The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-07-11
WHOLE NO. 3es.

States from mercantile firm that stopped paynen
IN 1873 or 1896, and of whom ample security re
CURED and supposed TO be taken under the RESPONSE
bility OF an oath. II we include the whole pfesen
/ dues from the Government from dscredted banks a
all times, and of all kinds whether as deposites o
not and embrace even counterfeit bills and ever,
other species of available funds in the Treasury
they will not exceed what is due from two such firms
Of almost hundred banks not repositories which
during all our wars and commercial endorsements
have heretofore failed, in any part Of the Union il
debt to the Government on their bills or otherwise il
will be seen by the above table annexed TO the report
that the whole of them, except seventeen, have ad
Justed every thing which they owed and that the ba
lance due from them without interest, is less thar
| 49,, 600
! There is some obscurty about the results, a
exhibited by these extracts but reference tc
the tables appended TO the report, will show
losses of all kinds to have been 81, Isl, 900. In
December last, Mr.. Woodbury. stated that o
that amount, about $500, 900 had been collected
since his former report, leaving about 100000
actually due from the State banks, with which
| the Government had had any business transac
tons whatever, whether by using them as de
posltories or by the receipt OF their notes, and
| embracing even counterfeit bills
| True II is, that in December 1888 and 1899
Mr.. Woodbury. asserts the losses to have been
six and half millions, adding to his former cal
culation, five and half millions for loss sus-
| tanned by the receipt of the deprecated notes OF
| the banks, during the war. ] ask, sir, if It is
not strange that an item so important as this,
being five times great as all the losses re-
ported in 1894, should have been so overlooked
by Mr.. W., IN making special report of nearly
fifty closely printed pages, in which he under
takes to "give information to the Legislature re-
spectng all matters which shall pertain to his
office" in relation to the advantages of the State
bank deposlte system, contrasted with any
| and every other
This most important item, to which he before
made no ausion, he tells US does not appear on
the Treasury books, or any where else, and
therefore he jumps to his conclusion, and which
might, upon his own showing, have been any
thing or nothing, much or little, as suited the
occasion. Hence in "a, this newly vamped-up
losshad no existence; in December, '3s and 80,
1t was five and a half millions, and when we
come back here next December, we may find it
down to cypher or up TO fifteen millions, varying
as the interests Of the party may require vastly
more than the length of an English Chancellor
foot
IL a loss had actually occurred that was in any
way tangible, ] ask if it must not necessarily
have been shown on the books of the Depart
ment; for how otherwise could its accounts be
balanced. understand the pretence for setting
up tins claim, IS based upon the fact, that the
Treasury notes during the war, were sold for
bank bills which were at discount for specie
the banks south of New England having sls-
pended, and the difference between specie and
the bank bills is charged as the loss. But Mr.
Chairman, what was the relative value of Trea-
sury notes and bank notes during the war? The
last were from five 10 ten per cent discount for
specie, and the former at from ten TO twenty
eight per cent, thus making the difference be-
tween Treasury credit and bank credit, greater
with greater certainty and less delay, than those
Of the Government At what time the credit Of
the Government was at its lowest ebb, do
not know, nor is it material but my impress
sion is, that it was soon after that most distress
sing and affecting period OF the war In August,
1914, when our coasts were lined with Bri-
fish ships filled with the victors of Napoleon,
annihating our commerce, destroying our towns,
and disgraceing themselves and us, by reducing
this magnificent edi6ce, and the other public
buildings here, used for civil purposes merely, TO
ruins. Then it was, our Government appealed
to the banks to furnish the means, as they had
already partially done, to enable the Government
to protect the country and their patriotic ef-
forts" as Mr.. Woodbury. styles them, were put
forth to their great loss and embarrassment, as
most clearly evinced on the attempt subsequently
to resume specie payments. During the war,
specie was an article of merchandise exclusively;
all the business OF the country mad reference 10,
and was transactedup upon the paper currency, and
the paper received by the Government except
ing to limited extent, was paid away at its no.
mna rate.
reject, therefore, sir this claim of five and
half millions, not thought of in 1884, and now
first presented by Secretary of the Treasury,
only because it might help TO bolster up this new
project, thrice rejected by the representatives Of
the people and | hold Mr. Woodbury. TO the
account as stated in "a, making balance then
of about 81, 100000, from which is TO be de-
Quoted about 100000 paid between 1884 and
1887, showing an actual loss to the Government,
numbers
The loss by collecting and disbursing officers
between 1889 and 1887, have before shown,
was seven millions, making difference OF six
millions against the limited Sub-treasury plan
as it had been in practice when one class OF oih
GERS were presumed to deposite the money in
bank as soon as collected and the other was
presumed not to receive it till wanted for dis
bursement In near fifty years the Government
lost by these agents about eight times much
as by the State banks but let it be remembered
that we had a National Bank during forty years,
by which, beside the fifteen hundred thousand
dollars paid by il as bonus for its charter, and
the benefit accruing to the Government by hav
ing its funds transferred gratutously TO all parts
of the Union, its pensioners paid, without cost,
and many other highly valuable services, all not
only without loss, but the Government, as re-
firing partner from the concern, sold out ITS
stock at premium of 81, 100000
|