The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-01-05

tho money" and pay the drafts Of the Trea-
surer without any charge to the Treasury"
the Department being deprived Of its usual
depositories, and the sum being very large
"these stpulations were readily assented to-"
Assented to by whom! Why they are the
stpulations made by the Secretary himself on
the S0th Of July, and assented to by Mr.. Bid
die on the LIST of August. In relation to the
bond, payable on the lst of October, the Sc
cretay says, the agreement in relation to il
was " collateral to the sale Of the other :, and
"was n part Of the same negotiation and
was made " to avoid the payment being made
IN neo Treasury notes not re-issuable nor
available in any way to discharge appropra-
TONS" Where is the evidence to show that
the agreement respecting the payment Of the
one was part Of the same negotiation, as that
respecting the sale ofthe otherl There is not
title Of evidence to that effect. In all the
negotiations respecting either, the other does
not appear to have been even alluded to. So far
as the correspondence that is given to us goes,
thej were distinct transactions. What reason
had the Secretary to fear that the bond that
fell due on the LIST Of October might be paid
in "ne,0 Treasury notes 2" In our opinion he
had no cause whatever for such an apprehen-
sion, and the result shows he had not and
u It had been SO, he has at all times since had
the authority and been able to issue a like
amount. The act of the 18th May last, au-
thorized the Secretary to issue. new notes in
place OF such as had been or might be re-
turned into the Treasury ofthose issued under
the act Of October, 1887, so that the aggre-
gate amount Of both outstanding, should at
no time exceed ten million dollars. Now, on
the lst Of August, according to the official
statements in the Globe, the whole amount
outstanding was 81 $50, 5s2-and the amount
issued under The act Of May, was s5,Os7 $50.
On the lst Of December the whole amount
outstanding was s7,754, 560-and the amount
issued under the act Of May last, was $780,
$40. There has not been period in the in
term, that the Secretary could not have issued
two millions of dollars, without any more be-
ing returned upon him; and in the event Of
their being returned, he could now issue the
balance outstanding under the act Of Oc-
tober.
Again, in respect to the "new" notes
it is notorious that the great bulk of what were
issued, were in exchange for specie, from per-
sons who wanted the notes, which drew six
per cent. interest, as an investment, and there
fore, there was no probability that Mr.. Biddle
could get hold ofthem indeed Mr.. Macales-
ter told Mr.. Woodbury. that "there could be
no reason for the bank to desire such an ar
rangement," viz: :" the basis Of specie pay
ment." Then what becomes ofthese excuses
of the Secretary And again, what reason
had heto apprehend that such a payment would
be made, when the whole object of the banks
agent appeared to be to gain the longest time
possible before the bank would be called on
to make actual payments. This the Secretary
was well aware would be great advantage TO
the bank for in letter to Mr.. Newbold of
the 10th July, he suggests it. He said " any
bank which co-operates in the purchase Of
these bonds at a point.like New York, cannot
fail to derive great advantages from the opera
ton. The money will probably be required
to be drawn for at the rate Of about half a
million monthly. The drafts will be mostly
sent to the South and South West, and the
greater portion Of them will be out thirty, sixty,
and ninety days, before presented at the bank"
There is another fact which should have quiet
ed the approximations of the Secretary, as to
the bank paying the bond in Treasury notes.
He says IN his report, among the difficulties
he had to encounter in his endeavors to sell
the bonds in the market, "was the abundance,
Of State stocks at rery reduced prices, and
The lotrer rate at achich other securities of the
bank rere seRing;" and Mr.. Newbold tells
him in his letter Of the 18th July, that "post
notes Of the Bank of the United States were
selling at the rate of seven per cent. per an
mum, and that in the form of discount" So
here the Secretary had evidence and furnish
ed it, that while the bank was raising money
at seven per cent. per annum discount for
other operations, it could not well afford to an
ticipate its own payments at the rate of six
per cent. per annum interest; he could not
but have seen that the whole operation was
based on credit.
We now call on the Secretary of the Trea-
sury to explain, why it was that while he had
laying in the Bank Of the United States, mil
lions of dollars constantly, between the lst Of
August and the lst Of September, not dra,c-
ing interest, he should have issued Treasury
notes, drawing interest at the rate of six per
cent. per annum. On the lst Of August he