i
i
I !
, i , nt'i, ,' irriw !-
. . I- i ,". t tVi Utiitt !
th J tf 1 1." "
nM'''!' the lint'
Il'lfl loaned li.. .U ( ill 1C 'l f '
rmbf r prvinly, od ldua t. II June
mi, at paid of bf " 6tfU ftm
. Wt-Jih, eUnintd M l United ?W
Erase h R..uh tl New fork, accompanied
ritH th foll'ing remarks, contained it
- ltpr 1 ih frtMt.iooi of bank. LtJ
. I- York, March 1 UK. l32t and found
i,jK-, 9, lii'i' AltU.ti U loan to
V U th &mk of tii tailed r
Irofa awine cbarrter 1 tnade
Bm latmrits allowing tlf ce"ity of
accommodation OOT M.nincm,
" an rf our ability to tnt our payments,
' tic-re no N no doubt Ui lbt tho enemies
' tf ibe bank, M a!our piitk ni opponent,
f ndmof t, f iv faF! coloring t
i -bub traiwaclion.- IV foan, lhwsrb
,ltie w
st iVTT Vo" t r. ft tTglVtaT;j"TJnpnf the
ration oo ia. pn u. ..u
This, it no oalr our (My. hut our darfw,
'to prevent, IT posaibi; tad,' therefore,
wi!i some litil lncoyioc lo oursehr
we hav eW arrMfenaU to pay th
nrrfi of 113.00!) to lb. cour of ft few
Tho tJOC of th fMwdfrtl of Ik
... . ipbu4 the chancier of th? va
.moms li aim. and the eirmiwUncw wbich
todurad him to h Mtwd ih tb Men
. Tiy. todtnnkjtht(lriiicej wbich
logtthtr with til tk ttiJony wmI cone
'fmnkaet on lhn vuMect, wiU b tnuxl io
th mmrt markodKo. f. : : a
! that erubjom ft if tUtad. by th
ftniuii.or of VVbb and Nob, that thy
tu i u -1 1! --
. t .'i '' I Ah' r
! t,!.V), nj i
&iv Mhiiif f tb first 15,000 dollar
a Ur mad by tb Frewdent of lb, bank
to Uurrowu that feurrow mad tbem be-
- -limtfmrtr 115,000 -wroaii4 t
, KoahbV bit Cither, atid that ha bad hi
jkt!,f pr ut la rrf o ibai'Uaiwue
t . ticn. lad (r wbkh ioaa Noah allow!
furrow 9 par eeoU, and did not rcm
tt tf fcr aoni nondia after . gimf hi
VoUtitbat the not wr diaeooid by
th bank,, id ibir haiaM. .without .their
MmwMgt, and paid ofia the cam way.
at win tmwaf by tb tenimony pi inr.
-' 'Jltor, rnnite to publication ia th Jattcr
part of 1829, fkoraU to tha tablih-
i. U"d,,i fhranche thai alwrtly there!Vr
J il ftunmenrtui ila rmrMMiliilB to th batik.
"d waforiiitocH month warmly oppo
. id tn it i and that, on or abotit tha f fh tf
Jlnri!, leaiat cnangea itacounw in mtot
ta tt baulk Ctmoetted yttk thia "fact, k
Vu-tTmiaindoo the parTfif ooOf the Isd-
1 Mort; that bcfr tha finrt Ub wa noo-
otiatad h Mid a eotivraaUoo Mfith
. ' genllaaian. fhruugh wpom tit kwa waa
" tuhHMfofudinr f whtfthf iotiittee
Iikiw Wba Burrr.V io Vhidi Jtav Bur
' .. . rw, or iha ditort, (on 61 whom,
-.Z-L..'..:!, lVe3h,had axpraaaed bunatjlfiU laror of,a
"""7" ""BiiMiifie'd rechlrter,) to advocate an uncom
I . -t: :diti.IiM rettftwalr-r" but ' txpwsvi great
. -itatitioti at lanunff that one waa in
-i; i':r-achartrr ttodr any ctrcumtaa
Theomnjitteawill-atale they '
- tl jua to obtoiij tha ieatimoir of Bun
3. . .w T'loa but.wen wiabt to do u.. ' A aupas
: : : f:-':- a wiuf iatued for, bira aud aeot to New
j, ' 1fork,1o Which tha mafihal returned b
' ' f c wiw'u.)t (o ba ftKind. It wa then ent to
' r'.'"'. TVaJiiflfitiKl ' city, : ino! "th; Sereeant-at
,' '.- A " rnsJ th aaaw rf lura. Tha "iUar-
- 'lmt of Pcnn)-fTaniwai Jirectefc'hyHlw
; T, '?.t T Cbarrmaa.lo mai Ind continu a aearch
i ' 1.' "o la ' Philwfclphiaip having
T icard oilai eipecled arrival in that place 1
f";' i flat the martial reported to tha t'hatr
' " , ' m thal' lie lirtau,:ihIitMl
. fcas'-itffived ttat p!Ce$ a Thuraiay
" ' fi 5tt iiiilaiit f but h wM h t U to
ff ,;v' the 'brveea Bccauaa b could tot be
J o an inquiry whether thr were any
! flldflr iiutuik'eaofno'oa being diaopuntsd
'- Jlir t'i accomnMxlatioa ot any merchant
ani triMior. at 1,3. 3, i, atwj 0 yeara cred
'" '. ,'. it, vnlea to aacure a debt la jeopardy.
-. fltfr prcaoatad to (lie committee four
' ""Other caeta. . - . '
"" ' . wtha saer, April Uiacfwnrnittce, Dy
V4 'iwrtlutioiicalled fjf tlm jullowins atata-
. ' lion'a to aasiat .them in. the'elwidatioir f
- vrtain ikcta which toad appeared in other
7 ocument, Vi2l " - )
"lf? A tabular atatwnent bowing -th
tpirreRate amount of note diaccjnted and
anil due the bank, drawn and endorsed by
fcon-reaident of ihiladetphia which will
De louna marked A -
2d."rTh ;iwitfl" amount of rood
J.., lotus ofTorad fr diacount, and rejected by
" ' tL w warn f ij anu cnuorscn iy nnn
" 4ientt -i4 Philadvlpttia, on tha following
I days reupbctivcty t, 0th af Augu.st( 10th
v . December, 1831 ) 3d January t 1 0th Fab'
- Miry; 2d and 14th f March, 1832; 2ith
' 8optmber, and 15th October, 1880. Tliat
-alatemeot, marked KL ' will how -. the
utew diaiBiuited j but'" the
- 4en o(4h-banl'tBte Cbeir inability, to
-iicrimtnat between thoao tbat' ars good
W Mbrwiae. -
-31, The ajjregate amount afaotea'dl-
CTi on paraonal aecunty, and mad
. paible mor than aix month after data,
- w'lK-h appear to be only f Mir 'in unmber,
V' u tha . case cXL VV...WabbJindJOI.
' . 4th. Th azer rate of note now due
- the banV,dirounted for firm or th prU
m a nria, without the nam at sone
pennn not Ulonjrin to the firm, i draw-
r or eidoreer, distiuguiahmg' ia each of
" toe atme rtarenwnta the tnuiimt liwicd to
wraler of Congress, m-anticipatin t if
tbfif p-iy members before t!n j
"W tiie rneral apnropriuti..n lull." "3 J.
And tlw amount of money dua the ITiiifed
' State", an-l nrtdepoaite io the bank, aftpr
' n-J'i' . f?Hefrnn the aum thus advanc
ed tn J' e 1, hrm -Uiirted ""tata art i
" oV-h K'A Usl'y, tft- ment in tfo
ritrt" '' 5 lv Ui.iit iu aim
or taya hya ffiamjuip c Canjrcii
of n' rrsi i,i f Din it mii I " I H, I r ,
irvit rrndr red t the liiik, Bfing the
oMture of the wrvifte, Fir the iiilortnv
Uufi 'Hijbysl:y Ihttit inquiriea, wa paper
tun i kr J (,', Crsidn thrae, tlvr r wer fur
nihr. the ifufrmriiia of loan mad to
-I(tr or puMiiber of newspaper.
If hicb it will apper, that fh acciMnmo-
o.ii i ma io inoMt ne euiior weraupwaraa
of II 0,000 previous Ui th institution of
Ilui iti'iuiry. .xX
' Th varioo reports which have, tor a
long period pat, cbargd th bank "with
too iretpicnt intereourae with brokar, and
alMoTattdiJ favoritism to certain indiv4dt
ua,a well a tli. larg tranaaction
5-' f
which exhibited themaelve uiwn manv
doeumeota-eaJIed for: br the committee.
induced them to iamin partlcularlv tb
accounts of tha firms of which Me. fhom.
a Biddl wa and i th chief partner with
-"Fowr ulijou f investigation presented
UnJvffJajdttUocJa.Uu(i...liaiwc.
Uou with th Laab fs-wr-'
flat. Tb allowing and paying intcreat
ta thoia on depoaitea," ' " " .
24. Relate to certata loans opon tb
pladga of atock, and tha diarounting of
a . l m at' . .V
note mao io i. ima by the preajffent
of other, without the knowledge af the
board, aad on part of them, th pbdee of
Wk, without intereaL-TTb e ininittre I
woaid rchir for th particular of theae
two charge tatb papers tnarkd No. 13.
The third aitbject ia the aurf unt of die.
count mad T. Kiddle, aoi the rate of
lutarart. Th document uurkod No, 14
14 will ahow the amount withe 1 6th of
tacb nxxitb from the ISrth day of Bptem
her, 1830, to thai lSlli of February, 1932
JSy Una, tt appear,, that on the 15th of
October, 1630, lie had diaountHi upward
Wai.uu.wu, ar.4 ba at no time ante
baaieaa Uua $460,000, -The Committee
doubt th polic of aucb large aocoumo
daUouaio mdiauhwlao frioa, at airy time
aa it deprivu the batik af the powr o(
fulfilling ona of the great object of itt in
alitutioo, w hich ia to f iitute trade by
kna in lima of preeaura, and it may be
proper to add, that ib .m large loan, at a
low rate of iiitere ri, a a wbea money in
plenty, art uaually f Jlnwadby overtrading,
which produce pecuniary eioliarrwment
and genaral diMrea..,. . . . r
By a Utament entitled M Remittanre
to Europe,4 marked. No. IS, it appear
that the furaignpurchaa of foreign bill
wnre nade ol pomaa Ciddi and Lv,
drawn by thetn.yiz 1J31.-
Of. 14, 1 bill (JO day sight, t a premium
ot lui wr ceuta. S32.3U9 68
iOetr 14, i What 75 to90 and
. - i , -
105 day a, and at a premium - -
Of 10 percent. . - - "115,111 11
Oct. 22, IS hill at 40 to 13?
days, and at a premium t -
U par eeou.,, , . 502,000 00
Dec. 10, 9 mliaatiOto 110
day, and at a premium of
10 percent. 1832. . jOOJj oO
Feb. 14, 8 bill at.50.toJtL
day, and at a premiura of
Al pi Cl, .,-f -A-119,000 00
. $1,704,000 70
By the foregoing atattment, it appear
that the bank purchaaod, between the 14tb
of Ocfober,l83l, and the 14th February,
1932, of T. Biddl and Co, foreign bills to
the amount of f 1,724,000 70.
-;;- VVrth regard to the larg Joana, th
commute refer to th atateiuunt marked
No. iy,bywhlch lt ippeara thut.rou the
0th of.April, 1S32, the t4al amount of
diacouwUon lull and note at th bank, in
Philadelphia,- waa - t7,03,07 52. Of
that aum RMre than two-third wer loan
dta ninetynine jwraounj to wit, $5,43 V
lll..Jlort,lhau 13,000,003, wjr u,Uw
hand of twentyeven iadividuala ; and
a.ityWVvmttcMf-lr( m" th hind
of one persoiv Tbe committee have al
ready expressed their conviction that these
jarc accommodation, to a few individu.
als, are injurious t trade generally, and
they will add, that they ought always to
be mad by cither the board of directors,
or the committee empowered by them
for that purpose. Fjr bjT explanation of
tnia suojoci, a papera oumoerea io anu
19 ..,.,b.. ;
Properly connected with thia subject i
Ik accommodation extended by the bank
to individual on the pledge of atock. In
ill tha monthly-, statement of th condition
of th bajuY, prior 16 .the fin of March
last, there was no column ehowio? these
loans, la that month, for the first time,
ao far a the committee can ' discover," a
new column i exhibited,- entitled "Idow
on ether $tockttn. and which appeared, at
that ' timev'tif tabm-miimiiM.IM-
fh line called "billi discounted on ptr
tonal teevritj." This charge was made
in eonaequen ;eof call for stock loans,, by
tha House A of Representative. A atato
ment of the same waa called for, marked
No. 22, which exhibita a liat of stocks pled
J a......i..ti Than! rj almnnu Tjt....
wv4BvBnsBMvoywex"arw wwfw v wfiviww-TTww?
vm Stock, Arcade stock, Rail road and ca
nal atock, Coal aompanv- atock, real e-
tate in Louisiana, etc. Ace, amounting to
to the sum of 81,71 9,207 34.
The varioua transactiona ia specie, by
the bank, has been a subject of special no
tice bv the eotnnutteo, and various state
ments, callod fur to ahow. the -magnitude f
hcm.
Tho first ' statement, marked No. -21,
shows the afoountdof anecio exported by
tha bank of the United States, dty-ing the
vrar 1931 1 ' . . W
To London, in Mexican'coirf1$233l 000 00
J o PatU, in Mexican --r'
coin, , " , 620, 000 ' "
to Paris, an gold, 417,000 ; .
lto.y ia mixed hul '
C lion,' 180,000
1,047,000,00
r
" " 1,302,000 CD
21. The amount' of specie exported tine
1SI9, aii'Il ba lounilintllSataJCiOCUl
(fc $b
i
wV-pj. ffclwvv..fAlii v,ip mimkm Hit viSfWhti ww JinWt aSMtin
2.f.!il,3.7 CI
2,2i7,aoi nu
C 1,1,753 69
Ol thia amount, there waa
in fold, ,
In bullion,
la silver,
2,317,027 60
5'JO,7I7,00
1,971,11100
4 l,ft35,733&0
3.L,.Th amount purchased inc lt2,
marked No. 23, ahow i
(K mlvrr, 6 W.WO.00
gfddcoin, .1796 00
gold bullion.
439,000 00
1,001,450 eo
4th. The amoiinrnf ipecie sold eiitce
117, marked No. 21, ahow .- -it
be m lt3. 194.910
Of which thr waa, Amtie . , . '
Bntuihc Feeacb ' - ' ' '
jturnlf h-.4 131 J5..-.
Silver. " ,057,fel 50
.- .5.194,010 2
5th. The amount 'of speci drawn from
each f the sou thorn and western ollicea,
since 1820, lo the Bank fd tha United
State and New York, marked, N. 23,
ahow the total amount to
be 123,023,387 01
of which w.twa.ooi
07 ha been drawn tu
tho place r-
since the first of Januarf, 1928, $70, 925
00007. ;
flth. Th amount of specie, (in the same
statu ment,) sent to the Southern and wea.
tern branches, since 1919' i $890,472 10
Tb premium received on
the pect Jd, ia ' 07,140 58
The premiura paid on the
pci purchased, is 19,171 93
ft OHM Tl
TTh' profit wer mad on the aiiecie
exported, the committee did not call for
document to enable them to ascertain ;
it must, however, from tho great quantity
nt away, have b?ii considerable.
The committee called for a statement of
all th speci .imported by the bank from
abroad, sinre 1910; but, a none was re
tunie.', they presume none was imported.
,. Vbtf prorwrtioa of the. gold imported
waa American omn thu comn'ittee have
nit bt-iore them the meatia to determine :
it tu experted t hare ten given Tn the
tbt(not't ; hot hi kKkmg into them the
Jd "exported is without a oVaerwtnry
name; it ih Ulieved, however, the amount
is considerable.
-1 nvuia UiU subject joinutely the
etHiimittfi nod that large amounts of the
spoeie hav.i boen dmwo from th office at
Now Qrl-an. Of this there can be no
Complaint ; it i the principal depot for r.
4uma of .eut'df.sIuppedAo.Siexico, which
are almtwt rxclusividv paid for m specie
and it cannot bexpflodjhat it. will .re
nam there. Uut the comTjttee suggest
whether the withdrawal of the specit flim
mst of the other port of the country,
and substituting paper io. its stead, mknt
pot be highly injurious to those sections
of country subject to its operation
.The subject of the bank's furnishing bill
of exchange for tho trade of India, China,
and South America, ha been brought to
the attention, of the committee by docu
ment marked No. 26 ; and having been so
surongty deKnhed afTording great ad
vantage to the country, in the triennial
report of September lart, aa economts
ing" the specie of the country The com
Biittee have felt if a duty to atamine and
presenf the" subject to Ui dorisideratiol of
Congreas and the commercial community,
believing, as they do, that than is some
thing delusive Ju th oratia...,,Tbe jrf.
yu,!t f th"'ir examination has led them to
the Conviction that thia tiew "method "ofi
dealing in bill of Exchange does not
" economise" the specie of the conn try at
all. It is a universal law of drawing, that
funds must either go .before or follow after
the draft to honor it at maturity; and
whether it goes directly or circuitoasly,
(he funds to discharge it must, sooner or
later, arrive at the place of-, payment.
These bills are to be paid in England ;
but they go ro-md the Capo of Good Hope
before they reach their place of destina
tion. Instead, therefore, of sending the
specie directly to , India and China, as
formerly, who does not perceive that it
must now be sent to England, the country
upon which these bills are drawn, there
to.moet them, upon their arrival at the
place wher they are to be paid f The
bank consequently becomes the shipper of
thejrwcie,,
merchant ir6 purchaae his merchandise in
tho East Indies It is siaelv and ourolv
nothing but a change of the destination of
the specie, with only the advantage of its
going to London. r -
The mode in which these bills .are
drawn and dispoaccTof to. t lie purchasers.
lavidtf loiva-iuoMtii w-ruiu-aa-wiU-b
seen by a copy of the obligation taken by
ilie'Unk, marked No. 27, the committee
consider of doubtful utility to the country.
The legitimate object of bants, the com
mittee believe to be, the granting facili
ties., not loaning capital. The supplying
of bills appear even much mora objec
tionaWe than" Icraniag capital,' fbr-lt Mi
couragna an uperation. which, commences
and ends without the emnlovmeut of aav
i . w
capital whatcycr, and h similar in their
character to feapondentia securities. I he
buyer is enabled, within the term of credit,
to make the voyage, dispose of hi goods.
and obtaiH from tho proceeds the funds to
moot but obligation, and the bank to trans
mit the" same to the place upon which
their bill are , drawn, which are at six
months aight,) long bef r they become
due. It would seem to produce a greater
To HnUnd,
To France,
'export of specie eventuaKy, -then would
iotherwi aie placo if. the operations
j were commenced -with specie, and' not
njir-iwith bills fuahased in thmnner de.
for too intjogtfc relppg un.oa
I'.i .Id rrWFurres, antj!! t4 en-
I. . - . .. I t . t . . ,'.(' M
iie IO su'.ii ao eiui in '
aot woald eoaibine in the r.f&ti much
of the predoc of th country wharasa
relying upon n, xteniv credit, h ha
arUvry thing on th suecaaa of the en.
temrise. It is a sfecio of spcnlatioa in
trad leading to great risks, and certainly
termioaUag in "overtrading th evila of
wbich th country is wow solaly etp.
rtf ncing, . By loan of a similar charac.
ter by insurance oinuiei "providing
fond, fosuradt rs to t'hin, Oovtromeiil
has snstaiiMd mor Io than in any other
branches of trad.
Th iaereas of the number of hranrbea
atablisbed since 1932, cannot b ped
6vfW iiMW f ttrioinmiltoe, ind da
serves, as a sourc f xicnding tb iuflu.
nc oflh bank, th moat erious tooaid.
ration. ' - 7 , . - "
In aome ft w instanrea wherMwbnui.
! max ajlhan aled lor by thi omnmunU
tv( ad may tv ta nmi them aa
profitable to th tank f but, in moat oi tn
ease, the com mine doubt whether they
were called for from public utility, and
tlieir establishment wul, in th cud, not
only prov unprofitabl to tha bank, but
very injur o to th eommanitie among
which I bey ar located. Mr. Cbev, in
a letter of th 27th of May, 1919, to Mr.
Crawford, then Socretiry of th Treawry,
says, MI am perfectly satisfied that, with
I the presast organization of tb bank, it
can never M managed wen. it s saw
too Masjf branchft, and the director ar
frequently governed by individual and
local interest aad feelings. For a time
we must bear with the branches, but I
hope they will be reduced."
Again, in the same letter, h observes,
" the real and original evil under which
tna-Sutntry iuUruig ia overbankiog.
I hi lea'ts to excess in trading, manuiact
uringi building f and the history of tho ill
judged enterprises which have been un
t .ken in these several concern, would grve
a lully history of all the distresses of thia
country,, excepting a little agricultural dis
tress growing out of th inordinate expec
Utioiia which the other excited. These
opinions fully accord with the view of the
committee, and they consider them aa pe
culiarly applicable to the. present time, as
exhibitiiiir similar cause now operating
with extended force, from which similar
uWt must follow, augmented in propor
(ion to the increase of it branches
The stockholders, at th triennial meet
ing on th 1st of October, If 22, rocom
mended a withdrawal of some of the bran
cues lliea exiating, injheae words; Ja
taking into view the business of the bank,
as connected with its other, the commit
too think it right to recommend to the
continued attention of the. president. and
directors the , ucceaaity, of withdrawing
those branches which are found to be nn
profitable, and transferring their funds to
the offices wbich shall ieein to require ad
ditional capital." Since thia period too
have been discontinued, and nine other
hwvt been established,, as per triennial re
port of 1831. These opinions of Mr.
Clteves, in which the committee have con
curred, were approved by .thO. stockhold
ers, as wilt appear by the following extract
from thia sam report in 1822.. lhcy aay,
" they take great pleasure in unanimously
declaring that tin circumstances of the
bank-folly realize their anticatioo aa
expressed at their last meeting in regard
to tha president, (Air. Cbey,) who, by .hi
talents, disinterestedness, and assiduity,
has placed its affair, in an attitude so safe
and prosperous thsMhe burthen of duty
devolving upon his successor will b com
pararirery; hzZitT '
... .The coiriuuUeo. (aanct but think that,
bad Ibe succeeding direction of the bank
beri guided snore W the- opuuon-aad
wishes of ibe atockholders, aa then expre.
sed, and gone on gradually growing with
the growth, and increasing with the nat
ural want or the country, great sutTennjS
(3d the community would have been avoided!
In the year 1919, great abuses existed
in the branches, of which Mr. Cheves
peaks without reserve, in his last -Tepnrt
to th stockholders, as well aiu hi cor.
ireapoudence with Mr- Crawford, and upon
casting tho .eye over the monthly tate
inents, it ia remarkable to obsenye what
louse have taken place at the branches
compared with the mother bank. For in
stance: on the 1st of January last, the
Joes of the mother-bankoa a capital -of
sixteen millions and a half was, in round
numbers, $323,000 ; that ot the Baltimore
branch was. $1,062,000, on a capita! of
one million and a bait, so that it lost mor
than it ; capital. That of the Norfolk
branch was $229,000 on a capital of 500,.
000, losing nearly one half of its capital,
and so with all the rest of the branches,
their losses ar out of all proportion to
their capital, and ten times greater than
the mother bank, according to the amount
F4?Wlf r6ripaJjVJ Cftjpfttalttl !' TlWaW'OWxWj
however were principdly "incurred prior
to ,1819,"" The proper inference to be
drawji from these, facta is, that tho worst
of mismanagement has existed ia the bran-chei."-""
iv
. The " Contingent Fund! has claimed
the attention of the committee, Tb ob-
jettfor. wmh.krWas.iguuiUy craaiedr
and the original amount provided, togeth
er with IK additional appropriation which
have been made to it, and the 'manner in
which the sdme have been applied at dif
ferent periods, will all he explained in tha
following documents, . .
Tho report of tha hoard of directors, in
July, 1921, published in th gazette at
that time, marked, No. 29; the report of
the stockholders at the triennial meeting
in October, 1822 ; th report of tho Divi
dend Committee, on tho 18th January,
1832, marked No. 20; a statement of die
particulars of the debts, "considered lost,'
marked No. 30 ; a statement of the sus
pended debt and real estate, with tha pro-
wasWMt
t
.l.ll. i ,lil
! " Conlin.-mt J ."
It a of I ' f.i. .1' I
1 i. 83 ; iiu l t'k tit
t J 'j, JaoOr)
niafli' d f 't. .' .' i
bank stw k, n..i '
vidnd report t
and July, 1930, J
i s'.ry
Toil.'
iu July, 1 i.l,
the commitM
marked No. 31.
rrfrt fiif the particular ot th sublet 1
which they reluia, ia connection with tU
Tontingtnt iund." , .. -
" Th eommitteS ' lJ it their duty new
to giv their view a to th riui of the
present dUfl'miirthe trading cmmnnlity
and which th Hr may greatly increase.
It is a ackho&ledd prihxli.I thatuk
causa in ati caa-a, proouc ua oueci ;
and is' in 1919 caorractioo followed tit
expamuoti of 1917 and i19, so If the
sam roto mnat cotrtractimr follow th 1m
mens axpanon of 1930 and 1881, and
hit effect and consequence succeeed.
T illustrat more tUarly the poaitiim,
sod bring- it hom40 th luioda of ry
onf tl Hlowiwg tab! of th . ato bank
during oim of tb montnsof lllf and '19
andl83f nd 32, nrt her rrtbltcd,-em'
bracing items from which direct calks up
on the vault proceed, and the immediate
mean which remain to meet them, vu
Th first art tho depoaitea, circulation
and debt abroad, not on permanent loan.
Tha aecoud th specie, funded debt, and
note of other banks, th ainount of each
will b found under their proper head at
th varioo period mentiooM. - Tkt fa.
bit mil b give to-wtorrov.) '
Th preceding table ahow that, at no
period in 1919, whn the bank wa very
near suspending payment, waa it loss sble
to extend relief to suffering community as
at the preseot moment, la April of that year
the month in which its difficulties wer the
greatest, its means of specie, notes of oth
er banks, and funded debt (which could
have been hi rued into specie or note of
other banks) amounted to upwards of ten
million of dollar ; and the whol demand
which could come
month, of circulation, depoaitea, and debts
owiar ah' aid, amounted only to about
fourtean millions. But tb commit! foel
bound, in candor to state, that thi was af
ter a number of month of constant coo.
traction, not only by the bank of th Uni
ted Hute. but also by most of the other
banking institution of th country, where
a general exhaustion had been produced.
It was mi the Dth April, 1919, that Mr
Crawford, then flc rotary of the Treasury,
writes to Mr. Chev thus! " It is even
doubtful whether it is practicable, with all
th exertions which it i in your power to
make, to continue specie payments through
the year. under the same date, he say s:
: MyjuTipressiori jalhat tha aafoty of th
bank can only be effected by withdrawing
nearly too whole of it papers in circula
tion. If th bank doe thi. all other sol
vsnlbank wjy be epmpeed k to do the
same. Whe4.Jhi w. fectcd, gold and
silver will bo" introduced in' the country,
and make a subataritial port of the circu
lation, aud enable the hanking in&iitutions
gradually to resume their accustomed op
eration. Whilst this is effecting, th
community, in JI its relations, will b
greatly distreped. . Considering th ex
tent of the suffering, it i greatly to be de
sired that aomo good may result from it.
The commute believ that the course
of operation by th bank, durini? th
year i 630 .n4 1931 have been- nearly of
similar character to those of th y ear
1817 and 1 81 8-- OraAi i smd notes, pava-4
oi at distant oHicesew then iroehr dis
counted at th hanlLPllhe 1'uited JJiales,
sod the different olfic as. Banknotes were
issued by th bank, without regard to the
want of the community, or the effect up
on the circulating medium, which became
depreciated, drtving- the precious metals
from thoiountry, and, i until tha reaction
had operated to check them, led to extrav
agant speculalion,," -which ended in ruin t
and relief was not obtained until tho circu
lation ot the bank of the United State had
been reduced to about l.OOO.OOOfof doll
ars, Before thia was accomplished, the
expedient was resorted to. of curtailing
loans ; and, . while they were doing that,
they rontinued'the issue of the bank notes,
thereby ramimrmg --t he vil which they
were striving to avert.
What is the stato of the bank now ! .... ,
On the first of March, (sae monthly
statement marked No. 33.) the bank had
$6,800,000 specie, $2,840,000 notes of
other banks, and of funded debt none H I
making an aggregate of $9,610,000, to
meet its. circulation of $23,717,000, de
positee $17,030,000, and foreign dflbts
owlhg $I,B76,OO0rVnalcing an aggregate
of $42,643,000 ; and this evil exists while
a reaction or contraction is operating to a
considerable extent."".' ' , .' , . ,
This contraction commenced on the 7th
of October last, and is evidenced by the
following-circular, which indicates, be
yond all doubt, that the Bank had over
traded. ' " - ' .
CIRCULAR.
I r
ark a ...I
... Sis, t-Tbe unusually heavy -reimburse
meuts of six million of funded debt, wbich
was on thoIst inst., advertised by the Go
vernment to take place on the first and
and second days of Jan. next, but which,
according to subsequent notice from th
Treasury Department, under yesterday'
detev may.'rt-trppears; bcilemanded of the
bank, by the public creditors, at any peri-
lod of the present quarterns, calculated to
press very inconveniently upon the parent
bank, and the upon office at New. York;
the more eo, from our uncertainty a to
the time .when, the necessary provision
must be rrmtte, ind iromths prevailing ac
tive demand for money. ' Be pleased,
therefor, ao to shape your business, im
mediately, as thay without denying reas
onable accommodation to your own cuato
mere, or sacrificing, the interest of your
nice, you may throw, as early as; possi
ble, a large amount of available means in
to our hands in Philadelphia and New
Yprk and at the same time abstain, as far
MfracuW,f;oirj tJawyuooa u$x
D.Vi-?J" v"-i loj-rjuJJ. mthouf ihe seiulbloaB
"'"I duft,
. i i.
A I'- k V, i
i url HiiliLbi..
; "i -'y
C ' rt;..i? k,.,l, ,
thlN
r u ,t i be pr x urad.
:iy acf n
Cities neare.
re.; to thein. ' n,"'g ,
, I am res-rx'ctfollv.
ant, . r
you' obedient
.r,
W. McfLVAlNT
Aiir , , , th c,.;t 0 aar oi
See the 1st of SeptemberUa7th7h.i '
1 m"l4 U mean lo nMSt
mamh which m.y come upon it
t'-JI'f.wholCnf tha
fonuH debt which it
; tweeo tha specie it then
"beld,4,-'"!;- an .". "Tr""
V1 1ht amauat it u.,
Making m, .gjreu, aiminutii 1.
mean, to tnoet il momentary
inc. the 1st of September, of 8 243 5S.
demaial have mcreasad AtohTS "
mi th emulation, dpate, aadfor
debt, the aggregate of which waTiT
1st September $08,433,758 B7?,3 "
IW 1st AprU $42,050,630 18. Ths ai,
ore and the effoet appear to be. mmiZ -to
tho, preceding lS! 1.e
discounting of domwtic bill. 6't
payable at distant branch, th
Ung on tho U of April,-per
st.tem.oi, $20,834,749 T79. '22
for cnruhfl at th. wwmt. brancha?
and th eurtailmg at tha prmcipal olW
m tb AliantHj cilie, aiid at th. Banks
th Umted tftaithwiinaojircf which"!!"
tbB.nk ofth. United Stele. Iw.
of March, $Ml0'5O8 37, atth, oS -ol
Nw York, between the 4th dy o(jZ
nary and the 28th day of March, a tTiil
303 43 ; at the offici of bS
tho5th oy.rfJaiiur, ndth 9th dlf -of
March, to $167,800 (Md that too.
on discount line 'ofleai tha, two anTi
half millions ol dollar.;) at the ofBcaafV
Baltimor, hetweea tho Ifiiti of Jsnusrr
nd th 2d day of April, tl39.74l 61, and '
on a duKount lino of little more tbanivw
millions of dollar, as will b soea by the -wokly
tatemout of those ofBc and Iko
Bonk oftho United Stat, marked N. 36,
Th moat reaaarakt feature which pr.
ents itself to tho view of ihe committse,
wmnccted wilB tlie present situatioa of
th bank, and the cours of operation up.
on it sine the Isf of September hut. is the
increas."in the circulation of it notes,
which amounted a-tho 1st ot Septembsr
to $22947-62ra4 on tho-lst April
to $23,717'41I ImaUag.the ihcu
of $UIX93 fiX-During thi rid t
bank Undertook to check th xportatiot - '
of soecie by supplying- bills at such a ran 7 1
as left no inducement for. individuals to
amp it f to do whichr they exhausted a -
th fund which they could procure fro
ovary ourcmT Over $3,000,000 wer r.
mitted, aa nef statement murkad Ka. I A '
and still left (hem With a. ieht of asor thaa .Z
$100,000 in Europ itUii period. Th
caus wkfcVled to thi oessity still yst
exist, with an incrcad io fh extent af
tha increas of circulaiiofl, and but-f w
decline in tha ri40 of 'pecie ia Europ, 1
would still continue tn b 9trtti.T-
Tut Pbis. -The 1aniniaire used -w-
GoV." Mitler in " refatiod to the RichmnM J
Enquirer i not only just and tru wfiea
applied to that M apostate but applieal '7
with equal projiriaty to many of tb pa
pers published id tb United States. Mant
of them besides the Enquirer ar not H am
imated by one pure principle of patriotism
or publio virtue, but prostituted to powat
and servile fdllowets of men,' ths editor-
dare not (fari qua seniiat) M speack ha -
he thinks," but echoe the eentrmwu j
hi idol, excuse hi. vices and deleTldi hi
follies. It i. humiliating to obsftrrs tha
motives which actuate bira s governed by
no fixed principle of public policy, but -vacilating
from One principle to nothe
and followiog his idol through all hi intrij ;
Cat and inconsistent manoeuvre aa cap! .
rice, ambition. eorniDtioo or interest sur- .
gests, he attempt to defend all reconcik
ail aad with
Words of learned length and thunder
ins- aouud" . cries, should you refuse 1? .
make yourself like him a tool and a spaniel, s
O. horrible I most horrible: v
vim m not for Jackson I vou are oppost .
to Van Buren ! yon would not tak
VIVA,!.... HI", VU.I J " . ' .
..j if ..mi in vour waff
Bofore mv God. I micht not this believe.
: ..:.(. . .. - .l
Of mine own eve.;
Or perhaps tho whole of thin iplultennj
Eroceedatrom me iuci-ii you nan
e considered an Adams man of y
having neglected to inform the public thai ;
he (Mr. Adams) has recently " got i
hat ' or having done so take me uw-v
to saV that it is not exactly their Pr-
man touck orUkomUn go! U
hnmiliat'inirT And is it not Droirnani wi
tho most fearful consequences, to see ,
whose duty it is, and whose aim it sbouio
be, to enlighten the public mind ,n?'" j
the public morals and inculcate a r
virtae an eotmitutiowl hbsTtyr,,"li!'
ing their time and tajonta tosuchemite'nr
tibl. and unworthy purposes t .Nl"nS
themselves instruments for any use in tw
hands of demagogue, snd wevomV
make like thomselvsthoso from whom W
receive their bread and to whowjii;
should render something in return, r" . ,
servile adulation to men flwH""'
qucntlv are advocaU'ng policy
tlv r tbvf ihU aad.bcsi iatercaa -
d;
--' rr - 1 ' - 1 ' , ' ; ,