Western Sun & General Advertiser, Volume 25, Number 8, Vincennes, Knox County, 15 March 1834 — Page 1
SB DTOUT. TTlSXTCSimSSXA.) OAlTXTELDAH, EflaROH 25, 2835.
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CONGRESSIONAL HOUSE OF REPRESENTATIVES. Tuesday, Feb. 1 1 . The committee of Ways and Means, to vhom was referred the message of the Presideut of the United States of the 4th of February. 1834. with the accompanying documents communicating to Congress the refsal of the Bank of the United States to deliver cer to the order of the Secretary i of War, the books, papers, and funds, con I nected with the disbursements to be made tinder the act of June, 1S32, entitled "An act supplementary to the act for the relief of ceitain surviving officers and soldiers of the revolution.' REPORT. That they have given to the subject all the consideration which its importance demauds, as well fnm its intrinsic character as from the class of most meritorious persons whose interests may le affected by the delay which may take place in the payment of the sums respectively due to them, in consequence of the refusal of the Bank of the United States to deliver over the funds heretofore provided by law f,r their payment, together with the bonks and papers connected with its disbursement. The Bank, bv the appointment of the Secretary of War, has heretofore been the disbursing: agent of the government under the act of June 7, 1832, for the re lief of certain surviving officers and soldiers of the revolution." In ordinary circumstances, all disbursing officers are responsible for the faithful performance of the dutv assigned them, and are removable by the Executive. This control over them has been deemed essential to the correct performance of their duty, as well as to the just security of the public interests The Bank, however, under the act of June ?th, 1832, claims to be the disbursing officer of the government, independent of the appointment ot the Executive, to hold the office bv law, and to be beyond the power of removal by the Executive auihority. Such a claim, to be suppled, should le clearly established, as it is at variance with the general pnn the constitution and laws. ip;cs ot The committee, on an examination of the documents accompanying the Prest dent's message, find that an order was given by the Commissioner of l'cn?i.-;.s, which order was authorized by 1 1 e S; retory of War, for removing from the Bank of the United States and its brammc, to the local Banks of deposit?, at places Uliero such local banks had been selected. the books, paaers and funds relating to the execution of the act of June 7;h, 1S2. With this requisition the i v.k hits
o viiued a compliance, on the ground that of the Secretary of War, and the payti IJ.Tik ts constituted by law the agent .nents made at such "times and places" as for making payments under the act ot'! I. e ,n ty direct, it will not oi disputed that 1N'J2, and that the Secretary of War has j ibe words M the law confer upon the Seci !.... f. .... !.....!.. f I .
consequents n j rigni to irausier uiusc uu - ties to any other agent. The uaestion is. therefore, one of au thntv 'cetween one of the departments of th .i 'joverntjieut, and the Bank oi the Lnite.; Siates, in which the B ud; has un - derukiMi to retain the money and proper-j tv ot i:ie government, until some meaiilire hvi.-Iative or judicial, can be adopted) whorvb the authority of the lixecu-
tiveover the public money and property,;
and the right claimed by the Bank to re tain them, can be determined, and nrovis ion rnuue, ior ineir ultimate exposition. The committee, are of opinion, that the bank has tsken a position, and set up a claim to the possession, of the funds, books and papers in question which cannot be supported. The opinion of the Attorney General, communicated by the President, contains a history of the agency of the bank in the pavment of pensions, and of claims under the act of and also a full, and as the committee think, a correct view of the law of the case. To this opinion they refer, as greatly diminishing their labors on this part of the subject. It is conceded that, by various legislative enactments direct or indirect, the bank was constituted the disbursing agent for paying the invalid and revolutionary pensioners prior to, and under the act of March 18, 1918. The Secretary of War has given no direction for the change of thia agency, and the bank remains as it was, the disbursing orTicer for the payment of pensions under these laws. But the case is otherwise under the act of the ?th of June, 1S32. Under that act, the Bank was not, by the terms, or any fair construction of the law, constituted the disbursing agent for paying the annuities which it granted. That act is supplementary to the act "for the relief of certain officers and soldiers of the army of the revolution," passed May lf, 1S2S. These two acts form parts of tho same system. The act of 1832 has reference to that of 182S, and the phraseology of both is nearly identical. Thev provide for making payments to the surviving officers and soldiers of the revolutionary army, in consideration of services, and die sums to be paid are denominated pay; and be.ore any payments can be made under either of these Jaws, if the' persons claiming their benefit are already receiving pension's under former laws, such pensions are to le relinquished. No wounds are required to entitle a man to this ''monthly pa ,H as they are agreeably J to the syetem of the invalid pension !ws;j nor is poverty essential to this aid, as it is under the acts of March 18, 1818, and the act of M-iy 1, 1620, supplementary thereto. B it the whole claim seems to be placed on the ground of services, and in consideration of them the "annuity" is given and received. The execution of both thce nets was conceded to the Secretin of the Treasury, and that officor was au thorised to cause the payments to be made at f.uch times and places as he thought proper. The act "f 1828, provides, "that ihe pay allowed by this act shall, under the direction of the Secretary of tho Treasury, be paid to the officer or soidier entitled thereto, or to their authorized attorney, at such places and days as said Secretary may direct" The act of 1832 provides "that the pay allowed by this act ! shall, under the amotion of the Secretary o the Treasury, be paid to the officer, non-commissioned officer, musician or private entitled thereto, or Sua or tneir autnonzo attorney, at such places and times as the Secretary of the Treasury may direct' And both acts contain a permanent appropriation of the sums necessary to carry them into effect. Tlte Secretary of the Treasury , under the authority given by the act of 1S28, has caused the payment to lie made at the Treasury, directly to the individuals entitled. The bank never had a:iv agency whatever un'erthis law, nor is it known to the committee that they ever interposed any claim to mike these payments. It is very clear that if the payments under the act of 1S28, could be made at the Treas ury, or at such other places as the Secre tary of the Treasury miht direct, without the intervention of the Bank as the disbursing agent, so could the payments under the act of 1832, be made in like man-
ner, naci tne execution oi tne act ot i&ju i mat tne oanx should act as agent in payremained w ith the Secretary of the Trca-j ing these claims. There is no reference sui. The execution of ihis act was, i in the law to any former act of Congress however, by a joint resolution, of June j from which such an intention can be in2th. !8d2, devolved upon the Secretary jterred, even by the most strained and fori War. and the duties which the ac' re-1 iced construction; and, therefore, if these quired to he performed by ihe Secretary payments be considered pensions thelcof the Treasury were, "transferred to the J gst sense in which the w . J is used in Sc retary of War." The Secretary of ; the acts of Congress, yet the duty of payWiir was, by this resolution, clothed with ing them has not been imposed Qa the the same authority to make payments toj hank, and they were not bound to perform thcsM entitled under the act .f l8o2, at; the duty, unless they supposed it to be such nines and places as he might direct, ; their interest to do so. v as w as previously possessed by the Secre-j There is another point of view in whicti tary of the Treasury. In whatever mode' the subiect presents itself, and which it is
the payments could have Lcen made by the : Trciisurv tiep anmcnt previous to the uu:ip:iou of the resolution of Ju.ie 2Sih, 1SV2, in the same tn.vlo they can be made j at the War department after the adoption of thai resolution. Tne whole business j then wus to be done under the direction' ; reiary ot ar a general supcrwsory uu reiary ot ar a general supervisory uu-j thouty over the pay mcnts to be made un- j jdtrit. Ttuy authorize the payments toj i be made whensoever, w heresoever, and bv whomsoever the feecrttary may direct. , If the Secretary were to direel the pav-
ments to be made at the Treasury, (as by rd in the letter of the Piesident of the ; poses, a needless and unjustifiable presiaw he h is .t rlear riht to do,) it surelv Bank of January 2.'i, 184, that "it is no 1 sure on the people.
cant.ot be maintained that an agent of the Bank must stand by to receive the money
and pass it over to th'e entitled.
It
surelv cannot lc contended that the mon ey is not properly disbursed, unless it firt pass through the hands of the Bank. If the Secretary of War thinks the Convenience of those entitled to pay under this act, or the pullic interest requires that places f payments should be designated where there are no branches of tha United States Bank, may the Bank, by refilling to establish an agency at such places, (and there is no law requiring them to do so,) defeat the contemplated arrangement. It appears to the committee, that the power confided to the SecOtary of War, to designate times and PMlYS of payment, necessarily includes the authority to select the persons who are to act as agents in making the payments, as without such authority, the power to direct the times and places of payment would be whollv nugatory. The committee arc of opinion, that upon no correct principles can the bank claim the legal right to make these payments either in their character of commissioners of loans, nr as disbursing agent of the government. The charter doef not confer on the bank the rijiht of being in all cases the agent for he payment of pensions. It reserves to Congress the right to impose on the ban!: the duty w hich was before performed by the canimissioners of loans, and as those commissioners, at the date of the sank charter,vN"firmcd the duties of ag?nts f -r paying thV invalid pensions, the reservation in the charter authorized Coughs to impose that duty on the bank. But Congress may or may not, at i's own pleasure, exercise the power it has thus reserved. The bank can hi.vc no rihl to demand its exercise. The charter, therefore, in this respect, confers no riht on the bank. It merely reserves to coagress the power to impose a duty, and tha duty of the bank, in this particular ennnot be more extensive than the laws passed subsequently to the charter shall be found to require it. The act of the 3d of Mirch, 1817, made it the duty of the bank to pay, as agents, the pensions which before that time were poid by the commissioners of loans; but it doe3 noi require that all p-jtisions afterwards created shall be paid in like manner by the bank. Its provisions are expressly confuted to the duties whMi were then performed by the commissioners of loans, and no allusion is made in the law to pensions which mav afterwards be created. Tho act of 1818 directs the pensions which it gave to be paid in the same manner as pensions to invalids had lie I ore that time been paid, and it is by Mrtuo of this provision that the iank pays the pcisionrs under this law. But this act, like that of 1817, makes no general provision on the subject of paying pensions. It directs the manner in which the particular pensions it created should be paid, but it tloes nothing more. From misstatement, it appears tharc duty of pension agent has been impeu on the bank by law, in those cases where the pensions were given by the act of 1818, or by some previous act of Congress. But it is not the duty of the bank to act as pension agent in relation to pensions created since the law of 1818, unless some subsequent act of Congress has imposed that duty on it. It then it be assumed that the payments under the act of 1832 an? to be regarded as pensions, yet the bank would not be bound to take upon itself that duty, unless it was required of it bv act of Congress. For it is not enough that new pensions are created there must also be some law directing the bank to act as agen in paying them, otherwise the bank can be nothing more than a voluntary agent, and at liberty, therefore, to surrender their trust whenever they think proper. But there is no pretence that the law or resolution of IS32 coruains any direction I beiiexed is still mire impurtant. and that! is tbe altitude assumed bv the Bank. They do not claim the books, papers, and futids, as belonging to them. Tnese are confessedly the property oi the govern - meat. Bat thev claim the rih: to retain j the possession of them, nt from any
tcrest which they have in them, for this is; as well. io have continued the agency disavowed, but merely that they may take i of the Bank of the United States iu macare that laws be faithfully executed. Iking these payments when the public This is certainly a novel pretension, and I moneys were in other banks, would have
u is ik-ucvcu is now ior me nri ume as - serted by a corporation, at least in the United State-. By the constitution, the it is believed is now for the first time as i execution of the laws is coLlided to the Lxecutive. The allegation of the bank, as contain- ! justification to the Ban!:, to obey any oth j r authority (than Congress) ''fj'r if it pays
money or transfers money, without the authority of Congress, its accounts mav be disallowed by the accounting officers," doei nr,t. in the opinion of the committee, deserve to be seriously considered or refuted. It is impossible to conceive upon what grounds such an epprehension as is here pretended could be seriously entertained; for whatever authority the bank had to disburse the annuities under the act of June 7, 1S32, was derived, not from Congress, for the act directs the payments to be made "under the direction of the Secretary;" but from theirappointmcnt as paying agent, by the Secretary f War; and if he gave authority, it would be strange indeed, if he conld not revoke it. The public money had been placed in the hands of the bank, by the order of the Secretary of W.r, and if he revokes that or der, and directs tho money to be returned to the Treasury, or transferred to other agents, it is absurd to suppose that the bank, by obeying, should be in any way embarrassed in the settlement of their account?. There was not the tdightest ground for such a belief; and i- cannot, therefore, be irged as any extenuation or apology for the course of the bank. Ir. no view of the subject can the bank, in the opinion of the committee, righCly retain possession oi the money anTO'p crtv ot the government. It the law o; lb32 had constituted the bank, (which the committee do not concede, but on the contrary, maintain it did not.) the paying agent of ihe government, it would not necessarily follow that I hey must keep possession of these books, papers, and funds. Many cases might be conceived, in which it would be nit only proper, but the duty of the government to resume the possession of them. The books and papers might he wanted for copying, exVmj nation, or other con"ciable purposeTho money appropriated for these payments, might be accumulated in an unnecessary, degree r.t a given point, and might be wanted elsewhere, in consequence of a diminished supply at other "places" designated by the Secretary for th? payments. B it ihe ground taken by tho bank, excludes all possibility rf the exercise of thia supervisory regulation of the head of the department, winse dt ty the law makes 'it to sec that the "pay" r.llowed by the act shall be made under his "di rection and at such "times''1 and "places" as he may designate The bank, in eV f, nays we have decided that we arWJie proper agents to make the payments, and therefore the government shall, in no case, have anv power to withdraw the propertv w hich it has heretofore placed in our pos session. Such a principle, it applied to all otiier cases of disbursing officers, who may assume the ground that they have been illegally dealt with, would lead to consequences which do not require to be stated, end could not, for a moment be tolerated. If the the bank, when the demand was made lor the b,oks, papers, and nnrtcv of government in us possession, nvyprotestcd," if I hey thought the demTTK illegal, and had then delivered them up, and had afterwards appealed to Congress or the judicial tribunals for such redress or decisi n as the nature of the etise might call for, their position would have been far different from what it now is. Assuming to decide the law for themselves, arrogating the power to see that the laws be faithfully executed ; they assume a power heretofore unknown to our laws and insti tutions. Claiming to define their own legal rights, they have so far forgotten the rights of the public as to withhold vouchers and funds to which they can have no title. It further appears to the committee, that the change directed to be made by the Secretary of Wart!as called for by the circumstances. 4L& understood that the change has been confined to a substitution of the local banks of deposite for the bank of the United States and its branches, at those places where local banks of deposite have been selected. Where the public funds are yet deposited in the branches of the United Slates Bank, these branches are vet the ajfents for making the payments, by appointment of the Secretary of War, under the act of June nh, lbo2. Where the change has been made, the business is to be done by the new agency without any charge whatever toth government. The reason and propriety therefore, of the measure are obvious. The object is todirectthe banks holding tho public mo ney, to pay out this monev to persons claiming it under the act ot June 7th, j 1SJ2, instead oi having the funds drawn j fro.m these banks and placed in the United i States bank aud its branches, for the mere purpose of doing what the former tiny do - j been unnecessarily to put it in the power j own unnecessarily to put u j of the Bank of the Unite : meaus of the public funds, the United States, bv to draw large i amounts of specie from time to timcirora j tlic selected oanks, to hoard in its own j vaults, thereby to increase for its own pur- - ! It remains to be considered what effect j tins unwarrantable act of the bank may
have upon the future payments to be m de to the officers and soldiers entitled ta th benefits of the provisions of the act of lb32. The committee rallsd upon the Secretary of War f r information on this point, and herewith submit the answer which has been received. It appears thai nn the first of January last, the bank, as tho disbursing agent for the payment of claims under the act of Jur.e ?thv IKJ2, held of public moneys drawn from tho Treasury for this oldectthe sum of 170.- ."! OS. ' Since then other payment, to a conipirativclr mall amount,miv have 1 "en made, and it is pos-ibls that subsequent settlements may further reduce this bal. ance. This sum had been regnlar'y drawn from the Treasury by warrants ia the usual way, and placeJ in the possession of the Bank to be disbursed. The act of 1S.T2, makes a standing appropriation of the amount necessary to carry its provisions into effect. The Bank, by withholding the sum w hich it hs in possession, stands in the situation of any o Iter defaulting disbursing agent, and a sum equal to that which itthus wrongfillv retains, must be drawn from the Treai iry, and applied to the payments, until ihe amount withheld by it shall bo recovered. The detention of the books and papers by the Bank will not necessarily postpone the payments until the possession of such books and papers may be recovered from the Bank; but it will render it necessary tor the departiaent of war to make out new lists of those entitled to pay, and there is no probability that this can o done sufficiently early to enable the payments under the act of June 7, 1S32, to be made onthe4thof March next, c-ee-cially at the distant agencies, agre L! to the established usage. The labor of preparing new list3 and papers is understood to be great, and with all the care that can he taken, there will be a liability to error, in many cases, uo il tho present agents settle their accounts, resulting from the uncertainty of the pen- ds to which the payments may ha.e been made. But as no surviving claimants have been paid to a period later than the 4th of Hrptembcr last, all whoara now li.injj may be paid on the 4th of March, for the half year ending at that timr. If any iaconver.ienc should he felt by a.iy of those veterans m the Be o';iiri,
as the committee belit-v ,it will be by all, by the delay whidi wii take place in the payment of the nextacn i v due t :':";n. itistobe attributed to uaj siifiahle conduct of the Bank, iu interposing to thwart the views of governme.!, in withholding from the oiuers ot govri:.mcnt the public money and public piopcrH, to which they do not pretend to he any c!aim. The committee cannot cv..dcmn, ia terms too strong, the conduct .f the bank in this transaction. The bank wi hholds from ihe public service tne lige sum of f ur hundred and seventy thousand five hundred and seventy-six d-uiars and iiinrty eight cents, aud thus puis the government to the ineonenienco of applying other funds to e-.jects tor w hich the sum they retain was appropriated aud drawn from the Treasury. So far as respects the delivery of the public property in their pos-essi n. hey refuse to obey the instructions issued; but so fir as respects the termination of the duty of making payments, they yield a ready acquiesence, and yet there is the same authority for the one order as fur the other. Bt in the forme case thev ha e a direct pecuniary interest i:i the co irse they pursue. Iu the latter, their interest is not at stake, and no one sulTVrs but the government, which must advance ot!:cr funds to supply the place of those iliegilly retained by the Lank, and the veterans ot the revolution, wlr? must wait fr the amount due them until the necessary documents can be prepared to justify thepayment. The existing law s are, in the opinion of the committee, adequate to enable the government to effect a recovery from the bank of its money and property, and therefore they propose ao measure of legislation in this respect. Neither is any further appropriation required to supply the place of the sum thus retained by tho bank; for, as has been already remarked, the act of June 7, 1632, makes a standing appropriation of the sums necessary to carry its provisions into effect. If the bank, or any other disbursing agent for the payment of these claims, become defaulters, and refuse to pay over the public moneys placed in their hands to make such payments, the meritorious class of citizens provided for by the act, cannot, on that ascount, be deprived of their rights, though some of them may experience delay in receiviug the sum3 due to them, as in this case they probably will, in consequence of the conduct of the bank, in withholding the public books and papers, by w hich the exact amouut of their claims is to be ascertained. The committee deem the course of the bank such in this case, as to justify the repeal of the several piovisions constituting them pension agents, under the invalid acts aad the acts of lSlS and 1520. There seem to be n propriety in the separation of these duties, i.utas one may be conveniently porfonnc l bv the agents se ; lectcd by the Sccrciary o. W zr, so tsay
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