Newspapers / The Raleigh Minerva (Raleigh, … / Feb. 12, 1819, edition 1 / Page 1
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MAl.Ultiit.(CO rniTkD BY A IVOAat Term tt.bep.iam a:ieV year's .ubscription b. Krtbu t, ,hil have been give.. Home rtue,iu. .. inserted Advertisement: mi e u e.l(ih sub i- ....- fiAiKir ; iii v . - thnce wr ';, , iw. nronwtitm where then edltor'. ran rt any case be received without 0N ,UW.rTRl ln advance rl A"n- Xm without payment ot arrears. opiionohbe editor uolt at the Tinngreftsional Proceedings. ..fTcp hi? RKPRESEN I'ATIVES. Mr. Spencer, from the commdtcc appoint . . ... the uruceedings of the Bank Unitod fitat made the following re- io committee uppointed to inspect (lie books ami to examine intu the proceeding of tho Bank of tfic United States, with, direc tions to report thereon, and'to report whether Hie provisions of its charter have been viola ted or not. respectfully 'report, . That, under the leave granted by the house, IV remittee repaired to Philadelphia, tfiid tieue so.mllj inspt'eted the books of the tank, and a further means of examining its proceeding they interrogated, on oath, i ..II l... ivncrma f.Mlm but to its true, value. Under these circum stances, the Bank of the U. States had, on the InoT dav ill" FVIii'iiartf. 7vSJa oliti,iinl marked v.) 8,848,000 dolls, due to it from the; date banks at Philadelphia, New York, and 8aUimoir.Viih such a credit, constantly ac cumulating by the transfer of the treasury! funds, and by the payment ot the. second in stalment in the notes of thetstato banks it was in the power of the United 3tatei bank t have coerced the local institutions into a ino derate and reasonable reduction of their cir culating notes. An attempt Jo do s was made by the compact iii. and although the batik of Ihc Uui.ed States appears to have been anxious to.elFect the object, it did not per severe in the design. By its subso uont acts itiinprovidcntly afforded a temptation to the western-banks particularly to extend-their circulation of notes, by insistmgon its branch- p paving ut their own note in preference tlM-preHident, Citehi, all iIuj dircct..s ot the nf t p bank, whose attendant rouid be obtained. J, nf the Bank of the United States in circula tion amounted to4,75,000 by which it migh have been subjected to embarrassments aris ing frum the callsof tije local institutions. The committee tlhnk it evident from: this re sult, that th! bank did not exercise with suf ficient energy the power which it possessed and might have retained, but rather afforded inducements to the state banks toi extend the amount of their circulating notes, and thus in creased one of th& evils it was intended to correct. , In answer to an enquiry addressed by the commilteo on this subject to J he .president of the i,ank they were furnished with his views, .tnd a letter from tho -office at Boston mark ed ix and we iv referred to a report of tho cym mitlceof Directors on the 28'h of August 1818 marked x. Those documents 'exhibit the reasons of the Hank for adopting .the re solutions of that date, by which the notes of to those of the state banks; and on tlieirdeJthao.hcc wero refused, acceptance. In the liverine drafts on the eastern cities bcni-vi H fatter of the Boston office much stress is plac- it could be done, to prevent the remittance of u!,on the Iare accumulation of papt r amf wiU be found tti 'Iiavc rrnlirly ihtreased their own notes, the branch notes, and tho "'alts at Moston, issued by the southern and, with the reduction ofts debts to the other of drafts issued in consequence of ihoso mstriic VVestni offices. , And this became an impor- fices, until it remitted l,0or,000 dollars in tions were swept away by the facility of re- taut object of inquiry. The books of the I'a-; 15 ills of Exchange on 'London ; which re mittance thus unwarily given as well" as by rcn Bank do not furnish information respect- mittaiicc is connected, by the testimony of J. the ordinary balance of trade. vacuum in '"S tltc drafts made by. at;d upon the offices, W. M-Culloch, esq. with th' negotiation cx tlie circulation was I litis produced, which- excepting those which were made on it, plained in the .letter of the President xv; Tho could be supplied only by the- local notes, . Acd the c nnmitlee have ' hot ascertained their loan which resulted from that ncgociation Avhirh were readilv received bv tho ofiices of amount, except at the offices in Baltimore, and was on pledge of stock that had been plcdsred. tho. bank of tht; United States, and were re- this city. "From the local situation of Haiti- at Baltimore, the Bank assumed it and receiv- hera ffice for A-suddcn reduction of tho Baltimore debt o the Northern offlces apwar to have taken " dace in March and April. last, & within a fcf months past those offices hnVe been- brought in debt to it. This is accounted for by the. Cashier of that office lry saying that it arose ; principally . from. Treasury drafts, and by ; the sale of foreign Bills of Exchange. Drafts were given by the Treasurer in some instan ces, and to considerable amounts directly to Baltimore, on tho Northern offices, and in other instances such drafts went through, the office in this city. It in not?to bo presumed that these drafts were given by the Treasury with a knowledge of all the circumstances, or with a view to draw tho revenue collected at the North, to Baltimore, merely to aid that o!i cc in .pajing its debts. Yrt such was tho eftVct,'anl although it enabled Baltimore to rortinue its large dificoiihts, it impoverished the Northern offices, and the cities where thcy were established were 4viade Jo feel the pres sure. The Baltimore debt to the uarent Bauk. taitied by them as 4 fiwd upon which interest iHorc the statements obtained at that loffice ed the Bills of Exchange, arid paid for t wan chareed tt the state bank. T he letter marked xi. xii. may be considered as furnish- by giving a check -on the New-York office .. V wmi rimrireil to the state (l t lie p , .. , . i. i . i. inn miKriMit lifdnl' nf Hii rrpi'Prlnn if f!i ltifi nmminf. nt tho time llio It Ilium nXnn oi uie Dresiticin , tii ivvti i. cAuiiius ijiu tiioraiv ' , ... ..... .in... v un.u pursued by the bank iu this respect i he bank of tho United States received i ,.r Q Tories and oHiccr3. ria miea-ona alio have been maux m uk ..ut (yom tho ,rreas;iry the notes of iho local in at iiaitimore, at iticlnnnd, and at the cij ol sljtujoni j fn.M,y cases as special deposits, Washington, in older to obtain sjiccitic uilor- q b(j pa-, oBj-.( si;nnan biil- From Aprd. million upon certain subjects on which .ho 1817f (() i,-,,, tjmef tue amount so received a; loi.ks of the parent batik CW ncce-wanly e- s fpom statPmcllt vii. to be 2,732,73 ) dulls. fWent. From theso impui ies, cor.t.u: .xd with f wjif Il 37.31, continues en hand, leaving great labor, and, the committee irusr, who 3 665Wq as tlic amount, voluntarily assum ; opinion expressed by the Boston '-office. s To was indebted to tho parent bank more than the officy at Boston, its debt fluctuated be- six millions of .dollars. tween 3l,0OQ, and 213,000 until May last. It might have been supposed th?itthc prcsr siuce which it has been indebted to Baltimore sure of tho Baltimore office upon thise more from g50O to .!7,000 doll ies. Its debt to the north, was owing to its being pressed by the oihee at New York, has varied from 100,000 southern and western offices. The fact wdl to st,917.O00 and until October last, it has however appear from the table xl. that until generally, owed that office more than St, 500,- September last ft 'was i tdebted to the office at COO. At that time tho New York office was Lexington, that the debts of Ciiicinna'i. Chi- " . ft 4UUflflftf ML. . . . ... great care, they have ctdlcctrd a raass 01 in-pj the bank of the United States. The rQught:in-debt to Ualtnnnro b'J7378, ttsdrot "Coiuo- ami hmnviiic to it wero small in formation, which they now submit to "'mraittee have uot found any evidence of the isi November" last was SlO,9S.; f he ex pi a- aaiount, and that the only office which has cta- house, andhu:h Will be reiermi to in iuv . kj) ,.ivin, attempted to oppress the state. 'M""" 01 luci0 . ojtiraoruinary reoucuons 01 aian-iy owcu it, is ixew-ui teans and tUat ine nam mi re ueots is given irom tnecircum- ue noi 10 a iaig; amount until lately, stances of Treasury dr.d'ts on the titjrth being From these facts it would seem ,to result drlivend directly to the Baltimore office o;r that tho embarrassments of the Bank of the scut to it through the office at thi city ; and United States in receiving the notes of all its verified : and of the- testimony of witness-' tU riie bmk af- bet-n in n,- by a check on New York for more than a offices did not arise s much fiMmtiie fair and . n i- .1 .:.i, ..f : ii'iiiuiuM"" - . ...:ir..... -:.,.. i. ., :.. u....f t..i, , ..V,,-. t,., 4 unl.n r -i..- CS, and Ol iettcrs 11 uiu ioc riaiui;ui ui uic iii- stirufion. The Committee are aware, that from these i 1 ..A 'l'l.,n ml.lfim'illllll r.' Tl 7 course 01 uus rrpou. ma imiiuoii-- hank, cither 07 WiSuioiKietnanus ot spi-cie or stats of tables, statements, and extracts made . , r.-rtioii of their notes. Much -com. by the committee from the books ol' the bank, r. j existed, but in the instances ot by them compared with those books, and wj,ich. ;nav cW to the kno.vle l-e f the ! . . II! - ' - !.'! . V .A. T ' . ..1: .-v .... I. 1 . I I . 1 , . n. . a . . a I ITIIIII!.! WT I VI'M II V f I I'MPPIir 1,'inif I 11 Il'l V Itinfl I Ill'lIIII-fl-V 1171 IHT1(- III I l H' 111 I" li til I ItT limm ui'i.iv ami mime trf tncm at tfic westward r . .'. "J r: i'-v - j .... ...,.. , " r i .. . rf...iiido tirnnnviii,.Q . totcign oills ot extdiange, hcremaHer men- ucm calcinated and provid d I r, sis Ir m t.e ? ' aV nivc inet its dematuls ior its . Baltimore debt to the Parent excessive discount granted at some 'of the- Bourcis 01 imormnimn various uuponaui m- . . . , Iti nts HH'l reproaches auiuinu x.u.uy ij umu mu- I'dunu.a.i; iai nii.o mio nurjuci- ferencesmny bedrawn, ad upon them theJ; intended 'o troofdSho Hpiusc " with H has generally excecel 0 millions. phia,and the drafts consequent um thoa. D.ost jjitercstirg opinions mav he nredicafed; : "J "l,,uJcu ; r . . . , , Notwithstanding their heavy (lib's to New- counts which were made upon the other offi it has been their intention, however, to go 1101 opinions may r,e prcucate..; , VJ,rious ctts hich Jiave passed : intention, nowever. to co 1101 . .. . . ...:.r. ..e iun iwk, u' ii nu further than was required bv the resolution of , V V ' ffa ; iv 11.. iro at theBaltimore office on those places continued with its offices, it is obvious that this was the fork, Boston and Philadelphia, the drafts of ccs.F mm the correspondence ( f the bank the-bouse, to tvoid speculative opinions unon ' ,, . . ..:.;:.; .1- 1.. r tu i. , unmicrruptcd and oxcessive in amount : that opiuion olJho dicertor.s and Hi.? officers ; it is vi.nMn v..l.klA . thiiHe iflfl!w,l . to what llinv flepmoil nrariirai nUirrfa of in-1 . . These objects seemed to divide themselves in-!f conducting with the alleged rigor tow aids- jt wxcr lluj a sufficient quantity of notes' to mitted and adopted by th&Prc.id nt xi. and Li toiw classes : those which related to thegc-i"K' 8tate hanks, the bank of the United States me..t itH demands; that they did not 'remain eloquently enforced in several of his fetters. nrr.ii niatisig-me lit ot tlie uatik, and the con- " --vi twenty itir uours in uus omce, ouiwere con- uuhmiiuu; i h.h m-rparcv io.B?y inai ' s . Am. t9 w 1 f 11 fi a tr Piniiiiiriin a . .a thosj which were ncreahwi muaiu. nu.vo , uruhwm stantly reinjued to ti; . ir a 1 - r 1 a . 1 n in t ia place, it is prtscntcu 10 me - t , g37lJ000 ,0Iai3, am, ja,i rmvn. refusing the notes ot the o'.ices in the ren rt iicdviu. ed-tit fiom Thiladelnhia g 1.097.000 in its of the committee x and it is more stroiulv ittec arc of opinion that instead a,wlUet it is stated bv the Teller that ureed in the Ic'tcr of the Boston office soh- (Iiict of the officfis ; and . connected wnh the question of a violation of by it9 acceptance of them in those plai hs rhitPr. Ac tn V. wnpral minimuMi where it v. as known they would not bo eftheconceriis'oflhoinsritution-among the " deemed in specie and-by inakiug them, in tho t:mnuif h innnirv uhirl. gnmami t. Un manner Ik-Ioic mentioned, the only circula- Riost lumediattlv interesting wer e thos - ff medium iij that part of the country cifrillv places, 1 h 1 jssut;,. 10 north with the drafts an uniformly equal currency coujd have been And there can be no thuibt maintained under the most 'auspicious circum- ona comparison of the statements referred to stances ; they arc inclined to the opinion that connected with these facts, that (he drafts such an attempt would be hopeless, "but they from.' Baltimore given: far the proceeds of consider its abatidonmt-nt'&t the timeashav notes discounted, were unwarrantably Inrge, ing been produced by the causes before . sta and much more than tke. balance of trade re- ted. t he cff.H ts of the bank to meet the pay--. J, i - , mcnt ot its notes at all its- o:i;cts north ot dated June 27,. Charleston, were certainly great and i-ai ticu- irectws-xousider- Jarljiat New York au l Boston, as will appear h tlie low from the res dunon? la vike;! ;"''x'vlTaid the ac- It appears that the directors cS the bank,' but temporary, & experience has hcwn.that,,,, jc .j iauivu5,,ai deposiU'at count of specie remitted- xvii. Tie relii-p on its first invituiion, and up to the 23th of at "IC sam- U,MC F SM)" aupr u,c lt,us,H "l your oiliavand the magnitu'do of your dis- quishmcnt ol ttie attempt was involuntary and n.v m u u uiint..! .uun .1 ikwys v counts and t!i.;sc at Ibis B nk as well for Bal- reiirtant. wliich related to the refusal of the bank and The forbearance of the bank towards the state . .a. a i , a Us off. es to nav itfl notes in snrr m nr ri.v banks w vindicated on the ground ot its oe- other J1 on s oth.es lopav s notes in specie at anv ","l1 "m'l4"" ,'M ..v . quirtd. t ther place than. 'where they were made S 11,0 U1CU To didue th.; resumption 01 Jn inter of the. Piesidetidat. ifaTi.niSlolbrin-"acficc o selling drails payments.-I his . li- cu it really owiogj,., bKerveMrlie-Direct.tfi n each other. .' causa, has Lecn :p.Actl to h.tye been but. j tmwH otheP tf,in mcntione. . . . .. . ... ..... l.'nf lnn.11nn.1pt' Xr f V MPIIip.pn I V ! C lillfVV n . I il A I . - S ' .. .'. . ....... Aiiffunt- iS!f. jtMii'iiiitv iulpavMpi tn vr. the ban . J 'V A .... ! ..r a. i.-f.. deem it notes at all its offices, indiscriminate-! r,ul 01 s-",u, cs mW-l' u Iv,noi-ih f the city of Charleston. J0n the brKhH tu 8,fF"J cvaJe their specie pay 7tii day of January, 1817, it commenced ouc-'1"011' ' "l Linens bj discounting notes on jdedged stock,! So long as the notes of each office wercpay- tricted in conseqnencaof the daily and exces-, of the office at Ba!tim ire, it w!l appear very and to stockholders only, and bv tlie issue of alile nt all the others, and the.' -office- issuing HX(i drafls from your ollico smd "tliis Bank,.' satisfactorily, that the coudact of the bank I. tl r .. . ; . . . ... . . 1 p.. j, ii.: t . . . . , . ' . . : I .1. .. i. ..U5.. : : i t nauiv ior men- r- wiilCtt UUS iiecome UiC SllOJCCt 01 great animaa- anu uiai. oim u in. int:iuoj5 i-n- urn-.s,,s,?7n .H timoro as this place, and the Very inadequate From the testimony of flic Cashier and and dis-proportioncd amount of discounts to .-Teller of the bank, the teller of the bank of ... . - . . ti' ' , " a'd.t a- iia" Which tiieQiiice at New-York has been" res- iNorw America, and ot tne casmcr and Truer lis bi'ds. t he (kfTirer at the head of the Trea- them was not exclusively sin y Depart moid had rrneatidlv ureed thciikmittion. the discounts at, those places, coiiunenCeinert of oneraiion?. with ihiiisrainst whtch there was a balance of trade, counts .should 'not bo. exceeded. version " direct that the then amount of dis- rdusing the ilo'es ol the braaciics, was per- i'he same 'fectlV' fair and equitable ; 'that the bank and lui; l,V view,' as it appears, -of listening tlicjbecame larger in piMporlion to their indemni .: language is heJd irt other letlers. xii. xi, but; the Baltimore o!IiCe promptly paid' ami iec-iv-reJemplion by the state btuLs. of their notes ty agamsTtlemands..'" As the notes of the of- it terminated in unavailing remonstrances, !ed all the notes of. the -other offices- which iir specie. Vide l.ucis (rem the sccretaryV fices were rapidly carrjed off. the payment of jUC Baltitnore office continued its drafts and! they had paid out p-cvions U the chatigo of the Trei.8trry to tho nresideut of .he bank nl these didourits were necessarily made in the the United States.' Si h August and 29lli No- notes ofJfiie local institutions ; and thus it was - vi'uiber, isiG, marked i, ii. .. , jone inefitaldeeflct "of the old system to in Effoits on the pan ofthe Treasury to in-'crease the debts of the state banks' to the of du'etlc lot?.! banks to that measure, appear! fiecs of the bank ofthe United States at those to h .vc brcn abortive, until the bank ot the places. The demands of the bank wero suf I'tiitei) Slates made 'certain propositions whi: hi fered to accumulate improperly, instead of ' IlitUlced nrpnri itii.tio Ki i..-n .1 .,.i,i.,.. IKi ;.m- irrmlniillv roil 111 -ed af Rnecie was rennir. r -ra.-jLr.r . iinui 11 niiu inv oiiitc "., .: -i cd at other offices, and in small quantities that would noJUiaje been felt.- Their reduction was not insisted upon sufficiently earlyvandvv hcn the bank began to call for specie, its demands w ere so considerable as not only to expose the local banks, but the citizens in their vicinity, generally, to very severe pressure. By substituting the credit of individuals for the, payment of - tbo second instalment, which will be presently, stated, insfeadTif coin or notes . of state hank, the bank of the Uni ted States in a great. measure deprived itself ofthe early and prompt check which the pos session ol their notes would have afforded, t the more extrpsiv increasejif local papci In Julv 1817 the debt's due from the state banks "2.0vj0 while uTe. notes its discounts and ..dnihrdi he specie fro:ri the 1 the system, wherever application was untie Northern offices. And u h was tho' want of j for the purpose, and that in no instance hac firmness or of foresight in tho parent Boa rd, I they ref used t do so. Injury i: dia!)iyvaT7 ....Hum, wuiru liKKiiy resulted in a ,com pact contained in the resolutions of the board ot directors, ofthe 34st January, 1817, licie :jvitb submitted, and marked iii and in order exhibit how far the bank complied with its compact, a statement ofthe loans and or notes issueil, up to the 20th February, 181 7, is sub nulled, marked iv. It can he necessary imly t reftr to the state of the paper currency of the country at this period. Tfie notes of the n 11 rinnr'n k.,.. a - v...,nn vi e variously depreciated, some as much as 20 per cent, while "others-were "i a premium. The excessive issue of paper oy theJocal bankchad caused an uunatural Old aitificial dj!,f. 5ui;.... ..i ...i. .i.:r 1" -.otiuii m auc;i intiivr M i1u.11 My irme, and moderate, but steady reductior4 tb restore, not to an tniiformpar, are reduced to S3,972,0i that afier finding its repeated remonstrances disregarded, it never removed one, of the of- fen Jing directors, and took no"effectual step to control them, until the adoption' of th? ge i.eral resolutions of August '28th, 1818, for bidding the offices to draw on each other. The effee of these excessive drafts on the Northern offices, was to compel, the constant remittance of Specie there, to cripplo them in all their operations, to limit their discounts to a trifling "amount, to cause the revenue paid there and which would itself have been a capi tal for business, to be drawn Southward, thu' comjadling them to deny to tho debtors of the government any indulgence or .accommoda tion in their paymcnts,ito bring those office? nto ueot who tlie State ii auks, to produce a general depression of credit a:id a severe pressure for money, Those places wero in act made tributary to Baltimore, and ali ' heir means and euirgies were reqtrired .to supply its extravagant issiic3 : suffered by those who had received tfic depre ciated notes in tlie usuil course or business, hut the committee cannot perceive how the bank could have changed its system in any manner less in juriom to itself and less incon- tliat was venieqt to the public than adopted. From this change .of system, which placed the notes of the offices on' the sn.ma footing with those of the local banks in their" vicini ties, resulted a greater difference in the ex change between the different parts of the uni on. The offices at New Orleans, Savannah md Charleston, had never been included, in The p! la n of equalizing the currency. : They 'lad always been left to their- own discretion in receiving or refusing the notes of tlc other offices. In May. 1817, the uffices at Charles ton and Savannah were authorized to draw pu hose at the north, at a premium. In: April, llmt at , Lexington an Cincinnati werhaii-
The Raleigh Minerva (Raleigh, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Feb. 12, 1819, edition 1
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