The price of sterling bills here, is two per cent. premium, and but few good bills in the market, at this moment. When respectable drawers are required to give indorsers on their bills, as in this case, the price is advanced from a half to one per cent. The bills will, therefore, probably, cost two and a half per cent. I am, most respectfully, SIR: The arrangements and operations of this bank have thus far effected the reduction of commercial exchanges between the respective cities from Washington to New York, inclusive, upon terms of perfect equality, altho' no part of the balances transferred by the Treasury to this Bank from the State Banks, nor of the balances accumulating against them after that period, can, according to the terms of the compact, be applied to that, or any other purpose, until the 1st of July next. The most serious difficulty which the Bank of the United States has to encounter, under the arrangement with the Banks of New York, Philadelphia, and Baltimore, is the strong current of exchange which continues to flow to the East, notwithstanding the large drafts which have been supplied by this Bank and its branches, and which must still be supplied from the same sources. Several, if not all the Banks in Boston, solicited and obtained, acts of the legislature authorizing the reduction of their capitals, which they are now effecting by an inconvenient and pressing curtailment of their discounts, which had previously been so limited as to reduce the dividends of some of the Banks to 4 per cent. This pressure compels individuals to resort to extraordinary expedients to meet their engagements: Merchandise is thrown into the market, sold at reduced rates, and purchased for southern account; speculation in southern produce is partially suspended; money due to Boston, as well as that which may be obtained on credit, is drawn there from all quarters during the pressure, and thus every other part of the Union must, either pursue the same restrictive and inconvenient policy, or become the debtor of Boston. During this state of things, the liberal discounts which the Bank of the United States and its branches are doing, in conformity to the terms of compact, enables the banks, or the merchants of Boston, to collect the United States Bank paper, and draw the specie. This view of the subject will show, that the Bank of the United States must either supply the means to satisfy this extraordinary demand, or it will be done by the banks and merchants of the east, in a manner calculated to impair public confidence, if not excite apprehension among the banks themselves. A few days since, an agent from Boston, drew about $128,000 in specie from our office in New York, and further drafts are anticipated. I have, therefore, in behalf of the Board of Directors, to solicit your good offices, in giving to the public money in the eastern section of the union, such a direction as will best promote the operations of exchange, which I have explained, and strengthen the office at Boston, until the period when the Bank may avail itself of the ample means which it will possess, when disengaged from the contract with the state banks. The enclosed extract is from a letter this day received from the Cashier of the Office of this Bank, at Boston; and I beg leave to enquire, whether the determination expressed in your letter of the ult. to discharge the balance of the loan at Boston, on the 1st of the ensuing month, is to take effect, and, if convenient, to be informed of the arrangements of the Treasury, for the payment of the ensuing dividend on the public debt in Boston. I have the honor to be, Very respectfully your obedient servant, The Hon. WM. H. CRAWFORD, Bank of the United States, March 18, 1817. SIR: I have the honor to inform you, that the offices of Discount and Deposite of the Bank of the United States, at Richmond and Norfolk, in the state of Virginia, are organized and prepared to receive, for collection, the bonds for duties; and, also, respectfully to request the transfer of the balances due to the United States by the banks of those places, in conformity to the compact entered into by the Bank of the United States, and the Banks of New York, Philadelphia, Baltimore, and Virginia, and ratified by the President of the United States. I am, very respectfully, Sir, Your obedient servant, The Hon. W. H. CRAWFORD, Sccretary of the Treasury. W. JONES, Pres't. Office of Discount and Deposite, N. Fork, March 19, 1817. SIR: In pursuance of instructions in your letter of the 10th inst, I have purchased twenty thousand pounds of bills on England, which you will herewith receive, together with an account of the cost and receipts for the payment. SIR: In answer to your inquiry of the 23d inst. I have the honor to inform you that the names of the Cashiers of the offices of this Bank at present established, are as follows: Samuel Frothingham Washington, Richard Smith Boston, Baltimore, James W. McCulloh Richmond, Julius B. Dandridge Norfolk, Luke Wheeler The names of those which remain to be organized, will be transmitted as soon as ascertained. In the arrangement with the Bank of Alexandria it was conceived, that the specific duties to be performed by the Bank, as suggested in your letter of the 23d would be the subject of instructions from the Treasury. Our future arrangements with the Banks of Deposite, will, however, stipulate for the performance of those duties which are evidently proper and necessary. I have the honor to be, Very respectfully, your obedient servant, The Hon. WM. H. CRAWFORD, Secretary Treasury United States. Office of Discount and Deposite, N. York, March 27, 1817. SIR: In pursuance of instructions contained in yours of the 24th inst. I have purchased, for public use, bills on Amsterdam to the amount of twelve thousand dollars, which you will herewith receive, together with an account and receipt for the payment. By the mail of the 20th, I had the honor to transmit you twenty thousand pounds sterling, bills, which I presume have been regularly received. SIR: I have the honor to acknowledge, with much satisfaction, the receipt of your letter of the 24th instant, and respectfully to communicate the high sense entertained by the Board of Directors, of the liberal sentiments and provident attention to the interest and safety of the bank, evinced in that communication. It was by no means intended to attribute to the State Bank any agency in the causes which press upon the affairs of this bank at Boston. The fact of its intention to pay the balance due the Treasury, in Treasury notes only, was simply communicated by way of information, and to show that, if that balance should be transferred to the Bank of the United States, it would afford no relief. The funds which you have been pleased to direct to be transferred to the branch in Boston, will afford very seasonable and material aid, and, together with $200,000 in gold, which we sent from this bank on 23d instant, will, I hope, satisfy the demand in that quarter, until additional means can be provided without the unpleasant expedient of transporting specie. We are now remitting to New York a like sum in gold, which will, I trust, prove a sufficient supply, until our European resources arrive. On the subject of the loan to the United States, the bank had no wish to gratify, nor would it have been mentioned but for the peculiar circumstances of our affairs at Boston, and the intimation which you were pleased to make in a former letter. It is undoubtedly the duty of the bank to transmit the funds of the Government according to your directions, and this duty it will always perform with promptitude and cheerfulness. Your communication of the 17th inst. will receive the earliest possible attention. I have the honor to be, The Hon. WM. H. CRAWFORD, W. JONES. New York, March 31, 1817. SIR: I have the honor to acknowledge the receipt of the duplicate of your letter of the 14th of November, 1816, and I now enclose a copy of my letter of the 25th of November last, which must have miscarried. SIR: You have been pleased to observe, "that should a majority of the State Banks refuse to conform to the Treasury proposition, the money remaining in their vaults to the credit of the United States, will be transferred to the Bank of the United States and its Branches, in the manner already communicated, unless the Board of Directors shall suggest another which shall be deemed more eligible." I take the liberty of suggesting, at the request of the Board of Directors, that the immediate transfer of the whole of the balances to the bank and its branches, might have a favorable influence on its efforts to induce the State Banks to resume specie payments. These efforts will be assiduously employed in every forin which may promise success, and the Board cannot abandon the hope of accomplishing its object with the most respectacle of the banks, before the 1st of July next. The balances will in no case be employed to their prejudice. I have the honor to be, Your obedient servant, W. JONES, President. The Hon. WM. H. CRAWFord, Secretary of the Treasury. Bank of Washington, Pa. January 9, 1816.* SIR: Your communications on the subject of the resumption of specie payments, have been received and considered. For the evidence of * Error. Should be 1817, |
