Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-02-12

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States. Il will. h"wrYeI be seen liai various nrgota-
tons all al HE the Bans have been carried
on tween htInsu'n and The Secretary %! tle lreG-
snry. the object OF which The mode and
manner Of payment Of The second bsud d'i due in
Sept lc3-, and. Us an ducement hs officers of the
Treasury yield 10 The and nnnnp. Ct sired b. the
Bank Offering, 'ts part anticipate rrri that
payment, at times which should he Gesate the
GOvcIumsB t IN reference 10 the calls !n- public dis
bur.enrnl II irdis usabe perfect uIdc rsIand.
ing OF the ,ransaciIcns that the T'goa:ons for this
nci and those for the gale Of tho third brud under the
law before referred TO- shnuI not be cnuouudrd, while
the dates and order, and Of 'e esr"ndencc
upon the subjects, and the Similarity Of the PROPOSE.
HOBS from thu Bnuh in both eases, require to
preserve the separation perfectly, and the time
prehsnG The whole force the iacts Applicable
| To each transaction
Hence propose 10 examine all Tie facts IN relation 10
the time, mode, and sc payment OF the second
bond, due IN September lc:'s and which not sold,
before refer to the facts attending the see of the third
bond, which Vas sold I" the BaEk.
TIE first qu stlon which arises in this OF inquiry
Is, was thu state Of the Treasury, at the time the nego
ciaon concluded Tor anticipation Of the payment
OF two thirds 81 this bond, and poSpOncmen Tor the
period OF fifteen days only OF the remaining third such
rs To- warrant tie arrangement The part of the Sc.
cre'ary "t the Treasury. as one calculated to promote
10" public interests and 10 secure certainly the
payment Ui the public creditors? This question the Sc
cfcIary ri the Tfrasnry himself sa!lans%cr And The
question vii s>ary arise reference 10 the
sale vi the third bond and the report Of the Secre
tary. IN answer 10 The call of the Seuste frequently
speaks o! condition and necessities OF The Treasury
III rrirreUc" TO both "f iht negotiations in The
sentence. his ansUrr To both suai be- given here
read first from page IT The report which relates
particularly ID. pa, Of the bond TO fall
due Srpl,n ibeI, Ic,S though clauses Of the
aIInde also ~ the sale of the third bond. The Secre
ary says:
40 avoid the ayment Of the bond that fall
dus The Isl OF OCTOBER, bGIpg DJde Treasury
Tots. no, reissunbr, available any way 10 ds.
charge appropriations and which apprthendcd
by the Department the written agreement made with
the Bank. which wall be found among the documents,
spuiGnr. am0rg other things, for The payment Of that
bond drafts The pubic creditors and IN specie It's
equivalent This, hpush collateral 10 the sale of the
| olhpr bond, part oi the same negotiation
1t very clear 4, the time, and has been confirm
cd by subs G:en events that the payment by the Bank
of lis bond III such Treasury notes and failure TO make
that arraDgPm' MT the only practicable one for the sale
Of the third bond would render either special call Of
! Congress or suspension Of payment OF some Of the
demands upun the Treasury inevitable. The Depart
did not feel Itself al liberty To hesitate in deciding
between exposure Of the public service 10 either of
those fXlrems, b. insisting upon having the hole OF
these large Of money paid al one time and placed
elsewhere other suitable eposriores il any could be
found the present imperfect state Of the Law.
10 leave them in the hands Of the public debtor
until they were actually wanted, and then 10 draw for
them. specie lis equivalent when and where the
public service required Especially could the Depart
ment not hesitate, when this course was not injurious
To tia, service, and il unable al that time to with
draw those funds except by lie Doctor voluntary con.
sent"
Again: on page fve with more exclusive reference 10
the arrangements relation the SECOND bond and to
the places ard manner Of disbursement required ny the
/ wants Ot the public service lac says:
lin relation To another inquiry, concerning the Pc
rod when the of - GDn OO0 III part payment Of
;he SECOND bond Of the Bank Of the u s was placed
10 the credit al IN: Treasury, state that $500 100
ylarrd 10 his credit The 18th day Z! August, md
500 900 the 18th 5, pPmbrr, 1888 AS 10 the
. .urtIIrr ,l the whole that subject
ply that VIII b. iounG IN the correspondence annexed
1.-THE substance Vi II "as. that about hmr-thrd OF the
oi the hUtd should be pnd ~ The middle OF Au
eusi. third III the middle oi - ptcmber, and the
other third IN the middle Of October. these periods
/ and amounts of payments were deemed likely TO pro-
!ue the convenience TT th, Treasury, not Of both
parties better than Ia pay the whole large sum OF near
ard hail millions al once at the ci"se OF 'he month
/ of Srpem5rr. II further stipulated that interest
Should each OF the instruments thus paid on the
day they placed 30 the credit Of the Treasurer, and
made subject To hiss da't rs The money was wanted
al trrn, points the public expenditures
them the drafts Of the Treasurer The Bank payable
those several points, engaged 10 be met there
with pfpmriude nRd IN spfcic or rs Cqujrai'nt"
Here u condensed, but foil and clear, statement Of
the result Of lie n'gnta'ions rs TO The mode and man
upr and times Of payment of the second bond with sug.
ncstius 10 The convenience 10 the Treasury OF this
manner Of payment. over Iaat OF The receipt of the
whole OF aI"u .! 400 Coz, IN single payment,
the FIRST day OF October. while III" extract closes with
showing that the payments at the times and places sli
pulard 10 be made I'm specie or It's equivalent
Again. upon pages and three fthe rcpUrt, and
irrrnG principally /" the SALE Of The hrd bond, the
Secretary gurs fully into the state OF The Irea-
sGry aud shows most clearly Tie necessity for the
sale and antics patton Of The proceeds OF this bond,
| ~ hch were 10 become due until September,
l5:}9, meet The appropriations Of 1888, which, he
says approved to BE- unusually great. 1t need
! ~ be SAID that. II such was the CONDITION OF the
Treasury aud the anticipated wants o the public service
in july prove tie esy for the sale q. The third
bend b. the close OF that fiscal year. the facts
have proved. clearly, the necessity Of anti
cpamg, far that could h. done. the payments up
on the second bond. the whole OF whcE 10 fall due
on The FRS, day of October. The language of the Sc
tary is:
The appropriations actually made, having proved to
BE- unusually great, and the expenditures anticipated
during the next ensuing months being much larger
amount than the ImuedIae means which the Depart
could pecl 10 derive money from other
within those months, at addressed letters to the
bankers of The United States at London, and 10 our
Minister Paris requesting that measures might be
taken without delay obtain offers Tor those bonds, 1t
possible, from capitalists Europe 10 these letters,
received in due stating that, from
short time the bonds had to rnD, the absence OF the
guarantee OF the IT, States for their eventual payment
and other causes sale could probably be effected OF
theu either in London Paris within the limits liked
! by law. In the time, however, finding that the
demands for the public service during the month OF June
had exceeded four and hal! millions and expecting, as
The fact turned 10 Ge tat they rOud equal a6OutSeren
muli0ms IN July and 4ug"st and finding atSo that The
nr,cLs Gaunce in Tie Treasury applicable gtneral
purposes and subject to drat Ja teio" 81 900 OOOland
thai pagmsnts rsre making at NIL times in ns~ Treasury
notes which could not he rendered al all avaIable con-
s,dcrpd i, necessary effect sale Of least OF the
bonds al an eariisI day than advces could be received
and any proceeds realized from Europe. Particular in.
ou,ry was therefore, instituted in the city of New York.
and Else here concerning the probability ofselng
one or Of the bonds, and also public advertise
nen issued proposals generally for their purchase
The result was, that from the abundance of State
stocks the market very reduced prices the LO,cer
at rhirh other Securities # The Bank sei"g and
the want Of guarantee by the S. The sale was found,
wiki the exception hereafter stated 10 be wholly imprac
cabe III this country aud expected to be so abroad,
under The conditions prescribed IN the act Indeed
bids any made Tor either OF the bonds in
Of 'harls