Roger Brooke Taney to Andrew Jackson Transcribed by Karen Tibbals Transcribed on Primary Source Cooperative 2022

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The Papers of Roger Brooke Taney 21 Sep 1833 taney-roger-brooke jackson-andrew Roger Brooke Taney to Andrew Jackson Library of Congress, Manuscript Division, Washington, D.C. Andrew Jackson Papers, MSS 27532; Series 1: General Correspondence and Related Items, 1775 - 1885; Volume 85 (Reel 43): 16 May 1833 - 5 January 1834, pages 17060-17061

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Attorney General Removal of Deposits Bank of the United States Banks, Pet Congress Separation of Powers Rule of Law Supreme Court US Constitution
Attorney Generals Office / Sept. 21st. 1833. Sir

I have considered the question you proposed to me in relation to the right of the Secretary of the Treasury to take Security from the State Banks for the safety of the public deposits in case he should order them to be removed from the Bank of the United States

The power of removal from the Bank of the United States given to the secretary of the Treasury by the charter necessarily implies the power of placing the public money in the hands of some other agent or agents to be held and disbursed according to law. – And as the act of Congress does not prescribe into what hands the money shall be placed in the event of its being withdrawn from the United States Bank, it becomes the duty of the Secretary of the Treasury to select such depositories as in his judgment may be deemed most safe and advantageous for the interest of the public, and best calculated to perform the duties of fiscal Agents, heretofore performed by the Bank of the United States. – And if State Banks be substituted for the Bank of the United States, they become the agents of the Government for such purposes. –

The question is, can the Secretary of the Treasury lawfully2 enter into a contract with such agents, by which Security shall be given for their faithful conduct – And will the contract of Security Surety be binding in as much as there is no act of Congress expressly requiring or authorizing Surety to be taken.

The question appears to me to have been fully Settled by the Supreme Court in the case of the United States vs Tingey 5. Pet. 127.1 In that case Judge Storey in delivering the opinion of the Court says "Upon this posture of the case a question has been made and elaberately elaborately argued at the bar, how far a bond voluntarily given to the United States, and not prescribed by law, is a valid instrument, binding upon the parties in point of law; in other words, whether the United States have, in their political capacity, a right to enter into a contract, or to take a bond in cases not previously provided for by some law. Upon full consideration of this Subject, we are of Opinion that the United States have such a capacity to enter into contracts. – It is in our Opinion an incident to the general right of sovereignty; and the United States being a body politic, may, within the Sphere of the constitutional powers confided to it, and through the instrumentality of the proper department to which those powers are confided, enter into contracts3 not prohibited by law, and appropriate to the just exercise of those powers. – This principle has been already acted on by this Court in the case of Dugan, Exec. vs. the United States, 3. Wheat. Rep. 1722; and it is not perceived that there lies any solid Objection to it. To adopt a different principle, would be to deny the ordinary rights of sovereignty, not merely to the general government, but even to the State governments within the proper sphere of their own powers, unless brought into operation by express legislation. A doctrine, to such an extent, is not known to this Court as ever having been sanctioned by any judicial tribunal.

We have stated the general principle only, without attempting to enumerate the limitations and exceptions, which may arise from the distribution of powers in our government, or from the operation of other provisions in our constitution and laws. – We confine ourselves in the application of the principle to the facts of the present case, leaving other cases to be disposed of as they may arise; and we hold that a voluntary bond taken by the authority of the proper officers of the treasury department, to whom the disbursement of public moneys is entrusted, to secure the fidelity in official duties of a receiver or an agent for disbursery of public moneys, is a binding contract between him and his sureties, and the4 United States; although such bond may not be prescribed or required by any positive law. – The right to take such a bond is in our view an incident to the duties belonging to Such a department; and the United States having a political capacity to take it, we see no objection to its validity in a moral or legal view."

I have quoted the whole of the passage relating to this point. – And under the authority of this decision there can I presume be no doubt, that if the State Banks are employed as the agents of the government, for the receipt or disbursement of the public money, the Security from them, and the contract for Security would be valid and binding, and could be enforced by the United States against the Security. –

I am Sir with the / Highest respect / yr. obt. St. R. B. Taney

Letter Signed

Library of Congress, Manuscript Division, Washington, D.C.

Andrew Jackson Papers, MSS 27532; Series 1: General Correspondence and Related Items, 1775 - 1885; Volume 85 (Reel 43): 16 May 1833 - 5 January 1834, pages 17060-17061

The letter is subscribed as To the President

Notation is in Jackson's hand

Atty. Generals Office / To the / President

Sept 21st. 1833.

atto Genls opinion / on the case – whether / security taken by / the Secretary of / the Treasury of / the State Banks / for deposits made / in them is valid in / law – decides in / the affirmative / A. J.

United States v. Tingey, 30 U.S. 115 (1831)

Dugan et al., Executors of Clark, v. United States , 16 U.S. 172 (1818)

A A

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