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-»ll LAX0. eiaat he eahliahod for FOUR MONTHS,
for laara »» nil NEGROES, mart bo pebllalied for FOUR
‘“US>*kreaaT »rdar akialate akall be made ihoreou by the
^Ttemfor laetten of AdmlaUtration, m«*t be peblinbed thirty
~ ;4laiai*«ioa froro adiaiiiintraAioa, meat kit/ tix months—for die-
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a^ifor (brecloaare of Morlfafe must be published monthly fitr
ertaWllahia* leal papera, fbr tht full swats of tkrts
rnapelliai tWIea from Execuiora or AiliuinlMratori,
a Bead baa beaugnreaby the deceaaed, the full tpmc* of thru
•mMieaUen* will alarajra be continued accoiding to tlieae. the leaa
^ - oirteaaetbarviaa ordered. •
huiaaa* nfthiaklndfloutlBMeatoreceiveprompt attention atthe
•f tha GE<fRGIA JOURNAL*
HfTTANCKS BY MAIL—**A poatmaater may encloae money
.MUrlalhapabliahor of aaowapaper.topay the aobacriplion of a
oarioo.aoo fraaklha loiter, If wriltouby hiiuaolf."—
F.k o
JOL, XXXV-
Aiid Cash in current.Bunk bill*
0,000 00
$44,034 20
BANK OF DARIEN.
Milx.edorvii.ls, Mny 30, 1844.
TV,lit Excellency, George IT. Crawford, Governor:
8iu:—Conforming to the Executive order, op
iating me to examine into the affairs of the Bank
Dsrien, and the accounts of the ugent having its
-is in charge, I have the honor to hand you,
-fswilh, my report. I found the books and papers
the Bunk generally in a confused stale. All tho
rrespondence and papers are in such a situation
tin preclude the hope of ever tracing the history
the management of this Institution, if that were
desirable, unless at a much greater expenditure
than the legislature probably contemplated.
I toon found that 1 could not hope to do more than
lopresent you a statement of the condition of the
•nets as they went from the managers of the In
stitution to the Central Bank, and ns I found them
apon the surrender of the Agent—of the nets of
tbs Agent in relation to them—and of the Liabili
ties of the Bank, and the means to pay them. In
the report which follows you will find that state
ment.
{ cannot say, afier great labor and reflection,
that the exhibit which I make is accurate, because
(have been compelled to seek for that which no
hooka or accounts, presented to mo, show ; but
that it is nearly correct l feol quite confident. I
have the honor to be,
Your obedient servant,
R. R. CUYLER.
REPORT.
It appears that certain commissioners, appointed
y his Excellenoy, the Governor, in the early part
the year 1842, received the assets of the Bank
Darien at the principal Bank in Darien, from
-nezer S. Rees, late cashier, and delivered the
me to the Central Bank. The receipt granted
the Commissioners is of file. The assets of
Branch at Macon seem to have boon received
'rectly from Thomas King, late Cashier of that
ibranch, those from Dahlonega from Messrs Wof
ford and McAffee, late President and Cashier of
Uhst Branch, and the assets of the Milledgeville
Branch from John R. Anderson, lalo Cashier
there.
Mr. Anderson was appointed by the President
- _ d Directors of the Central Bank an officer of
hat Institution, witli the particular duty assigned
to him, of arranging and collecting the assets of
Bank of Darieo, and gave bond in the sum of $10,-
000, for the faithful discharge of his duty. The
'nd bear* date 2 let April, 1842.
Tho funds placed in his hands are shown by his
"veral receipts of file in the Central Bank, as fol-
ows : 1st, hi* receipt for the principal Bank as.
~te, dated 30th April, 18422d, his receipt for
he Macon assets, dated same day ; 3d, his receipt
or the Milledgeville assets, dated 2d May, 1842,
nd 4th, hi* receipts dated 2d May and 23d July,
842, fur the Duhlonega assets. Particulars of
he respective discount lines, save in one in-
lance, were furnished to Mr. Anderson, and ho
as called the Agent of the Bauk of Darien.
My first business has been to enquire what
mount has been collected from these assets, and
hat has been the expense incurred by the State in
uch collection.
The Agent was called on to furnish a statement
f his collections, and an account of his agency, in
eply to this call he referred me to the four lists,
umbered 1 to 4 inclusive, which he recently re-
urned to the Central Bank, nnd to a statement
ade by ihe Cashier of that Bank, on or about the
rst day ofMarph last, which statement is number-
dfive. These papers show what the agent re-
urued, on & demand for the delivery of the assets
a his charge, to the Central Bank. He stated to
e that they constituted all the statement he has to
ake,butat the same time expressed his willing,
ness to answer all enquiries and to give any further
uformation in his power. He informed me that
the Central Bank had, Irom time to timo paid his
sultry and expenses, including his salary ns cash
ier of the Bank of Darien, and had settled with
him in full for the same up to October last- With
these documents to which 1 was so referred by Mr.
Anderson, and with access to the books and papers
of the Bank of Darien 1 proceeded to investigate
Ihe transactions of that officer.
The paper No. 5 shows on one hand the assets
as theyweut into tha Agent’s hands, and on the
other, what he delivered up to the Central Bank
and to Mr. Blue, now agent for collectiog a portion
of tlie remaining funds. I have carefully exam
ined this document, and find that it is, in the main,
• correct exhibition of what the agent granted re
ceipts for,and of what he returned, but there are
portions of it which require explanation and cor-
rection. Such explanations nnd corrections will be
found in what follows.
As the President and Directors of the Central
Bank did not require of the principal Bank a state
ment showing the condition of ail its Branches, as
1 *ell as Ilia present institution, and a surrender by
., of aBbs assets—but themselves sought the col.
Motion of theaasets at Dsrien, Dahlonega, Macon
•ad Milledgeville separately, it followed that there
•as no examination of the accounts of tho several
Csshior*, nod that just as they turned over their
Wads, so they were received by the Central Bank
Wd placed in Mr. Anderson’s charge—I have
■sen obliged, therefore, to look into these vurioua
accounts, and particularly, to examine Mr. Aiider-
mo’ii transactions as Cashier of the Branch at Mil-
■dgeville,
,Jl'o Brunch ut Milledgeville was, up to April
*888, in charge of Mr. Murray, at Cashier, and a
•osrdof Directors, and afterwards and until the
taller part o( the year 1880 the liutinest was con
■tacled by Mr. McGehee as Agent. In May, 1837,
Portion of tho assets of this branch wus trails-
Mrr»d to the Mucon Branch. In Docember, 1837,
Mr. Anderson was elected Cashier, and in Junua-
*y following, Directors for the Branch were ap.
JJ"!* edi Mr. Andorton entered upon hie duties
^ a, hier. and Ids first ontries bear date on the 1st
oxch, 1838. He began with a capital which he
£c*ivod from Mr^-McGubeo, os follow* :
riolr
be^u b,,ok * of Br * nch o>'owod the fund to
^ r u ll A ,e u r ' “ nd 1 fi " d ‘hat Mr. Anderson was
fiunished by Mr. Rees, Cnshier of the Principal
Bunks.on the 2d Mny, 1842. with a statement to
allow him the true condition of the fund which lie
wus to manage. That statement disclosed these
Tacts—viz:
1 lint the discounted paper of the
Milledgeville Branch was $177,830 18
Composed of old notes in judgment
P or Hst 803,922 47
Old notes put in suit by Agent, as per
Mr. Rockwell’s report 8,354 20
Notes sued by Judge McDonald, per
„ list 49,538 45
Notes 40 hand of Cashier hi Mr.
con 20,085 77
Notes discounted by agent nnd put
in hands of Cashier at Milledge.
ville, 35.320 29
That there was a debt of Lucas, be
ing a claim in favor of Jewett,
of Alabuma, transferred to the
Branch 10,000 00
That the real estate (B'king House)
was 10,000 00
And that there was due for over
draws 2,170 20
Mr. Rees wrote to Mr. Anderson, sending him
the lists and report mentioned in the above state
ment as follows : “My object is for you to unite
this statement with yours last furnished me, so
ns to make out a slate of the office including
tho whole, and as these I now hand you are so par
ticularly stated, there can be no difficulty in keep
ing them always in view as separate from your
new business. The item of Real Estate will bo
reduced as soon as you can get Col. Parks’ note
and papers arranged.” This statement and these
lists were not dolivered by Mr. Anderson to the
Central Bank either as Cashier or Agent, but were
handed to me during this investigation.
Mr. Anderson opened his Cash book and stale of
Bank on the 1st of March, 1838—his deposite
book on the 8th of March 1838—and a book
containing such entries as are posted in a Bank
general Ledger, on 1st October, 1838. He
opened a Discount offering Book on tho 10th March
1838. He never kept a Ledger either personal or
general or credit Ledger, or any other book besides
those above mentioned, except a book of minutes
of the proceedings of the Directors, a Letter book
and a Receipt book. There is no entry in the
Cash book after the 20th July 1830, and the state
of the Bank is not carried beyond the 30lh Septem
ber, 1839. The Discount offering book is not con
tinued after October, 1830.
Mr. Anderson turned hisaitenlibn tothecollec.
tion of the assets indicated in Mr. Rees’s statement
of 2d of May, 1842, which I shall hereafter call
the "old assetsOn going through the books,
item by item, I find that he received of these old as
sets, various sums amounting to $27,013 02, which
ho carried into his business, and added to his capi
tal regularly. These collections were entered pri
or to 20'.h July, 1839, when he ceased to make en
tries. Ascertaining what he had in his hands,
when he stopped keeping books, or about that time,
I submit my views of Ihe stale of his accounts, re.
marking at the same time, that it is impossible to
arrive at accuracy where one is left to feel his way
so much in the dark.
On the last state of the Branch recorded by Mr.
Anderson, I find that on the 30th September, 1830,
he bad in possession, independently of the old as
sets,
Discounted notes $02,521 54
And Cash 33,520 73
As Agent, since April, 1842, it ap.
pears that Mr. Anderson hns col
lected the,, following sums, for
Which he is accountable .
1842. Between the 25tli
May, and 15thNov’r,
Note of T. Fort, $739 S3
„ “ ” “ 2.012 50
Bill of Ex. “ 1,873 00
Interest on above debts 1,892 00
1843. Prior to August:
Note of M. J. Kenan
Interest on the 2 notes
Sundry protest fees,
1843. Dec. Further on
nccount of the Lucas
debt,
500 00
000 00
525 00-
7,110 33
-1,625 00
53 0(1
4,800 00 13,594 33
$20,333 35
739 83
There must he allowed to Mr. An-
dorson this amount, which has
beon charged to him in Pnpor No.
6, in the Discount line of Branch
Macon, viz : 1 note of T- Fort,
Chargeable to Mr. Anderson $10,594 62
It must be borne in mind that the note of T.
Fort for $2,012 50 was not charged to Mr. An
dersen in tltu discount lino of Branch Macon, on
paper No 6. I he bill of $1,873 was there charged
to him, but was also credited to him as received in
an Attorney’s receipt.
Of this sumof$19,594 52, Mr. Anderson owes
in specie funds:
1. Collection account,
Lucas debt, 5.309 82
2- “ “ 4,800 00
Besides the residue of
interest thereon
Collection of Wright &
Christian,
810,100 82
700 00
m $10,800 82
Tlie residue of the $19,594 52 is payable in
Darien Bank bills.
'1 ho Agent has produced to me vouchers for mo.
ney paid as follows—which I think should be al.
lowed, although they are not in every instance
strictly authenticated :
Tax F.xecution, paid to W. B.
Johnson, $37 47
Check E. S. Rees favor O.
Childs, 20 00
Fees of SherifFof Hancock, 74 25
Receipt for rent of Office, 62 50
-8190 22
$06,040 27
From tho replies of Mr. Anderson to various
inquiries made of him, and from certain pencilled
memoranda on the lists which have been referred
to as showing the old assets, and from the admis.
lions of Mr. Anderson and the books of the Macon
branch and principal Bank, 1 find that after the 30ih
September, 1839, and prior to the time when ho
surrendered his assets as Cashier to the Central
Bank, (April 1842,) he received die following sums:
1839, Nov. 0—Specie from E. S.
Rees, Cashier, $2,000 00
1840, Feb. 13—Cash remitted by
T. King, Cashier, on account
of a debt of A. Iverson (old
assets,) 930 33
“ For Note of W. J. Davis, “ 2,300 00
“ 4 years interest on the same 730 00
1841, Feb.—For a check from prin
cipal bank 011 Central Bank, 2,348 75
1840, He received for Note of
Wright & Christian,(old as
sets) $200 00
For NoteofP. Wright, 500,00 700 00
1842, Feb. 23—In letter of this
date, he received on account
the Lucas debt (old assets) a
check on New York, at six
days’ sight, $4,094 25
Which he sold for 12 per
ct. prein. 401 31
Iutereat calculated to 1st
April,’44, 724 26 - 5,300 82
Making of receipts beyond tho busi
ness included in his state of Bank
of 30th Sept. 1839, $14,424 00
And he paid away in the some time :
Specie to the Cen’l B’k, $2,000 00
Individual Deposiles 913 47—— 2,013 47
I have examined ail the books exhibited to me
books of Ihe Milledgeviile Branch, kept by Mr.
Anderson,and the returns rendered by him at dif
ferent periods to the Central to Bank and
the Executive department. It may be that
other money has been collected, and that Mr.
Anderson has paid money which he did not
charge, but it will be recollected that his collections
(except the Lucas debt nnd debt of Wright &
Christian) were in Darien Bank Notes, a medium
not available to pay debts.
In going through tlie Deposite book, item by
item, and Ihe Cash hook, to ascertain the state of
deposite account, I find entries carried short from
the former to the latter, and in one or two instances,
over. The balance of such short and over entries
is $1 ,678 46 short. Strictly, Mr. Anderson is
chargeable with this, but I do not charge him be
cause he seems to have settled with depositors, und
musts therefore have made good the amount to
those persons. If it shall appear that any deposi
tor has a claim for deposiles, then the case will be
changed.
I remark that several of the debts have been
changed in their character, and in names of par-
ties since they were delivered' by the Bank of
Darien and its Branches to the Central Bank. On
the list of the Milledgeville Branch there were three
Notes of John T. Lamar, amounting together to
the sum of $10,000. These Notes have been de
livered up, Mr. Anderson alleges, by order of the
Directors of the Central Bank for notes of A. R.
McLaughlin, secured by a mortgage on real estate
in Macon; and on the Steamer Robert Collins.—
The new notes are for $10,000 principal, and
$3,142 33 interest, payablo respectively, 1st July,
’43, 1st January, ’44, and 1st July next, and were
delivered, in place of the original notes. The
mortgage seems not to have been recorded.
The note of F. V. Delaunnny.in May 1840, was
for 21,230. By receipts endorsed, it was re
duced to $12,350, and was so returned by Mr.
Anderson as Cashier, to the Central Bank, and by
the latter again to Mr. Anderson, as Agent. Tho
note was placed in the hands W. Y. Hansell,
Esq. for collection. On 23d May, 1843, he col-
lected $1,475 on account, which he duly paid to the
Agent. The Cashier of tlie Central Bank, in re
ceiving back the assets from the Agent, places the
amount correctly at $10,055 thus correcting a
small error in the list of Discounts of the Milledge.
ville Branch.
The note was for
The indorsements were
To which amount add the notes nnd
cash ho had on 30lh September
1830
$11,411 43
06,040 27
When Mr. Anderson delivered over
his assets as Cashier, he return
ed his discount line nt the sum
of $46,890 18
From which amount I
deduct part thereof,
viz: the Notes of S.
Rockwell, because
they belonged to the
old assets, and were
never carried into Mr.
Anderson's business,
or debited to him in
uny manner,
$107,460 70
9,757 50
00
$21,230 00
$1,640
2,400
4,760—8,800
So, although first returned by Mr, )
Anderson at 12,350, was in fact > ain ..
fo,. i OU
The credit of the amount collected by
Mr. Hansell, was given, 1,475 00
** runatng to mulur.
hy
^ptal due and piotcsl
tuiuii
$10,000 00
25.320 29
605 00— 35,034 20
Real amount returned by
Mr. Anderson 37,132 68
Being the rosiduo of his
discount line which, on
the 30th September,
1830, was 62,521 54
And hn delivered in Da
rien Bank Notes 63 589 00-—100,721 08
It appears then that Mr. Anderson
was deficient it* Cashier, the
sum of
When he surrendered the Branch
assets to tbe Central Bank.
$0,739 02
And the note, or receipt for it, was ta.
ken back at $10,055 00
It seems that the Attorney, Mr. Hansell, pro
secuted the note to judgement against the indorsor
as well us tho maker ; and aflor judgment against
the parlies. Dr. White the indorser, applied to the
Director of the Central Bank to be released on his
giving title to certain lands in Mississippi,and the
Director ordered a release to be granted to him on
his executing titles for (lie land, still holding the
maker bound until the Central Bank should realize
the debt: The minutes of tho Central Bank of
30thOctober, 1843, and I81I1 December, 1843,
show tho action of the Director on this subject.
On the discount line of tho Principal Bank was
returned a debt of $14,545 76 due by the city of
Darien. Mr. Anderson stales that the President
and Directors of the Central Bank instructed him
as agent to receive in lieu and settlement of this
debt eighty-six lots in the City of Darien and $590
00. Accordingly tlie City Council of Dsrien made
titles for the 86 lots and paid tho sum $500.—
The chief inducement to this settlement appears
to have been a release by the City Council of
Darien of their right to tax these lots, and all the
other real estate in Darien which the Bank held,
for the term of 25 year*. Tlie deed is dated 4th
February, 1843.
I forbear to express any opinion as to the power
or authority of the President, Directors, or Agent
so to give up or change the character, of the dis.
count line of the Bank of Darien. Many iodivid-
nal creditors and corporations, as well os'the Slate
are dteply interested in the matter,
The amount paid by the Central Bank in the mat.
ter of the egeucy of tbe Bank of Derien, up to this
me, $10,397 08. The particulars of this ex.
poitditure urmthown in the neenunt furnished me
by-the Cashier of the Central Bank, and herewith
aubihiitud. Among the items of this account is
one for $4,625, paid Mr. Anderson for salary as
Cashier* Mr. Anderson was elected Cashier, on
the 30lh December, 1837, nt 1,600 per annum
salary. The state of tho Bank kept by Mr.
Anderson shows that on tlie 3d June, 1839, all Ihe
nfficors, himself included, were paid to 1st June,
1839. On his state of bank of 30ih September,
1839, lie charged for salaries $730 65, which in
cludes his own pny to the 1st October, 1839. if,
then, his salary bo reckoned from 1st October,
1839 to 1st April, 1842 it would amount to $3,.
750. He paid his clerk for October,1830, tlie sum
of $30 as his receipt book allows. Allowing him
$3,780, ho lias been overpaid by ihe Central Bank
$846—But lie may havo paid the President’s
salary afier 1 Juno, 1830, for 7 months, nt the rale
of $500 por annum, 1 find no receipt for such
payment, nor is there evidence before me to justify
my allowance of it. The item of $190 20, Octo.
her 13,1842, for expenses on sale of Bank bui/d.
ing in Macon, must be refunded by Mr. Anderson,
because it has been allowed him in paper No. 5,
where lie only accounted for the net proceeds, then
deducting from tlie sale the same $196 20.
' iem of Real Estate, the Banking fiouse in
Milledgeville, demands notice. This property
•toed among the old assets, as ubove. at $10,000.
The Principal Bank sold this building, as apponrs
on their minutes, 3d October 1837, to Col. John G.
Park, for $3000, and this is the mntter alluded to
in Mr. Rees’ letter of 2d May, 1842, to Mr. An
derson.—Mr. Rees hud previously written to Mr.
Anderson, Feb. 15, 1838, as follows: “The
Banking room you will occupy “free of rent until
tlie 1st Mnrch. Your Board must then “make an
agreement with Col. P. as to the rent, until we
“cun obtain somemorosuitnbleplace.” I enquired
of tlie Agent what disposition of this property had
been made, as I saw no credit on account of it. He
informed me that on settlement with Col. Park for
rent that gentleman fell in debt for the building
$383 40,-for which betook his note. On tlie list
of Brand) pnpor was a note for that sum, dated 31
December, 1841. 1 culled for a statement of tlie
settlement with Col. Park, nnd Mr. Anderson de
livered to me three receipts for rent, as follows :
1st. For Home Rent, principal and
interest, from 1st March, 1838,
to 31 Dec., 1841—3 years and
10 months ft 1,29.0 OO
2. For Rooms occupid by Mr. An.
derson as Cashier, dated 31st
Dec. 1841 38I 60
3. For 2 months ront for Bank Office,
in 1842, Dated 5th Feb., 18-
43 62 50
The purchase money was $3000. As the rent wna
paid with interest, the purchase money drnws in
terest, and the correct statement would bens fol
lows :
Dr. Purchase money $3,000 00
Interest 1 March ’38 to 31
Doc.,’41 920 00
$3,920 00
Cr. Tho 2 receipts for Rent up to 81
Dec. ’41 1,601 60
$2,318 40
It wilt be seen nbovo that I have already allowed
tho third receipt $62 50, and Mr. Anderson has
been allowed the note of $383 40 as part of his
discount tine, although it was note discounted noto.
He is juslly chargeable, then, in my view, as
Cashier, for cash received of Col. Park, 31 De
cember, 1841, on settlement for the properly—
$2,318 40, or if the note be ullowed here, and the
bulauco $1,035 cash bo charged, then the note
must bo tukeu out of the discount lino which Mr.
Anderson returned.
The notes of Samuel Rockwell, amounting to
$9,757 50 deducted by me from the discount line
returned by Mr. Anderson, qs Agent to tlie Central
Bank were, us I have shown, improperly placed
among his discounted notes in April, 1842, when,
as Cashier, he delivered up the Brunch Asselts.—
As he granted a receipt us Agent for precisely what
lie returned as CasAier,und as the item $35 587 08
on document or paper No. 5, includes the notes,
no mischief is done by avoiding an alteration of
that document. These notes belonged, it is true,
to the Milledgeville Branch, but to the old assets,
which did not enter into the new business of Mr.
Anderson ns Cushier, except to the extent indicat
ed hy mo on tlie 5th page of this report, and by a
list, prepared from Mr: Anderson’s Cash Book
and herewith submitted, I show that these nolos of
Rockwell were never debited to him. If, as I be
lieve, these notes were never in any way dehited
to Mr. Anderson as Cashier, he hud no more riglii
to return them as a portion of his discount line, not
collected, than he would have had to return the
whole of the old assets as part of his discount line.
Again I have from Mr. Anderson’s discount offer
ing book, traced out, within a small amount, the
notes which composed Ids discount line of 30ih Sep.
tember, 1339, shewingthus, plainly,that die Rock-
well notes constituted no partofil. I am purlieu,
lar in this explanation, because Mr. Anderson, to
whom I have frankly, in the progress of this in
vnsligation, given my views of his accounts, dunks
he cannot be in debt to the extent which 1 find.—
He furnishes no evidence that ho was ever clmrg.
ed with the Rockwell notes, nor does he give any
satisfactory explanation of his reason for inlroduc-
ing’thein into ihe discount line, which, as Cashier,
he returned 10 the Central Bank. It cannot es
cape observation that, if the President and Direc-
tors of the Central Bank, in April, 1842 when, they
wore receiving the assets of the Branch Bank at
Milledgeville, had asked the Cashier lor his hooks,
or had even glanced ul them, tney would have dis
covered that he made no entries in ids cash Book
for eighteen months or more, prior to his surren.
der of the assets in his charge—and they would
further have seen that the real discount line and
funds far exceeded what they were returned at.
No notice, whatever,seems to have beeiflaken of
tbe Old Assets by the Central Bank, and yet a large
sum has been collected from them beyond what
appears on the Books.
Recapitulating, the amounts which I find clmrgo.
able to Mr. Anderson are as follows—viz :
Amount on 0ih page of tins report $19,504 52
Overplus of salary as Cashier 845 00
For purchase money of Bank at
Milledgeville, 2,318 40
Expenses on sale of Bank in Ma.
con, twice allowed, 10G 20
debt, in spueiofunds, $4000
2. For collection of M. J.
Kenan, (Darien Notes 1625
For Protest foes, (Darien
Ne««s) 63
3. O11 account of his 2d col.
lection of die Lucas
itebt, in specie funds, 1904
In Darien Bunk Notes
wiih pledge to repluce it
widi specie, on same
acc’t. i«70
0,461 00
Leaving a balance still
due by Mr, Ander-
8on $13,302 90
Subject to his claim for services and travelling,
since October last, and postnges, $702 30.
In the early stage of this investigation, nt my re.
quest, tho Cashior of the Central Bank addressed
the several attorneys who have papers in hand for
collection, to render statements of tlie various sums
by them collected und paid over to the Agent. I
am informed that, with one exception, no replies
have, boon received. Without such returns the
preciec state of tho assets can never be determin
ed,and they should be procured as soon as possi
ble. r
1 be books of the Branch at /l/acon appear to
to have been generally kept in a proper manner.
1 lie condition of it at the time of the surrender of
the assets is fairly and plainly shown, except as to
tlie debts composing $41,110 of the discount line,
rhe Cashier, Mr. King,says in his return, he knows
nothing of this amount, as it was in suit before he
wont into office. He meant, evidently', thut he
knew nothing of the solvency or insolvencv of the
paper, because his account of notes in suit in his
General Ledger, gives the particular notes com.
posing the amount. Although no attorney’s re
ceipts appear for the sum, it would seem thut hy
propel examination, something could be learned
concerning it. Tim examination would involve
tho necessity of communication with tho several
Attorneys who liaye transacted business for the
Bank of Darien in thnt quarter, and u search of the
Court records. I advert to it to call the attention
of the Central Bank to an examination of the mat.
ter, and to snvo, if possible, a portion of this large
amount. At the time of delivering up his ussets,
Mr. King returned under his hand that he retain-
ed a package of $1040 in Darien Rn nk notn$ “for
salary uue him by the I3uuk t to be given lip when
tho sulurv is arranged for.” In his list of deposi.
iles he mentions his name as depositor for $375 50,
and snys in .1 note, “In addition to the $375 50 of
P. King’s deposite, there is also due $G5 00 for
salary accruing since tho last settlement was made
up. Me seems to Imv 1 paid over in cash the sum
04 $454 61 more than his state of Bauk called
lor.
Al Duhlonega tho books have beon kept in ncare.
less manner ; many important entries of figures
being in poncil mark, and sevcrnl items have never
been posted. The personul ledger has not been
bulancod, and no list of depositors made out, al.
though u considerable sum is mentioned on the
8iatc of the Bank as duo to depositors, ii ap
pears thnt almost tho whole of tho monies on de
posite are monies which have been actuully paid
on notes in suit, und yet the payunents havo been
placed to the credit ot Individuals in open account.
I have examined the account of the debtors
to tho Branch, in the personal Ledger, and
in general find them not balanced, und, in some
few instances, I fieri overdraft*, but, on tlie
whole, I make Hie amount or monies on deposite
applicable to tho payment of debts nearly equal
to the deposite line on state of Bank. The per.
sonal Ledger should bu balanced, to allow u fair
understanding of this matter; but 1 think it pretty
certain that there is no other money on deposite
than is, in fuel,, tho property of tho Bank.
The last state of Bank 2d April,
1842, calls for nolos under pro.
tost and in sui', $28,407 16
A receipt is produced for one noto
beyond tlie ubove, 730 30
Less allowed, as on pago 7,
(Twenty two lliusand, seven bun.
drod and sixty.three dollars and
ninety cents.)
During iny investigation, nnd very
recently, Mr. Anderson lias paid irto
the Central Bunk the following sums,
as reported to me by the Cashier of
that Bank :
1st. On account of his first
collection of the Lucas
$22,954 12
100 22
$22,703 00
$29,137 46
In the paper No. 5. this item is placed at $30,-
187 65:—ihe amount $29,137 46 seems to mo
to be the correct one. I would remark thut At-
tortiey’s receipts for nearly tho whole of this
amount appear in one of the Books of this Branch,
although in paper No. 5, it is said no rec eip is np.
pear.
Most of tho books of the Principal Bank seem to
have been correctly kept, hut some important ones
are very deficient, as will bo found when I come to
spouk of the circulation of the Bank. Thu Regis,
ter Notes issued has not been brought up, und I
have looked in 4 vuin fora record there or elsewhere of
any burning or cancelling of Branch Notes, al
though 1 see thut tho lino of issues hy the returns
of the Bank to the Legislature, havo been of late
greatly reduced. The discrepancies between tho
Principal Bank and the Branches in their mutual
accounts uro very great, and of long continuance.
I have not attempted to reconcile them, because it
would he a work of very great labor and it would
not uid me in ascertaining what I am in search of
the debts due by the Bank, and its means of pay.
menu
Among the operations of the Principal Bank,
it will be observed that the Institution has redeem-
ed (purchased) its s ock to the amount of $231,.
855. This has been, for tho most part, effected
by the receipt of their slock from debtors of the
Bank in discharge of their obligations. On the
policy of this measure I deem it necessary to make
one remark. The effect of tho measure has been
to release individual stockholders from the|respon.
stbilitv imposed on them by the churter, of bearing
their slmre in redeeming tho bills of the Bunk, nnd
to leavn tho State the proprietor of $325,000 out
of $410,195, the present capital.
On tho State of Bank of tho Priucipul Bank is
an item—Northern Conrads—$61,151 29. An
explanation of this account will be found in tho fol.
lowing remarks :
The Board of Directors al Darien, on the 2lst
May, 1839, Resolved, that the Cashier should pro
ceed to Philadelphia or somo other Northern city,
to negotiate a loan for $100,000 to resume the pay.
ment uf specie, nnd that lie might pledge tho re
deemed slock of the Bank or ns much of it us was
nocessary. On the 4th June following, it was re
solved, that to insure a loun the Cashier should
lake with him $150,000 of the hills of the Bank, to
pledge ns collateral security. On tho 10th Sep.
tember, following, tho Board resolved to vend a
power of Attorney to tho Cashier, then ut the
North, to enable him to curry into effect the pre
ceding resolutions. On tho 12th September, at an
extra meeting, it was resolved that tlie President,
and assistuut Cashier should execute a Bond to
J. Dulufield, President, for tlie sum of $200,000,
and issue certificates of deposite in favor or J.
Delafield, President, to tho amount of $115,.
000, and place in his bands bills to the
amount of $130,287—the certificates and bill*
to bo held as collateral security for the payment
of ihe Bond. On the 29th October, the minutes
show that “tho Cashier having returned, reported
the “result of his mission, but under existing sus-
t«a« to
’’ibroughoot (M Motry,* . _
go tow the KriMgiisMt tor
Mr. Re#*, while at tbe North, Mtond teto in
agreement with J. Delafield* FnMwt of tW
New York Banking Company, deled Ootobar tO,
1889, whereby the Bank of Darieo egread to drew
Bills on London to the nmonnt ef XMflOO ttairiUg,
which the New York Banking Compiuy wnieto
purchase at $4 44 par pound etarling, end to p4y
to at four months, Aa ooito-
for in their own Notes 1
torsi security for the payment of these btlU,tto
Bank of Darien agreed to farnieh N. MrrGoltoa. toe
Agent of the New York Bonking Company at MU'-
edgeville, with funde to purchase 7,000 belie ©#
Cotton, which Cotton wae to be consigned te T.Dk-
lu field, to bo by him sold, and the proceed* applied
to pay the sterling Bill*. It wae-furthar agietot 1
that tho Bauk of Darien would, as addhleoai eeaer!-
ty, pledge to Ihe New York Benking CbmMey
$140,000 of the bills of the Bank of Darieo, $020,'.
000 of certificates of deposite, and deliver Ihe
Bond of the Bank of Darien in the penal sum of
$400,000. In case of default In the perlbrmeiM
of any oi the urticles of the contract by the Benk of
Darien, the New York Banking Company waa em
powered to sell the Note* and certificate* of depoe-
lie, and enforce tho Bond, until out of the whole tho
sterling Bills should be paid, all costa, *11 liabilitlM
of the Bauk of Darien in any way arising, and $60,.
000 penalty, which tho Bank of Darien-agreed
should be ns “liquidated damages” over and above
and exclusive of any special damage. Mr. °-tr
drew and delivered tho sterling Bills, and deliver
ed $139,287- in notes, and $115,000 in certifieetoa
of deposit*, und executed thp Bond. Thb is tbe
arrangement which the Board, on the 29th Octo.
her, 1839, “determined not to go into for the pres-
ent.” It appears that Mr. Rees alleged that there
was a verbal understanding between J. Dolafield',
President, &c. and himself, after the agreement
was executed, thut in case the Southern Banka
should not resume, and the Rank of Darien con-
sequenlly not wish the northern fund, then it
might decline the contract, and give notice accor
dingly to the New York Banking Company, N6-
tico was accordingly given in November following-
of the Bunk of Darien’s declining. After the no
tice, it seems that J: Delafield, President, denied'
the understanding allodgcd by Mr. Rees and
claimed the penally of $60,000. Under this con
tract tlie Bank of Darien received not a dollar, and
yet the New York Banking Compony claim* the
penalty of $50,000, nod holds all the funds which
Air. Rees deli vo red;.
On the 24th Decembor following, the- Board of
Du ectors at Darien resolved that the Oishior, Mr.
Rees, should adopt the safest plan to have the mots
ny nnd securities- left in the hand* of Mr. Delafield
htoughi back to tho Bank.” Oh the 6th March, ,
1840, after causing tho said -agreement oflOlh.
October to beroad-over, the Board of Directors (by
yeas 4>,mays^'resoived'Uiat the resolution of 0©.
wfil. r r m m- ’1 'u" cl ' declincd the arrangement
with J. Delafield. President, should be “nscotwidi.
ered, and then further resolved, by tho same yeaa-
nn. I- «ppo.„im, ugeui to proceed to New
York to negotiate a loan of $299,990 “in suciv,
manner ns ho might deem best;” and/ur/Aer, it was
resolved thut an agent should proceed to New York
m order to receive from J. Delafield, President of
New 1 ork Banking Company, oortain assets, of the
Bank which the Cashier deposited during the (then) ,
last summer, and incase the delivery of the assets
should be refused, the agent should employcouoeal
o compel,, surrenderor them by.proceseof law :
and Mr. Roos was thereupon appointed that agent.
that I.Vr 'l u'T*"* the B “«rd resolved,
that tho Cashier should be and he was empowered ,
o compromise with J. Delafield, President, dsc.’’—
tor the amount of computation that may be arran
ged in behalf of his Hgeiil, Col. McGehee,” as con
nected with the aforesaid agreement, Although
rom the loregoing, it would seem llmt-the Board of
Directors was anxious to get clear of Mr. Delafield .
and tho New York Banking Compony, and tow
gottute with some other person,yet by the minutes-
>t Apiil 21, 1849, it appears as follows: “The
vHshior reported the result of his mission to New
n ;' ldc “ nelv contraot with the New
",i had entered into certain financial arrangements
wnlitho New York Baukii-g.Company.and asaci nt,
iitltec was appointed to “borrow for a term ofyaars.
ie bills or notes payable on demand of soma-insli.
I 10 " sed as “ currency," nnd as the com
mittee hud succeeded in mnking“an arrangement
with an institution for $390,900,” and as “the car.
•viug into full execution both of the said agree,
ments would require “muoh prudence and disere,
non, Resolved, That the President and Cashier
should ho u Committee to direct the execution of
tlie agreements “ngrecabty to the chartor and by.
laws of the Bank.” I see by tho minutesof the 28th -
April, 1840, that the $300,090 arrangement was.
made with the Georgia Lumber Company, and that
against both proceedings a director, who was ab
sent on tho 21st April, protested. In pasing, I re-
mnrk.as portion of the history of the Benk, that
tins arrangement for $309,000, made with the A-
gont of the Georgia Lumber Company, who was also-
a Director of tlie Bank of Darien,soon blew up, with,
u loss to tho Bank 0/ $7000, unless Ihe Bond of Ilia
Georgia Lumber Company for $7000, now among,
'lie assets of tho Bank-sJiull bo collected,of which
hero is little hope.
The agreement reported by Mr. Rees as tbs new
contract with tho New York Banking Company.,
bears dale the 3d April, 1840. It is in character
like thnt of 10th October, 1839. By it tbe New
York Banking Company agreed to boy Sterling-
Dills to the amount of JS4.5O0 at same rate, and to'
pay for them $5000 in Notes of the New York.
Banking Company, and $15,000--oa the maturity,
nt drnfoi to ho drawn by me Bank of Darien on tho
Now York Banking Company, at 60 days, with,
waiver of acceptance. The Bank of Darien agreed
to ship 1100 bales of Cotton at statsd periods, and-
Mgrced to pay for any breaoh of the contract as
liquidated damnges” $8,000. As seeuiity for per-
formance, the Bank of Darien agreed to pledge,and 1
did pledge, all the securities pledged and deposited/
under the articles of agreement of 10th October,
1839—“ excepting und reserving thereout so much
"as might be necessary to enable J. Delafield,
--President, to realise all and every such sum or
"sums as might be due from the Bank of Darien to>
the said J. Delafield, President, under tho said’
"last mentioned articles. And finally the said J,
Delafield agreed that this latter contract might bo
extended until the oggregate amount of Sterling-
bills should reach £40,090 aterling.
It seems that so far from employing counsel to,
obtain the funds placed with Mr. Delafield, Preal.
dent, under the agreement of 10th October, 18$9;
out of bis hands, Mr. Rocs left Ihe funds them, and
entered inlon new contract with the sum* concern!,
which demanded $50,000 penalty for the violation'
of a contract under which it never advanced,a MDt,
and from wiiicit it never sustained any injury ; endf
in the new contract, adverted to monies that might
bo due under the first agreement. On the 1st Sap-
lumber, 1840, the Board resolved that the Cashier
should write to the President of ihe New York
Banking Company, “to know if it was considemti
necessury for an ngent to visit Ndw York in order
10 extend the contract of 3d April, for $20,000 to
$200,000. On the 6lh October, 1840, the ho*H
icso.vcd that an agent be appointed, wish fell pow
er and authority to proceed to New York end there
dose the original contract made with Ihe eeme iis.
Niitution, during the (ihenllast Summer, for$20$b*
000 ; and also sloes the last contract made with
the same institution, in the month of April (then)
last, for $20,000 previous to making any further ar
rangement with them ;-«nd further i “that this Bread
“appoints unageiii to proceed to New York to negoti-
“ate in behalf of this Bauk, for the sum of $20$k-
-'000, iu such manner as he mny deem beat forth*
-imereti of the Bank, and to communicate suchmr-
