The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-01-08

was payable In September, $780, and Mr.. w
added, he had no objection" provided il be not
inconsistent with the public interest !" and further
more, that "thc manner of drawing for that money
now, without any sueh arrangement, will Be faror-
able because the drafts not likely 10 come back
under period ranging from thirty 10 ninety days
Nor will they probably exceed from half million 10
three-fourlhs Of million per month In AMOUNT
We now demand to know of the Secretary of the
Treasury, why il was, under these circumstances
and facts as detailed BY himself that he entered into
an arrangement with Mr.. Biddle's agent; whereby
the interest the bonds OF the bank due TO the Go
vernment should cease as il did, and the amount Of
The same be held BY the bank itself lcilho,a interest !;
when he was himself aware that it would not be
drawn for AT all, excepting in small portions monthly
and even The drafts thus drawn would not be pre-
scented 10 the bank for payment until The expiration
ofthiry TO ninety days after their datea In the orr
gnal proposition made by Mr.. Manchester on the
2lst April he neither looked for nor asked for such
highly favorable terms. In that, he proposed that
interest should be allowed from the date nj each
cheek" that might be drawn on account of the bond
proposed to be negotiated; in other woras that an
interest account should be opened between the Bank
and the Government, and that the bond should draw
the drafts Of the Government drawn against it, and
that they should be chargcabe with interest from
their date; the time ut which these amounts would
be available to the Government. That would have
been more liberal mode OF conducting the transac.
ton for the bank, than govern bankers, who
charge interest only from The dates of making pay
ments in cash. Under the proposition made by the
banks agent, il gained all the time that elapsed be-
fy-aa he nft ~ IL.
were presented for payment but under the arrange
mcnts entered into the bank gained in addition to
that, the of The money ,citlout interest from the
period the amount Of the bonds was placed at the
credit Of the Treasurer on The books Of the bank,
until it was drawn for, by instalments of half 10
three quarters of a million monthly. What could
have led The Treasury Department to enter into such
terms and stipulatons, but 10 propiate that on the
part OF the bank which the administration wished to
accomplish?
Any one, we should think, on reading me account
ofthe negotiations they have been detailed by us
would be led to the suppositon that they had by this
time, been brought to conclusion SO far as regards
their details; and on pretty advantageous terms to
the bank. But no. the contrary proved 10 be the
case, as we will show. On the 18th of August, Mr.
Biddle addresses Mr.. Woodbury. in the affectionate
tone of" Dear Sir" and says, /" The report Mr. Dun
lap has made Of his interview with you, induces me
10 believe that you could not be aware Of what had
occurred between this bank and the War Department
in respect 10 the bond Of 1889" Said he, "before
making any ober' for this bond, had the distinct as
surance of the Secretary of War that although the
bond cannot be legally transferred to the of the
War Department, but you may rely explicitly on the
strict performance of the terms of the agreement,
which may informally enter into wi you; and,
if you become the purchaser the amount will be de-
posted in your bank, 10 be drawn for required,
which will not exceed 100000 month. This mo-
ney will be wanted at the South and West, and the
manner of drawing for il may be subject of future
arrangement between us" 1t would seem that, ne
gotiations were entered into and completed bv an
/" insensibe process" between the Secretary of War
and Mr. Biddle in relation 10 matters not connected
with, the War Department, but with the Treasury.
Before" Mr.. Biddle ventured to make an offer
TO The Secretary Of the Treasury for the purchase of
the bond, he had the assurance" from the Secretary
al War that the amount should not be drawn for
more rapidly than at the rate of half million a
month"; and the manner in which even that should be
drawn for, was to remain subject Of future arrange
ment" between them! Under the practice which it
is well known has prevailed for great many years,
and which we are not aware has ever been discon-
tinued the Secretary at War had no right to inter-
NEEDLE at all in this transaction, or TO enter into any
spulations whatever before after the sale, either
as to that or the disposition of the proceeds. From
the time Of the misunderstanding between Mr.
Crawford, when Secretary of the Treasury, and
MIR. Calhoun, when Secretary at War, growing out
Of the errors that the former led into in one of
his reports as to the balance in the Treasury in
sequence of the latter having undertaken the pay
ment Of all the appropriations TO be disbursed by his
department, by his own drafts the Treasurer d.
recy; all the payments made by either Of the other
departments since have been by acquisitions issued by
them on the Treasury Department for the amount of
each payment; and that department issues its war.
rant on the Treasurer, and designaes the places al
which the payments shall be made. With what
pfopriety then, we ask, and under what authority
(uneSs the President's) did Mr. Ponsett venture TO
enter into such agreements and stpuations, as Mr..
biddie asserts he did which arrangement belonged al
together tothe Secretary Of the Treasury? Who can
ial to see door thrown wide open to the most evil
consequences IN that part of the negotiation that
le Snocct to future arrangement 2" In the same let
Ter Mt blddle says that in conformity with the agree
ment he " received from the War Department
detailed statement of the times places, and
amounts OF the disbursements for the next three
months, including the month of July" "bu as the
acceptance was not made known until the end
Of July, it became necessary to have new list,
phich the department has been for days occupied in
preparing" In the same letter. Mr.. Bidde express
sed great surprise" that drafts to the amount of
100000 payable in Philadelphia" had been drawn
by the Treasurer; and declared il to be an entire
departure from the terms of the purchase" Yet he
said, he "would not permit any draft of The Trea-
surer not TO be duly honored" And he suggested
with perfect respect" whether it would not be ad
visablc to abstain" from drawing any more until
some communication is received from the Secre-
tary At Warnto whom he said he understood q the