Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-01-26


proceeds drp"S,le The EhLk, which alleged TO be
part of the transaclln direct and pal psb!e egality
In The very terms t" the sab according 10 the show ing
OF the documents VIII CHI had not U fore suspected 10
exist Instead of beirg sold "lur money in hand as
sced by The law. the sale on crcdn or in olher
wr-ds Tor stipulated ;a,O, hGuph the price
was agreed on and calculated tor cash. There was
IN ,s downright ri0atton Of un. winch is not 10 be
excused By The alleged necessities # tie Treasury or
by any other consideration.
Let us now wld' The na:rie Of the arrange
melt made by the Secretary Of the Treasury for anti
cipatrng, in part, the payment of The bond Of Ic3s-
This bond brcame due ID" 3Olh Of Sept, nbtr LES
aud for about 50 800 OG0, principal and interest
BY letter from MIR Wu"dburv dated The llh Of Au.
gust 3 and one irrm rlr lesitt 1T OF the Bark Mr.
BIddlr GATED the l3'h August, 81 Out ue more than
six weeks before the band mniurty.) al ar
rongcmenl is definitely concLd,d Lrtneen the III for dis
! charging That bard ioiIows-By an nSalnent of
$500 600, TO be carried To The credit Of The Treasurer
on the 10Th August, 3c-unuiher !ns!0ment OF ScU0,
UCU 10 BE-, III Ike manner carried 10 h credit Of The
| Treasurer on The 18th September, and a balance Of
tc7 30, to be place TO his credit the 18th Ocober
s.. These sums 10 be paid out from lime 10 time
a. the Secretary OF The Treasury informs MS drafts
TO the public CREDITORS and III was further Stimulated
that interest shouid each II The nalmrn's on
The day they placed he cy,GR nj the TrfdsuJfr
! and made subject 10 his draft > Now. here was debt
TO HE u 5. bearing interest and The Secretary Of the
Treasury enters into an arrangement 10! stopping
rest IN IT, before IL is pnid he inSaImen's, he car
rcG the credit Vi The Treasurer or the books Of the
October respectively, not then actually paid They
remain dsprs;e Bank. Ia he drawn ont, from time
To tune, by drafts III favor Of The public creditors lnle-
rest then, should have upon them, m they paid,
or NJ least, I'LL drafts crawn upon them In trans
actions between individuals, where debt brarrg int.
rest Sdisc!arged by partial payments tr&m time time,
II Is the lnvarlabl 10 charge the interest down 10
The period Of each separate payment and in these very
negotiations with the Bank OF TIE u S If We look back
to proposition ch mades early April, 3o, by
The 6aEk To anticipate the payment vi This bond by
ing money on the checks Vi the Government or It's Off
GERS, shall find that tie Bank itself, did ask that
the upon the bond should be stopped but from
the da:e Of each check draft. Mr. Woodbury. how
ever IN his beraly, ouisrps even the demands Of the
Bank. and proposes AND concludes an arrangement for
stopping interest upon large portions IF this bond, not
only before the Govern Mt GTawS upon them but from
the moment they car;ir TO the credit OF The Trea
surer hC Joobs Of the Bank, though that was done
with the explicit understanding that the sums credited
not 10 he drawn out and paid I'LL alter.
wards should Ike To know, hr President, what right
the Secretary ui the II Esury has 10 step interest
public debt bearing interest," not only before II is paid,
but even before II Is drawn upon.
But, Sir. will 90 farther, and ask hat sound reason
could there have bren only rtrEs bctOre THIS bond
care 10 maturity, 10 enter into any arrangement
tlcIparIng payment, either in whole in part: Had
not the Secretary If tie Treasury just put himself in
funds by the sale Of the third bond Vi The Bank Il is
moreover shown by state mens now before ME, that at
the very time q! tins Transaction, h. could, under the
law Of The last session. have issued Treasury notes,
If wanted for Tie Of tie Government 10 the amount
Of at least millions Of dollars There could, then
have been fiscal Necessity 10 justify this arrangement.
In six weeks the bond would he payable by It's own
Terms: and, in the mean time, the power TO issue Trea
sury notes. to the amount Of two millions Of dollars,
have been adequate TO meet every contingency in
the financial affairs of The Government In point OF
fact the Treasury fol-, ard that. too. without
any resort this resduary p1wer Of issuing Treasury
notes that the 2Gh Of October !e Secretary issued
an official notice tint "aI The outstanding Treasury
notes issued previous The 2si May, ls-, would then
be- paid presentation 10 the Treasury IN adrance Of
NE permit at rhich Mry fall dae.' THIS vas, indeed
brilliant operation OF finance and alr specimen OF The
ability which has presided OGer your Treasury, MIR.
President for some years paSt-Borrowng money, in
effect per cent, "r that was the interest borne by
the bnnds oil the Bauksl to r,deem Treasury notes, be-
tore they due which bore, respectively, an interest
of one mill PR cent tire per cent and FIRE per emit,
these being the several ra'es OF incrsst The first
Of Treasury no's, proposed 10 te redeemed by tie
Secretary.
The Secretary of The Treasury being sensible that this
nrauiluus arrangement with HE Bank for an ancipa-
iion in part OF tie ymenl Of lis second bond, only
six weeks before i, would reach maturity stood in need
Of some justification. has attempted very strange and
| unsatisfactory apology for it, He says he ayprc
hensirc that unless he made he arrangement in ques
ton the Bank would pay its bonds falling due the Both
September, less "in Treasury notes, not rcssua-
h!e nor available. in any wGy 10 discharge apptoPna-
tons" Now, what possible ground could there have
been for any such apprehension; These new 7reasu.
~ notes all b. interest "i sir Pe! cent, ard were
extensively taken up by capitalists throughout the
country as the best investment they could make Of their
di. possible funds. ! have statement from the TrPa.
sury now before me- show ing shat If the whole amount
of 81 200 Goo Of Treasury nrcS which have been
issued So 100000 actually exchanged for specie
Prime. Ward n King Of New York, took about NIL
and half Of these Treasury notes and paid Tor them
~ syerie The Bank Of Amrrlca IN York. took about
| million, paying tor b'm IN Epcce The Manhattan
Company bought about three quarters Of a million for
sp,cis The Rufchild and ef capitalists took upo other
! AZ NTH ak
cordinu To the Treasury statement te,re me. the
above Inc nGned OF 50 leo Geo IN new Treasury
notes actually exchanged 10y the Goyrrnmtnt for pectc.
these facts forming part q" 'hr "p ralnns OF his own
Denarin,ent, must of course have been known 10 the
Srcrpary and certainly jusIf,d Gpp1thfnstOR that
the Bank would have attempted I" pay MS bond IN new
Treasury notes, which 1t could have acquired only by
paving specc for ilrm and even then probably only ala
prIunm OF the sum of someu hat less than Two mil
lions Of new Treasury notes, which il appears from The
statement lust referred TO- Issued to public cfedI.
tors in pa "f warrants, by far r Iorger portion
(nearIy ally says the same document "were enitfdto
The south and West" They were, doubtless, taken
IN there as they had been To the Morrill, as an nrest-
msnt or otherwise sought as desirable medium ct re.
mance; and ii appears from the tabe 81 exchanges COM
piled from prices current, which The Stcetary has an
ne red To his report, that the 24b o September Ie5,
week before this bond .l due, Treasury notes, in the
| money market Of New Orleans were ut prem um OF
70 per in the local currency, while space ana
! D,1,d Satss Bunk notes were bU'h al premium Of
10 ner cent only. How then, again ark. MIR fre-
Jen, could there have been the least possible ground
f nDvrshension under circumstances hike these, thai
the Bank would attempt to pay OF ITS bond falling que
3Oh of September, 1888, in new Treasury noes! h.u
~ " Id dana so the Secretary had, have already
shawn under the law of the last session, the power al
-, ;sue about two millions Of dollars (ah eqnVa
lent amount 10 other new Treasury "S Ss Bank for &C.
,n,icpaed payment, in part. Of its second bond
bp, six. and Two weeks before ii fell dnt BY It's own
limitation admits Of but rational exclamation; IL
/ H. Re- ior.
was go tho rank MIR Manchester, see from tho
csespondence annexed to the secreinrys report, had
opoposcd it to Mr. Woodbury. as early as ss! april
SIS bu, the negocsn I've" f''d h was
, "t. or tho Ihird bond had been ncudsd and
lot 'he sac W. I;gned to bring the proceeds Of the