No. 3 is copy of my letter to the Chairman of the Convention transmitting the propositions No. 2. No. 4 is the answer of the Chairman of the Convention announc ing the agreement of that body to recommend to the respective Banks, represented therein, the propositions No. 2. Although the committee of the convention submitted the propositions No. 1, yet that body hesitated in giving its sanction to some of the principles contained therein, and other obstacles arising out of the various and conflicting views of the respective Banks, were interposed and threatened a rupture of the negotiations; but happily it has terminated in an agreement, the consummation of which, cannot fail to produce effects of the highest importance, and benefit the nation, the Government, and the Banks. The alternative suggested in my letter to the Chairman of the Convention, was made in consequence of the representatives of some of the Banks intimating a preference for that course; but the other Banks could only be induced to pay specie by the advantages held out by the Bank of the United States. The Board of Directors will await with solicitude your answer, and I flatter myself you will find, in the propositions, evidences of justice and liberality on the part of the Bank of the United States, and a determination vigorously to employ its whole resources and credit to attain the great object of universal desire. I have the honor to be, W. JONES, President, Hon. W. H. Crawford, Secretary of the Treasury. No. 1. The committee appointed on the part of the state Banks, respectfully submit to the Board of the United States' Bank, the following propositions: If the state Banks agree to commence specie payments on the 20th of February next, will the national Bank agree, 1st. That they will not call for the balances which may be transferred to them by the Secretary of the Treasury, until after the 1st of July next. 2d. That they will not demand payment of any other balances which may be due to them from the corporated Banks of the following places, until they have discounted for individuals the following sums, (not including the discounts in aid of persons having duties to pay,) viz: until they have discounted for individuals in New York the sum of two millions, in Philadelphia the like sum of two millions, in Baltimore the sum of one million five hundred thousand dollars, and, in like manner, discounted in Virginia the sum of five hundred thousand dollars. And further, will they agree to discount in Philidelphia within the term of 60 days, the sum above mentioned, and in New York, Baltimore, and Virginia, the sums above mentioned, respectively, within 60 days after the organization of the Branch Banks at those places, respectively. It being understood that interest shall be paid on all balances. AND. STEVENSON, No. 2. Propositions respectfully submitted to the Convention of State Banks, by the Committee on the part of the Bank of the United States: 1st. That the incorporated banks of New York, Philadelphia, Baltimore and Richmond, engage on the 20th inst. to commence, and thenceforth to continue, specie payments for all demands upon them. 2d. That in the liquidation of the balances which may be due by the receiving Banks, the Bank of the United States, will credit those banks, respectively, with the amount of their checks upon Banks which may be parties to this agreement. 3d. That the whole of the public balances in the receiving Banks New York, Philadelphia, Baltimore and Virginia, be transferred to the Bank of the United States, on the 20th of this month, and retained by the said Bank until the 1st of July next, when the same shall be paid off, toge ther with the interest thereon. 4th. The payment of the balances which may accumulate against the aforesaid Banks, subsequently to the transfer of the balances first mentioned, shall not be demanded by the Bank of the United States, until the said Bank and its branches shall have discounted for individuals (other than those having duties to pay) subsequently to the 19th inst. the follow ing sums, to wit: For those in New York, two millions; for those in Philadelphia, two millions; for those in Baltimore, one and a half millions; for those in Virginia, five hundred thousand dollars; provided, that if the said Bank shall be willing to discount, and shall not have the required amount of good paper offered within the term of 60 days from the 20th inst. at New York, Philadelphia and Baltimore, and within the same term after the operations of the offices of the said Bank in Virginia shall have commenced, the aforesaid Banks shall at the expiration of that time at the aforesaid places, respectively, pay to the Bank of the United States, the balance due by them respectively. 5th. That the Bank of the United States will engage to discount the required amount at the respective places, and within the time mentioned in the preceding articles, provided good paper to that amount shall be offered. 6th. That in the event of the Bank of the United States and its branches, not having a sufficient amount of good paper offered at the respective places mentioned in the 4th article, within the period therein stipulated, then the Bank of the United States will engage to discount for the said Banks, the amount of the deficiency at the respective places according to the amount of the capitals of the said Banks respectively. 7th. That the aforesaid Banks shall exchange with the Bank of the United States and its branches, from day to day, all such notes of either as the said Banks may receive, and an interest account from the 20th inst. to the 1st of July, shall be liquidated and settled in the usual manner. 8th. That the Bank of the United States, and the incorporated Banks of New York, Philadelphia, Baltimore and Virginia, will interchange pledges of good faith and friendly offices, and upon any emergency which may menace the credit of any of the aforesaid Banks, or the branches of the United States Bank, will cheerfully contribute their resources to any reasonable extent in support thereof, the Bank of the United States, confiding in the justice and discretion of the State Banks, respectively, to circumscribe their affairs within the just limits indicated by their respective capitals, as soon as the interest and convenience of the community will admit. 9th. That, upon the 'mutual agreement of the parties to these stipulations the same shall be submitted to the Secretary of the Treasury, for his decision, upon those points which involve the public balances, and when approved by him shall be obligatory upon all the contracting parties. Bank of the United States, February 1, 1817. W. JONES, Chairman of the Committee B. U. S. No. 3. Bank of the United States, Feb. 1, 1817. SIR: The committee appointed on the part of the Bank of the United States, to confer with the convention of the State Banks, on the means of resuming specie payments on the 20th inst. have been instructed to present to you the enclosed propositions as the final determination of the Board of Directors. The committee has also been instructed to say, that if the State Banks shall prefer, and deem it expedient to apply to the Secretary of the Treasury, to revive the propositions which it is understood they have recently rejected, and the Secretary shall accord with their views; that course will be more acceptable to the Bank of the United States, than the stipulations now offered, provided all the State Banks shall agree in the alternative. I am, with great respect, Your obedient servant, W. JONES, Chairman of the Committee of the B. U. S. ROBERT WALn, Esq. Chairman of the Convention of State Banks. No. 4. Philadelphia, 1st February, 1817. SIR: At a meeting of the convention of delegates from the Banks of New York, Philadelphia, Baltimore, and Virginia, the plan proposed by the Bank of the United States, for the resumption of specie payments, was taken into consideration, and it was agreed to recommend the adoption of it to the several Banks represented by them. As soon as I am informed of their determination, I will communicate it to you. I am, with great respect, WM. JONES, Esq. Your friend and servant, ROBERT WALN, Chairman President of the Bank of the United States. Bank of the United States, February 7, 1817. SIR: I have the honor to enclose a copy of a letter this day, received from William Gray, Esq. President of the Office of Discount and Deposite of the Bank of the United States, at Boston, and to represent, that the operations of that office have been delayed, in consequence of the funds intended to be appropriated to its use, having been transferred to the State Bank, in order to meet the engagements entered into by the Bank of the United States, on account of the loan to Government. The engagement on the part of the State Bank with the Bank of the United States for that object, was some time since transmitted to the Treasury Department, in a copy of a letter, from Mr. Frothingham, the Cashier of the Office of Discount and Deposite, at Boston, by which it will appear, that the State Bank engaged to pay the public creditors in the notes of the Bank of the United States, or in specie, which this Bank was required to furnish. The Bank of the United States has more than made good its stipulations, having actually paid to the State Bank $340,000 in specie, and in certificates of deposites in Boston Banks, on account of the Bank of the United States, $332,000, exclusive of $500,000 in the notes of the Bank of the United States; and, in addition to all this, you were solicited to suffer the balance due the United States from that Bank, on the 1st of January, to remain in its vaults, until this arrangement should be completed. It now appears, Sir, that instead of paying the public creditors in the notes of the Bank of the United States, or specie, they have been paid, with the exception of an inconsiderable amount, in the notes of that Bank, which, at this moment, owes the Bank of the United States, a balance of at least, $200,000. I mention this, Sir, in order that the claims of that Bank, to the extraordinary and protracted indulgence which it has solicited, may be duly appreciated. In the mean time, in anticipation of the transfer of the public balance to the office of this Bank, it is not improbable, that those having bonds for duties to pay at that Bank, may not receive the accommodation which they would at the office, were the bonds deposited for collection there. The Board of Directors is desirous of putting into active operation, the office at Boston, and respectfully request your attention to the solicitation of the President of the office at that place. I have the satisfaction to inform you, that the Banks in this city, have unanimously agreed to the propositions which I had the honor to transmit for your consideration, on the 1st instant. With great respect, I am, Sir, Your obedient servant, The Hon. WM. H. CRAWFORD, Secretary of the Treasury. W. JONES, President. Office of Discount and Deposite, Boston, February 4, 1817. SIR: This Branch of the Bank of the United States being organized, and the Board full, by the appointment and acceptance of General Dearborn; our officers in pay, and the rooms ready for our reception, we ask leave to suggest to your Board, the propriety of receiving your instructions to commence business, and of our be ing furnished with bills for this Branch, and an order upon the State Bank for the amount of the balance due from that Bank; as well as your influence with the Secretary, that we may have the deposites of the Treasurer in said bank, transferred to this office, in order that we may accommodate those who have large sums to pay for revenue and other purposes; likewise, that the Secretary be requested to order the different Collectors in this section, to make their payments into this office. I am, very respectfully, Sir, Your obedient servant, Hon. WM. JONES WM. GRAY, President. Bank of the United States, February 10th, 1817. SIR: I have the honor to transmit the enclosed copy of a communication this day received from Robert Waln, Esq. Chairman of the convention of |