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is about to meet in ninety days, and will continue in ex 1st. He first complains that the Bank applied to istence for two years-although at the end of those Congress for a decision in regard to its charter. He two years a new Congress, fresh from the people, will says that there are strong reasons for believing that mcet before the charter expires-yet, notwithstanding the motive of the Bank for asking for a re-charter at all this, he, the President declares, on his own respon that session, was to make it a leading question in the sibility, that the deposits shall be removedli no matter election of a President of the United States the ensuing whether the conduct of the Bank has been good or bad, November, and all steps were deemed necessary to and no matter whether the deposits are safe or unsafe; procure from the people a reversal of the President's and accordingly he dismisses the officer who refuses to decision;" and again-"the object arowed by many of remove them, and appoints another who will remove the advocates of the Bank was to put the President to them.

the test;" and moreover, “it was to compel the PresiAt this moment the process of evading the law is in dent to take his stand that the question was brought full practice.

forward at that particular time." Now the fact is that By the Constitution of the United States, (Sec. 9,) so far from prematurely hastening a discussion on the “no money shall be drawn from the Treasury but in con- part of the Bank, it was he himself who brought this sequence of an appropriation made by law.”

very question before Congress and rendered its discusBy the act of Sept. 1, 1789, establishing the Treasu- sion inevitable. Thus, ry Department, the Secretary of the Treasury is autho In his Message of December 8, 1829, he said, rized to "grant all warrants for moneys to be issued "The Charter of the Bank of the United States exfrom the Treasury in pursuance of appropriations by pires in 1936, and its stockholders will most probably law;" and the same act further declares, that it shall be apply for a renewal of their privileges. In order to the duty of the Treasurer to receive and keep the mo avoid the evils resulting from precipitancy in a measure neys of the United States and to disburse the same, up- involving such important principles and such deep peon warrants drawn by the Secretary of the Treasury, cuniary interests, I feel that I cannot, in justice to the countersigned by the Comptroller, recorded by the parties interested, too soon present it to the deliberate Register, and not otherwise."

consideration of the Legislature and the people.” But there has been a usage of transferring funds In his Message of December 11th, 1830, he says, from one branch of the Bank of the U, S. to another, or "The importance of the principles involved in the one State Bank to another, when the public service res inquiry whether it be.proper to re-charter the Bank of quired disbursements at remote places. This transfer the United States, requires that I should again call the draught, intended to require an actual transfer, has attention of Congress to the subject.” been converted into a mere check-a warrant in fact, In his Message of December 6, 1831, he says, though not in form-and has been applied to the pur “Entertaining the opinions heretofore expressed in pose of taking the funds out of the place to which they relation to the Bank of ihe United States, as at present are assigned by law, and transferring them to the oppo- organized, I felt it my duty in my former Messages site side of the street. As it was never presumed that frankly to disclose them, in order that the attention of such a power would be thus abused, the transfer draft the legislature and the people should be seasonably dihas fewer checks than the warrant for disbursement, rected to that important subject, and that it might be the signature of the Comptroller, who is the law officer considered and finally disposed of in a manner best cal. of the Treasury not being usual; and accordingly by a culated to promote the ends of the Constitution, and strange anomaly, although the Treasurer's warrant to subserve the public interest. Having thus conscienpay one hundred dollars to an honest creditor of the tiously discharged a constitutional question, 1 deem it Government must go through a great variety of forms, proper on this occasion, without a more particular rethe transfer draught for a million bas fewer formalities. ference to the views of the subject then expressed, to By means of these transfer draughts, as will be seen by leave it at present to the investigation of an enlightened the annexed correspondence, large sums of money people and their representatives.” have been withdrawn from the Bank of the United It was under these distinct and repeated invitations States, and placed in State Banks in the same city, by the President himself, that the Bank felt itselfobligwithout the slightest reference to the public disburse ed not to decline his call upon Congress, and accord. ments and no less than two millions three hundred ingly the subject was brought before that body, thousand dollai's of the public revenue have been plac. Both Houses of Congress passed the bill renewing the ed at the discretion of the officers of the State Banks charter. This result was unexpected to him, and alby transfer draughts privately issued, and without the though he had declared in the Message just quoted, notice to the Bank of the United States, which the that he meant to leave it at present to the investigaTreasury had promised to give, and had hitherto al. tion of an enlightened people and their representatives" ways given of similar demands on the Bank.

-yet the moment the enlightened people and their reThe Committee willingly leave to the Congress of the presentatives differed from him in opinion, he treated United States the assertion of their own constitutional them just as he has recently done the conscience of the power, and the vindication of the principles of our Secretary of the Treasury. He refused his signature Government, against the most violent assault they have to the bill on the 14th of July, 1832, declarir.g that ever yet encountered; and will now confine themselves had the executive been called upon to furnish the to the more limited purpose of showing that the reasons project of such an institution, the duty would have been assigned for this measure are as unfounded as the ob- cheerfully performed.” As however no such call was ject itself is illegal.

made he concluded that “as the charter had yet four The main purpose in fact of this manifesto, appears years to run, and as a renewal now was not necessary to to be to prove that the Bank was unfriendly to his own the successful prosecution of its business, it was to have election, and he endeavors to trace this opposition to been expected," &c. &c. him and his measures.

Here then the President begins in 1829, when the 1st. In the application to Congress for a renewal of Bank had nearly seven years to run, by telling Conthe Charter.

gress that to avoid precipitancy he could not too soon 2d. In the extension of the loans of the Bank in 1831 | present the subject of the re-charter to their consideraand 1832.

tion. The next year, when the Bank had nearly six 3d. In the claim for damages on the French Bill. years to run, he repeated to Congress that the import

4th. In the circulation of documents vindicating the ance of the subject of the re-charter required that he Bank from the imputations which had been cast upon should again call the attention of Congress to it. The it.

next year when the Bank had five years to run, he reAll these assertions it is proposed briefly to disprove. iterated to Congress that he thought the attention of

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Congress should be seasonably directed to this import- possessing thus additional means of loaning, to the ant subject-and then when Congress at his request amount of nearly thirteen millions, actually increased proceeded to consider it and renewed the charter, he its loans to the amount of seventeen millions, making in sent it back with a declaration, that as the charter had fact a mere increase of its investinents not equal to five yet four years to run, there was no necessity for being millions, of which increase the new Branch Bank of in haste about it.

Natchez, established within that period, alone contri. And now in the face of all these testimonials of his buted nearly three millions, urging Congress, year after year, to decide the question, There are several circumstances which make this as they decided against him, he asserts that the Bank mis statement peculiarly improper. He reproaches the must have brought it before Congress to defeat his elec. Bank with this increase, although "the Bank was aware tion.

of the intention of the Government to use the public His second proof is scarcely less extraordinary. He deposit as fast as it accrued, in the payment of the pub. says that in order to carry the election against him “al. lic debt.” Now the fact is, that this public deposit though the charter was approaching its termination, was used as we have just seen, in paying off the public and the Bank was aware that it was the intention of the debt owned by the Bank itself-so that instead of inGovernment to use the public deposit as fast as it accru. creasing its loans in such a way as to interfere with the ed in the payment of the public debt, yet did it extend payment of the public debt to others, this very public its loans from January 183i, to May 1832, from $12,402,- | debt was actually paid to the Bank itself, and furnished 304 24 to $70,428,070 72, being an increase of the very means of increasing the loans. $28,025,766 48 in sixteen months. It is confidently What makes it still worse is, that this very public believed that the leading object of this immense exten- debt was in fact paid to the Bank on the solicitation of sion of its loans was to bring as large a portion of the the Treasury itself, before the Bank was bound to repeople as possible under its power and influence.” ceive it. On the 29th - day of September, 1831, the The errors here are as follows:

Secretary wrote to the President of the Bank: 1st. That the fact in regard to the increase of the “The offer made by you this day, on behalf of the Loans is mis-stated—and that the motives of them are Bank of the United States, for the immediate re-imwholly perverted.

bursement at par of the following stocks received by
The truth is, that the loans at the periods mentioned that institution is accepted, viz:
stood thus:-

91,188 92 of 4) per cents of 26th May, 1924,
January, 1831, May, 1832. 3,260,475 99 of 41 per cents of 24th May, 1824.
Loans to Individuals $33,575,403 43 $47,375,078 20
Loan to Government 8,674,681 06

$3,351,664 91
Domestic Bills 10,456,653 90 23,052,972 52 "The department fully appreciates the disposition

which the Board of Directors have manifested by this
$52,706,738 39 $70,428,050 72 arrangement, to co-operate in the accomplishment of
52,706,738 39 its desire for the discharge of the public debt as early

as the means of the Treasury will permit.”
$17,721,312 33 It has been thus seen, first, that the actual amount

of increased investment was less by ten millions than is Baring,Brs. & Co. Cr. 2,387,331 19 Dr. 1,878, 122,29 here asserted-second, that the public debt which the

Bank is charged with not preparing to pay, was actualFrom this it is manifest that between those two periods ly paid to the Bank itself, and not merely paid to the the Bank had received from Government the reimburse- Bank, but paid before it was due, in order to accom. ment of

$8,674,681 06 modate the Government. In regard to this increase, It bad drawn for its

too, the points of comparison are wholly fallacious. foreign funds $2,387,331 19

From the nature of the business of the country, the And drawn on its fo.

loans are necessarily larger in May than January, bereign correspond

cause the southern crop, with all its business, enlarges ents for an addi

the Spring operations of the Bank-and no more just tional sum of 1,878,122 29

result can be had by comparing May and January, than Making a total of

4,265,453 48 by comparing the thermometers of the two seasons.

The true comparisons must be between January and Thus furnishing additional means of dis

January, or between May and May. Now the fact is, counting to the amount of

$12,940,134 54 that the increase from May to May of the successive Yet its actual loansmits actual discounts

years is comparatively small. The loans at these suc. were increased only

5,124,893 71 cessive periods were as follows:

To The Domestic Bills of Exchange purchased for the

To

Individuals. Government. Total transferring of the funds of the Government or of indi. viduals, make a separate and independent business, de. pendant on the demand for the interior commerce of the May, 1827 33,118,707 4617,764,359 05 51,883,066 51 country. But taking the increase of those bills into

1828|37,353,717 92|17,474,111 4354,827,829 35 consideration, it will be seen that the increase of loans

1829|42,894,587 90 15,007,472 13157,902,060 03 is

$5,124,893 71

1830,43,206,694 12010,892,530 90 54,099,225 02 And the increase of Bills of Exchange 12,596,318 62

1831|53,582,067 75 5,674,681 06 59,256,748 81

1832 70,428,070 72 paid off, 170,428,070 72 Making a total increase of

$17,721,212 33
183364,519,900 73

64,519,900 73
Nov.1833 57,210,604 38

157,210,604 38! instead of 23 millions as asserted by the signer of the paper. That is to say, in the year 1831, there being a From which it appears that this enlargement was most active foreign and interior trade, requiring unu- gradual—that it occured when the wants of the counsual facilities for its operations, the Bank having re- try required the aid of this expansive power, so valuaceived from the Government the reimbursement of its ble in the Institution, and that the increase has subsid. loan to Government, amounting to more than eight when no longer required. millions; and having called in its funds in Europe, and Supposing all this, however, to have been exactly as employed its credit there to the amount of four millions, it has been stated, that is, supposing this increase of

loans to have been twenty-eight millions, what does it Congress of 1833, disregards the Congress of 1835, and prove? Why that the Bank enlarged its business to chooses to consider it settled without any interference meet the commercial wants of the country, and when of the Legislative power." those wants were supplied, the business of the Bank of The next head of complaint is the postponement of a course subsided. But the President can ascribe this portion of the three per cents. by the Government in increase to no other cause than his own election. Ac-April, 1832; and of another portion by the Bank in Decordingly, he says that the Bank, in January, 1831, cember, 1832. Now, it is very remarkable that both began to prepare for his election, which was to take these subjects were fully examined—the first by the place nearly two years afterwards, by lending 28 mil-Committee of Investigation of 1832, and the second by lions. It is somewbat hostile to this theory, that this the Committee of Ways and Means of 1833—and both whole increase had reached its height in May, 1832. reports are in decided contradiction 10 the assertions Now, in December, 1831, the Secretary of the Trea of the President. For instance, he complains of the sury, with the full approbation of the President, had first postponement, which he imputes to the Bank, spoken in the most favorable terms of the Bank, and whereas the Committee of Investigation themselves de. he did not sign his veto message against it until July, clare, "they are fully of opinion that the Bank neither 1832, up to which period, it was doubtful whether he sought for nor requested a postponement of the paywoull veto it, and of course it was unknown whether ment by the Government." He complains of the sethe Bank would have the least reason to be opposed to cond postponement, yet the Committee of Ways and his election—and these whole 28 millions might have Means report, that the nominal postponement had, in been uselessly lavished: so that the Bank increased its fact, closed the payment sooner than if no postponeloans while it had no interest in his election, and did ment had been made; and that “this question seems no not increase them when he supposes it had. Truly longer to present any important or practical object of this mode of "bringing as large a portion of the people inquiry, or to call for or admit of any action of Conunder its power and influence," seems singularly ill-gress upon it.” timed. 3d. In recurrence to his own election, he next pro lest the revival of these charges may mislead the un

This would seem to be perfectly satisfactory; yet, ceeds to declare that "whatever may be the opinion of suspecting, it may be well to refute ihem again, as they others, the President considers his re-election as a de: have been often refuted before; and the first of the cision of the people against the Bank.” Now, it is dif- postponement in October. He says of it. ficult for any one to believe this, since it is notorious that many of the most decided friends of the Bank would not be able to pay over the deposits, and that

“Conscious that at the end of that quarter the Bank were his zealous supporters. Thus Pennsylvania was vania, with extraordinary unanimity, in February, ly, to negociate with the holders of the public debt in the most efficient of them all; yet that same Pennsyl- further indulgence was not to be expected of the Go

yernment, an agent was despatched to England secret1831, passed the following resolution:

"That the Constitution of the Unised States authori. Europe, and induce them by the offer of an equal or zes, and near half a century's experience sanctions, a higher interest than that paid by the Government, to Bank of the United States, as necessary and proper to hold back their claims for one year, during which the regulate the value of money, and prevent paper cur

Bank expected thus to retain the rise of $5,000,000 of rency of unequal and depreciated value.”

public money, which the Government should set apart And again, with equal unanimity in February, 1832, for the payment of that debt. The agent made an arthe following:

rangement on terms, in part, which were in direct vio“That the Senators from this state in the Congress lation of the charter of the Bank; and when some inciof the United States be instructed, and the Representa dents connected with this secret negociation acc denttives requested; to use their exertions to obtain a re ally came to the knowledge of the public and the Gonewal of the charter of the Bank of the United Statesvernment, then and not before so much of it as was during the present session of Congress, with such al'er- palpably in violation of the charter was disavowed!" ations (if any be necessary) as may secure the rights of

If there be any one matter in regard to which the the States."

Bank is more beneficial than any other matter, it is Such a belief, moreover, is opposed by his own de. precisely this agency in paying off the public debt; claration in the Veto Message, that "a new Congress, and if there be any cases in the course of that agency elected in the midst of such discussion, and furnishing more useful than any other cases, they are precisely an equal representation of the people according to the these two cases which are here made the subjects of last census, will bear to the Capitol the verdict of public reproach. opinion, and I doubt not, bring this question to a satis The whole collection of the revenue is based on the factory result.”

system, that funds are never accumulated in the Trea. Now, that Congress to which he referred the decision sury for a long period, but are principally lent out to of the question had not yet assembled. In some parts the community, and only called for as they are needed of the country, the members had not been even elected for the public service. Whenever, therefore, large at the time of signing this manifesto; and yet, he now payments are made by the Government, as it is necesasserts, that he considers it as conclusively settled sary to withdraw from the use of the community consithat the charter of the Bank of the United States will derable sums, this process requires some delicacy in not be renewed, and he has no reasonable ground to recalling from distant parts of the United States as believe that any substitute will be established. Being much as may answer the immediate exigency, yet not bound to regulate his course by the laws as they exist

, enough to press disadvantageously on the community. and nut to anticipate the interference of the Legislative This is the especial function of the Bank. How well power for the purpose of framing new systems, it is pro- it has succeeded may be inferred from the testimonials per for him seasonably to consider the means by which of the successive secretaries of the Treasury. 1 hus, the services rendered by the Bank of the United States, Mr. Rush, in his Treasury Report of the 13th of Decein. are to be performed after its charter shall expire.” ber, 1828, says: This seems to involve an inconsistency. There was a “In this manner, heavy payments of the debt are in Congress about to meet in ninety days, to which very effect, made gradually, instead of the whole mass being Congress he had referred the question of the Bank. thrown at once upon the money market, which might There was a new Congress to meet in December, 1835, produce injurious shocks. So prudenily in this and before the expiration of the charter. Yet dves he now other respects does the Bank aid the operation of paydeclare that, since the people elected him and he was ing off the debt, that the community hardly has a con. opposed to the Bank, he revokes all he said about the sciousness that it is going on.”

1833.]

DEPOSITS-BANK OF THE UNITED STATES.

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And Mr. Ingham, in like manner, on the 11th of Ju- can be no doubt it would have prostrated all commerly, 1829, says:

cial credit, and seriously endangered the public reven.
"I take the occasion to express the great satisfac- ue, as in New York and Philadelpbia alone, the demand
tion of the Treasury Department at the manner in on account of the foreign three per cents was about five
which the President and Directors of the parent Bank millions.
have discharged their trusts in all their immediate rela The Bank, therefore, made an arrangement with the
tions to the Government, so far as their transactions foreign owners of this stock, to the amount of $4, 175,-
have come under my notice, and especially in the facili- 373 92 to leave their money in the country for another
ties afforded in transferring the funds of the Govern. year, the Bank assuming to pay the interest instead of
ment, and in the preparation for the heavy payment of the Government. Having settled this, the Bank re-
the public debt, on the first instant, which has been ef- sumed its usual facilities of business to the community.
fected by means of the prudent arrangements of your of the whole four millions postponed, the interest on
Board, at a time of severe depression on all the produc- them has ceased, and at this moment the only certifi-
tive employments of the country, without causing any cates not yet actually returned, are those in the name
sensible additions to the pressure, or even visible effect of two persons, amounting to $42,375 94, and it is re-
upon the ordinary operations of the State Banks." markable, that while of the whole amount of $4,175,-

Finally, the President himself, in his Message to 373 92 purchased and postponed, there remain unpaid
Congress of December, 1829, says:

only two owners, holding $42,375 94; the amount of
“It was apprehended that the withdrawal of so the unpostponed threes still outstanding is five or ten
large a sum from the Banks in which it was deposited, times as much. So that in fact, as was anticipated in
at a time of unusual pressure on the money market, the report of the Committee of Ways and Means, the
might cause much injury to the interests dependant on postponement has actually hastened its payment.
Bank accommodations. But this evil was wholly avert All these things were fully explained by the Commit-
ed by an early anticipation of it at the Treasury, aided tee of Ways and Means, to whom that part of the Pre-
by the judicious arrangements of the officers of the Bank siden's message was referred, and that Committee
of the United States."

accordingly reported as follows: It had thus become the babitual policy of the Bank “The arrangement made by the Bank for a tempoat the approach of any large payment, to begin its pre. rary postponement, with the consent of the holders of parations for a long period in advance, so as to collect the payment of five millions of the three per cent. debt, its resources gradually, and to distribute its disburse being now substantially closed by the surrender to the ments over as wide a sphere as possible.

Government, of the certificates of stock, except for a In the year 1832, the country was heavily indebted small amount, and the whole debt itself, as far as re. to Europe for the large importations of the year 1831; spects the Government, at an earlier period than it is and it was particularly desirable to give to the commu- probable it would otherwise have been, this question nity leisure to pay that debt out of their annual earnings, seems no longer to present any important or practical and 10 prevent any addition to the foreign demand in object of inquiry, or to call for, or admit any action of 1832. Now there were more than twenty-five millions Congress upon it.” and a half of the principal and interest of that debt This ought to be satisfactory, yet is the subject now payable in the year 1832—from Dec. 31, 1831, to Jan. revived with the addition of two distinct errors in point 1, 1833-of which more than fifteen millions were to of fact. The first is that the Bank “was conscious that be paid in nine months, and between eight and nine of at the end of the quarter it would not be able to pay it to foreigners. The Bank was fully prepared to make over the deposits” – whereas the state of the Bank, as the first payment on the 1st of October, 1832. above explained, proved its entire ability to make this The State Banks of Philadelphia, New

payment, and that its interposition was exclusively dicYork, and Boston, owed to this Bank, $2,280,000 tated by the desire to avert an additional trouble at a Its specie at these places alone was 3,200,000 season of pestilence. The second is, that the part of Its funds in Europe were

2,982,000 the arrangement made with the agent of the Bank was

not disavowed until "seme incidents connected with Making of cash in hand, or its equivalents, $8,462,000 this secret negotiation, accidentally came to the knowWith an open credit in Europe, on which

ledge of the public and the Government.” The fact is, to draw, for

2,500,000 that as soon as that part of the arrangement which

seemed to conflict with the charter, was received, the Besides not less than twenty millions of debts, to be determination was made to decline executing it before used for this purpose—while the whole public debt to any publication of any sort was seen or known in regard be paid on the first of October, was 8,634,988 37.

to it. In this state, the Bank, had it considered only its

The evidence of this is so clear and so short, that it own interest, would have been perfectly passive, deserves to be cited as an example of the general inacsince it was perfectly at ease. But it had other and curacy of this manifesto. The Committee of Exchange, higher interests to consult. From the communication in their report to Congress of January 29, 1833, dewith the Treasury in July, it was probable that the clare as follows: funds of the Government might be insufficient to pay

“But when the contract itself reached the Bank, on the debt advertised to be paid and that even if these the 12th of October, and it appeared from the commufunds were adequate, the operation would exhaust all nication of Messrs. Baring, Brothers & Co., that the the means of the Government, and require that the stock was to be purchased on account of the Bank, they community should repay the whole amount of the pub- were immediately instructed, on the 15th of October, lic funds distributed among them. It was further man- that the Bank had no authority to become owners of ifest that the ability of the Government to meet its en the stock,”' &c. &c. gagements, depended entirely on the punctual pay

When two of the members of that Committee were ment of the revenue in the commercial cities, from Ju- examined on oath before the Committee of Ways and ly to January, which was estimated at about twelve Means, they confirmed the statement as follows: millions of dollars.

Question. Had the President or Exchange CommitThat resource was threatened with the greatest dan. tee, any intention to disavow General Cadwalader's auger by the appearance of the Cholera, which had al- thority to make the contract he did, until after the ap. ready begun its ravages in New York and Philadelphia, pearance in the New York papers of the 11th or 12ih with every indication of pervading the whole country. October last, of the circular of the Barings to the foHad it continued as it began, and all the appearances reign holders of the U, s, 3 per cent, stocks,announcin July warranted tbe belief of its continuance, there ing to them, that they had the authority of the Bank to

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purchase or negotiate a postponement of the stocks of that payment, in the following words: “Will you held by them.

please give a copy of the correspondence connected Answer of Mr. Manuel Eyre. I can say yes positive with your application in March last, requesting a susly: I recollect it perfectly well. When I first read pension by the Government of the payment of a porthis letter, I said it was not proper, and disavowed it. tion of its debt intended to have been made on the first

Answer of Mr. Matthew L. Bevan. I never did see of July next, or a statement of the arrangement made myself, the notice referred to in the New York papers, in relation to that subject.” Which correspondence but well recollect the moment the letter was received was communicated by the President of the Bank with giving information of the proceedings in relation to that the following remarks. negociation, the President of the Bank, with the appro. “I have made no application to the Government, bation of the Exchange Committee, immediately wrote, nor have I requested any suspension of the payment of disavowing the nature of that arrangement, it having any portion of the public debt. been made under a misapprehension

“The inquiry, I suppose, relates to this circumThe complaint in regard to the postponement by the stance; 'I received a letter from the acting Secretary Government in April, 1832, is of the same character of the Treasury, dated the 24th March, 1832, informHe says, that “after this negotiation bad commenced, ing me that Government was about to issue a notice on the Secretary of the Treasury informed the Bank that the first of April, of their intention to pay, on the first it was his intention to pay off one half of the three per of July next, one-half of the three per cent stock, and cents on the first of the succeeding July, which amount to do it by paying to each stockholder one-half of the ed to about $6,500,000. The President of the Bank, amount of his certificate.' He added, although the Committee of Investigation was then look “If any objection occurs to you either as to the ing into its affairs at Philadelphia, came immediately to amount or mode of payment, I will thank you to sug. Washington, and upon representing that the Bank was desirous of accomodating the importing merchants at “Thus invited by the Government in a communicaNew York, (which it failed to do) and undertaking to tion marked 'confidential,' to give my opinions on a pay the interest itself, procured the consent of the Sec measure contemplated by the Government, I felt it my retary, after consultation with the President, to post- duty to express my views of its probable operation: in pone the payment until the succeeding first of Octo. my reply therefore, dated 29th of March, I stated that ber."

so far as the Bank is concerned, no objection occurs to The impression here intended to be conveyed is, that me, it being sufficient that the Government has the nethe President of the Bank, in order to relieve the Insti: cessary amount of funds in the Bank to make the contution from a demand which it could not sustain, asked templated payments.' I then pr ded to observe, that an indulgence which was conceded by the Government in the present situation of the commercial community, Now the truth is, that the Government wished to make and with a very large amount of revenue, (amounting the postponement, but could not do it without the aid to nine millions,) to be paid before the 1st of July, the of the Bank. Mr. M’Duffie, Chairman of the Commit. debtors of the Government would require all the for. tee of Ways and Means, and Mr. Cambreleng, Chairman bearance and all the aid that could be given them; and of the Committee of Commerce, who were then mem that the payment proposed, by creating a demand for bers of the Committee of Investigation at Philadelphia, the remittance of several millions of dollars to European wrote letters to the Secretary of the Treasury dissuad stockholders, would tend to diminish the usual facilities ing the Government from making the payment. The afforded to the debtors of the Government, and might only difficulty in doing it was, that the Commissioners endanger the punctual payment of the revenue. For of the Sinking Fund had no authority to postpone the this reason I thought it for the interest of the Governpayment, as they would be obliged to pay the quarter's ment, to postpone the payment till the next quarter. interest during the three month's delay-and this dif- I further stated, that the plan of paying to each stock. ficulty was removed by the President of the Bank,who holder only one-half of his loan, would not be so accepagreed to pay the interest as the money would remain table as if his whole loan were re-paid at once, in the bands of the Bank. The letters just mentioned were accordingly submitted to the President, who never nion asked, I left it, of course, to the Government to

“ Having thus performed my duty in giving the opi. saw the Secretary of the Treasury on the subject, as

decide. that gentleman was sick, and who himself decided on requested nothing. After weighing the circumstances,

On the part of the Bank, I sought nothing, I the postponement after seeing the recommendation of Mr. M’Duffie and Mr. Cambreleng. Much stress is also the Government were desirous of adopting the mea. laid on the visit of the President of the Bank to Wash- sure, but the difficulty I understood to be this, that the ington, while the Committee of Investigation were in sinking fund would lose the quarter's interest, trom Ju

ly to October, of the sum intended to be paid in July; Philadelphia. The truth was, the letter of the acting and that the Government did not feel itself justified in Secretary was received so immediately before the per making the postponement unless that interest could be riod fixed for issuing the notice of payment, that if any saved, but that it would be made, provided the Bank thing were to be done at all, it was to be done only by would make the sinking fund whole on the 1st of Octopersonal communication with the Secretary, as there ber. To this I said, that as the Bank would have the was no time for correspondence. The gentlemen of use of the fund, during the three months, it would conthe Committee were aware of his going, and two of its sent to save the sinking fund harmless, by paying the members wrote letters to promote his object. Be three months interest itself; as the matter stands. sides, his leaving the Committee of Investigation in full possession of the Bank and all its papers, so far from

“Now, it will be seen, that the Bank, in all this, has being a subject of reproach or suspicion, is the surest had not the least agency, except to offer its opinion, mark of his entire reliance that there was nothing in when it was asked, in regard to a measure proposed by the concerns of the Bank which they might not exam

the Government; and then to offer its aid in carrying ine at leisure during his absence,and was the best proof

tilat measure into operation." "The Committee are of his confidence in them as well as himself. The fully of opinion that though the Bank neither ‘sought whole subject was before the Committee of Investiga- the Government, as stated in the declaration of the Pre

for, nor ‘requested' a postponement of the payment by tion of 1832, and that Committee acknowledged, as will be seen from the following extract from their resident, yet if such postponement had not been made, port, that this postponement was not the work of the the Bank would not, on the 1st of July, have possessed Bank. The Committee say

the ability to have met the demand, without causing a “They made a call upon the President of the Bank scene of great distress in the commercial community." for the correspondence in relation to the postponement

(Remainder next week.)

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