the disposition and views of this institution, I beg leave to refer to a letter which I had the honor of addressing to Mr. Dallas on the 7th August last. You will there perceive our readiness to acquiesce in any arrangement to facilitate so desirable an object. We still possess the same anxiety to gratify the wishes of the public, and to meet the views of your Department. We need not suggest the inconvenience and danger that must result to us, if we commence payment in coin before other banks simultaneously concur in the measure. Relying upon the friendly disposition you express, and assured of the protection of your Department, and of the United States Bank, we are prepared to accede to your proposal for paying our notes on the 20th February. It is expected, however, that, unless there should be such concurrence of the banks as to render the measure safe, it will not be required of us alone to meet the shock. Should you, after receiving the communication of the banks, deem the experiment proper, you will please inform us. On the subject of the Government deposite in this bank, I had the honor of addressing Mr. Dallas on the 26th June last. To that letter and its enclosures, I beg your attention. I then suggested a very desirable arrangement with respect to the present balance, and, also, as to the deposite of the accumulating revenue in this district. The expenditure of the public funds for the making of the national road in this county, might, with great advantage to us, and convenience of the Government, be paid out of this deposite. Should this meet your approbation we will expect your drafts for that purpose. If it is, however, determined to transfer the amount to the United States Bank, we must be prepared whenever you think proper to draw for it. It would be satisfactory to know your views on this subject. I have the honor, &c. THOS. H. BAIRD. Hon. Wм. H. CRAWFORD. Office of Discount and Deposite, Baltimore, 15th Feb. 1816.* SIR: We had a meeting of the Cashiers of the Banks in this city, to-day, and agreed to make the specie in towna common fund, to aid each other, and ask our banks to sanction our arrangements, which simply presented the mode of executing what had been previously agreed upon by the state banks here, and the United States' Bank, in convention. At this meeting, Mr. Cox, Cashier of the Bank of Baltimore, observed, that he had received a Treasury Circular, directing him to pay the public money to this office, and asked whether I held a warrant from the Treasury to call for this money. Being informed that I did not, he observed that I must produce one before he could pay it over to me, at least such was his opinion of the laws in this case. Error. Should be 1817. Therefore, to prevent delay here, or whenever you intend to transfer money from state banks to the United States' Bank or Branches, I respectfully suggest the expediency of sending the Treasurer's warrant, for such balances, to the officers of the United States' Bank or its Branches, to authorize them to demand the payments. Upon this subject, I have never before bestowed a thought, I pretend to no opinion of the laws; but merely present the subject to your view upon the ground of expediency. I am, most respectfully, Your obedient servant, The Hon. W. H. CRAWFORD, JAMES W. McCULLOH, Cashier. Treasury Department, 20th March, 1817. SIR: I have the honor to enclose the Circular of the Commissioner of Revenue, directing the Collectors of Internal Revenue to deposite the money, by them collected, respectively, in the Bank of the United States and its Branches. I have, also, the honor to present, for your consideration, the number and locality of the state banks, which the public interest requires should be used as places of intermediate deposite of the public money as long as the system of Internal Revenue is preserved. Also, statements of the situation of the banks within the districts described, as far as they are known to this Department. As soon as you shall have made arrangements for this purpose, the Collectors of the Internal Revenue will be directed to make their depostes in them as the fact of such arrangement shall be communicated to this Department. WILLIAM JONES, Esq. I am, &c. President of the Bank of the United States. WM. H. CRAWFORD. Bank of Washington, January 16, 1817. SIR: In answer to yours, I have to state, that this institution has endeavored to place itself in a situation to meet specie payments, and will resume the payment of specie, whenever the same shall become general. I am, with great respect, sir, The Hon'ble WILLIAM H. CRAWFORD. Office of Discount and Deposite, New-York, April 2d, 1817. SIR: I enclose three sets of bills of exchange, on Amsterdam, purchased in conformity with your directions of the 29th ult. viz: Leroy Bayard and Co. on Hope and Co. 37,500 Guilders. do. Accompanied with my accounts for the several sums and receipts for the payment. I have the honor to be, WM. H. CRAWFORD, Esq. Very respectfully, yours, &c. &c. Bank of the United States, April 7, 1817. SIR: I have the honor to observe, in reply to your letter of the 4th inst. intimating your desire to have $200,000 remitted to Charleston or Savan nah, that at present the exchange on either of those places is so unfavorable, that the object could only be attained by a remittance in specie, and that a large amount in specie has recently been drawn from New York, for the Banks in Georgia. The course of exchange between the middle and southern states, is usually unfavorable to the former, until the months of May and June, when the principal shipments of Southern produce having been made and accounted for, the balance of trade inclines to the north. Under these circumstances, connected with the forbearance which the Bank of the United States is constrained to observe towards the State Banks, I hope you may find it convenient to postpone the contemplated remittance. In answer to your letter of the same date, covering the correspondence between the Collector of Charleston and the President of the Office of this Bank at that place, I beg leave to observe, that the temporary difficulty, which had unnecessarily occurred, will have been obviated by the arrival of the notes for that Branch, which were sent from this Bank on the 29th ult. in a fast sailing packet. I regret that any doubt should have existed on the subject; the case is a very plain one, and the Office was bound to pay the Collector's drafts, if even specie had been demanded (of which the vaults of the Office contained 8370,000); but I should imagine, that an arrangement might have been made with any one of the Banks there for a temporary supply of local paper, until that of the Office should arrive. The idea of receiving any description of the notes of this Bank, as a special deposite on account of the Treasury, is altogether inadmissible, and has never been entertained by the Board of Directors. I am, most respectfully, HON. WILLIAM H. CRAWFORD, Secretary of the Treasury. W. JONES, President. Office of Discount and Deposite, New York, April 8th, 1817. SIR: I regularly received your favor of the 1st inst. and, as therein instructed, have purchased for public use, and now enclose, three parcels of sterling bills on London and on Liverpool, payable in London, viz. £6569 6 11 a 23 per cent. premium, equal to $50,000 4379 11 3 do. 437 19 2 do. And, also, my accounts for the same, and vouchers for the payment. I am, most respectfully, WY. H. CRAWFORD, Esq. Secretary of the Treasury, LYNDE CATLIN. Bank of the United States, April 8th, 1817. SIR: I have the honor to propose for your acceptance, the composition authorized by the act of Congress of the 2d of August, 1813, in lieu of the stamp duty to which the Bank of the United States is liable. To the Hon. W. H. CRAWFORD, I am, most respectfully, W. JONES, President. Bank of the United States, April 9, 1817. SIR: In my letter of the 31st ult.* in answer to your private letter of the 26th, I had the honor of exhibiting to you the best view which the state of things then existing enabled me to take; and in recommending the employment of the Cashier of this bank as the confidential agent for the object contemplated by the commissioners of the Sinking Fund, in preference to the direct agency of the Cashier of this bank and its branches respectively; it was with a view to conduct the business in the circumspect manner which an individual, having the same object in view, would manage it, in order to avoid the excitement which a public demand, simultaneously announced at so many points, would be likely to produce; but if the private agency shall not promise decided advantages, the public one ought undoub edly to be preferred. The nature and operation of the private agency would be as follows:1st. The Secretary of the Treasury, in behalf of the Commissioners of the Sinking Fund, would authorize the Cashier of this bank, by letter, to purchase a certain amount of the public debt, on such terms as he should please to prescribe, and to have the debt so purchased, transferred to the Cashier of the Bank of the United States in trust. * Private Letter. 2d. The payments for the debts, so purchased, would be made on the checks of the Cashier, which would remain with the Cashier until the object should be attained, when the debt would be transferred to the Commissioners of the Sinking Fund, to whom the sums paid on account of the said debt, would then be charged. 3d. The Cashiers would instruct the Cashier of the branches, to purchase on the same conditions, any considerable amount of the debt which might offer within the limitations; transfer the debt so purchased, to the Cashier of the Bank of the United States in trust; pay for the same out of the funds of the office; and draw upon him for reimbursement. Similar trusts have been confided to the gentleman who is now Cashier of this bank, and with the best effect. The subscription to the Eleven Million Loan moved very heavily; Mr. Smith was, at his suggestion, authorized by Mr. Gallatin to employ a confidential broker, approved by Mr. Gallatin, to purchase the debt in the market, in order to excite a demand, and for every $10,000 so bought, $100,000 of the Eleven Million Loan was subscribed. I am now, however, to state to you some new circumstances, and after respectfully submitting to you the facts, your decision will be more correct than any suggestion of mine, for I feel some hesitation in recommending a course which may produce delay, lest the public debt should rise in the . market beyond the limits of the Sinking fund, and the object both of the Commissioners and the bank be frustrated. The Bank of the United States has found it necessary, in order to check the spirit of speculation which is inconveniently setting to the Eastward, to check, and even to reduce the amount of discounts in the bank and its branches; and thus, as money is less abundant, the public debt may, during this state of things, fall a little in the market. Indeed, it has in a small degree produced that effect already, 6 per cents. having this day sold at 984. We have also called upon the banks in Baltimore to reduce the new balances which have accumulated against them to a great extent since the transfer of the public money to this bank; and as they hold a large amount in the public debt, it is probable they may incline to sell a part thereof, at least; and an opportunity will be thus afforded to liquidate a part of the balances due the Bank of the United States. These facts and circumstances may, perhaps, enable you to determine whether it will be better to avail of the present opportunity, either in the open or confidential manner, or to postpone the object until a future period. In respect to the effect which either mode may have upon the interest of the bank, it cannot be essential, as the Sinking Fund would absorb all that may be procured, either by purchase, or payment on account of the subscription to the bank. The Cashiers of the branches shall be immediately instructed to transmit to the Treasury, along with their weekly statements, the rate of exchange upon England and Holland, and the prices of the several species of the funded debt. I am, respectfully, sir, Your most obedient servant, The Hon. WM. H. CRAWFORD, Secretary of the Treasury. |