ei:00iitmi.
JOSEPH W. HAMPTON,-
“The pow rs £rraiitL“(l uncli^r the Constilution, being dcrivod from the People of th : United States, may be resumed by them, wh;.‘nover pervprtiid to their injury or oppression.”—Madison.-
-Etlitor and Publislier.
VOLUME 1,S
CHyVRLOTTE, N. C., APRIL 27, 1841,
i NUMBER 8.
TERMS:
The Mccklcnhurfr Jejrcr^-onian" is publushed weiul>, a
Tico Dollars and Fifiy Cent., if pmd m advantx*; or Ih,c.
Dollars, if not paid boforo the expiration of three jionths
rom the time of subscribing. Any person who will procure
«£x subscribers and become responsible for their subscription^
fihali have a copy of the paper gratis ;-or, a chib of ten sub-
!cribcr3 may have the paper one year for Ticcnty Dollars m
"udvancc.
No paper will be discontinued wliilo the subscriber owes any
OiiQg, if he is able to pay ;-and a failure to notify the Editor
of a wish to discontinue at least one month before the expira
tion of the time paid for, will be considered a new eugagemcnc.
Advertiscmctii.-; will be conspicuously and correctly insert-
«?,! at One Dollar i>er square for the firf^t insertiDn, and Ticcn-
Cents for each continuance—except C'ourt and other
udioial advertist'ment?, which will be charged twenty-fire per
higher than the above rates, (owing to the delay, gcne-
’■ally, attendant upon collections). A liberal discount will be
made to those who advt rfise by the year. Advertisenunts sent
y.\ for publication, must be marked with the number of insi r-
liOUS d.>'iri.Hl, or they will be puVdished until furbid and charg
ed accordingly.
Lt^t.rs to the Editor, unks? containing inonry in sum.=
of Fire Dollar.-;, or over, must eome free of postage, or the
amount paid tit the office here will bo charg;‘d to the writer,
ill: \'cry instance, and collected as other accounts.
CatawHia Spriiiu^s.
THE Sn’oscrib(5r would inform the public
generally, that he is pre])ai*C(.l to entertain ^ isiters
at the above celebrated Avaterin^-place, and pledges
himpoli' that no ellorts shall be sjiared to render
coniibrtable and profitable the stay of all who may
call on him. Terms of board moderate, to suit the
times. THOMAS HAMPTON.
Lincoln county, N. C., April G, 1840.
The Camden Journal will insert tlic above
3 week?, and the Charleston Courier, weekly, to the
amount of !$3, and forward the accoimts to T. H.
Mrs. HAMPTOWS School for the tuition of
Young Lailies in Music, wa« opened on the
loth ultimo. She will give h‘sson.s at her r»‘^:id('nce,
nearly opposite and very convenient to the Female
Academy, on the following terms :
Per Session of Jive months, in ndrancc 810
“ *• cdd of Scss. '.2(1
Mr?. H. hopes, from hi r experience in teachinfr.
and by unremiitinir attention to tht' improviMnent ol
her pu}>il.>5. to rt'ceive a i>hare of public patronage.
Charlotte, March 5, ISl I.
N OTIC
PROSPECTl'S OF THE
Sffftv.oontau j
T}1E present is the first t‘lVort thtu has tn en made |
to establish an organ ai the birth-plaec of Ame
rican Independence, through Vvhich the doctrines oi
ti;e Democratic Party couhl be freely pronmlgated
«i.:id defend(‘d—in which the great prin.ciples of Lib
erty and E(quality for which the Ai.exandehs:, the
PoLitH, and their heroic compatriots perilled their all
on the 20th May, 1775, could at all timew find an
tinsJin’jiking advocate. Its success rests chi«.“lly with
the Ilepublican party of Mecklenburg—and to them,
and the Republicans of the .‘surrounding country the
appeal is now made for support.
The Jet^'ersonian will assume as it."? political creed,
fhc-o landmark-.' of the Repulilican Party, the doc
trines set forth in the Kentucky aiul Virginia Reso
lutions of 1798—In lieving, ;is the undersigned does,
that the nutl iors of these papi rs, who bore a conspicu
ous part hi tVaming our ty^teni ol’Government, were
bci-t qualified to hand down to posterity a correct ex
position of its true spirit—the b.est judges uf what
j ovs .-i-s v. cvii delegated by, and what reserved to,
tr.. ' States.
It V, ill cppo.--e, as (j:\iigfrori.? to our free institutions.
tnes];iiit >f rno.iopol^, whicli has been stealihily, but
i^e.i'idy iu'-reasiiig in lli‘j country from the founda-
of our Government. The mo^t oilious ieature
in thi system is, that it robs tlie ma?;v. i)npcrcrp!ihli/.
t> enrich the ri;v.-;—It clotiies a tew wealtiiy inilivi-
1w itii power no* only to eoatrol the v. :»ges oi
T'li man, but also ;vl th»“ir plfaswro to inflate
or ilepr*'ss the commerc-.' and busiavss oi’ the v* hole
country—ex *iri;ig a spirit of extravagance, which it
terminates in pt'cuniary ruin, atul too ot'ten the nu)r-
fil degnidation of its victims. Tiiis system mi»>f he
thoroiL^hly rcj'oniied, belbre we can hope to see set
tied pro.‘-perity smile alike upon rdl our citizens. 1 o
ai ’ in producing this refonv. will be one ol the main
objects of th('Jetiersoitian. Ir will vrar agninst f.r-
'‘liiJiivc prii'ile^rcs, or partial legi dation, imder what-
•'ver guise £rranted by our Legislatures : and, there-
Ir.re, v.'iil oppo.se the chartering ol a United States
]3ank. Internal Improvements hy the Federal Gov
ernment. a revival oi’the Tariii System, and the new
federal scheme of the General Government assimi-
in? to pay to foreiixn money changers two huudrpd
iniilioiu o/borrowed by a few States for
local purposes.
v\s a question of vital importance to the South,
und one which, from various causes, is every day
asrnmiin^ a more momtmtous and awful aspect, the
.Telfersonian will not fail to k;*ep its readers regularly
und accurately tidvised of the movements d’ the
.*Vorthern Abolitionists. It must be evid(!nt to all
 andid observers, that a portion of the party press of
fhe South have hitherto becm too silent on this sub
ject. WeHhall, therel’ore. without the fear of being de
nounced as an alarmist, lend.our humble ;ud to assist
i« awakening the People of the South to due vigi
lance and a sense of their real danger.
Wnile a portion of the columns of the Jeffersonian
will be devoted to political discussion, the great inte
rests of Mokals, Litekatuiu:, Agiucultuhe, and
the Mechanic Arts, shall not be neglected. With
the choicest selections on these s\ibjects, and a due
quantity of light reading, the Editor hoj)es to render
his sheet agreeable and profitable to all clas.ses in
society*.
Orders for tlie paper, postage paid, addre.=scl to
the “Editor of the Jeti'ersonian, Charlotte, iV, C.,”
v.ill be promptly complied xvith.
Postmasters are requested to act as Agents for
the paper, in receiving and forwarding the names oj
.'Ubscribers and their subscriptions.
The Terms of the }>aper will be found above.
JOS. W. HAMPTON.
Charlotte, Marcli 5, ISil.
PROSPECTUS
Of a politicji newspaper, to be issui d from the office of “The
iVorth Carolina Standard,” to be entitled
EXTRA STANDARD:
THO-^IAS LORIXG, EDITOR.
The EXTRA STANL>ARD is intended to ac
commodate those of our fellow-citizens W'ho de
sire a cheap publication, containing sound political
doctrines, and tiie news of the day; and will be pub
lished st*mi-monthly.
The Editor will endeavor to make this publication
acceptable to the public ; especially that portion who
are friendly to democratic Republican principle.^.
The price will be !*^‘l per year, payable in all cases
price is low. the terms must be
comphcd with—no paper will be sent to any one with
out the amount of one dollar in advance, and all pa
pers will b(i discontinued at the end of the year, un-
les.s the at-vauce Ibr the second year is sent by the
time the nrst expires.
1 xcelvc copies will be sent to one address, for one
year, or to ditierent individuals, on the payment of
ten dollars in advance.
A f>pccinic/l nwnbcr will be issued in a few da vs.
Should the subscription justify the uudertakincr,
the hrst number will be issued aBout the ]stof MaV
„ T. loring.
Kah'igh, March 3, 1841.
A\ ING remav('«l tlieir .>{ock of Goods to the
country, a'.id (h'clint'd business in Charlotti',
the undersiiTued earnestly rt'qui st all persons owin»jf
tlu'm, either bv note or K-coun:, immediatelv to call
and make settiem- iii. WILLI A.M ALEXAM)EK
will remain in C'fi'rlotte to clixi- tlu' i>usiu('ss oi the
late concern, ar.ti it is hopt vl tiiose mde\*teil will
not disn'gar.l this noli:'e;—at any rate, all ari‘ r*--
(piested to call an.I see him on the subject. a!!.l sucii
as owe accounts, and cannot now pny, can ch)se tln'in
by note.
The subscriber?; \\ill keep constantly on hand a
lar*;e and well selected .-tock of
And every otiier ar.icje In the mercantile line. :it
their staml at ('LI'iAU ( in tld'; ('ounty.
where tiiey will be pdeast',! to s-'e and accommodaa'
all who may i’avor tlieiii \viili a call.
ALEXAM>El{. Oio LUOTIIERS.
Charlotte. March1S41. 3-r
United Sliites Baisl*
rflHE rec.'nt Union of tfie CAROLINA PLAN
JL TER witii the FARMEI^S’ RECJIS'l’ER, and
the consequent adt!itio:i to the subscription list ol‘
about 1,U00 name-s will enable the publisher to add
sonu'thiiiiX fort'awith to the jn’iviit-'rt  '.nul
j"! t; b(*;bre ol;er(“d lo suriSv’rilKTs. i iiese addilioria-
atlvaatii res will t*e s.-tni ia tii“ tliinl j>rtMnim!i. \vhich
is now aiUle 1 hi-\o',%’. .tiid in the a.ls'ertised prici's ol
back vohum s annext'il:
CONDITIONS OF THE FARMER? ■ REGISTER
/'y/■ ihe ^ i/it.t-
TO BE fO.MAir.X i'.n JAXUAin', 1 11.
ARTteLE I. Tiie Farnn'rs’ Reuristt-r is published
in monthly inimbers. ol’ 04 large octavo paii't's e:u-h,
at a year, payahh. in rdranct\ [ See. also, “ Pre
miums” below.J It is now also issui'd (;uul consi't-
ing ot‘ nearly the same matter) w“ekly. in a smirle
slieet of 16 page.s octavo. Price and conditions the
same for both publications.
II. All miiil payments must be made in bank notes,
or checks, of i*au value in Viucima—or otherwise',
of a ciTV bank oi‘ the State in wiiich the subscriber
resides;"^ and all h'tters to the publisher (except
such as contain artich's tor publicatimi.) must In*
post paid ; and tiie publisher assumes tiie risk ol’loss
l)V mail-carriage of all lett‘..Ts and remittances con
forming to the toreiXoiniT ccjiiditions. ami which have
been proj)erly committed to the mail, or to the hands
of a postmaster.!
III. If a subscription is not directed to be disco'.i-
tinued Vieforetlie first number of the next volume has
been published, ii will be takim as a contiiiuance I’or
another year. Subscriptions must commence with
the begiiming of some one volume, and will not be
taken lor less th.an a year’s puhlicaiion.
IV. The mutual obligations of the publisher and
subscriber, for the year, arc fully incurred as soon as
the first number of the volume is is^ue.l; and after
that time, no discontinuance of a sid»scrij)tion will
be permitted. Norv.'ill a subscription be discontin
ued for any earlier notice, while any thing thereon
remains due, unless at the option of the Editor.
Phe-'mii ms in c.rtra copies, ojf'ered in consideration
of either (ulvanced or early paynienL'^.— 1st. To eve
ry subscriber who shall pay for vol. 9, strictly accor-
tling to the abovi? conditions, (in articles I. and II.,)
bel’ore the 31st January, (when No. 1. will be issueil)
an extra copy of tiie same shall be sent; or insteal,
il’ preferred by him and so ordered, a copy ol’ either
vol. 7, or vol. 8. In like manner, at same rate of ile-
duction, any one person may obtain any number of
copies to supj)ly others.
2d. To every subscriber, not thus paying in ad
vance. of the ])ublication, but who shall do so, and in
all other respect.s comply with the above conditions
before June 30th, an extra copy of either vol. 7 or
vol. 8 shall be sent; and the siune to every new sub
scriber, paying as above required (in Art. I. and II.)
at the thne of his subscription being ordered
3d. Every subscriber vrho has received all the
back vohimes of tin*. Earmers’ Register, and who
may be entitled by his payment to either of the fore
going premiums, insteiul of them may, at his choice,
and by his direction, be credited for vol. 10, to be is
sued in 1842.
Remark.s.—Any extra copy, scmt as above stated,
will be directed only to the ^nune of the individual
entitled to it as a }>reniium ; but sent to any postolTice
that may be desired. The sending of every .such
e.rtra copy will cease with the volume; but the like
arrangemi'nt may ])e renewed, and similar advanta
ges obtained by any subscribi'r hereafter, upon the
renewed performance of liivC conditions.
No agents or general collectors are employed for
the Farmers’ Register. But any subscriber, post
master, or otlier person, may obtain for his own pro
fit the large allownnces oliered in the Ibregoing pre
miums, by procuring the benefits to the publication
for which the premiums are olfered. Address
EDMUND RUFFIN.
Petersburg, Va., Oct. 31, 1810.
RF.PORT OF THE INVESTIGATING COMI\IITTEE.
IVie Committee appointed at the meeting of the Stock
holders of the Hank of the United States, held Jan
uary 4, 1841, to examine the details of the state
ment, then s>(l)mitted Inj the President, 'respectfully
suhm it th e follu u'ing
REPORT:
Tlie Committee originally appoiiued consisted
of Joshua Li])pincott, Moses Kempton. Chailes
Massey. Tlionias P. Cop •, Richard Willing, and
David Kirkpatrick, 'i’he three Inst named gentle
men tieclined acting; and Edward Col'.s. Janies S.
Newbold. and John Bacon, having been s» lected to
fill the vacancies, the ('onitnitlee were Ijirilly or
ganized. by the ehction of Joshua liippincott as
Chainnaii, and (leorge Sharswood as Secretary:
and on the twenty-ninth day of January, commen'cd
the peifoi'mance of the duties assigiu d to them.
Tiie Committee were accoinmodated by the
jjoai’d of l^irectors, with an apartmmt in the Liank,
anti were fiom time to time, attended by a commit
tee of that body, as w 11 as by the oificers and
Clerks of the li>ank. livery facility was atforded
to them, in the prosecution of their labois, as far as
was practicable, hy su!>rnitting to their examination
the books ol th ' Bank, and by triving such v( rbal
exj)ianations and furnishing .such f xtracts and co-
pii s as wer.- i ( qu- sted. At an • aviy stage of their
proc-edin-s. tli'-y w* re oi!ici:illy ii'-tilitd by the
i’l t si 1. nt. tiiat a ri'Sohilion bad bt  n adnpt. d by the
Benr.d (tf Dnectors. * thatth' (‘oni'nittef of st-ick-
hrl l' isbe informed, that th(' Boaid is n ady to al-
f>;-i triem (Very lacilily. in the pros* ciition of any
iu\ stigation wliicli the Counnittee may be willin:-’
to liiak-'. of the atl'iirs and transactions of this
Bilik an! the caus( s of its actual situation, and
th, ! ;; i.stli! wish oftliis Boaol. that the Conunittie
^nonl I mak' such invi stigation, in order that the
i (.^whs in: y be laid before the meeting of the Stock-
hol lers in A>)vil m xt. ’ Conceiving it to be
th if duty, undei- the terms of their original ap-
piei.tri'Uit as w» 11 asunder Ihe invitation thus ex-
t n ! d to th .n by the l^oard, the Com'nitt e accor-
li iijly comm; need an t xamination of ■•tlie afliiirs
m l t.ansactions of the I5ank,” and - the causcs of
its actual situation.''
The assets of the Bank, amounting on the 21st of
December, 1810, according to the statement of the
Committee, to •‘ti'09,531,842 40, liave been estimated
' fij:') 1,779,795 40
From which deduct liabilities, 30,959,539 03
Last Notice.
4 LL those indebted to the subscriber, are inform-
ed that their Notes and Accounts must be pet-
tled by the April Court, or they may be found in
other hands for collection.
r; ’ * . M C J. FOX.
Liiar;oltc, April, 0th 1841 ■ 5—p
* It will be again required, (as formerly), that mail pay
ments shall be made in the notes or chocks of specic-paying
bankff, should any such banks l>c in operation in the States in
which subscriber.s severally reside. Until then, the publisher,
like all other creditors, and lal)orers at fined prices, mnst sub
mit, as now’, to be defrauded by the operation of ihe non-spe
cie paying l>anking system, of the difference in value between
the best of such bank paper and spocie.
t “ A postmaster may enclosc money in a letter to the pub
lisher of a newspaper, lo pay the subscription of a third per
son, and frank the letter, ii written hy himself.” (Signed)
AiuQS Kendall, Postmaster-General.
[The Committee iiere state the order of their in-
vesligation—lirst examining into tlu' A.ssets and Li-
aliilities of the Bank on the 20th December, 1810;
and thun making a valuation of its present Asdctn,
in Active and Suspended I)l*!,i. Stocks. Real Estate,
Bonds and Mortgages, p'oreign Bills oi Exchnnge,
and amountu lUic b^ t-^'ate Banks.^
'The attempt to mak*‘ an estim-^tp of probable los
s' s. was found to be att n I d 'vitii consiih iable iliiii-
ciilty and ( nibanassnn ht 'I’o adopt tlie pr Sent
d jiL’tSS'd !uail:t v.tlu ol file several stocks, and
loans h'III by the Bank, would not be a lair crite-
r*oti ol till ir actual woith, w hich, ratiier, tnan their
prc'-t nt avaiiabililv. was tliat at which the coimnit-
ie(* t ndeavored to arrive. Still they have been ue-
cess:iiily guiil d. i’l a great ni asine by the Prices
_’urrent oi the day. ( >ft!ie R?al Estate iuid Bonds
and Moiti:aL'‘es. a very imperfect judgment could be
fornuil. without iiujuiries as to title and incumbran
ces, which the Committee had not time to make.—
-Many of the s' curilies are of a character to render
it almost impracticable to form even a rea.sonable
conjecture ol their value. While, thert'fore, tlie
(A)mmitt. (' bespeak for this portion of their lal.ois
that regartl which is due to an iioii' st elfoit from the
hi st means wilhm their rt ach. to arrive at the truth,
tiiey must be perniittid lo (jualify it with the re
mark. that it is nc ssarily only an approximation,
ill which they cannot ask the stockiu)lders lo place
» ntire confkh lice. Th»‘ ability of thi; Institution to
r alis(' any thing like a fair (quivalent for its As
sets, will depend much upon tht* course of policy it
may in future pursue, and upon circumstanci s,
which no one can be expected to foresee. The es
timate is presented, however, with less rt luctance,
as from the details, now giv n each stockholder
will be able to form a judgiuent for himself
It may br> proper here to remark, that it has been
thought brst by a majority of the committee, not to
submit the lists in detail e.f the itclive and suspend
ed debt. 'j’h(^ injury which woul.l r* suit to the cre
dit of individuals by such an exjiosition. might ulti
mately be detrimuitai to the interests of the stock
holders. while no benefit of sulHcient importance to
counterbalance such a mischiel’. aj)peared to present
its* If. In regard to these two line&, therefore, the
committee will content themselvt s with rc marking,
that but a small proportion consists of regular mer
cantile discoimts. On the Active Debt, December
•21, 1840, are loans to seven incorporated or other
Companies of 1.2 II, 193 dollars 22 ctnts, including
one of 502.222 dollars 22 cents, to the Philadelphia,
Wil mington, and Raltimore Railroad Company.—
The sum of 740,050 dollars 33 cents, are on obliga
tions, having on that day more than six months to
run, and of this stnir 597,028 dollars 5 cents, had
more than twelve months to run. "J^he sum of 279,-
888 dollars 41 cents, a part of this line entered as
•• Bills Receivable,” being nominally jiayable on de
mand, though really composed of permanent accom
modations, is not included in either of these amoimts.
Nor is the sum of 66,800 dollars 86 cents, “ Bills
rf'ceivable for sale of offices.” A considerable part
of it is in large amounts as will sufficiently appear
from the fact, that forty-eight individuals, firms and
companies, have discounts i xceeding 20,000 dollars
(ach, each of w'horn twenty-seven have discounts
exce^iding 50,000 dollars each; and nine exceeding
100.000 dollars each. A similar examination of the
suspc-nded debt exhibits as the result of fifty-two
individuals, firms and companies, standing charged
on :ho books of that department, with more tl^an
20.000 dollars each, twenty-nine with more than
50,006 dollars each, and eighteen with more than
100.000 dollars each. There are six individuals and
firms whose debts amount to 2.314,000 dollars, two
of which arr over 650,000 dollars each, a large
amount of which will be lost; and four others Avho
have loans amounting to 569,000 dollars. Eleven
Joint Stock Companies are indebted on this list
807,582 dollars 23 cents, of Avhich the Philadelphia
■and Germantown Railroad Ccinpany is 129,902
dollars 76 cents.
The whole result of the v'aluation made by the
Coiiiniittee, may be thus stated iu short;
Leaves the sum of
To represent th«i capital of
Less amount of Bank of United
States Stock on hand,
^14,820,2.50 11
^35,000,000 00
2,471,400 00
$32,528,000 00
To this may be added the sum of four or five hun
dred thou^aiK] dollars, for that part of the circulition
amounting on tlie tw( nty-lirst of December, 1840.
to 9,:')3i).0d0 dollars 90 cents, which is probably
lc>:^t or destioyetl.
'Pile comnn’ttee submit also heiewith, condensed
( ^.nt ral Statements of the con lilion of the Bank, on
tin; first day of February, 1836, on the 1st day of
April. 1839, and on the 1st day of .March 1841 ; with
a comparative I’able of Assets and Lial)ilities, for
tii' se tliree periods, and also a General Statement
of April 1, IS41.
rii(' general statement of the condition of the bank
February 1, 1836, is a copy of that submitted to the
stockhokh rs convtncd at the bank, upon the nine-
te( nth day of that month, for the purpose of consi
dering the jn-oprii ty of accepting the charter, then
rec( ntly granted by the legislature of Pennsylvania.
]5y that statement, showing the condition of the In
stitution, after a periotl of active busintss exttnding
over twe nty years, and including more than one pe-
j'iotl oi serio’.is commeicial difiicultit s. there appear
ed to the credit of
Discount, exchange, and interest, S123.S75 15
Profit and Loss, 3,705,399 54
Contingent I’und, exceeding the losses
charge'able thereto, by the sum of 1,130.501 05
Forf'ign exi-hanre account, 817.871 03
Fund tor extinguifching cost of Bank
ing Houses, 1,101,223 09
Contingent interest, 440,854 11
These sums, after deducting amount
of deliciencies and expenses.
.•^>8,018,784 60
217.191 22
Formed the surplus funds of the In
stitution, 87,801,590 33
from which it will be recollected, it was strongly
urged u])on the stockholders as t’i>‘ main argument
in favor of accepting the charter then ofiered, that,
aftt'r making the most liberal allowance for proba
ble losst s on the suspended debt and real estate, the
entire Bonus could bt' paid, without in the i‘*ast de
gree in^pairing the cajutal.
The origin of the course of policy, which has con
ducted to i}ie present situation of the ati’airs of the
In.sfitution, dates however beyond ihe period of the
re-c!iait(‘r by the State. W'hen it was p,rc( ived
that the charter of the late Bank of the Uniti.d
Slat, s, would not bo reiu wtd or exhnded l.y C >i-
gress, tiie l^resitleiit and i^iitctors commtnced
winding up its concern.^, and among the lirrt mea-
sur s tak^n to that end. wjis to sell or dis])ose of.
as i’ar and as speedily as could be- eflecteJ, the as
sets of its several brandies. This was generally
done to State Banks, who gave for them their obli
gations, payable by instalments at distant periods.
At the. same time, the policy was adopted of con
verting the active debt into loans npon the security
of stocks, by which perman-.'iit investments might
be provided for the capital of the Bank during the
long pei’iod of its anticipatt d liipiidation. Gn the
>th of March, 1835, ‘-the President submitted to
the Board, a g neral view of the situation ol’ the
F:5ank, its means and liabilitit s, its circulation and
deposites, and the probable future demands upon it,
showing its ample resources and power of expan
sion: whereujjon” the committee of Exchange,
which was composed of three Directors, appointed
by the Prt sident, were authorised by the Board
* to make loans on the security, of the stock of
this Bank, or other approved s curity, and if ne
cessary, at a lower rate than six. but not less than
five per cent, per annum.” This tklegation of
jiower to the Exchange Committee, was never ex
pressly and formally renewed imdn* the new' char
ter, unless it be considered as inclutled. tmder a gen
eral resolution of the new Board adopting The
Bye-Laws, Rules md Regulations” of the former
Bunk. By the Statement of the condition of the
B«nk upon the 2d of March, 1835, the *vhole
amount of loans upon Bank stock, and other than
personal security, was $4,797,936 25, \vTiile that
by that of Marcli 3, 1,836. these loans had increas
ed to the sum of $^20,4^0,367 8vS. Under such
circumstances, the active means of the Bank were
comparatively small, to pay the immtdiate di nriand
of the State for the Bonus, to settle with the go
vernment of the United States for its stock, and to
meet its circulation of ^¥»20,114,227 56 which, con
trary to the anticipation, expressed at the period of
its re-charter, soon began to be rapidly presented
for redemption. The Bank was of necessity dri
ven into the market as borrowers, and ^ry soon
the first step was taken to obtain loans abroad, by
sending the Cashier to Europe for that purpose.—
Two loans were accordingly negotiated by him;
one in England, of £1,000,000 sterling; and ano
ther in France, of 12,000,500 francs, on favorable
terms.
In order to provide for the payment of these Loans
and to negotiate others, and in general to superin
tend the intert sts of the Institution abroad, it was
determined by the Board, to have a General Agent
residing in London, and on the 22d of September,
Mr. Samuel Jaudon, then Cashier, was elected to
that post, and his agency there commenced accord
ingly November 8, 1837.
At the same time, the Bank entered the Foreign
and Domestic Markets as borrowers, upo)3 the-ir
Post Notes and Bonds payable in Europe; the
whole amount obtained in this way at different pe
riods up to July, 1840, being more than twenty-three
millions.
From these causes, as wtU as from the general
dc*rangement of affairs, the suspension of specie pay
ments. and the discredit consequently thrown upon
American secuiities, and more particularly from
the course of the Bank’s dealing in Foreign Ex
change, by drawing Bills to a large amount without
having previously provided the funds for their pay
ment, and thus subjecting their agent inLondon, to
the necessity of obtaining money in haste, in order
to maintain the credit of the Bank: it was no longe ’
found possible to command funds there upon the
same favorable terms as before. And accordingly,
upon Mr. Jaudon’s subsequent negociations for
Loans, to the amount altogether of 812,212,697 4C,
there is chargeable to Losses, the surh of $1,149,-
907 4, being for Discount, Commissions to Fo
reign Bankers, and other charges; not including
Mr. Jaudon’s own commissions, and the expenses of
the Agency in London amounting up to January 1,
1841, to the sum of £69,344 17^. 6d. sterling,
which at 9 per cent, exchange is equal to 03?5,-
937 39.
It may be proper to expMin in passing, how thii?
large sum for the expenses of the Agency at Lon
don arises. When Mr. Jaudon w^as elected to tho
place of foreign agent, he w’’as the principal cashier,
at a salary of $7,000 per annum. The Bank paitl
the loss on the sale of his furniture, $5,074, and the
passage of himself and family to London, a further
sum $1,015. Ho was to devote himself exculsive-
ly to the business of the Bank, to negotiate an un
covered credit in England, to provide for the then
existing debt in Europe, to receive its funds, to pay
its bills and dividends, to effect sales of stocks, and
generally to protect the interests of the Bank, and
••the country at large.” For these servicess ho
was to receive the commission heretofore chargt-d,
and allowx'd to Baring, Brothers & Co., equal to
about $28,000 per annum. In addition to which,
the expenses of the Agcncy were allowed him, in
cluding a salary of £100(3 sterling to his brother,
Mr. Charles B. Jaudon, as his principal clerk.
From the increase of money operations, arising
from fjcilitics afforded by the agcncy, the amour.t
upon which commissions were charged was great
ly augmented, so that the sums paid him for his or*
dinary services up to January, 1841, amounted at
9 p-‘‘r cent, exchange to $178,044 47, and the^ cx-
pciist s of the agency to $35,166 99. In addition
to these sums, he w^as aUo\V||j||^’,the Exchange
.Committee, an extra cormnissioa^of one per cent,
upon a loan effected in Oct., 1839, of £800,000, say
$38,755 58, and upon his claim fi^r a similar coiri-
mi^ion upon^ibsequent loans in France and Hol
land, to the amount of $8,337,141 90, the Board
of Directors, under the sanction of a legal opinion,
from Counsel of high standing, and the views of
the former President, by whom the^agreement with
.Mr. Jaudon was made, that the case of extraordi
nary loans was not anticipated, nor meant to be in
cluded in the oyginal arrangement, allowed the
further charge of $83,970 37. These several sums
amount to $335,937 39, as before stated.
Such w'cre some of the results of the resolution
of March, 1835, though il cannot be questioned,
that much may be fairly attributed to the unhappy
situation of tho business and exchanges of the coun-
try. ce»ncurring with the unfortunate policy pursued
by the administration of the Bank. Thus the In
stitution has gone on, to increase its indebtedness
abroad, until it has now more money borrow'cd in
Europ'^, th:in it has on loan, on ils list of Active Debt
in America.
To this has been superaddtxi, extensive dealings
in stocks, and a continuation of the policy of loaning
upon stock securities, though it was evidently pro
per upon the recharter, that such a policy should
be at oncG and entirely abandoned. Such mdeed
was its avowed purpose, yet one j’ear afterwards, iri
March, 1837, its loans upon stocks and other than
personal security, had increased $7,821,541, w’hilo
the Bills discounted on personal security, and Do
mestic Exchange, had suffered a diminution of $9,-
516.463 78. It seems to have been sufficient, to
obtain money on loan, to pledge the stock of an
‘‘ Incorporated Company,” however remote its ope
rations or uncertain its prospects. Many large
loans, originally made on a pledge of slocks, were
paid for in the same kind of property; and that too
at par, when in many instances they had become
depreciated in value. It is very evident to the Com
mittee, that several of the officers of the Bank were
themselves engaged in large operations in stocks
and speculations, of a similar character, with funds
obtained of the Bank, and at the same time Loans
were made to the Companies in which they w’ere
interesteel, and to others engaged in the same kind
of occupations, in amounts greatly disproportionate
to the means of the parties, or to their proper and
legitimate Avants and dt^alings. The effect of this
system, was to monopolize the active means of tho
Institution, and disable it from aiding and accommo
dating men engaged in business really productive
and useful to the com.munity; and as might hare
been anticipated, a large part of the sums thus
loaned were ultimately lost, or the Bank compelled
on disadvantageous terms as to price, to take in pay
ment stocks, bank lands, and other fragments of the
estates of great speculators.
The loose and irregular manner in which the
business of loaning money was conducted, tended
greatly to protluce this result, and deserves particu
lar notice and explanation. From March, 1835,
the period of the passage of the Resolution above
referred to, the chief control and management of
the affairs of the Institution, appears to have passed
from the hands of the Directors. The mode in
which the Committee of Exchange transacted their
business, shows that there really existed no check
whatever upon the officers, and that the funds of
the Bank were almost entirely at their disposition.
That Committee met daily, and were attended by
the Cashier, and at times by the President. They
exercised the pow^^^ making loans and settle?-
ments. to full as great an extent as the Board itself.
They, kept no minutes of their proceedings—no
book m which loans made, and business done,^were
entered, but their dpcisions and directions, w'ere
given verbally to the officers, to be by them carried
into execution. The established course ol business
seems to have been, for the First Teller to pay, on
presentation fit the counter, all checks, notes, or
due bills, having endorsed the order or the initials
of one of the cashiers, and to place these as vouch
ers fn‘his. drawer, for so much cash, where they
remained, tmtil just before the regular periodical
cotmting of the cash, by the Standing Committee of
the Board on the state of the Bank. These vouch
ers were then taken out, and entered as •• Bills re>
ceivable,” iu a small memorandum bock, under the
charge of one of the clerks. Thr.so bills \^ ere not
discounted, but bore interest payable semi-annuaily,
and were secured by a pledge of stock, or some othei
kind of property. It is evidently impossible, under
such civcumstaJicc.^. to or be ussurtd. in