﻿ESAREY: STATE BAIs^KIXG IX IXDIAXA 



231 



time the Secretary of the Treasury should think the money unsafe, 

 he might T\'ithdraw it all after two months notice It was thought 

 by this means that the Bank could afford capital to enable the 

 traders at Vincennes to move the produce of the farmers to market. 

 The plan was to lend the money to traders who would in turn pay 

 it out to the farmers of the country who in their turn would pay 

 it back into the land office. The trader would market his produce 

 at New Orleans and place his money in the branch bank there to 

 the credit of the Vincennes Bank. The United States could then 

 draw on the New Orleans branch and charge it to the Vincennes 

 Bank; no money would have to be transported. Unfortu- 

 nately the Bank did not carry out the plans of its president. 



August 20, 1819,, the Treasurer of the United States drew at 

 60 days for SiO^OOO, and at 90 days for 820,000, on Vincennes. 

 October 19, another draft for 855,000 at 60 days was drawn. 

 These drafts were not paid and the deposit in the Vincennes Bank 

 was marked ''unavailable", for the first time, at the end of the 

 second quarter of 1819. There was then on deposit 8122,539. 

 This amount had increased to 8191,056 for the third quarter. Dur- 

 ing the follo^-ing year it was reduced to about 890,000. -^^ 



Under these conditions, of course httle or no money was depos- 

 ited in the Vincennes Bank. Early in the year 1819, President 

 ET\'ing at the order of the board of directors took up the question 

 of securing the deposits again. The reasons urged for depositing 

 in Vincennes were that there was no branch of the United States 

 Bank nearer than Louisville; that the citizens of the community 

 had a right to the use of the United States funds until they were 

 needed; that the farmers were much distressed for a currency and 

 many would be ruined: that the Bank had always met the demands 

 of the treasury and had redeemed all its notes in specie since Feb- 

 ruary 20, 1817; and that depending on the Secretary's promise of 

 further deposits as expressed in his letters of July 1, and 11, 1818, 

 the Bank had extended its discounts. On the 12th of Alarch, 

 1822, Secretary Crawford notified the Bank that the land office 

 money would again be deposited in it. This concession was made 

 on condition that the Bank pay specie, and accept as cash all 

 money received at the land office. The Bank as usual was to 

 fur,nish the receiver at the land office with a hst of the banks whose 

 notes he was to accept. For its services the Bank was to have a 



»Am. Sta. Pa., Fin., IV, 571, 588, and 590. 



«<Ewing to Crawford. Am. Sta. Pa., Fin., Ill, 734. 



»5 Am. Sta. Pa., Fin., IV, 632, 646, 655. For deposits see ibid, 311, 351. 



" Am. Sta. Pa., Fin., Ill, 735. 



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