The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-01-19
(CIRCULAR.) .st 49,
PAYMAsTER GENERALS OFFICE,

nited States Bank to pay the Treasurers drafts to
certain amount. at different places and it being proba-
BILE the notes Of that Bank will be acceptable to the
claimants, and in some, more convenient than SPECIE
you will, should you receive drafts that Bank or its
agents, make as many Of your payments in checks as
you can, which will give the receiver the option of ia
king paper or specie; and the Department has OBJ
lection to your using the paper Of that Bank all your
| payments, so far be done legally,
Respectfully your most obt servt
N TOWSON, p. M G.
To Discussing Officer, DC.
This circular is, without doubt, the result of the
arrangements spoken Of by the President Of the Bank
having been made with the Executive officers for the
more distant public disbursements in the notes Of the
Bank II not only authorizes payment to be made by
the disbursing officers of the Government in the paper
of the Bank, which had been so often and vehemen,ly
denounced by the leading friends of the Administration
this floor rie and ,oorcss trash, but it contains
an argumentatve recommendation Of it, and in some
sort, invests it with the character Of privileged Co
vernment currency. But this is not all that is remark
able in this circular II directs the disbursng officers
"shoud they receive drafts that Bank its agents.
TO make many their payments in checks they can
which wgve the receiver the option Of taking paper
specie Wherefore this directioni Is it not obviously
to assist the Bank, not much to pay the public cred
tor IN It's own notes, in the local currences Of infe
nor value Where check is given bank in
diVdual, payment is naturally offered and most FREE
quenty accepted in the common and ordinary currency
OF the place The negotiation between the Bank and
the Secretary Of the Treasury in April last respecting
an anticipation Of the bond which would fall due the
SUN September following, sheds much light this sub
Ject MI Manchester agent Of the Bank, then proposed
TO advance the amount Of the bond, "upon checks Of
d's6mstng officers" Mr. Woodbury. replied, that mode
was not usual with the Treasury Department. and that
ne could accept payment Of the bond only in specie
us equivalent; whereupon Mr.. Macalester said i" the
Bank could have to desire such an arrange
| in E,ro
checks 81 d,s6nrs,ng officers" his idea was to pay with
such funds The public creditors ,rould readi re-
eeirc." Mr.. Woodbury. persisted in his REFUSAL saying
that such an arrangement as Mr.. Manchester proposed
would be open to the implication that the Department
wished TO promote the receipt and payment Of ire
deemabe paper for the public dues" But what the
cautious Mr. Woodbury. declined, the bold Mr.. Poinset
has no hesitation in sanctonng. Secretary Of War de
nc and Secretary of the Treasury de facto, he unes
the sword and the purse and sweeps every obstacle from
his path
Now, Mr.. President, il, would be curious and not
embarrassing problem to calculate the gains which the
Bank has been enabled to make by these various ar
engagements with the Government-by the use of tho
large sums OF public money left dcposite with itby
the opportunity of paying off the public creditors, in
many instances, IN the local currencies Of degraded
value-and by the Of extending and keeping out
its circulation through the medium OF the public dis
bursements IN distant quarters of the Union am no
fnancler and WILL therefore, attempt no such calcula
ton, But those who skilled in such matters pro-
nounce with confidence, that the Bank could not have
realized less than quarter of million of dollars by
these operations, and may have realized much half
million.
Mr. RryEs said he had hitherto confined himself TO
the transactions between the Government and the Bank
IN regard to the sale payment of its bonds Gentle
men, who could not shut their eyes to the fact Of an
existing connection had sad that that connection had
grown out of the sale Of OF the bonds Of the Bank
IAN act authorized and directed by law)--of which
the Bank itself had become the purchaser, and that,
being strictly limited to that was. therefore, usable
The honorable Senator from New York, (Mr WRIGHT
had said, in replying to the remarks made by me on the
introduction Of the resolutions Of inquiry "he had
heard that under the legislation Of the last winter, the
secretary had sold Of the bonds Of the Bank of the
United States to the Bank itself He presumed there
ore' mat the connection. as he had heard on report
grew efrns'rtty out OF that transaction. II this
had gone further it had been without his know
eoge and should be tciihout has appreciation Now,
SIR what is the fact Only one Of the bonds of the