Bank, and TO have been m
tended 10 prohibit in advance, any such connection by
requiring the proceeds Of the bond, when sold, TO DO
taken Gin hsnd"-into the actual custody and posses
sion of the Government-and not left Oh dfposile IN
the Bank But the least that il mean. is that the
bond should be sold for eas for ready money as con-
tradistinguished from ertda should be glad to know
OF the honorable Chairman Of the Committee on FL
nance, (Mr WRiaHr) by which the bill was reported,
what was the precise meaning attached by the com
mitiee TO this phrase.
[Mr WRIeHT here rose and said he drew the bill,
aud by the Of the phrase in question: intended that
the sale OF the Bond should be such as to realize ITS
value IN present.
That is exactly, said Mr. Rives, what supposed.
The bond TO be disposed Of in such way as to
realize its par value, Che limit fixed by law as that
under which il not TO be Sold IN PRESENT. and not
in flinro Now, sir shall proceed TO show by the
documents before u.s. beyond all controversy, that the
sale actually made Of the bond such to realize It's
par cash value in furo, and not in prGsentin other
words that il sold credit al price cacuateda as
for cdshand consequently that the sale was IN direct
violation Of the law have already stated, Mr. Prcsi-
dent that whatever the formal articles OF sale, as
executed by the Secretary OF the Treasury bore on their
face the real Of the transaction TO be sought
in the "agresmcnt' between the Secretary OF War
and the Bank which was subsequently admitted, and
faithfully and infinitely carried out, in all its parts, by
the Secretary OF the Treasury Now sir, let Us see
what that agreement 1t is set forth by Mr., Bid
de- the President Of the Bank, in the letter have
heretofore referred to- addressed by him the 18th oil
August, 3s, to Mr.. Woodbury.. In reclting what
passed between him and the Secretary Of War, on the
subject Of the sale Of the bond he repeats the following
language addressed TO him by Mr. Ponsett-"If you
become the purchaser, (of the bond The amount will
be deposited in your Bank to be drawn for required,
which nH not exceed 100000 a month. This money
will be wanted at the South and West, and the manner
Of drawing for it may be subject of future arrange
ment between US" Mr. Biddle then adds, accord
ingy, received from the War Department detailed
statement Of the times and places, and amounts Of the
disbursements for the merit three months" &c.
This communication of Mr.. Bddle to Mr. Wood
OUIy, the tue OF
tation between the Secretary Of War and the Bank,
respecting the sale Of the bond received by the
acting Secretary OF the Treasury. Mr. Young, who
der the date Of 18th August, briefly replied" The
records Of this Department, By ,oheh alone be
gorerned contain allusion to any such agreement
ph The Department Of War as is referred TO in your
letter" But in few days afterwards to wit on the
10Th August Mr. Young writes again by express direc-
ton Of Mr. Woodbury.. The Secretary takes on, at
FIRST tone OF offended dignity bu. only to prepare for
absolute surrender at discretion /" He roars" but
an twere a Nightingale as gently sucking
dove" He ins,r1cts Mr.. Young 10 express "his sur
prise at Mr. Bddle's communication concerning the cor
respondence with Mr.. Poinsett," and to say " it was
suspected that any such arrangement that stated
contemplated to be carried into effect in respect to
the bond Of 1899, the time it sold" Mr. Young,
however, winds up his letter on behalf OF Mr.. Wood
bury, aud written, It's presumed, under his express in
sruction. IN duce tones, forming very amusing
trast with the busting air Of dignity and independence
assumed in the outset. He concludes thus "The
Secretary regrets the Interpretation regard this
subject, and he arA DC happy to do, on his part, all
which feasible enter into the entertained be-
tween you and Mr. Ponsett, and carry them ont with
as little delay and Inconvenience possible. He re-
quests you (Mr. Bddle) will furnish him by return Of
mail, if practicable, with list Of the banks or agents
who will pay the the particular places arranged
between you and the Secretary Of War and the
to be paid by each the drafts of the Treasurer on
your Bank, payable at those points"
In answer to this letter. and in compliance with its
request, Mr. Cowperhwat, the Cashier of the Bank Of
the United States, under date Of 22d August, trans
mts to Mr. Young "a list Of the agents. (of the Bank)
who will pay the drafts Of the Treasurer of the United
States at most Of the points designated BY the Secred-
ryof War, with the amounts to each. This list con-
tanned the of the agents Of the Bank in the West
and Southwest together with the be respec
lively paid by each, in the months Of august Sep
fember and October. 1888, say oneiud Of the
received, in each Of the said months" Mr. Woodbury.,
at length comes forward in propra persona and under
date of Oath August acknowledges the receipt Of Mr.
Compartments communication containing the above
mentioned list; adding, "it will give me pleasure to
instruct the Treasurer 10 draw dcc0rdRgiy for those
amounts, account Of the special deposite made for
the bond of the Bank due in 1899. and sold to Mac
aiester" Here, them was not only a complete recog-
nnion and final ratification, by the Secretary Of the
Treasury, of the agreement made by the Secretary of
War, with the Bank, for the sale Of its bond falling
due IN 1889, but actually taken to carry that
agreement faithfully into execution in all its details
What, them the real and character OF that
agreement? Was it sale Of the bond for " money in
hand" as required by the law, it not clearly
sale for money to be paid IN nturo by SUCCESSIVE
sfalmcas What said the agreement of the Secretary
of War, reci,ed by Mr. Bidde in his letter Of 18th
August, quoted above, and as adopted and ratified by
the Secretary Of the treasury 1.-THE amount (of the
bond) will be deposited in your Bank to be drawn for
as required, irhich c,H not ereeed $500 900 month"
What said the list of payments be made BY the agents
OF the Bank, as furnished by Mr. Cowperthwait, the
Cashier, and accepted by Mr. Woodbury., as the basis
Tor executing the terms Of sale Of the bond to the Bankl
Was 1t not that the amounts therein mentioned
be progressively paid Gin the months Of August, Sep
tember and October, 1885, say one-hud of the amounts
named in each Of the said mon,hsl' Were these such
payments IN present, the honorable Chairman Of the
Committee OF Finance has told us, were intended by
The phrase money la hand y
The price at which the bond was sold was cash
price, calculated, according to precise rule laid down
in the law ITSELF authorizing the sale OF the bonds to
wit /" the par value Of the bond at the time OF sale
cacmlated according 10 the rules for estimating The mar