Newspapers / The Raleigh Minerva (Raleigh, … / Feb. 19, 1819, edition 1 / Page 1
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of the resolution nf Sfith Tut. nmrWoil 'wV hALKIOI'jC and in order to. insure the irwutpst utnoimt .HfTED, WEKKLT, BT aA'KVBT AKD 0ASS0. , EDITED DT A. LUCAS, j .. (( p ,;. ()f . , Tli'ettlollrs per year, one nir J at J. A JVnd'V . vj, No paper to be contmuea ion-; ol 4.,.iu34 iom j.iovu P t emon lis after syew subscription oe- a general resolution aUlUOmi.tg l'l va.de and Cashier to discount all stock notes (h i should be o cred between discount days to . certain amount, and by various resolution adopted at different meetings until 7th Sej tcmbcr, appropriated tww millions of dollar to Jheir disposal: for tha- purpose. The paper tot! prUjsn tl.r n, ,,...1 h.re been Riven JtJvr '" foP .Senivfiw cents escl. sub throe io; ' , . i..,,, nroportion where there jequent r wf jinC tburUcn. The cash Snntion ea . ny e U received wllh.m jjAounswrii' oj 5J j,, ,lvance ; and no d.ieovi (1r,....) .-.mireflf-- f, ... . Congressional Proceedings. efTitU to ate matked xliv. Aud on the o ged to tb:dWiulmron fthe 4th Aug. (817, au thorizing I lie president And tastier to discount notes, as being euniiecUd w Wb ijirris r pro ceeding evidently calculated jo enhance tha priw of toekCby affording facililiei i to the ink ing f prompt purchases, it is stf mare biee- .. ires of stock herein before referred to, thef !"." b,n a wbiefc,'. hie 'iiirii j vu i vvniuiiurq mc UlrcClOrV hud no right to grant ' o stock; to its behest Ki t. Thp com mi ttce I not deeni it necessary to repeat she details. t.ich will bp Tound in the examinations of the iiectors and othcers, herewith subnitted, ii irked Iii, liii. f By compKfing those examinations with the rlitwft will be enabled to. perceive which of ie directors h iv'e participated in this busi ness. With respect to, the public, directors msideringthem as public officers, responsi ble to the.: government, and Hutject to the con- :itiitinnal power of this House, the com mi t- SOih September 1817 the resolution already! tee dwmtit tlifir duty to state, that th P esi referred to. niarktdxxxhi passed authori.sjtig! ffe'nt, Wio. J .nes: esq. und George Williams. the.Me offi.-cs in cases to renew the stock! so,. aj; ear, Iroiii their own decl:tratiins and notes aa they fell due bet weeu discount .days. from the tcstioiony of a number of witnesses. And wllen. eonueeipil Willi the power uUo ffiTen totkeii, of iodeiiuite and unliuuit-d renewal of the stock uoiet, it wti placing the great bulk of the capital of the bank entirely within their eoutrol Tie tame prae- iite appears io nave Been ..a'inusl universal at he office io Ualtiioore wherr tM preaideul and eual ier, a ajpar by i heir oxafuj nation, luve, under the authority of the board juf directors at 'hat place ahvay discounted notes, vithout an eud&rtar, secured by a pledge of sjock. As they were not restricted by the board- they appear accordingly to have exercised the power to a very cnnderable i xtenl. Still mora objection able,, in the opin on of );ur eoinuiittee,.. ia tha practice of that othe of all .wi"g the provident and Cashier to uurehasB or riini'uunt drikTla ami )f the nriccs r.f sto k at the . pcr?diarii d'!ivrai.Ie 2d January. ISIS, aiid-. hilUi nuvable from siiht to mtv davs i ieeaui cave ajiftferonce to stork n'des ovcr business' different periods, wlu n those resoluti ini were s n after auothr contract for .000 shares,! in those (iiseoutitSv the personal seeuiitj is tha p.i'r; their reasons are couiameu m meir adopted TnarKea xiv, Horn wltK ii tunc el- nvrraoie in voiuier loiiowmg ;it iooi- msi imporiani eircaaistsoet. it has been done, examinations But when the Cowplaiot is, feC;t jn enhancing thu price uf.Hhares is rery I trs (wr share, bxli of which he says, . Were to very, large amount, though no los appears thai the Bank had more capital than if could clearly exhibited. It will appear from that 8 hf al'gtSO per shire? from which two con- yct ' baVe accrued. At Itiehmtmd, au qual. eninl 'i. U i" singular that any busin ss p;unr tabic, that the price of shares at IMiUadi Iphia trac.H. ii would apptitr, he realized 33.00 3 dol- '-v l,nl,roPp l'S',iffl f P e' W the eashier, should have bei n rejected. In July 1317, the 20th of Au:?. 1817. wu, according to lars. There is much ambiguity rests on these I'Pl4a bave been granted, in authoriz g that kind of paper, to the amount of about the public reprn ts, g 47 30 ; according to" the transactions, arisior frni tm- imcumpatihle di-eon.it notes oo pted. t-d stoek at BU Uoo. a,d in Angus. t? ,he amount of testilnony fMr M-Eucn. a broker, itw,s Ub atermmrs f Mc. fo?. Mr. George Wil lVnt if Annther. and probably much ir.oi e censor able effect cf these various rejoiutions and pro ceedings Avas to keep the price ol the stork ro hare becnclwpl concerned in those wpe r ul di'ins. Me. Jotys apjiears to hav pur- clmsed ) 55.1 shares at a high rate, anil to ' (-Concluded from nir last.J i.. Hi.ter are su. prised to find s- lit- i. .rood business puper done at the Hank and; lis offices, where it was to own reason- constantly advnnfmg until Jt readied a pom. nave sold i-ege part ot diein at n loss. He a' ly fIpected that the merchants would have where it exploded and fell. "Fioin ar;ousyHtates, that in the sm oer of 1817, he purclias-;6.,i-m tranactin: their business.. I'iie dU8oUiWof. iiiforinatinn, the connnitt.-e iia've!() a contract ,( oa slnres at 132 dollars rirtorsthctus 'lves avow that they nnirormly Comiiled a table of the i ... tnff CAfl u..j fi.iorlmil at I'lll DlJlMlllllll ! ll.o toinn l.l..A ,in tUa Qffl. ,r 1 1... HaiT14. Air. I I. '.Mni'tl. and All' .l.inllli w , . ... ap ui j.pvu . - . ....... , u.in, nniivn.v ,....vv ...i ... ... ,v -" j.-.. - three weeks, the directors of that umce had tha altd at Baltim-re io fuly about 407,000 ur.d in 8ame month, the price was &156 SO. The AlCulocli. lie jhree latter gontlemen ap- wjoin t0 ahandoo it, vj.Je p-n of Riehmotul August about $183. 00 were rejected These resolution, authorising disc turns on stock at laf to NjHak of tip same coiiti-ar.ta and pur-. ojict) xjvi A, ,he ffi,e iu lhia cjj ,fae m tarn are not precisely accurate, hut are sufli- g;25, was passed on the '26ili'i? the same rhasi-s, bnt give accounts of them somewhat or t:a been discreetly limited, ami as dinereet- ciently so for gcueiial views. Whether the pa- month, vide xxxv. I hese lacts wsuul, in variant Irom I hat tj Mr. Jones ; pni ticulnly y exercised. Two bye laws of the bank seem per w'as such as ought to have been rejected, the opinion of your commtitee, be sunt ient to D -tmis -. Smith and Ja ne, W. .MCu)loch to your committee to Reserve notice uae of tlic rommii tee have no means of dftct mining, condemn a syatfisi winch thus ctublcd a spetk of on of tt' 'coatraefs, or of some them, that no dieounts i ali be inado without The am mots rejected, are probably'not uuio 8tot kiohbor to' sprrt with the property of otlr, as having birn preH o ed tVMr. J.mes ihe eonsent r three-fourths of the directors tha' tn'zM be expected Horn a oanic doing ou- others. Stock obhing, to an immense extent, ge.uuiiousiy, alter ne si . k nan risen aim u i'""fu'j i y fr, witr.om , .A.ul . ,11 lilt CtluM Z A. siurssuu surk an exteusive s ale, at anv oilier aH;j Wai;ers, on the price or shares, were its was oovioih mat apron: would D. realised, tit oj, -.. i.hi.uou i icspeci time than when. it was anxiom to employ its inevitable conequen es. It gave equal faci- winch- Mr. Jones makes no inentioo. Mr. Jl' c"h Hou"1 ny person with the bak, capital. Nof an insuwe has oorurrwl of a H,ies W the-baukn.pt, who bad not credit J '' iar h aotesecured by a pledge ol stock, being r- enough to obt.in an endorser, and to the ca- " A- dtnith; Ml. Smith says he. was ne of ZZl by the eoJi Jetted. . pitalist. Stock could be, and Wis, purrhnsl, tbo pn sons wl. , y.ide o::e uniuetfiii tanuarv 101, mc uoam rra nt- wiiiiout the advance oi a cent, uv rinf OilV. !"" i ' -ii. I'Mii-n, ui.li mi : iwipi iv iiv.-1'.-i rp.,n . ... .,. a.. ., . 1 ..1 . I.m.I . . 1 r..n. am. I IV. n . if I . A I . . . I. 1 ft. ioCftr..l k .1.1 It.'.f ll.i. irttft' ..n...l. .v. cu diaper inarneu ivi; uoiu miu hvi cuaser, wiionao oniy to.appiy 10 me uirec- '-" , i.i. ! "" - loriiier nai.K ot l e United a a'es, allliouu the S ith February then next and to the 1st. of tors 0P to the president and cashier, between to .000 d dl.us, was pa'ffl i t Mr. Jones mo 1 4f the local banks in Philadelphi have July tp discount notes to those who should discount dnys, for a loan on the shares, ab mt ,a " '? Although the precise iirri'Tls n t, similar i-egulatirtn. iSh.mld a siate of ibigs. Dave revenue uonus to pay uiiring mat pnou, 1 1 be bought, and, by what is termed asimul- sl" ,!' ".v Jf 'ips. y i v is ouvious, irorn xii, in wuien .ine siocKiupKiers snouiu deetn- The amount done under that resolution was taueous operation, he obtained his disc mot, '' .'''' af whi h tlje controls were pmrbas-' th-ir interest hostile lo that of the nttiou. sueb email, and it does not appear that such notes vv ith it, paid for his stock. A rise in the' 'd ,l,lf t mist h ijte been some time anterior provisions 'as thoe stated would render the g-iy lave at any jine been discunttH extensively, market would eiiatdebim to s.-ll his sfurcs, ' 3.lh of Yujusr, t.817 j f r, at' no timr eminent directors mere spectators of the pro- Tlii.npinriiial1iiitiinesqoftheR i.it rprtjirilr t,. i. . ;. .. after lh:l wViml.. Im-inw-rlie iop S ,7. vums C ' dUTs of the board. 1 ie committee endca- m .. .j... ... nn mi mi. uiinirmi. uou imii:ui iicu. Oajcra- , ... .... . . . , - , . , hat tlio resoiwnm-oi "'.v , ... -p" mt o,i stock at 25 T ,ca ,ue "e, paid, ,, or lias been to discount on notes secured by a tiB8new.' And the committee are compel! . 'd Hhrk H ) I'wns ;5. Iitit ph tlge of stock under the various resolutions t 8(afe, that, in fact, the bnr. st loans oo thatd.i.te, aulhoiishrg d s o. ihe irreffilar of th payments Lo ob'ai'i an sure unqualified repression. Besides, the usefu ti, the merchant, who w -old avoid the. V " stnct.y cor,r,ar ob ertion which arises Irom Ihrse loans, bene .Mttlnn huruA bv renuii in? an end oser. ,vrn '''W lcirraiw,lM " ' V' ,n,l ,r"1 ' ' " ' r.' in tneir nature pcrpetui curtly was abandoned an act of self i yond the reach of otan emergency liable, so large the 20th October last, cured by a pledge of the bank kock. and then ,l,TeCt"r8' okers.r and speculators ; and nave (he ,ice Mf8l,h.k was nuicrial : -.1 .i e u . ueen ii.iifcu aou ;o:uitiui t mm i uivai iaoi v k'iuiioii uojmiii n i me ioiihwimc places : ai :.,f,t...f . ..t i.Ij'i inri..n rrt.lijil'.TTiiT" :iptni' lint i small ain iU!ii ot siopk ueioii'4. iie o- u.ane. an personal se- atia would be highly ben.-ttcial to tl.et hank, """ " vv -- .vttUa t:n t,.rmu n.id.o.ho.e.to. k. . it ,ppc, r to have been wlcn strained within, moderate lLnits, a,d ?" T,esl'wn . voose result was ;--t " eserede anted to the lull annolation, thus to place, be- nd mildc nermanent. -'' . l! W ."r ,a " "!" l" ' I, ,.o,k with the nroeceds, ,.f the institution, in the event , V, . wppR . . lred n.mseU in t..ar H.tUHt.oo j i. vh , they paul a,eir liistaKtients', including , to whtch U and all others are. "nn ' , in tll5, .Ir T 'UC 1 ' "T ' "T the funded part s well as the specie part. I'he aportMUof its loans. On ;fr i " " Vi. " 'i ", uv ?av rmni,m. : . tniostiee of t'his n.ocee.di.is: towards hoe who , a statement was made u" WtLf a . JZT r ?,rn,ajv 8 "f st ,,Ru ),,Iflrs r$'rl"'r1 . really paid .heir instalments aecrd.ng 10 .. ... . and trader, but totk-w persons consisting of 4,,'.r l.n i. ...Id aiwtaio f. ooi .ai eo:i-c in ia ' ' i .. .... ..:..t hent-ni fro.-o those payments than Ihose sloei- ariAbly j m,s ajj,:.strs to. coirsidcr then as I Ji ;.oldcri who substituted their stock in pUee of vlietun ,rlvate oiici i iis , itlu: . 'jot nittee dcfin t!i" :n H.-'ei awd find .I debt, inmist obvious The lent o. :;i!naj0jv ciinnecred wi:h the nub'ic tn uugo- mo kihil hal r a ly u vr b 'en pail tor. bat in.ii. .t.,i. i. coo enn a ii r i ' i t t ho option or the borrower. And wlien J'liilEdelphia i.fiS'.SOO dollars, of winch T , . 4. , ., , , t a i-A .1 h i . . , . . July last, tne board decided a curtailment 173.i.iO dofli rs was above the nar ..value r ut . .. . '11,-iiim... .1-s, ..,.,.,"'! cas,s mnt of the ' iMstitulioo of thei AJl k IllJ-f. V VIIIJ H It 1 1. II il l-UlitAL ' xl I A . - ' be ascertained what proporti was above bpb7"es W'. vhdr the immerise am u-.ts an(, j,,,,,,,. r is rr tll. ;i,us0 ,,,f!g.. i.n .... u .to Lis..'.-.. ... : waned on stock .dodges were but little aft --fed, v. p. -or- Wdliams.a.ther oiir- di C- c.J 500.000-d-,.llarS. at Charleston -897 4 0f fxcept.ne at the olHce at Richmond and ash- af)p,wH tv, he,,.; deeply conrvrued mnih, 'hxl, S2,0C0 was above par. at Washington, 'Vf""' ul'nre ,hft c.JrU,l,,ent Wn tu UllVe i ibe pure!,:. r sock, and in t'.e m .kin c The ro .t a,, 208,570, of which but a small amount was ?iA "'y ad notes. T - and purChiise front r acts for thlei.v.-y f uusc oidu. t shove par: at Richmond 09,80, und none above par. ; .1 beie arr no accounts' from the la wfulness wjc'4 re;t.'a.ucd ple-'ged'f-r t v. v ry credit giv- - e:i it, wis eotith d t i Jf iiv ami did driw us . iou 'i divii.ml us , h it ,h ch ind beea f-irly Kid puneiirally paid. idso-iire of all these instances wus . he. illegal and .? epreiiensi- Bui the discounts at those pl.iccs on stick stock to a large ahrmnt. Evcev witii-ss hi. division .of. stock. By tiie list luiida- ! were very saiall. particularly when compared- th it has been exami ie I sneaks of Mr, vVsl- un ntai ariicie of lip charter, no person. o- ...... , '. . . .. ii ,.. . i ill.,. I other fiffitvsj. the directors having required WW' Baltimore, where the loans were such and liaa.s, himsell. declined stating the amounts p uiiiers.up vOi- uouy p 41m... snaii ue mu-i statements onlv froni th.se. who.se discounts fi0 ,,mS n;'inued as 'to receive the animadver- and prices at which h iar.;!iased, and ihe. to inore than thirty votes; aad yct, in-vi da 0,1 stork exceeded iO0..;0Q. A statement has sions f the parent board. An unwillingness committee did not think jn-uper to insist urioy ti Jfi -f4!iis provision. i.'wUI r.pp;virr fr. o :ha been furuialied by the bank of the amourf '"jw the private credit of those engaged his answers, as they had already .obtained ex;;;n. nit -on of T o n is Leiper, G ogc Wi.- tliscoiinted at the above tilaces. and relhair.- 11,0 above mentioned transactions, where, satisfactory informatioo .resjiectiae :bis con-Jiains, 1) nins A. b.mth, and James W. lug unpaid at this time, mai kiCiHti differs somewhat, hut riotui ate rial the sifttement iu Ociober last; by that ii. which ' .public good is perceived. be'probHbje duct; and examined hi n chietly to givelihn M'C.ul ich.it wis a com rion and general llV, from'from the-disclosure, induces the committee to the" opportunity ofviuking such-evjdrUiows practice, wvll known to rjiejitdgeaof the-e-lec-hat state- wilhhold the mention of tbcirltauies.' s he thought proper, of which lie was adv.9 ' ttonand t l!ie directors," to Hvidcesiin rocut the total amounts of discounts at thoj But io respect to the directors, tire commit- ed at the time. Willi respect to the other ta smr.ll parcels, varying Irom one to -twenty bank, and at their officci, on pledged stock' is, tee consider their conduct intimately connected public directors, M ssrs. Pierce. Batler -nod shares to a name, held ri tin: n imis ot pet S.O.UW: and by the general statement on 'with the ce.neral manaeremeut of the concerns o!m -Connelly; it satisfactorily, appears that sons who had no antercst 111 tacni, and to voe the 1st December I.:st. the totnl am..ut of: nf Ihe Rank- and under a sens, of. ihe duty they were 11 -t in the least Concerned in thf upon the shares thus bed, as' attorneys, I of , - -- - t'Jiiu iiuiouiii ' i 1 in, m.M nnai uiiu 111101 u o im' .r( -uv w 1 - . . .. . , fh disfoimtsat theb.mk and all its o.tices, devolved upon ti.cm, they state that many of stock-jobbing transactions, ami w-.tl. ivspect.. thfc-pretended proprietors. By some ot lite is 80)S.712; the differ- nee, between which i the directors, a well those appointed bv' the to. Walter Bo.vne. although his residf.nco in; witnesses rt is avowed the the object was to M'tos in the amount disrupted at all tlie-otberj-goyernmeiit as those elected by the stockhold- New-York did tt give the nom-niltee the influence the. election. -M;-. Diir. one ot jwu.es not above enumerated, the cimfit'ers, appeal to have been the most forward same means 0! inhumation, yet no eviil-mco; Jic jm.g-'S 01 uieeieaion. siai ui iirum tee have roinpiled a sUtcmer.t xliii. wliich and the roost active, in traffickingJn stock, has boen discored to implicate, him.-: Jona-; himself. Hie ..effect was, that Baltimi-c, fxhiliits amone other thintrs the total amoont The mere imrrJiasin? shares with an intention 'tiiah Smith, esquire, the Cashier of the B.titk.! which had about. I 7th of Ihe snares owticJl ny f discuunts at the Bank, and all its officers, at different periods, on personal security, and jn Pledged stock, from which it will ajtycar hat the largest atniitit discounted on biink stock, was in Jahnary and February, 1818, Wlli'll ! ...... n. . ' . . . I he mere purchasing shares with an intention was 11,244.514 dollars. From this recital it will be apparent liow rgr a portion of the capital of the Bank vas thus placed beyond Us control. Although Uere have been some fiuctuatJon in the amount 'i these discounts at different pei iods," yet the fivatfst part of y,eni. indeed the wholeith ju. nh few exceptions, have been constantly yntwed Irom time to tirne as the v notes fell j , : i " "mi aim six ; inoiiiiii, Jmuffjieij Siibscquent rt oftheJJank has wjioljy at w ar with the profession of theH - noting temporary heiuLoutin the recital ... . . ... . .. ... . ' . . .1 . . .1 . . . t .1. eir f Miinin tlim. would not he imnruner- even-lias had considerable dealings in the purchase-imnvwuars, gave more ii.a . -!- "u in a director, if made without anv view to in-land sale ot stockand in making and purchas-' votes that could h - given. tended future proceeding of tlie.buard of which "S contracts for its delivery at future peri-j , In that place Hicre wero'1172 shares taken he wax a member : Itit the practice of pur- od4. The rcrn uk is applicable to J. W. , u72 names' by George, Williams,": a at chasinc at onb tiraei when the stock was low, M'Culloch, esq. the cashier of the office at j toruey, the whole o whic!i on ex iinmati n. atidyselling at ahother after its price had been enhanced by the measures adopted by the di rectors, is certainly unfair . and Censurable tia the perversion of a public ai d honorable trust to the purposes ol self aggrandizement and places tho directors in a situation win-re their nwii interests afford a stronj: temptation to the abuse of that trust. Still more repre hensible is the conduct of those directors i who made contracts for the purchase of stock d Urerableand payable, at a future period, at a 'ow rate, and during the intermediate time. oy their ow official acts, raised the price' of Baltimore, to a much greater .oxtcnt. Al though these gentlemen might have 110 direct agency in the measures wj icli wero to attect theVprice of. .stock, yet 'the; influence of their stations "ought to be great ; and it is to b la mented that they .should have placed them selves in a situation where the exercse of 1 that inffuence might be ascribed to improper cAUses-j-Willi-respect to the other directors, their examinations will enable the House, to determine how far they hf.ve mingled in thexe transactions. ... . . Besides the objeotionvjiieb ha already been. he owned. At Philadelphia, nearly one third of tho shares was owned, and the votes given at that place were about two ninths of the whole authorised. -For. a move particular knowledge of these divisions of. share's tho committee refer to the , statement here-with submitted, marked xlvii. 'hey are not aware' that any remarks' which, could be made by them could present Ihe subject in a stionger light than the above statement of facts. 1 he same persons who thus held the. power of appointing-dire'cJors'.-.. are .found to have tha 1
The Raleigh Minerva (Raleigh, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Feb. 19, 1819, edition 1
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