Newspaper Page Text
■ ;
mmsrufiitii-ezr1 *j*(i utasSeMta
Uiiiii t.Oi UjiE'K'T.
: thn* fem>V'efl'ln reetlvincr tV t!*po*3el Wi "tVensurer, duplicate morrth’ v rc
t mid, ore limj*, <ht t uin „ ol its ucc-unU tflvlt 'he Tren
REIMIKT
* T ?.*)« ffehet Committee to whom was
i ji-ireU the Metres* of jYitiian
Edwards.
*:■' -iV»« * ltKTOESBNTATivrs, Mat 85.
i lit* Select CnnatiiUee to Wlrth «m re-
■Vi* >td tile nie'iiomi, or etdrese of Nirrsn ( .
arils, report: that, iinmedi.iftly mi• siy, in tlie IsHei' part of l8'8, discontinue
of the p i 1 c money* ...
Um.k oi Uicted dimes signified tt» the
De|,*r»meritw he Tream y, that it could
not continue suen an »n>tem. ntk : ami that,
li e'Cofonvintll, it could receive nothing in
rlf-pusitle, ss c.-.Sh, but the legal currency of
the countrj, foi us turn note* t'lio agree-
meiit with the Hank of the United Slates
'tvmutated,tor diets reakons, on the 3oth
June, 1818.
ft would uppeic, thft many of the state
hoiks winch had in 1817, resumed specie
iliyinentd, soon after this period, that is to
ilietr appoi 'tinent, es the House hnsal-
a.'y been informed, they cnmmnnicttel
t v fly of this adtlre-s to the Secretary of
■tv I i\astir) , ami they also ovdErtcl he
■ dance j)t Mi Edwards, to he eXainin-
> : rs, ;ore them, as a witness, touching the
•>ms charges in the memorial. For &l-
iglij in that adorers, lie refers to pairers
•i documents, accessible to the commit.
>: V'ilhont his presence,' rs the main sup.
' *.t of his i lnnges, yet the committee
f '.a> of opinion, that these chargts were
h i snob i.s shonnl be either lightly made,
t such payment* ) and that the debt dim
to the Unit, d 9'i.tes, on account of
the sales of tho public land, had vc y great-
Iv increased j amounting in tile.early part
ofld'9, to no le-u, than fB.OOtl.OJd of dol
lars The public expend.iure in the wes-
tu n s'stei was u.n such as to require, with*
in loose states, the disbursement of the
m ihey rrc.ivedon account of this debts
hut much tho larger part waste be remitted,
either to the seat of government, or to
ether places in the Atlantic states
About this period, tlso, the Bank of the
tperikially txamanuned i and But it, United States issued orders prohibiting its
vitight noth content Itself with any investi- ■ western branches Irom issuing any of their
Cation short ut one in which the accuser own notes for circulation, even in exchange
chuuld l ave an opportunity of I icing per- tor, or on deposits of, specie*
t-r«sent, the tetter tn sustain the | Under these circtmstances, the Secrets,
ihlu.rges, if they were capable ofb.Jvjj si.3 ; ry otthe Treasury appears to have enter.
Vaiv-d, or to bear the proper resnonsi ni- j cd into arrangements with some of the lo
By. d tailing to sustain them, l.e should an col or state banka, generally those which
jpcai • have brought them fmtvad. in a had act 'd ss agents of the Bauk of the U.
Jins positive a d imposing, from per- 1 States, for me purpose of employing them
*><• i »• and Improper motives, or upon friv- : a* depositories of 'he public money, and in
clou* pretests And lhi committee is still > t ie transfer of su it money, wneo reqnir-
•of opinion, that this inVe.tigatinii ought
•Vtu t<' ht hiuilly clo.scd, Without the per
Mui.si iZS'liinauoil ot Mr. til wards; ami,
it* tuing to make any report On the
■n jcri, at U,e praftnt time, and before
such an iXami'iiitton is had. ihecumtniitee
acts only Inin the necessity imposed u.ion
4t. y the approvc-hing close of the st ssioii,
Sh d by i sense ufdu'y which dictates that
11 tiglit not to postpone, >o a distliit day,
«li coiiimunicalioutu the House, on a sit i-
j<- ct ,o iiiten-s'ir.g to the Unvei'iiment,aiid
so nearly alfcctittg tin. hi nor and iutegtit)
«it one of Us liight it ofi Cits.
Under the influence of these motives,
Ui.- committee tnatus this report, as the
it uit ot lU.i-xtuiiina.ion of the papers re
ft. cd to in tlicadditss, and such utner
’•< "lx as the committee Could command
Vila*.soever is here said, th teforc, mutt
i>. oceived with the qu t ificaii in, that,
a! •‘•ugh tne committee d » not know tliat
.U r.dw ards, if piesent, could cornmum-
ta any fact ii.ely to be important, the>
si pot know, on the other hatnl, that ht
-no. Hit nut do so j and he lias had no o t .-
4»"HUn ty to he evim tied or to give any
r> •> t,. the answer of the iccretsry, which
the c m nittee has received, and which
Jims a.ready been printed, by Older iif the
IJoitNe
The address contains w<> general charg
es gainst the Secretary ; one, > f mis.nan-
apt 'he public fun •<.: under which, va
xi '* dleg.il itsn.actious arc adeged, in
rf enre to the depusite • f ti e | ubli -
si' .ys in rerltdn unks, and the mode hi
W > ii su. h jiu ney» were allowed, afer-
tu to be'rpsul; t..e ether imputing
to the ecretary toe Nupprcssion of pa-
fei-a d documents m failing to comittuni
cate t .ein, when th-y oug 't to have been
«"iimiunica i->i, in answer to resolution* ul
the louses nf Congress
I'he committee lias given its attention
to e. ch of these divisions of charge
A. d,first us to the conduct of the Treas.
Ii y Utparmevt, in regard to the depo
ite> "ftlie public muhevs in the banks, and
the manner in winch such banks were a!
low • d to repay lo the Treasury the balan
ces f -u-.h deoojutrs:
B. tue resolutio i d' Congress, of April
30th. J■ ItS. it is dtclaied, ** That the sec*
ret'rv of .the trewsarybe and hr hereby
is. tvqot ed and direc ed to a’lopt such
xn su es as lie may deem necessary, to
Co s , a* soon .is miy be, all duties, taxes,
debs*, or sums of money, accruing, or be
coming pay abb, to the United vtatea, to
b> co’iectedand paid in the legal currency
cf the United States, or Treasury notes, or
n his "ftlie dank of the United states as
by taw provided and declared, or in the
h"te» of banka which are payable and paid
oo<l * nand, in th said legal currency of
the (J >ted State*; a d ttiat, from and af-
. .te .\e Join d iy of February next, no such
d i "n, taxes, debt.., or sum* of money, ac*
c ui-ig, or becoming payable, to the Uni-
V • ifa es.a*, aforesaid, ought to be collect-
ed k r. ceivid otherwise Uian in.tbe le*
g d currency ht 'he Uuted nates or Treat-
u notes'or. notetfofthe Dank of the Uni-
t« d States, or notes of banks which are
Tin'. - le and paid, on demand, in the sstd
itg f urrency of the United States”
V the dm-of tile ad.tio, of this re»-
el don, dyus acci uing to tlieUnited States
v. Iiettier on ucc <unt o. the Side* of puo.ic
la’d., or at the custom house, or from oth-
tfrs-i'cesof revenue, were, in f«ci, re*
Ceivid in Nome parts of the country, but
« I tv in d .regard of the law, in ibe
»• t ts of th- a *te banka which dtd not
re t -em tb -.ir n*pe- by cash payments. Bv
this esoliinon, it w.sa obviously made the
du y of the Vre.-u—r, to correct that de
p tore from I w, aa soon aa practica
b' ; and it wnw, aa is equall obvious, in
pera ive ot! th.» Department, after the 20th
F-bruarv, 1817, to allow nothing to be rc.
cevsd in paymt nt of debts due to the Uni
ted State , but the legal' money of the
2J it,;d .'tfateH, rVenau- y notes, note* of the
B. ik of the United States, or of those
at its banks the notes of which were paya
ble and paid, on demand, in cash.
The Bank of the United States was in.
Corporsted in April, lot6, and went into
Ope’ttion at the co »• -ucement of the
pext year. By the *• t of incorporation, it
is provided and declare), “that the de.
6 unites of the money of the United States.
r places in which the mid bank and branch
es thereof may be established, ahull be
dale in said banks and branches theren ,
on as the Secretary of the Treasury shsl 5 ,'
f a >y time, otherwise order and direct
in which case, the Secretary of the Treas
Ury shall immediately lay before Congress,
if ip session, and f not, immediately after
the commencement of the, next session
Ibe reasons of such order or direction. ” *
The present Secretary of the t’rewmry
W in appointed to that ollice in October,
1816,
r.i lire early part of the year 1817, it fs
represented by the Secretary, amt appears
fo Ira true, that an arrangement was made
With rite Bank of the United States, by
Which the public funds were to be deposit
ed in the brioches of that institution, ip all
places whsrp «uch branches existed: and
tt here there were po such branches, that the
bank *r« to Jusignate Certain state banks
■fur which It W'.iuid be responsible, an
which such public moneys should /e dope
sited ) and nut- a of all banka, which the
Bunk of the United States wjuld receive
cd»to plactfi wnere it might oe wanted in
tue course of government disbursement*.
Among tho curliest af these, was that
proposed to the Bank of Missouri, by let*
ters f*om the Secretary, of tho 1st and
tiicllth of Jiii,j 1818, immediately after
the termination of the agreement before
mentioned, with the Bank of the United
oUtes i which letters, indeed, have the
form ofcirculirs to all the banks m which
the public moneys were at that time dr-
pushed, tout is u* aiy, the banka which
•mvc been employed by the Umk of the
U States, during th. continuance ot da ar
rangement before im ntiontd, with die
Treasury* The U ink of Missouri w.s me
•>f tUcsi. It *<as now informed, tout, since
• oat agreement bad come to an end on the
30; h of June, all sums deposited in the'
U"ia of M a' .uti alter ibat time, must be
soeject to the drafts of the Trevjury, ami
wou|U be di .v/n fur, as occasion should
equinvin the following manner, vis t if i
i.tor ot individuals, dratts to be paid at
ght t d in favor of the Dank of the United
butea, in sixty days) drat.a cf the latter
teaciiption to be so made that the money
.mould be draw "out and transferred g.u-
ually, and not ,,* mat e. he rcson id
liisdisiii’ctton betw.au drafts <o individu*
••• and dratts tn tbe Bank of the United
Siat . s, appears to be, that drults in tavo
ii indivutujijj being probably intended to.
funds to oe expended in the neighb."- :
mod uf the oank, wmdd b: ordinarily paid
n tho notes of he bi t self, or others
nilar paper t but tbat those in favor oft.
Bank of the United States, would be Such
.* required payment in specifj or in U
->ta es’ B. iuk bills, or transfers of credit t
isbrancaets operations which might rea
sonably require time. On the 1st of Au
gutij he Bank of Missouri signified its ac-.
ceptance of the conditions fthis proposi
non.
On the 21st of December, 181P, the Sn*
crelary, by Irtter, ahdrested to the Pres,
dent of the Bank of E iwardsvUte. sighifled
his disposition to unplo, that bank also i»
receiving the deposit.* of the public mo
neya i and on the fi -st of Fcoruary follow
mg., that bank a -9 nted to the terms A
similar arrangement was made, nearly at
the same time, with the Bank of Illinois,
the Bank of Huntsville, and tiie Tombeck-
oe Bank.
S.iortlya'ter tho data of these iranrac-
lions, however, a mor*; general system W
employ in,; siste banks, for tbe purposes
before mentioned, was adopted, and conui
tioi.s more precise, and which were thought
more favorable to the banks, were pro
posed The leading feature. in this new
proposition was, that, as *n Inducement t >
undertake the engagement, it was agreed,
on the palt of the Treasury, to allow to
tha banks permanent deposit e of a stipu
lated sum. n t liable to be dra vn out or di
mmisned, except m a spec Tied ensc. The
uke of this deposit e was to oe tlie cquiva.
lent , for tbe responsibility of receiving and
keeping the funds, and the expense of
transferring them, w.thcut further charge
on tbe Treasury,, o such places as might
be agreed on or required.
Arrangements ot tnis nature were made
with the Ba->k of Steubenville, Bulk f
ChtUsotbk, Franklin Bank of C >iuaibus,
Farmers and Mechanics* Bank of Indians,
Bank of Hnnoisat Shawneetown, H anch
B nk of K. ntiteky at i, u sulle, Bihk of
Tom >eckbe st Saint Stephens, Planters
and Merchants* B-nk of tiuntsville, Bank
Missouri, Bank of Vincennes, Bank of Ed-
wardsviiley and Farmeriiand Mechanics'
Bank uf CinnciQuti.
Tue termij in general, agreed to
between the lYeanury and these sc
veral b.nlts were in aubstsnC' :
lit. That the bank should itsceipe,
in depusite i to the credit of the I*ieu-
sury, as cash, loom the Receivers uf
public moneys i all current botes of
such banks as maintain cash p y~
inents—with piwer^ however, to di-
continue to receive the notes ot >my
perticular bank on giving ‘•catsonable
notice of such intenlion tu tue Re*
ceiver.
2d That the bank should pay, at
Night, all drafts trnm tbe T'cit-ury •
ami should, h|so, Uan-fer, on u q ieNt,
all «um- on hand b yond (he ainnum
of the stipulated pemanedt depunte,
to the Bank ot the y. States, m cer
tain ennmer .ti ilBi'auchesnf that Bank)
and that a fixed sum should remaiu
in the bank, as before mentioned, as
a permanent depoxite, to be trans-
ierred 4 howeter, to the Bank of the
United States, m n'x months af er
the termination uf the agreement.
3d. That, if the money were want
ed lor dinbur-ement in the neightjor-
hood of thcbink**, if might be drawn
for, at sight, not withstanding such
drafts might reduce the permanent
depusite below the stipulated -u u.
The amount of this p rtnunem d* -
posne was to bejncreastd.if it shm.U
appear that the bank should receive
and transfer such large Hums oh that
the expen-e thereof shoo'd not be con
It is further repmsealqt^hirt,' in the ex
acutiun of this .rraugem^iit,' difKjtilties
aud oo itrorerj-iKij aio.ie bet y. e;i mi.. Batik
of'tite Uuitad t .tihd')th^ ityitc ban&s
res-
surer , ami tn the Secretary, confi
dential monthly retuins of tne stateji
its own affairs . showing, also, the
credits of all public'officers in the
bank . and, also, quarterly lists, or
returns, of all its debtors : tu the end
thut the Secretary of the Treasury
might determine on the propriety of
continuing the publib deposite in such
bank.
Such was the general nature of the
arrangements as they were adopted
and entered into with the b»hks.«-
There were, however, variations in
some other part culars* In the Bank
of Steubenville, for instance, the pub.
lie money in the bunk, or due from
it et the time of the arrangement,
was declared m>t to fall ivitnio the
arrdngpme* t : in other instances
nothing is said of guch balances: and
in ethers, again, il was declared that
they should be embraced by the a-
grement.
The following table shows the a.
mount of t ! io permanent deposite al
lowed to erch bink, respectively, as
the the equivalent for the services
aendered, oi expected to be render
ed, by it to the Treasury .*
Dank of Steubenville gSO.OOO
BanJtcfChdHcothe 100,000
Franklin Bank of Columbus 20,000
Farmers and Mechanics* Hunk’'fin
diana 40,000
Bankof Illinois t* Sha'vneetown ‘ SO,000
Branch Bank of K mtuoky a Louis
ville 100,000
Bank of Tomb :ehe nt St Steph-tn** 100 000
Planters and Merchants* Bank of
Huntsville 75,000
Bank nf Missouri 150.000
Bank of Vi'ieenorX 75 O KI
Hank of,Jid«'trdsii!!s 40.000
Farmer* mil ilechanics Bank of
CinciAna'.i 100,000
The amount of these permanent <le;> -
site* ia nine hundred thnusa itl dollars, thi
interest on ahirh sum, at nix per c^nt-
would be fifty four (hull*and dollars.
It is n|.edged in tho memorial that
his sum nf fifty.fmir thouagnd dollar-
iv a n (hits annually paid for receiving
and tnmmitting the public money :
service which, it’ is said, the Bank
of the Uoited States was bound to per
form without any compensation. The
committee does nut «ee the ground <•*
his obligation on the Bnik of the U.
S a'c3. i'hnt iustifbttun is indeed
bound tn give necessary facilities f«*
transferring the public funds from
place tn place, but 'his c u only mea
cfl»^ funds l and it is bound, algo, t
receive money in depusite fur th
United States ; but it is not bound to
receive in depo-ite, at cisb, the bi
■f any b nks whatever but its own,
■I'hnogh they m iy come within t 1 '
or- visions of tltc resolution of 1816
The committee doi-s nut perceive *mj
hing in the principle of there ar-
targements with the banks, either n>
violation of law. or contrary to t*
usage ol the. G w rnment; since th
Treasury ha*,, for many years, had
greeroents with more or less of th
banks, bv which the public money*
were deposited in such bank^' and
drawn from them when wan ed : cc
tain terms and conditions, as to the
mode of drawing, being stipul<t*d,
*uch as were thought bencfictalj bo h
to the Treasury and 'he banks. |i-
deed, it may be proper to observ-
here, that it seems tn have been nasu
•lied, bv dtff rent i (Seers at the head
ol the Treasury 1) parfrteut, that It
was their duty to dir ct da oper*-
tions to the support of ii ff*renf mo
neyed institutions whenever their af
fair* required snppo* gi as to defeat
combm i m* ago oet them, and pre-
rervo an equilibrium of credit among
them And the practice appears :o
be in conformity with n<a principle
fmm a very early day. That bene'
fit may occasionally result, and has
resulted, from such op-*'atio b
evident .* but this is no I-gal employ-
m-nt ot public funds, I is nothing
but < gratuitous loan. T ie existence
of the practice, however, as well as
the avowal of the principle bv differ
ent officers at the head ot the Treasu
ry) will be found by ieferriog to «
letter Irom the .Secretary of the Trea
sury f» the Pce«idrnt of the Senatej
of the 25 i F-biuaryj 1823, in an
swer to a resolution ot that body.-—
Such, however, was n<>t either the ob
ject. or tho character, of the' agree
ments with the «tde baoltBj which
are the subjects of this * i! itrn'ion.
On the l't of Augu-t, 1820, the
Treasury inued cWidar mstiuctions
not ihe Receivers of Public Moneys,
author.zing them to receive, in addi
tion " -pecie and bills of the Bmk
of the Unir* , d States and its branch*
es, notes of 'he incorporated bank*, in
B 'Stnn, N'w Y <k. Pi iladelphia,
Buitimore, «>-d Richmond, a d in the
s atea of South Csiohna a"d Georgia,
(.except the City Bank nf B-ltimoie,)
and of thoBe specie piyi- gh ks in
the state in which the Land Office
' served creates an obligation* bn tlie
Treasury nf the United St«y * t« uv-
them aa places of depttHiiejTo pTxJei
enceto any other bnnks, unless the
Secretary rhall, for special reasons,
otherwise direct t and, in that case,
such reasons shall be laid before Con
gress at it* then, or next, session.
The charge is, that no such commu
nication was made to Congress —
This omission is acknowledged by toe
Secretary, who taya it was owing to
inadverttncPj and that Ihe inatten
tion to the provision of the law was
unimpmtant, inasmuch a* the provi
sion was intended, obviati'ly, for th"
bent fit of the bank ; and the bank
had full notice. The noturity of the
fact is also relied on,, to show that no
improper conduct, or detire to con
ceal it, produced the omission.
The committee sees no reason to
doubt this statement, or to attribute
any improper motive to the Srcie-
iary, in this inattention to the direc-
tions of the act.
The charges relative to the Bunk
of'Missouri are, tn subs*ance.
That this bank was Unworthy of
credit at the time th * depo ita of pub
lic moneys were suff red to accumu
late in it to a large and improper
amount :
That the permanent deposite allow
ed it was illegal, aod unresaon .bly
large .*
That those returns and statements
of its affdrs, which the S .cre<ary had
him>cl( considered frecutinl, were
not exacted s
And, finally, thatj in payment of
its debt, a large amount of nncurrent
notes was received, soma of them
not worth twen y-five cents in the
dollar, contrary <o the positive injunc
tions of the resolution of 1810.
The committ-e think* ii vm-yprob-
ble that the Bink »lM -snuri did
make an improper perhaps an ex
cessive, issue of its paper : although
the mode adopted irt tho address, ol
Neatimating that etccsy, appears no
altogether cnrrcc'j as it omits to men
tion the permanent deposite of th<
government is culcul tting the tnorl
on which the emission mig d he made*
lf y the capital of the brnk werg, as i-
t*ted, 82KVQ00, and its permanent
leposi'e from government 8130,000
opposing it to have no other depo-
te«, a d if count to the extent o'
8-130,000 would not have been nl ir
liogly excessive, supposing the loa
> have been lirbited to ■»!« •hand-
nil that (punctuality »f paymen
night have b. ecn been r-xpected. 1
prcb.bltj that a ftilure in this lattr
espect was the imm**diate cause of
he bank suspending it- payments.
The sum of 8726 0‘)0, which B|r-
•ears, at one time, to have been i;.
fits bank, was certai ly a very Jargr
sum to have been *.uff ret^tQ retSu
•n a country bank ; but, whether it
ws« a greater accumulation th.*
D gh’ to havo been allowed, is a q i> *•
t- > ■ thnt depend.) on many considi"
• ioos, chi"fiy.'»n that of (he solidity
•f tho io9titu ion, whicu itself spin
Impended an the solvency of nsileb -
>rx. Of this the Committee has nr
•tuer evidence than that raising from
t'te report of the Committee of the
f. gi-loturc of Missouri, appointed
'o examine the e[fairs of tho bank
who declare that the debts due on
personal securitv, as well as those
ecured by mortgage, arc safe. Ii
this wero w»ll founded, the bank,
even at the time it stopped pay
ment, had, in'hose two items alone,
more than enough to pay all it
ov* "d,
What information, tn put the sec
retary nn hiv guard, would hav been
derived from thr monthly r* turn®,the
Cnmmi'te" cannot determine. They
appear toh*ve b-en furnished only up
to 1*t of February, 18*20. Nor ha-
;he Committee observed any demand
m>de by the Secretary for a compli
ance with this stipulation, at aoy
time between that date and the time
the bmk slopped payment. Wheth
er, however, t it had been d *mand-
'ed and complied with, any diff rent
result, favor blc to tbe United States
would have been produced, it seems
impossible to determine, becau-e,
judging from tho last and moat un-
tavorable return, made immedi >t?ly
previous to the stoppage of the bank,
nothing in those returns would have
appeared to indicate any danger,
A mure important part of »he charge
is, that the Secretary received from
this bank, in part payment of its debt
a large amount of uncurrent note*,
cont-ary to law.
By the first arrangement made with
the bank, which has been already sta
led, it was not responsible, as far as
gof'sum in nofrs etaeniiNny of tW
i n- d s' i iption. w t* n puNaesriiin
,if*the bmk: and ah .ff e is therein
made tu trari fer them tn various other
banks, to the order of the ‘L'ressury.
And, by the sHTcm-Rt mark *1 K. an
nexed to the address nf Mr Rivards
ii a p- rs th"' n* early as thi 6 h of
Sepiember 1819, < much larger sum,
in not*** of the description of those
thus i.ffered bv ihe bank, Ii id actu
ally been recniVed on account of the
Treasury Imm the several R 'reivers,
and were then on hand, On this
point the committee a'so »• for t » he
depuB'tipn of Thnmus F. Riddickj
hereunto annexed, marked K ■
The committee think
on them, the 8»creWty
•f lit/ a proper reidH yf *
curity of the put>li\
committee* however, ynjj,) J' I
UMaaiun to observe
ninions, the appnintrf.'t „r ..“j
dent* of he local I hk s , jJ
public monets are *
posited;]
w *f iS -liderecl is enrnpen-ated bv the D -ua-
to be rec tve i on sales of tocjhHtblio lands, - - - *
fit of the deposite which Iwd been sti
pulited. It w>8, l.o, prcScubtU
t*< i the bane ahooM louder to Hie
Secretary of the XieWqij, and to
i» situated. ** Thi. inat^uc'loo,’ , it
is added. ” supersedes those which
b*ve heretofore bd-n given on tho sub
ject. exc -pt in so far as they prohibit
"he receipt of the paper of any bank
which does not discharge its note®, on
demand, in specie : and that prohibi
tion roust, ia every case, b rigidly
adhered to.
Among the banks with which these
negotiations were mads, the atten
tion of the committee was ri led pa -
ncu'arly, tothe Firmer- and Mechan
ics’ B nit ot Cincinnati, th" B nk m
Chillicotiie, nod the branch of tin-
state ol Kentucky, at Louisvi le, »-
forming t .esubj cr of a ch rgr thai
difes not apply to the others. In th
several places where these bank
"•■ ere situated, the Link of ih** Unites
Mutes had offices nf discount nrni
• leposi'e. «rd :, e law incorporaliii •
that uuututiiii^ as has been before ob
R c ivers of the pu Im
be deposited in the 'u^,, h j
injudicious—that it taa h* 1
in several cuSes—jintl nf.,1
venience or m<schief miyt,, j
likelv tn reanV from sneb. J
As to the charge if rece *
current notes from -.hi s n ' S
contrary to law, tlie amniitC.,
it proper to that the constriction which j
ndd, that, of the whole sum received to have been contended if*
by th- Treasury in tho-e notes, fr ro bank, and acquiesce«Ii () brrt ^
the Bink 0« Missouri, • sum of abnu’ , tary, of the first articWf/i
twenty thousand dollars only appears .ment between
to be unpaid : and of this lum it is construction; esnecitlh -.t j
stated by the Treasury th ie a e be regarded but the taw,'
hopes that a considerable part willbi tract,’ The words of the first
secured. * are, "That the public noneru
A very large part of the artdrebs i* entered to the credit oftheT-
occupied with c,b«ervalions on t as cash.” (t would aeothin
transactions b*tv. en du-T *-sury that these terms could ns.
the Bnk of El wards vilie. T -bank thing else than that, for the
was made a ilep> stiory oi pub e mo- of these deposit**, the banksht
my, at the solici > ion i f M E '- come directly debtor tn the M
wa r u« himself,in Decemb.-. 1818. !• States, and that this ^ebt,'|CI
•topped psymem iti Srp^rmb; • 184 * - ’ sumed, should like others,’ bA*
owing, at, that time, a balance t*' g •• paid. ^ If this construction
vernmeut of forty.six thousand two
hundred and two dollars and forty-
three cents. ,
It is not deetped necessary here f •
repeat all that \\ said on that hubiec
in the address and the answer. To
address, in this part of jt, seem-
have two objects: one, to clear M
Edwards himself Tram any impu
tion, on acnount nf having . procur**<t
the public tlepOHiles lo be made iu t
! >anlt originally, and to rep“l the -mp
position that lie hail been the mean
•if continuing them alter they'became
unaile : the other; tn charge the 8<‘C
-fiiary with continuing the depoiUfl',
liter he ought to have been alarmnd
lor their safety, at tl with receiving pn-
urrent notes from the bank, again* -
aw : and also, with the negligent o-
Hi«siim oT proper means to cnllec
he debt due from It to governmeii -
It appears to b" for this double pu
;msp, that the address allege* that ir*
18:9. its author made a publjcatio.
""tpjunqing his intention tn withdra *
i ntn the bank in which he had bee<
director, and no longer to be con.
tderrd responsible for its engag*-
omits ; which publication,«9 is allege
va* transmitted to tho P-pcretart —
tuat he also advised the Receiver
public moneys to withhnld the ilep.n -
ires from the bank, until he shouit
cceive further order from the Trea—
ury ; that the Receiver, ihercupni
- rote to the Treasury, enclosing M
Edwards’s publication, and its he -t*
t rwards declared,, received a let!*
from the Secretary, directi - g him t<
continue tho deptwjtes. The Secre-
tiry has said, that nn such leuer fro-
ip Receiver tva» on file in the D -
partment, and that none •! its officer*
hae any <ecollcction <d such a leitm
—and, moreover, tltat there was nn
u cord of any answer. The audres®,
uotwithstanding thisdeclai atimqaim
to prove that such letter w in writte
—^und, among other argutnnul^ addo-
c< s the fact, that there was snout thi®
time, an actual suspension tf depo
nes at\ the bank : which thj)„ aildte -**
attributes to the cant ion of the Revi
ver, uoder the advice which had been
given to him. To this it is answered
by the Secretary, that this suFpensh)'
was owing tn the negligence, not the
caution of the Receiver —that the
Receiver was directed frequently and
repeatedly tn continue ui* depnsites,
and tu make them regularly srd punc
tually —danger then being apprehen
(led, not from the bank, but from -the
continuance of large sums in the hand))
of the Receivor.
W thout entering into a detail ol
all the fact-connected with this .-sub
ject: it seems to tne committee; ttiat
there if no doubt that Mr Edwaxt*
did make a pjiblicatio’, fpsper UJ in
tho newspapers in 18 9, as he re
presents, and that he gjV" such ad
vice as he represents, to the Receiv
er. But there ia ho evidence tha)
the Receiver communited it, or wrote
on the subject of it* to the Secreta
ry. Indeed, it is not very probable
he would have done so. It Is to be
remembered that he waa President
of the bmk, as well as Receiver ol
public moneys, and he would hardly
advise the Secretary tha* he, aaRe- o o
ceiver, could not repose confidence j tion required, which accompa" 111
in the bank, the Preside.! and head j report, marked D.
of which he was. The committee By this it would appear, t"“|
does npt deem it all material to in-1 balance now due the tiovei'inentl
committee lias given to the cm
be correct these notes tvere ill
leceivfldi
The Secretary’* view of „„
appears however, to have been <L
ent. lie says, the term "cashl
used in opposition to the term "J
deposited and wuUot intend!,
subject the bank to the
specie for notes which were not]
vertible into specie; and that i|
not understood by either of then
that (lie bank was responsible It
credit of other bank® whose nottj
deposited in it. The corresp
sufncienfly shews th t the
pressed the same opinion, nt |J
period of the connexion, and I* 1
fnro this cate arose. The c.mwtn
insisted upon was, ip effect,!
bank was to receive auch billn
Receivers had lawfully takes,!
wished to deposite ; and « r
would be of different banks, t
less remote, the bunk should
compensation which it receii«J,|
the expence of collecting Hit
that tlie proceeds migl^t be tram
without farther expence nr I
on the part of the government, l|
order of the treasury; but that
vertheless, if any such bills b
discredited, while in process t
"lection, by also failure uf (lie |
which issued them, the loss shot
on the government.
Although the committee doi
gre6 tothe correctness of l)i»J
struction, yet they see no ressonl
doubt that the Secrtixts ms 1
honestly supposed that thehaolj
tered into the anting menUi!
understanding of its mewl
any ground to believe his cowj
thut respect, to have been (r 1
by any improper motive. It« ;
be added, that the secretin i
that one reason for ,reoeiiii5l|
hills from he EdwafdsvillfH
that he had a that time sowi
to apprehend a want of puncai
good faith on the; part of tl*l
itself.
Tlie case of the bank of Tombt
as it is explained in the Secret^
answer does riot call for any pari
lar observations. Iti) not unlike I
of Edwardsvilie, except that, in|
former case, no loss appear* to I
occurred* The loss in the caseof
bank of Epwardsvillc, arisin?lw(
receipt of uncurrent note®, ™|
ttv nty thousand dollars,
should tnrn out, as the Secretarjl
he is assured it will, that the r
will yet be paid. L
The committee has requested j
Department, to be informed i
present amount due to the |l
States from the following BjU"J
wit, The Branch Bank of"d
at Louisville: the Huntsville i|
the Bank of Missouri, the w]
Vincennes the Bank of
and the Farmers and
Bank of Cincinnati ; ant/
sent circuttiSfances of
and, wheth r there be
prebend loss from any other w“|
which the public money i s(,e rl
In answer to this request, ■
cretary has communicated a >v a
1 of the Treasurer, giving the iw|
•L Vi —-UN. ,• oi. muiviin 1 oaiance now iiui: un: .
the Committee can perceive, for the!quire whether the Secmajy rcceiv- these Banks;isfourhuiulreu an “]
thousand eight hundred wj l
dolla s and sixty three cent*-
The committee has no Fj
information of the mea J ure •,
have been adopted'to enimc
lections of these balances. « n
to some of them, as has
peared, tlie Secretary e *P rl
confident hope of .ultimate p a )
agreat portion of the am<» un 1
ver may be considered as-Iow*.
The amdunt of money. col Td
account of nternal taxes, a i
the sales of the public
the latter, since 1816, ts stn J
solvency of the banks, the notes nf
whct might have been deposited in it
by the public receive) a* When the
m*w central t was made, in August
1819. it did not form any part ol that
wm ct, as ii did with some of those
ot the other banks, that tha bills al-
ready on ha d should be at once pas
sed to the credit of the Treasury as
cash, as may be seen by a copy of the
contract annexed to this report, mar
ked B. So that the important ques
tion is, whether thone notes were re
ceived before or after 'he 9th of Au-
gug , 1319 t 'O day on winch the bank
assented to the new’contract., If be.
(•■re, then they arc received on ac
count and at the ri It of the govern-
mrt t j if utter, ut the risk of the
batik,
Tho committee think there were
• fitment rea-iinato justi'v the Sect
ary in believing them to have him
•rceired before the 9m of Au-jo- t, be
(’•■use by the letter ol the bank, o'
that date^ it appears that a much lar-
.Skt-
ed or saw a ropy of Mr* Ed wards*!
publication. There is nothing in that
commnoichtion which should huve a-
larmed him for the safety of the
public money in the Ed'v&rdsville
B nk—for althoughM’. Edwards an
nounces his intention of withdrawing
from a participation in the direction
of it, he apeak* in moBt decid-d terms
of its solvency and salty. While the
committee sees no reason to believe
that Mr. E. acted with any improprie
ty in procuring the deposite of tlie
public money in that B ink, or in re
gard to the feont-'uuance of such
deposite i it perceives, on the otner
other hand, no reuson whatever for
supposing that the Secretary contin
ued the drpnsites after being ad mo a
ished by the Receiver, that, they'
were uosufe. On the contrary
(he committee thinks the corf?*'
piitid nee fully &!nws, that ihe dr-
inhiiH were on'itt.d, or t|)oog“ti to b;
(i, through negligence and diTanli’ ;
utiri thab in enfurcina| and i;t»i
Secretary at twenty-one
dollars. If of this Bum, h* 1 # ,
should be lost by means olt'"*.
of the Banks whidt;>|.
payment, the loss would
two aud an halt per cent on
HUtn * . ,
Considering ihe grratP'j,|
sho k which credit ol »•* * J
sustained'within this |F
1 Western states, and
