Cleveland daily leader. [volume] ([Cleveland, Ohio]) 1865-1873, 1866-02-02

upoB the Bank OF the United States was
-qafsnoWed with unwonted Hsrceness. Pres
idsnt jackson sssailed it in his message.
he had alGAya regarded IL - an uncOn-
stitutional measure and now thought it
insxpedisnk This portion Of the message
was referred, In the House, 70 the COM
nitses Of Ways and Means which made
an elaborate report on the 18th Of April,
, 1850. The report was presented BY Mr.
NeDuaA Of South Carolina, by whom 1t
s supposed 70 have been written. he
~ss = warm political friend Of the Presi-
dent and hsld the peculiar views of the
Southern ltriet-oSastraetienists on most
questions Of the time. For these reasons,
REPORT adverse 70 she bank was expected
The President had suggested, as 8 substi-
tute, Hs national bank, founded upon the
"Oredft Of me Government and its reve-
q 1nuea'' This sehems vas also considered
BY the committee and reported upon nm
hvorAbly, because among other reasons, it
would add largely to tha patEanaga under
the controlled the executive. The report
of the eommittss was very explicit in de-
. fence Of the coastitutionality and e1pedi-
:. Of the bank. The Senate Committee
On Finance made q report, on the 7sth of
March, in obedience TO Q resolution Of that
body, on the bank question, in. which it
7o3 was held that the Bank of the United
. States furnished a SQUAD and uniform cur
reney, and that the banking scheme pro-
posed by the Prssident-namely, . bank
70 BE- owned by the Govsrnment-was
1impraetiOable" and surrounded by OBJ
s5ajections Of an insuperable and fatal"
character. Thres out Of ave of the mem
bsrs Of this COMMITTEES, including the
chairman, Mr.. Smith, of Maryland, were
political sdhsreats Of the President.
81 In 1881 thu subject of q renewal Of the
b charter Of the bank was brought up in
Congress although the charter would not
expire until 1886. A memorial on the
sa subject was presented to Congress. In
& the Senate it was referred to a select com
mittee consisting of Nessrs. Dallss, Web
ster, Ewing, Hsyne, and Johnston of
LouisIana. The House referred it to the
COMMITTEES Of Ways and Means, of which
Mr.. MeDufae was chairman. Each COM
3 mittes reported a bill, but that Of the Sem
ate was adopted. It provided for a re-
newal Of the charter for fifteen years, for
which the Government was to receive
81, 500 } 90. Phia Bill contained Some
mOdih y ions of the original charter,
amoEk en- a provision requiring the
bank aad zach Of its branches to receive
the notes Of all branches in payment of
balances due il from State banks. The
~ vote in the Senate stood % to 20; in the
House lof to So. The bill was vetoed by
s President jackson. The Senate then at
tempted to pass it oyerths veto, but failed,
the vote standing 23to Ie. sdF
In 1898 soon sfter the re-fnaugurstioR
Of President Jsckson-the question Of q
reissue Of tbs charter of the bank having
3 been decided adversely-the President de-
termined to withdraw from 1t the public
depositA upon the ground, as claimed,
that they were no longer safe in its custody.
This question had been raised by the Pres
idsnI In his message OF 1882, In response
to which Henry TOland was charged with
an investigation OF the condition of
the bank. His report was favorable to the
bank, showing assets to the amount Of STs,-
sss,sFo, and only $sT, 9se, $50 Of liabilities,
leaving q surplus Of $42,2se,e2o. The
House Committee of Ways and Means re-
ported, after examination, that the re-
sources Of the bank exceeded $43, ooe, 600,
and submitted areselution 'Fhat the Gov
"ernmsnt deposits may, in the opinion of
"the House be safely continued in the
Bank Of the United States.p This reso-
Tuition was sdopted-lO9 to "a. Early in
lsaa WIN. J. Duane, Of Pennsylvania,
was appointed Secretary Of the Treasury,
rice Nj. MeLane, WIKI was made Score
tary Of State. The Presidents with 8 view
20 carrying cut his plan for the removal
Of the deposits, appointed Amos Kendall
20 consult with the state banks relative to
! the future deposits Of the public revenue.
On the 18th Of September the President
announced to thu Cabinet his reasons for
arsmovAl Of the deposits, among which
were their insecurity and 8 belief that the
effort to procure 9 reissue of the charter
d Was made with 6 view to influencing the
Presidential election. The President soon
after ordered Secretary Duane to remOTe
the deposits which that officer refused to
dc, giving lis reasons therefor, E On the
2sd Of September, two days after this re-
. fnsAl the President removed Secretary
Duane and appointed Roger B. fancy in
his stead IN. Taney agreeing with the
President In regard to Withdrawing the
deposits, they were removed on the LIST of
October, 1888. This aetion was denounced
BY the bank omeers as "a violation of the
Hrights Of the bank and Of the laws of
sths country they claiming that, as the
bank had paid the Government $780,
600, and agreed to render other services
for the use Of the public deposits, they :
0 Seuld not legally be taken from it except !
by the Secretary Of the Treasury for res
eaons to Be laid before Congress. Upon the J
converting of the next session. o. Congress, !
n peeembeS, 1855, Secretary fancy made !
beAy AOPOAb ~ bnht DOuy STATING MS /
reasons for removing the d eposits, which
were In the main those previously assigned |
by Tia President 60 the Cabinet. By the I
removal Of the deposits, We moan that the I
0ovsrnnent ceased to deposit its funds C
with the bank. The amount on deposit c
was not alltaken away Immediately but :
various drafts were made upon it. New !
deposits were made with the State banks. a
The action ofths President was condemned b
by public meetings composed of both his Z
former friends and enemies and by the Leg
i~slAtures Of several States, including Vir- A
giniA. The Legislatures of New York,
Ohio, New Jersey and Tennessee endorsed
the course Of the President. 1
Ths removal Of the deposits was fol- h
lowed BY = financial panic Government Of
stoeks Sl from 10 to 80 per cent, Il
and the rates Of interest went up to IL :.