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Mr. Cratcfurd t Anmixir — Canrludti.
Kmted States and ♦ e Hunk at Hunt*-
the cashier of the former drew
certain drafts upon the amount stanrl
uigat his credit in the latter bunk. —
These the Hank at Huntsville declin
ed to pay, under an erroneous idea that
it was accountable to the treasury lor
1 it: money.
As soon as this was made known to
the Secretary he wrote to the Hunts
ville Hank, to remove the misunder
standing. The Hank justified itself,
by quoting certain expressions of the
."Secretary’s circular of July 1819.
The Secretary replied, that it the
bank had quoted correctly, the circu-
I.r must have been imperlect, and
Jfth ed to have it sent back for exam
ination. It was sent back : was found
to be inacuratcly copied ; the mis
understanding was removed; thedratts
were paid ; and t'nere the whole mat
ter ended. In the passages relating
to this subject notice Was also taken
of the accidental omission of the bank
to render some returns. These are
the parts of the letters in the corres
pondence which were not communica
ted ; and this explanatioi will show
with what little reason it lias been in
ferred that every omission in the cor
respondence contains something which
the Secretary must have an improper
motive to conceal.
These observations apply to all the
extracts transmitted in that corres
wmdencp, except the letter ol the
President of the Huntsville Hank, of
the 30th Sept. 1819. As this letter
does not appear to have been trans
mitted under the lust resolution, it is
presumed to have been mislaid. The
purport of the preceding p;yt of it is
not recollected but search is now
making for it, and as soon as it is found
•it will be communicated.
An additional importance is attach
ed, bv Mr. Edwards to the circum
stance ofextracts being sent in this
case as contradicting that of the Sec
retery’s testimony before a former Se
lect Committee of the House, which
speaking of the correspondence gene
rally states, that in consequence of
the presure of business, the original
letters and the rough drafts had been
communicated under the resolution
of the 14th Feb. 1822. No such con
tradiction however, can be imagin
ed, without misinterpreting the obvi
ous import of the Secretary’s words.
He spoke of the communications gene
rally; and it is a fact well known,
that it consisted almost entirely of
original and rough drafts. But it is ir
reconcilable with common sense
to suppose that he meant to con
vey the idea that papers which bore
Min their face the title of extracts,
which he had himself communica
ted and described as extracts, were
either originals or rough drafts.
Neither the Secretary nor Mr.
Dickins has any where said,in their
testimony, as Mr. Edwards suppos
es, that the latter delivered all the
originals and rough drafts to the Se
cretary,and that the Secretary, sent
them all to the House. The fact is
otherwise. All the correspondence
with the hanks referred to, was not
called for,as has been already shown
_nor was it ever asserted that all
was sent. Mr. Dickins collected,
os he has stated, all the correspon
dence that he could find,filed & un
filled that was likely to have any bear
ing on the subject: from this he se
lected such as, in his judgment, was
required bv the resolution; and such
extracts as were made, were made
under the exercise of this judgment.
After the papers had been thus se
lected and arranged, he laid them
before the Secretary, together with
such statements in relation to other
parts of the resolution, as the Sec
retary might require for his reports.
T hese papers were in the posses
sion of the Secretary while he pie
part and his report; but were refered to
no further than was necessary for
that object; and the correspondence
thus prepared bv Mr. Dickins was
‘transmitted, in the same state, to
the House. This circumstance will
explain the appearance ol the
mark# on the passages which Mr.
Dickins has stated to have beer
marked by him for the purpose of
calling the Secretary’s attention to
them ,an l which,if they had been
observed by the Secretary would
have been acted on by him, either
bv directing the marks to he remov
ed or extracts excluding those pas
sages to he prepared;*
To remove all pretext fur die in
tumnd'Oti which Mr. Edwards has
tnumled upon the circumstance of Mr.
I>. kit-* having been employed to se
ll” t the papers m tins case, instead of
Mr. J ones, tlie duel cltrk, t • whom ii
bad been visual to ctir.mit the selection
of papers required by Congress, it is
proper to state, that the resolution ol
the House did, in this instance, lake
the usual course ol reference to Mr.
Jones ; and that it was at his request
and upon his suggestion of the propri
ety of referring it to Mr. Dickins be
cause of his better knowledge of the
subject, that the duty was transferred
to him.
There is one omission in the corres
pondence which has been emphatical
ly alluded to by Mr. Edwards, and
which shall, therefore, be particularly
noticed. It is a letter from the Sec
retary to the President of the Hank of
Huntsville, of the 9t!i ol July, 1819,
a:ul is more than once referred to in
other parts of the correspondeece :
whether it had been communicated or
not, was never a subject, of investiga
tion with the Secretary, until the no
tice taken of it in Mr. Edward’s ad
dress rendered the inquiry necessary.
After a thorough examination, how
ever, it could not he found, eitiier
among the records or rough drafts; but
on referring as a last resort to a file
of confidential correspondence which
is kept by Mr. Jones, the rough draft
of the letter was there discovered. A
copy of it is herewith transmitted. —
According to the views with which
the correspondence was selected un
der the first resolution ol the House,
this letter was one which would have
been then communicated. It is be
lieved however,that the sentiments and
opinions disclosed in it, are far from
furnishing a subject of blame to the Se
cretary ; and as he had communicated
a letter of similar import, written on
the same day to the Tombeckbe /lank
it may be inferred that it was not
withheld by any improper considera
tion of delicacy in respect to the mat
ters to which they both relate from
communicating this letter also. It is
believed that the letter to the I'om
beebe Bank, of the 9th Jul y, 1819, was
also marked ‘ confidential,’ and the
opinion is strengthened by the reler
erence made to it as * confidential.’
bv the President of the Bank, in his
letter of the 13th Aug. 1819. The
word ‘confidential,’ was probably
omitted through inadvertence, in the
copy that was retained in the Depart
ment; and thus it went upon the or
dinary record. If this opinion is cor
rect, the communication of this let
ter coroborates the fact that the omis
sion to communicate the letter to the
Huntsville Bank was not owing to the
matters it contained but to the cir
cumstance of its being on a file not
before the person by whom the corres
pondence was selected.
The Secretary is not aware that any
other letters on the confidential tile ap
pertain to the objects of the present
inquiry. He submits however, such
of them as arc addressed to banks, to
the examination of the committee.—
He takes the occasion also, to tender
to the committee,as he did to the com
mittee appointed under the resolution
of the 6th Keb. 1823, the inspection
ot any of the records, wr correspon
dence in the Department, that may
be deemed necessary to cdudicate any
of the matters connected with this in
quiry.
Having disposed of all the minor to
pics of accusation brought against the
Secretary in Mr. Edwards's Address,
it now remains to notice the grave
charge which he has preferred, of hav
ing mismanaged the national funds.—
As far as this charge is founded upon
the particular transactions which have .
formed the subject of the foregoing ob-!
servations, it is presumed to be suffi
ciently refuted. The only remaining
ground of charge then is, the measure
of employing the State Banks asdepo
sitories of the public money in the
Western Gnu :i try.
The circumstances by which this
measure was rendeicd necessary, aud
the views with which it was adopted
under the sanction of the President ot
the United States, have already been
explained in the Secretary’s report, ol
the 14th February, 1822, and in his
letter to the Select Committee, of the
24th of February, 1823, to which a re
ference h <>w requested. It may be
proper, to remark, here, that,
throughout the \N estern Country, a
general and severe distress had follow
ed the resumption of specie payments.
On the pait of the Treasury, every
disposition had been entertained to
make the demands of the government
press lightly on a suffering people.—
With this view the Deceivers and Col
lectors had been authorized, generally
to receive in payments to the United
States all the specie paying bank notes
in circulation; and the /tank of the
United States had liberally seconded
the views of the Treasury, by author
izing the reception of these funds
from the Receivers and Collectors. —
This experiment, though it gave roliel
to tiie public debtors, had been found
injurious to the welfare, of the Bank;
and, by a proper regard for its own
safi v, that institution considered it
self constrained to decline the recep
tion of almost all of those funds which
form the currency of thai portion ol
the country, and of those which alone
it could prudently take, scarcely any
were in circulation. W hat effect this
change had upon the state ot things,
may be inferred from a lew extracts
from some of the communications
which were about that time made to
the Secretary in relation to the sub
ject.
“ The debtors of the United States,
say the Directors of the /lank of V in
cennes, in their memorial of the 9th
Jan. 1819,“ in the Western country
labor under distressing and almost in
superable difficulties in meeting their
engagements ; not so much from the
want of means, as from the scarcity ol
such funds as are receivable in pay
ment of public lands. Should the
country continue in its present situa
tion with respect to these tunds, many
an honest citizen, many an industri
ous farmer, who has migrated to this
country, and has paid his last eighty
dollars as a first instalment on his
quarter section of land, will be com
pelled, at the end of five years, to
leave his favorite spot, his cabin, and
all the comfortable improvements,
which the labor of his own hands has
acquired, and, with his wile and chil
dren seek anew home, w ithout money
to procure it. And why ? Because
the produce of his farm, although he
may have an abundance to spare, will
not command such funds as Govern
ment demand for the completion of his
payments.” Other representations,
which are herewith transmitted, from
Senators and Representatives, whose
character is a sufficient guarantee for
the truth of their statements, corrobo
rate these views. The Hon. Mr. Her
rick, in a letter of the 11th of March,
1818, considers the adoption ot some
measures on the subject as desirable,
as well with a view to relieve the peo
ple, as to preserve their affections lor
the present administration of the Gen
eral Government. The lion. Waller
Taylor, in a letter of the 31st March,
1818, encloses a letter from a respect
able source, stating that 20 per cent,
had been given by those who had pay
ments to make in the Land Offices, to
obtain such money as would be recei
ved ; that few entries of land were
made ; and that many who had come
from a distance to enter land had gone
away without doi ig so, because the
money they had brought, though con
sisting of the notes of banks of estab
lished character, could not be receiv
ed. And Mr. Taylor concurs in opin
ion, that the operation of the existing
system was prejudicial to the purcha
sers of public lands, as well as the ci
tizens of the state. In a joint letter
addressed to the Secretary,on the 18th
April, 1818, by fourteen Western
Members of Congress, viz : the Hon.
Joseph Desha, William H. Harrison,
Robert Moore, Henry Baldwin, \\ il
liam Hendricks, James Noble, Waller
Taylor, Richard C. Anderson* Levi
Barber, Thomas Speed, John \V.
Campbell, Samuel Herrick, Peter
Hitchcock, and Philemon Beecher;
these gentlemen all concur in stating,
that “ every mail from the West brings
us the complaints and requests of the
people, on the subject of the pecunia
ry state of our country;” and they
conclude, by recommending, as a mea
sure of vital importance, the reception
of such Western paper of specie pay
ing banks, as were in good credit.—
The II on. J. Mr I .eat), of Illinois, in a
letter of the si.lt June, 1819, speaking
of one of the districts in that state,
makes the following representation :
“ am well assured, from mv own
knowledge, and the letters of respect
able gentlemen in that part of the coun
try, that, if every note that will be re
ceived in payment of land, and every
dollar of specie that is in the country,
were in the hands of those indebted to
the government for land, it would be
insufficient to enable more than one
tenth man of our settlers to comply
with his engagement. I almost daily ;
leccive letters from the people of
Shawrveetown Land District, and of
that part of Illinois included in the
Vincennes District, stating that they
are in a situation truly distressing,and
that, unless there be some ameliora
tion in the directions to the Receivers,
that the time is but very short* until
they expect to see the little farm and
dwelling they have provided for the
support and shelter of themselves and
family, torn from them \>y the merci
less avaricious speculator. lam sor
ry to be constrained to say, that their
apprehensions are but too justly pre
dicated, and that they represent
facts.”
These are letters which have pre
sented .themselves on a hasty relerence j
to the files of the Department.’ It is
well remembered, however, dmtnu-i
merousand earnest personal represen
tations were made by other gentlemen
in Congress, both as to the pecuniary
distresses of the Western country,and
the necessity of a change in the exist
ing regulations. Representations
like these could not be received with
indifference. It is to be recollected,
also, that, at the time when this state
of things existed, ffic debt duo for pub-,
lie lands amounted to about twenty j
millions of dollars; the greatest parti
of which had been contracted (luting
the suspension ol specie payments.—-
Upon mature reflection, therelore, and
with the approbation ol the 1 resident,
it was deemed advisable to make the
arrangements with the W estern banks
which are the subject of Mr. Edwuids
condemnation.
The details of these arrangements
are so fully exhibited in the Secreta
ry’s former communications on the
subject, that it is not thought necessa
ry here to explain them.
* As far as the interests ol the people
and of the Treasury, were concerned,
it is believed that those arrangements
were not merely defensible, but com -
mendable. As far as the measure af
fected the interests ol the Bank ot the
United *S'tates, it is believed to be
equally deserving ol approbation. In
a letter written by the Secretary to
the President ot that institution on the
14th September, 1819,be thus explain
ed the motives, which, as far as the
Bank was concerned, influenced his
course on the subject.
<• ll has been my constantendeavor.for more
than twelve months past, to prevent, us )ar os
practicable, all collision between the Hank ol
the United Males and the Mate Banks ; as fur
at least, as that collision might lie connected
v\ ilh the transactions ot this Department, it
is not my intention, therefore, to give drafts
upon the State Banks tor public money, with
out previously arranging with them the mode
of payment.
“ Acting upon the same principle I have
endeavoured, in the course ot the present
year, to make arrangements with die Mete
Banks in the Western States, by which, they
should become the depositories ol the public
money collected in that section of the l nion.
I considered the deposites there positively
injurious to the Bank lor the following rea
sons,” viz :
Ist. That the Offices had already .exten
ded their discounts in Ohio and Kentucky,
farther than w as consistent with the interest ot
the Bank.
“ 2d, That every doilar deposited in them
an account of the government, that could not
be disbursed there, would have to he employ
ed in discounts, or transferred to the Bank
in Philadelphia, or its Eustern Offices.
“3d. That owing to the state of exchange
transfers could only he made by the transpor
tation of specie across the mountains.
“ 4th. That, owing to the geographical po
sition of Kentucky and Ohio, the
penditurc, would he extremely limited.
“sth. That the transportation of specie
from the Western to the Eastern States, by the
Bank, invariably” had produced und would
continue to produce irritation in the public
mind against the Bank.”
“ An additional reason for endeavouring to
make state banks in that section of the Union
tne depositories of the public money, was to
increase the receipts by enabling the public
debtors to pay in the notes ot specie paying
banks, which would not be received by the
officers of the bank, aud whjah could not he
received by them, without increasing that
collision, which it was my desire to dimin
ish.”
These views, if is believed, w ere too just, r.ot
to meet tlie approbation of the distinguished
individual who presided over, and of the en
lightened Board which then directed the affairs
of, that institution. Accordingly, Air. Cheves,
in his answer ot the sth October, 1819, thus
expresses himself. *• The Board entirely con
curs w ith you in the views you take, as to the
Government collections and deposites in the
western states’ which thev believe to be calcu
lated to case the moneyed pressure on that
portion of the country, as well ns to meet the
interests of the Government, and relieve the
bank from embarrassing collisions w ith local
banking institutions.”
It happened, however, that in three
of the places where the banks were
situated, with winch the Secretary
hail made these arrangements, bran
ches of the Bank of the United States
were also established. By the char
ter of that bank, it was the duty of the
Secretary to have stated to Congress,
at its next session, the reasons why
he had directed deposites of the pub
lic money to be made in these three
Banks. This statement, through in
advertance was not made as the
Secretary has stated in his letter of
the £4th February, 1823, to the select
committee of the House, But, as a
full explanation of the motives of these
arrangements had been made to the
Bank of the U. S. whose interests it
was the object of that provision in the
charter to guard, and as that institution
had approved of the arrangements, and
as the arrangements themselves had
been published in various newspapers;
and as the facts which were to be re
ported to Congress were of genital
notoriety, it is submitted, whether the
Secretary could have had any motive
for withholding the formal commu
nication of the information to Con
gress.
Os the policy of the measure adop
ted by the Secretary in the employ
ment o| the Western banks, it is pre
sumed there can be no doubt. That
it has not been entirely successful, is
considered to be a subject rather of re
gret than censure. Hut,’ that it has
been mainly beneficial, it is thought
will not be denied by those who can
didly examine the subject in all its
bearings. And, although very little
ultimate loss is expected, yet/ if the
whole suio now due by those banks
which have stopped payment, were to
h ~ lost, it is believed that the advan
tages which have resulted to the coun
try, w ill have been cheaply purchased
at that cost.
As some misunderstanding in res
pect to the special depositee, seems to
ptev'i in the public iniiiil, ret,
li oni tue misrepresentations t|i ; ,t i ,
been made on th subject, it ‘i
proper lo take this occasion toren^i
About the time that the pros,*
Secretary of the Treasury took cW
ul that Department, the special ‘*
polite amounted to upwards of t| ir ’
millions of dollars, being,on sh e \u,
us December, 1810, 53,031,459, all
which has since been converted int
cash funds, except 8291,803. At th
date of the Secretary’s report off
27th of February, 1823, the amount
the special deposite was £927,107 i
eluding the £291,803 above mem!,. ,
ed. Os this sum of 8927,107, ak,’
864,000 have since been paid. || t ,
it appears, that of the whole sum Z*
on special deposite, only about gj*-
000, including the sum due bv 0 =
defaulting Western banks, have b
come special during the present
retary’s administration of the Depart”
merit. When it is considered u,,.
this embraces a period of about .sew t
years, during which, great disorder,
have existed and a great revoluf
has been efl’ected in the currencv, ; t
during which, upwards of one l lun ’
dred and sixty-three millions of <]„].
lars have been paid into the Treasury
exclusive of loans and Treasury
notes ; and that of this sum, upwards
of twenty-one millions and a half ot
dollars having been received, fror’
the sale of lands, and internal duties
ar.d taxes, must have been toiler,
ted in those portions of the country
where the greatest disorders cxis
ted ; when these circumstances are
considered, it is believed that the sum
which lias become uncurrent durian
the Secretary’s administration of the
Treasury,instead ot furnishing ground
either of censure or surprize, by its
magnitude justifies the conclusion,
that in this respect as he trusts, will
be found the case in all others, the
Secretary of the Treasury lias not ms.
managed the national lunds.
In conclusion, the Secretary has the
honor to state, that, although it is be
lieved that every material charge con.
tained in the address of Mr. Ed
wards has now been satisfactorily -
plained, yet, if, in the opinion of the
committee, any further explanation*,
deemed necessary,it will afford hint
pleasure to give it, either personalit,
or in writing.
* This sum consists of £5,220,75 received
from the Miami Exporting Company, jW,-
726,40 from the Bank of Huntsville, and $,•
943,-38 in discharge of the debt due by ike
Brnnch Bank of Kentucky, at Louisville.
It is believed, however, that it will now be
proper to include in the qeecial deposite lie
sum due hv the Bank of Columbia, amouniai;
to £279,361,87; of this sum, all hut £#
were special when the present Secrettry
came into the the Treasury, and. was plated
in this hank for tiie purpose ol being cower
ted into cash funds, assisted in the
ry’s report of the 14th ot February, M
-1 laving effected this object, the bank not
now in condition lo refund the money, Mm
arrangement has been made by whirl 4*
payment of it, with interest, has been, ithbe
lieved, well secured.
Charleston, May sl
Official intelligence from the squad
ron off Algiers, had been received in
London. 7’he Deyr bad refused to
treat, and was in consequence prepar
ing to sustain a bombardment. .%
sures have been taken by the British
to blockade the port of Algiers.
A private letter from Coriu, dlftd
March 9th, gives a very flattering*’
count of the prospects of the Grea’-
Much harmony ami good order eii>f
ed, and a strong hope was expresseu “ 1
accomplishing the complete regecera
tion of that people.
Lord Byron narrowly escaped k*
ing captured by the vessels of the Up”
tain Bey, near Cape Papas. ’l’heves
sel containing his companions, hit
ses, money, and a large quantity 0
ammunitions was taken,but afterw <r<ls
released, in consequence orthe t J P’
tain Bey being deceived by a brtf ■
wjio pretended that lie had saved L! -
life of tlß* Turkish vice admiral.
Letters fioin an eminent jf urkff
merchant, confirm most ur.cqui v< '; ,
ly the report of the declaration 1,1 in
dependence by the Pacha of Egyr
Letters received in London i* l /’
that Ferdinand continues obstinate 1 ,
resolved not to listen to the rem o
stranees of the French court on ■
subject of the loans of the Corley
Accounts from Constantinople
sert that the Sultan, althongh 1 ‘'l/
ed to treat w ith the Greeks, a> 111
great exertions to raise an army *
000 men for the Morea.
A report of the fall of Patrah P ,
vailed at Constantinople, but n° in
ligence which could be relieu on l
been received. .. urV
The Bill for the repeal of the v
Laws has been lost in the lb" 1
Commons. ....J
The last letters from Madr”
Cadi/., state, that the Spanish ‘ ,
inent is about to remove the Pj
tion on the importation of cot o
other articles into Spain, ant ‘
port duties generally will