Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-01-15

was the public credit be preserved suppose the Sc
crraIy had attempted 10 supply The cfhcrncy by an s-
sue Of Treasury Notes. lie had not been authorized 10
exc, ed The Of Millions ard upwards oi seven
millions were then outstanding He could lhen nave
raised but lutte millions b. 9feAprcrnt-and
lis sum- togkr h The available balance IN the lfra-
sury would have been holly inadequate 10 meet Tue
rxgencics of the case To make this still palmer II
appears By the Secretary Annuu! Report that although
during the year 1888 the Treasury received from me
U. States Bank of Pennsylvania Sl.512,lU -, on &c
of the sale Of lis bonds yet there was estimated
be only available balance in Tie Treasury, appca
bic 10 public purposes the 3lst Dec less, OF g.
75 $40 So. whilst there remained outstanding SII0l-
$50 VI III Treasury Understanding only - 4"3 W
10 be issued-and which, if 'ssucd, would, without
the sale Of the bonds have left IN the Treasury OIL tha
day only the sum Of S46S Isl - WEI be con,ended
that the fact of such balance in the Treasury at The
end CT The year. if The bonds had not been sold, by an
issue Of Treasury notes, proves that the sale was unne
cpssary But then who forget that there are during
the wear considerable fluctuations occurring in the re
ceips and expenditures from month TO month; and that
there actually in the month OF July, an excess Of
expenditures previous months. OF more Than wo
millions of dollars; or than enough TO sweep oil
in thirty DAYS five times the balance which would have
been in the Treasury this hypothesis Besides, how
was il possible ascertain beforehand how much OF The
Revenue would be paid in the new Treasury notes,
which could not be rendered available Dono all these
considerations combined prove concusvely, That lhe
public faith might have been seriously jeopardIzed with
out sale of the bond in queson0r. that specIa cal!
of Congress should have become necessary soon alter
its aduurnment in order TO provide the ways and means
TO meet the engagements Of tie Treasury:
But perhaps 1t may be said, that during all this time
there appears have been aggregate weekly balance
in the Treasury of more than 50 millions OF dollars
The Document &C. 3 attached 10 the Secretarys late
Report may he urged in confirmation OF Inns argument
The answer is easy. OF tins sum- $50 lOl Cil ~ cents
were in unavailable funds. 1t consisted of dep"sics with
the States of 2 OI GA q cen'sDue too from insol
vent Banks before 1887, 81 l00000-Dre from Banks,
that suspended payment IN 1877, and not payable I'LL
1889 50 400 000-and part Of money in the Mint, 5000,
O0O Thus there is not the sghss, TO suspect
the statement of the Secretary that al the end OF June,
The available balance in the Treasury below one
million whilst the anlicp ated expenditure in July and
August would require mlllionsan anticipation,
too, which was fully realized by tie fact
Thus, have fully made out the necessity Of acting
under the law which authorized sale of the Bonds
unless indeed, our Correspondent suggests, special
call of Congress would have been preferable
But could tie President have been justified in such
call under such circumstances, when the Bank offered
purchase its bond the terms prescribed by the act
Of Congress; Would either party have sustained him
adopting such measure, and mourning the expense
Of an Extra Session under the circumstances then ex.
isting; In fact do not understand Correspond
advocating this alternative, unless II were ncces
sury avoid violation Of the laws OF the land al
Says he) the law had not been violated the mere sale OF
the bonds the Bank would not have been censurabe
and this position brings Us 10 the objections, which he
urges under this head.
We beg leave TO premise, that every effort was made
by the Government 10 procure ether purchasers oil the
securities than the L. States Bank OF Pernsy yana.
The President not so anxious 10 pos TO ncesiu'
Gus Sheets as some have nsnualed lie was not anI.
for any such connection at all AS we stated IN our
last paper he not only epudiaes all such conncX!0n but
he rdicues the very idea of it, He indignant,
that after all the warning which he and his Secretary
had given the last Congress- he was lett without any
other alternative The Secretary of the Treasury look
ed around him for another purCbaser but he looked IN
H., l. hs.I,, Tho
Department opened 4 correspondence with the capital
lists of New York and elsewhere, 10 ascertain whether
sale could be effected, under such restrictions as IL i'm
posed either in The United States, or in Europe. What
was the character Of these replies: They strengthened
all the apprehensions which the Secretary entertained
lie was told that the bonds too short lime TO in
ye competition; and that unless they guaranteed
by The United States they could not obtain adequate
purchaser except in the Bank Itself The result OF this
correspondence communicated to the Chairmcn OF
the Financial Committees Of both Houses, before Con
gress had acted tiualIy upon the bill YET the bill was
passed into 4 law, without modification No provision
was made The difficulty tn facilitate the sale
Immediately upon its passage, the Secretary addressed
letters to the Bankers OF the u. Sta,es in London and
Minister at Paris to obtain cers if possible from
he capitalists Of Europe-but in vain In vain, were
quiries Instituted in y. York and in Phllade phan vain,
was public advertisement, issued, 10 invite proposals
generally for the purchase of the bonds Theresut was,
that no sale could be effected and Tie opinion
peaed that at would be difficult 10 sell them ION the
the u s. self"l was under such circumstances, that
the Secretary induced 10 accede the propositions
Of lis agent The terms Of The sale the par
lue of The bond and the payment expressly stPu
lated to be made Sin specie or lis equivalent, and placed
The credit Of the Treasurer in pcciat dePosite in the
Bank of The U S..
But Correspondent argues, that instead Of selling
for money in hand it seems al sold credit 10
he paid by the Bank at future time and thus the law
was violated. We confess, do not understand the
transaction. The law authorized the Secretary TO sell
upon the best terms he could command "ior money in
hand'-and all money received upon the sale Of the
above bonds shall be Immediately paid into the Trca
sury of the U. States placed 10 Tic crcdu IF tic 1rea
proper dcpOS0ry in the that
other moneys received for dues TO the Government
by law directed TO be paid into the Treasury. Ii will
scarcely be contended that other moneys received for
public dues may not be specially deposited in such spe
Gle paying bank that Of the U S. But it appears by
the Documents that the Isl Of August the sale Of the
bond (due in Sept 1890 was completed by certificate
of Cashier of the Bank of the United States. that
Mr. MacaIIster had on that day deposited in ha, Bank
the OF S2.25I Ell Sand this, according 10 the
previous stipulation of Macalls,er, be placed in
special depose in that Bank subject to The Treasurers
drafts This within the evident meaning Of the law
money hand placed TO the credit Of The Treasurer
in the only depository, which practicable under the
transaction. The Bank Of the U. States would have
had no motive 10 purchase, if the money were to be
placed clsewhereThere would have been for
not selling, because this stipulation e1acted.-
Would The President have been justified if he had suf
ered his feelings in relation to this institution break
of negocalion, which was essential TO the interests
Of the Treasury point like this: Would he have
been justified by the apprehension of being suspected Of
forming an ncestuous connection with the Bank-when
every one, who is acquainted with his feelings knows
that he dIslIkes all connection with that Institution
But il may be commended that there under.
standing between the Bank and Of The Departments
that The money should not all be drawn for time;
but should be left in depose, and drawn out from time
TO time, as the public service required it twas obvious,
That all The money deposited would be required
time Even if it had been drawn out of this Bank, it
must have been deposited lsewhere and not re
qured all at once by the public engagements. The Sc.
cieary declares that such did no, operate pre
judciay 10 The Treasury; but, that in connection with
the arrangement made TO the earlier time and
nien places of paying the second bond it proved highly
conducive promptitude and efficiency in the public
service" May sum, which placed to my special
credit in Bank be- actually and technically considered