The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-09-29

The Secretary, Mr.. fancy, in obedi-
ence to the law, addressed a letter to
the Speaker of the House OF Representa-
tives, dated December Sd, 1888, explain
ing his reasons for the removal OF the
deposits from the Bank of the United
States. The Wings denied his right to
do this, which was all folly, and dis.
played their ignorance of the wording or
the charter Express power is given the
Secretary by the 10Th section, to take the
deposits from the bank, at his dlscre
ton, which he must afterwards explain
to Congress.
Mr. fancy arraigns the bank on the
charge of using its great resources
to influence the elections, which he lnfers
from the great increase of discounts. he
says: about the first of December,
1882, it had been ascertained that the
present Chief Magistrate was re elected,
and that his decision against the bank
had thus been sanctioned by the people
At that time the discounts of the bank
amounted to $61, 571 1926 Sc. Although
the the issue, which the bank took so
much pains to frame, had been tried,
and the decision pronounced against 1t,
yet no steps were taken to prepare for
the approaching end. On the contrary,
it proceeded to enlarge its discounts, and
on the Sd of August, 1888, they
amounted to SEA, 100, 349 IA, being an
increase of more than two and half
millions in the eight months immedi
ately following the decision against
them And so far from preparing to
arrange its affairs with view to wind up
its business, it seemed from this course
OF conduct to be the design of the bank to
put itself in such an attitude that, at the
close of its charter, the country would be
compelled to submit to its renewal, or
to bear all the consequences of a cur
ency suddenly deranged, and also a
severe pressure for the immense out
standing claims which would then be
due to corporation"
This seems to be a rather far fetched
argument against the bank; and it can
not be cassidy reconciled with the fol-
lowing, which the secretary urges, later
on in this explanatory letter. He goes
on to say that in 1888, "The situation Of
the mercantile claims also rendered the
usual aids of the bank more than even
necessary to sustain them in their bust
ness. The demands of the public upon
those engaged in commerce were con-
sequently unusually large, and they had
a Just claim to the most liberal indulg-
ence from the fiscal agent of the gov
eminent, which had for SO many years
been reaping harvests of profits from the
deposits of the public money. But the
bank about this time changed its course
and the secretary goes on to show that
that the bank had reduced its accom-
modations, in the way of loans and
domestic bills, from, $64, 100, $40. IA,
which he had complained of ass too
large, to $50, 094, 202 SO. 1t is but
fair to state that this reduction
of business on the part of the bank,
would seem to have been the natural
consequence of the threat that had been
thrown out, to withdraw the deposits of
the public money from it and place them
under the control of rival banks.
General Jackson had no little difficulty
in finding man who was ready to obey
his behests in the matter of removing the
deposits. Public men were generally
against the policy. Mr.. McLane, who
was appointed Secretary of the Treasury
in 1881 to succeed Mr.. Ingham, was not
willing to take the job, and he was trans
ferred to the State Department. Gen.
Cass, Secretary of War, was opposed to
removal. Mr.. Van Buren, was opposed
to it. The President appointed William
J. Duane to succeed Mr.. McLane in the
Treasury, and he refused. The whole
cabinet was opposed to the removal, ex-
cept the Attorney General, fancy; where
upon he was appointed in place of Du-
ane, and he removed the deposits, and
was rewarded with the Chief Justiceship
at the death of Judge Marshall.
DANIEL r. GooDLOE.