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Richardson, James D. (James Daniel), 1843-1914

"Volume 3, part 2: Martin Van Buren"

As no one could have
anticipated a course so extraordinary, the prohibitory clause of the
charter above quoted was not accompanied by any penalty or other special
provision for enforcing it, nor have we any general law for the
prevention of similar acts in future.
But it is not in this view of the subject alone that your interposition
is required. The United States in settling with the trustee for their
stock have withdrawn their funds from their former direct liability to
the creditors of the old bank, yet notes of the institution continue
to be sent forth in its name, and apparently upon the authority of the
United States. The transactions connected with the employment of the
bills of the old bank are of vast extent, and should they result
unfortunately the interests of individuals may be deeply compromised.
Without undertaking to decide how far or in what form, if any, the
trustee could be made liable for notes which contain no obligation on
its part, or the old bank for such as are put in circulation after the
expiration of its charter and without its authority, or the Government
for indemnity in case of loss, the question still presses itself upon
your consideration whether it is consistent with duty and good faith on
the part of the Government to witness this proceeding without a single
effort to arrest it.


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