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of application to the Court of Ordinary for leave to j
sell the laud or negroes of an estate, four months.
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debtors and creditors of an estate, for six weeks.
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O* Letters on business, must be post paid, to
entitle them to attention.
UNITED STATES BANK REPORT.
The Committee appointed at the meeting of the Stock
holders of the Hank of the United Siates, held Jan
uary 4, lSll,to examine the details of the statement
then submitted by the President, respectfully sub
mit the following
REPORT:
The Committee originally appointed, con
sisted of Joshua Lippuicott, Moses Kempton,
Charles Massey, Thomas P. Cope, Richard
Will iug, and David Kirkpatrick. The three |
last named gentlemen declined acting; and |
Edward Coles, James S. Newbold, ant! Joint j
Bacon having been selected to fill the vacan
cies, the Committee were dually organized, by
the election of Joshua Lippincott as ('hairman,
and George Sharswood as Secretary; and on
the 29ih day of January commenced the per-j
lorinance ol the duties assigned them.
The Committee were accommodated by the j
Board of Directors with an apartment in the !
Bank, and were from time to tune attended by
a Committee of that body, as weil as tiy the
Officers and Clerks of the Buik. Every fa
cility was afforded to them in tho prosecution
of tneir labors, as far as was practicable, by
submitting to the r examination the L inks oi
the Bank, and by giving such verbal explana
tions, and furnishing such extracts and copies,
as were requested. At an early stage of their
proceedings they were officially notified by the
President, that a resolution had been adopted
by the Board of Directors “.hat the Committee
of Stockholders bo informed that the Board is
ready to aitbrd them every facility in the pros
ecution of any investigation, winch the Com
mittee may be willing to make of the affairs
and transactions of tins Bank, and the causes
of its actual situation, and that it is the wish
of this Board that the Committee should make
such investigation, in order that the results
may be laid before the meeting of the Stock
holders in April next.” Conceiving it to be
their duty, under the terms of their original
appointment, as well under the invitation thus
extended to them by the Board, the Commit
tee accordingly commenced an examination ot
“the affairs and transactions of the Bank,”
and “the causes ot its actual situation.
The Committee proceeded in the first in
s'ancc to verify in detail the Statement of the
ASsets and Liabilities of Dec. 21.1840. The
securities and evidence in possession of the
Bank at Philadelphia were accordingly pro
duced, and on comparison therewith the same
was found to be correct. The cash was count
ed on the second of March, and corresponded
with the Leger Balance of that day. The re
turns from tne several offices and agencies
were read and found to agree with the printed
Statement. The accounts of the circulation
atul issues of the late and present Bank were
also examined.
The Committee have prepared and herewith
submit a still more detailed statement of the
Asses and Liabilities of the Bank, on the 21st
dav of December, 1840, than that heretofore
presented —exhibiting the particulars of each
item of the original statement in the same or-
t | cr and arrangement as therein pursued;
omitting, however, the items “Bank United
States Stock, Balance unsold,” and the amount;
credited as “Bonus tor C barter.
The next object proposed was to make a
valuation ot’ the Assets. With this view they
proceeded to examine the items ot Active and
Suspended Debt, Stocks, Real Estate Bonds
and Mortgages, Foreign Bills of Exchange,
and Amounts due by State Banks. The Pre
sident of the Bank was also requested to ob
tain an estimate of the probable loss on the
assets at the different offices and agencies, re
turns from all of which have accordingly been
received. The estimates thus made are pre
sented in a column added to the detailed
statement, now submitted and before reteired
, . .. _ A \
to, (Appendix A.)
The attempt to make an estimate of Proba
ble Losses was found to be attended with con
siderable difficulty and embarrassment, lo
adopt the present depressed market value o.
the several stocks, and loans held by the Bank,
would not be a fair criterion ot their actual
worth, which, rather than their present avail* |
bilitv, was that at which the Committeeten
deavored to arrive. Sail they have been
necessarily guided, in a great measure, by th ;
Price Current of the day. Ot the Real Estate j
and Bonds and Mortgages, a very imperfect
judgment can be formed, without inquiries as
to the title and incumbrances, which the Com
mittechail not time to make. J any of the j
securities ere ot a character to render
imnracticable to form even a reasonable con
jSo of their value. While, th
Committee bespeak for tins portion 0
labors that regard which is due to honest effor.,
from the best means w.lmt their reach, to ar
rive at the truth, they must oe permitted to
qualify it with the rem it k, that it is necessa
rilv only an approxiuiitioij, in which thej can
not ask The {Stockholders 10 place entire con
fidence. The ability of the institution to realize
any thing like a for eq nvalent to its Assets,
mil depend much upon the course of pouc_. 1
THE COLUMBUS TIMES.
I may in tuture pursue, and upon circumstances
| which not one can be expected to foresee. —
j The estimate is presented, however, with less
I reluctance, as from the details now given, each
i stockholder will be able to form a judgment
for himself.
I It may be proper here to remark, that it has
been thought best by a majority of the Cotn
} rnittee not to submit the lists in detail of the
j active and suspended debt. The injury which
i would result to the credit of individuals by an
I exposition, might ultimately be detrimental to
! the interests of the stockholders, while no
i benefit of sufficient importance to counterbal
! ance such a mischief, appeared to present
j itself. In regard to these two lines, therefore,
J the Committee will content, themselves with
! remarking, that but a small proportion consists
of regular mercantile discounts. On the Ac
’ tive Debt, December 21, 1840, are loans to
| seven incorporated or other companies of
j -31,211,193 22, including one of $502,222 22,
I to the Philadelphia, Wilmington and Baltimore
i Railroad Company. The sum of $740,056 33
is on obligations, having on that day more than
six months to run, and of this surn $597,-
1 028 05 had more than twelve months to run.
The sum of $279,888 41, a part of this line
entered as “Bills Receivaole,” being nomin
ally payable on demand, though really com
jMj.scd of permanent accommodations, is not
included in either of these amounts. Nor is
the sum of $60,800 86, “Bills receivable for
the sale of Offices.” A considerable part of
j it is in large amounts, as will sufficiently ap
> pear frtjrn the fact that forty-eight individuals,
firms and companies, have discounts exceeding
| 20,000 dollars each, of whom twenty-seven
have discounts exceeding $50,000 each, and
j nine exceeding SIOO,OOO each. A similar
i examination of the suspended debt exhibits as
j the result fifty-two individuals, firms and com-
I ponies, standing charged on the books of that
I department with more than $20,000 each,
! twenty-nine with more than $50,000 each,
j and eighteen with more titan SIOO,OOO each.
There are six individuals and firms whose
debts amount to $2,314,000, two of which are
over $650,000 each, a large amount of which
will be lost; and four others who have loans
amounting to $569,000. Eleven Joint Stock
Companies arc included on this list $897,581
23, of which the Philadelphia and Germantown
Railroad Company is $129,902 76.
The whole result of the valuation made by
the Committee may he thus stated in short:
The Assets of the Bank, amounting on the 21st day
of December, 18 10. according to the statement of the
Committee, to 69,531.742 dollars 46 cents have been
estimated at §sl 779 795 46
From which deduct Liabilities 36 959,539 63
Leaves the sum of §l4 820 256 11
to represent the capital of §25,000 000 00
Less amount of Umled States Bank
stock on hand 2 471,400 00
§32 528.600 00
To this may be added the sum of four or
five hundred thousand dollars for that part of
the circulation amounting on the 21st Decem
ber, 1849, to $9,336,090 99, which is probably*
lost or destroyed.
The Committee submit also herewith, con
densed General Statements of the condition of
tin Bulk on the Ist. day of Feb., 1636, on
the Ist day of April, 1839, and on the Ist day
of March, 1841; with a comparative Table of
Assets and L abilities for these three periods,
and also a General Statement of April 1,1841.
(Appendix B. C. D. E. and F)
The general statement of the condition of
the Bank February 1, 1836, is a copy of that
submitted to the stockholders convened at the
Batik, on the 19th day of that, month, for the
purpose of considering the propriety of accept
ing tiie charter then recently granted by the
Legislature of Pennsylvania. By that state
ment, showing the condition of the institution
after a peried of active business extending
over twenty years, and including more than
one period of serious commercial difficulty,
there appeared to the credit of
Discount, Exchange and Interest §423 875 15
Profit and Loss 3,765,399 54
Contingent fund, excluding the Losses
chargeable thereto, by the sum of 1 436,561 65
Foreign Exchange account 847,871 03
Fund for extinguishing cost of Banking
Houses 1,104,223 09
Contingent Interest 410 854 14
§8,018.784 66
These sums, afier deducting the amount
of deficiencies and expenses 217,194 22
f irniftl the surplus fund of die institution §7,801 ,590 3S
from which, it will be recollected, it was strong
ly urged upon the stockholders, as the main
argument in favor of accepting the charter
thou offered, that after making the most liberal
allowance for probable losses on the suspend
ed debt and real estate, the entire bonus could
be paid, without in the least degree impu.ir.ng
the capital.
The origin of the course of policy which has
conducted to the present situation of the allairs
of the institution, dates, however, beyond the
period of the re-charter by the State. When
it was perceived that the charter of the late
Bank of the United States would not be re
newed or extended by Congress, the President
and Directors commenced winding up its con-
J cerns, and among the first measures taken to
that end, was to sell or dispose of, as far and
] as speedily as could be effected, tiie assets of
its several branches. This was generally
; done to State Banks, who gave for them their
I obligations, payable by instalments at distant
periods. At the same time the policy was
| adopted of converting the active debt into loans
| upon the security of stocks, by which perma
; nent investments might be provided for the
I capital of the Bank during the long period of
; its anticipated liquidation. On the 6th ot
March, 1835, “the President submitted to the
Board a general view of the situation of the
Bank, its means and liabilities, its circulation
and deposits, and the probable future demands
upon it, showing its ample resources and
power of expansion: whereupon” the Com
mittee of Exchange, which was composed of
three Directors, appointed by the President,
1 were authorized by the Board “ to make loans
on the security of the stock of this Bank, or
other approved security, and if necessary, at a
lower rale than six, but not less than five per
cent per annum.” This delegation of power
to flic Exchange Committee, was never ex
pressly and formally renewed under the new
charter, unless it be considered as included,
under a general resolution of the new Board
adopting “the Bye-Laws, Rules and Regula
tions” of th? former B ink. By the statement
of the the condition of the Bank upon the 2d j
of March, 1835, the whole amount of loans
upon Bank stock, an 1 other than personal se
curity, was $4,797,936 *35. while by that of
March 3, 1336, these loans had increased to
the sum of $20,446,367 33. Under such cir
cumstances, the active means of the Bank were
comparatively small, to pay the immediate de
: mands of the State for the bonus, to settle with
j the government of the United States for its
stock, and to meet iis circulation of $20,114,-
| 227 53, which, contrary to the anticipation,
expressed at the period of its re-charter, soon
! began to be rapidly presented for redemption,
i The Bank was of necessity driven into the
! market as borrowers, and very soon the first
■coo was taken to obtain loans abroad, by send
ing the Cashier to Europe for that purpose.—
Two loans were accordingly negotiated by
him one in England, of £1,000,000, and an
other in France, of 12,500.000 francs on favor
able terms.
COLUMBUS, GEORGIA, THURSDAY MORNING, APRIL 29, 1841.
In order to provide for the payment of these
loans, and to negociate others, and iu general
to superintend the interests of the institution
abroad, it was determined by the Board to have
a General Agent residing in London, and on
22d of September, Mr. Samuel Jaudon, then
Cashier, was electedTo that post, and his agen
cy there commenced accordingly, November
8, 1837.
At the same time the Bank entered the for
eign and domestic markets as borrowers upon
their post-notes and bonds payable in Europe ;
the whole amount obtained in this way at dif
ferent periods up to July, 1840, being more
than $23,000,000.
From these causes, as well as from the gen
eral derangement of affairs, the suspension of
specie payments, and the discredit consequent
ly thrown upon American securities, and more
particularly from the course of the Bank’s
dealing in Foreign Exchange, by drawing bills
to a large amount without having previously
provided the funds for their payment, and thus
subjecting their agent in J/ondon, to the ne
cessity of obtaining money in haste, in order to
maintain the credit of the Bank, it was no lon
ger found possible to command funds there up
on the same favorable terms us before. And
accordingly, upon Mr. Jaudon’s subsequent
negotiations for loans, to the amount altogeth
er of $12,212,697,46, there is chargeable to
losses the sum of $1,149,907,04, being for dis
count, commissions to foreign bankers, and
other charges; not including Mr. Jaudon’s
own commissions, and the expenses of the a
gency in Loudon amounting up to January 1,
1811, to the sum of £69,34417s Gd, which at
nine per cent, exchange is equal'to $335,937
39.
It may be proper to explain, in passing, how
this large sum for expenses of the agency at
London arises. When Mr. Jaudon was elec
ted to the place of foreign agent, he was the
principal cashier, at a salary of S7OOO per an
num. The Bank paid the loss on the sale of
his furniture, $5074, and the passage of him
self and family to London, a further sum of
slOls. He was to devote himself exclusive
ly to the business of the Bank, to negotiate an
uncovered credit in England, to provide fer the
then existing debt in Europe* to receive its
funds, to pay* its bills and dividends, To effect
sales of stocks, and generally to protect the in
terests of the Banks and ‘the country at large.’
For these services he was to receive the com
mission theretofore charged and allowed to
Baring, Brothers & Company, equal to about
$28,0(19 per annum. In addition to which,
the expenses of the agency were allowed him,
including a salary of £IOOO to bis brother,
Mr. Charles B. Jaudon, as his principal clerk.
From the increase of money operations arising
from facilities afforded by the agency, the a
mount upon which commissions were charg
ed, was greatly augmented, so that the sums
paid him for his ordinary services up to Janu
ary, 1841, amounted at 9 per cent, exchange
to $978,044 47, and the expenses of the agen
cy to $35,166 99. In addition to these sums
he was allowed by the Exchange Committee
an extra commission of one per cent, upon a
loan effected in October, 1839, of £BOO,OOO,
say $38,755 58, and upon his claim for a sim
ilar commission upon subsequent loans in
France and I lolland, to the amount of $8,337,-
141 90, the Board of Directors, under sanction
of a legal opinion, from counsel of high stand
ing, and the views of the former President, by
whom the agreement with Mr. Jaudon was
made, that the case of extraordinary loans was
not anticipated, nor meant to be included in
the original arrangement, allowed the further
charge°of $33,970 37. -These several sums
amount to $335,937 39, as before stated.
Such were some of the results ot the reso
lution of March, 1835, though it cannot be
questioned that much may be fairly attributed
to the unhappy situation of the business and
exchanges of the country, concurring with the
unfortunate policy pursued hy the administra
tion of the Bank. Thus the institution has
gone on to increase its indebte iness abroad,
until it has now more money borrowed in Eu
rope than it has on loan on its list ot Active
Debt in America. To this has been superad
ded extensive dealing in stocks, and a contin
uation of the policy of loaning upon stock se
curites, though it was evidently proper upon
the recharter that such a policy should be at
once and entirely abandoned. Such, indeed,
was its avowed purpose, yet one year after
wards, in March, 1837, its loans upon stocks
and other than personal security had increased
$7,821,541, while the bills discounted on per
sonal security, and domestic exchange, had
buffered a diminution of $9,516,463 78. It
seems to have been sufficient, to obtain money
on loan, to pledge the stock of an “Incorpora
ted Company,” however remote its operations
or uncertain its prospects. Many large loans,
originally made on a pledge of stocks, were
paid for in the same kind ol property, and that
too at par, when in many instances they had
become depreciated in value. It is very evi
dent to the committee, that several of the offi
cers of the Bank were themselves engaged in
large operations in stocks and speculations, of
a similar character, with funds obtained of the
Bank, and at the same time loans were made
to the Companies in which they were interes
ted, and to others engaged in the same kind
operations, in amounts greatly disproportioned
to the means of the parties, or to their proper
arfd legitimate wants and dealings. The ef
fect of this system was to monopolize the ac
tive means of the institution, ar.d disable it from
aiding accommodating men engaged in busi
ness really productive and useful to the com
munity ; and. as might have been anticipated,
a large part of the sums thus loaned were ul
timately lost, or the Bank compelled on disad
vantageous terms as to price, to take in pay
ment Stock, Backlands and other fragments
of the estates of great speculators.
Tho loose and irregular manner, in which
the business of loaning money was conducted,
tended greatly to produce this result, and de
serves particular notice and explanation.—
From March, 1835, the period of the passage
of the resolution above referred to, the chief]
control and management of the affairs of the
Institution, appears to have passed from the
hands of the Directors. The mode in which
the Committee of Exchange transacted their
business, shows that there really existed no
check whatever upon the officers, and that the
funds of the Bank were almost entirely at
their disposition. That Committee met daily,
and were attended by the Cashier, and a: times
by the President. They exercised the power
of making loans add settlements, to full as
great an extent as the Board itself. They
kept no minutes of their proceedings—no book
im which the loans made and business done
were entered, but their decisions and direc
tions, were given verbally to the officers, to be
by them carried into execution. ‘The estab
lished course of business seems to have been,
for the First Teller to pay on presentation at
the counter, all checks, notes, or due bills
having endorsed the order or the initials of one
of the cashiers, and to place these as vouchers
in his drawer, for so much cash, where they
remained, until just before the regular period
ical counting of the cash, by the Standing Com
mittee of the Board on the state of tlie Bank.
These vouchers were then taken out, and en
tered as “Bilis Receivable,” in a small Mem
orandum Book, under the charge of one of the
clerks. Tnese Bills were not discounted, but
bore interest payable semi-aunaully, and were
secured by a pledge of stock, or sonic other
THE UNION OF Tig STATES, AND THE SOVEREIGNTY OF THE STATES.
kind of nrodMtu. It is evidently impossible,
under such weumstances, to ascertain, or be
assured, in regird to any particular loan or set
tlement, that fir was sanctioned by a majority
of the Exchaste Cornintttee. It can be said,
however, wiofcntire certainty, that the very
.arge businesiPtransacted in this way docs not
tppear upon the face of the Discount Books,
.vas never submitted totke examination of the
members of the Board, at its regular meetings,
nor is it anywhere entered on the minutes, as
having been reported to that body, for their in
formation or approbation. As illustrative of
the extent of these transactions, it may be pro
per to state, that the sum total of “Bills Re
ceivable.”
On the 4th of March, 1836, wras §6,221 630 S5
On the 4'h of March, 1837, 8983 445 01
On the 4th of March, 1838, 7.229,503 25
Un the 4;h of March, 1833, 6 772.731 80
On the 4lh of March, 1840, 4,141,705 94
The amount outstanding on the books of this
Department, on the 4th of March, 1841, had
become reduced to the sum of 176,954 dollars,
12 cents. The accounts have been settled in
various ways, or transferred to other heads,
Directors having resolved to abolish altogether
a course of proceeding, so pregnant with mis
chief and loss, and to prohibit entirely, all loans
except by r the Board itself.
There stands now upon the books of the
Suspended Debt Department, transferred
thereto from “Bills Receivable,” still uriettled,
$1,470,654 77. A portion is on the list of
Active Debt, having been changed into Bills
Discounted, at deferred periods of maturity.
These loans were generally in large amounts.
In the list of Debtors on “Bills Receivable” of
the first of January, 1837, twenty-one individ
uals, firms and companies, stand charged, each
with an amount of one hundred thousand dol
lars and upward. One firm of this city receiv
ed accommodations of this kind between Au
gust, 1835, and November, 1837, to the amount
of $1,213,878 30, more than half of which was
obtained in 1837. The officers of the Bank
themselves received in this way, loans to a
large amount. In March, 1836, when the
Bank went into operation, under its new char
ter, Mr. Samuel Jaudon, then elected its Prin
cipal Cashier, was indebted to it $100,500. —
When he resigned the situation of Cashier, and
was appointed Foreign Agent, he was in debt
$403,389 25, and on the Ist of March, 1841,
he still stood charged with an indebtedness of
$117,500. Mr. John Andrews, First Assistant
Cashier, was indebted to the Bank in March,
1836, $104,000. By subsequent loans and
advances made during the next three years,
lie received in all, the sum of $42,930 57.
Mr. Joseph Cowperthwaite, then Second As
sistant Cashier, was indebted to the Bank in
March, 1830, $115,000; when he was ap
pointed Cashier in September, 1837, $326,-
382 50; when he resigned, and was elected
a Director, by the Board, in June, 1840, $72,-
960, and he stands charged March 3, 1841,
on the books, with the sum of $55,081 95.
It appears on the books of the Bank, that these
three gentlemen were engaged in making in
vestments on tlia>ir joint account, in the Stock
and Loan of the Camden and Woodbury Rail
road Cos., Philadelphia, Wilmington and Bal
timore Railroad Cos., Dauphin and Lycoming
Coal Lands, and Grand Gulf Railroad and
Banking Cos.
The various settlements effected with the
officers and other debtors for these irregular
loans, must not be suffered to pass without
notice. These settlements were without the
knowldege or approbation of the Board, at
least so far as appears from their minutes. —
The large loan to a firm in this city, before ad
verted to, was settled by the receipt in pay
ment of various stocks and real estate, except
$247,264 50, in cash. Another large amount
of loans to a single individual of $1,014,977
80, was settled in like maimer. There was
taken in settlement of debt from Messrs. Be
van & Humphreys, (Mr. Joseli Cabot, one of
the firm, being at that time a Director of the
Bank,) one thousand one hundred and fifty
shares of United Stales Bank Stock, in 1838,
viz: On the 2d of August, two hundred and
fifty shares, at $123, the Bank selling on the
same day at $l2O, less brokerage ; on the 22d
of August, five hundred shares, and on the 23d
of August, four hundred shares, at $125, the
market price on those two days being $123
25, the bank selling the day alter at $123, less
brokerage. Settlements of a similar charac
ter with debtors for smaller amounts, were of
frequent, recurrence.
The first instance in which an officer paid
his debt to the Bank in other than money,
which the Committee can find, was in March,
1838, when Mr. Samuel Jaudon (ilien in Lon
don as the Agent of the Bank,) Mr. Joseph
Cowperthwaite, (then Cashier,) and Mr. John
Andrews, (then First Assistant Cashier,) paid
a debt of $269,500, which they owed the Bank
on joint account,
In Danville and Pottsville “Railroad Go. five per cent.
Loan, 70 000
Union Ganal, 6 per cent. Loan, 10,000
Philadelphia & Reading it. R. Cos., stock 3,590
shates, 170500
West Feliciana R. R. Cos., stock 1000 shares 10,000
§260,500
Os course the Committee cannot say that the
Exchange Committee did or did not authorize
or sanction this settlement The paper which
constitutes the only evidence of it, and which
the Committee have seen, exhibits no sign of
such authority or approbation, other than the
initials of Mr. Andrews himself.
Os the residue of the large debt of Mr. An
drews of $463,104 88, which includes his oae
third proportion of the foregoing sum of $269,-
500, all except $32,311 55 was settled by the
transfer of Stocks and Loans.
An account of the settlements with Messrs.
Jaudon, Cowperthwaite & Andrews, accom
panies a report made by the Exchange Com
mittee, to the Board on the 21st ot August,
1840. The Committee remark in their Report,
“ Four Committee are unable to say, if any
authority was given by the Board under the
charter from Congress, but are very certain
I that the Boards, under the present charter,
have never sanctioned such loans or settle
ments, and they cannot too strongly condemn
such acts. The power of making loans and
-settlements must be reserved to the Bank,
while the Officers must be content with being
the executive of its decisions.”
The accounts of these officers are herewith
submitted, together with some others. (Ap
pendix G.)
In order to inform the Stockholders, not only
of the character of the Assets, but ot the mode
by which they came to the possession of the
Bank, there is attached to this Report a state
ment showing the particulars of the Stocks on
hand at the Bank, the amount taken in settle
ment of debt, purchased or subscribed, and a
list of Stocks in possession, April, 1,1839.
(Appendix H. I.) Os the whole amount of
Stocks and Loans which the Bank has receiv
ed since its re-charter, including those since
disposed of, it appears, that more than thirty
one millions of dollars have been taken in
settlement of debts and advances.
In the course of their investigation, the at
tention of the Committee has been directed to
certain accounts* which appear on the books as
“Advances on Merchandise*” but which were,
in fact, payments for Cotton, Tobacco, and
other produce, purchased by the direction of
the then President, Mr. Nicholas Biddie, and
shipped to Europe on account of himself and
others. These accounts were kept by a clerk
in the Foreign Exchange Department, this
| department being under the charge of Mr.
Cowperthwate, until September 22, 1837,
when he was elected Cashier, and of Mr.
Thomas Dunlap, until March 20, 1839, when
he was chosen President.
The original documents,, necessary to ena
ble the Committee to arrive at all these facts
in relation to these transactions, were not ac
cessible, having been retained, as was sup
posed by the parties interested as private pa
pers. A succinct view of the whole matter,
sufficient to convey to the stockholders a
general idea of its character may be drawn
from the Report of a Committee of the Board
of Directors, appointed on tne 21st of July,
1340, for the purpose of adjusting and settling
these accounts, and who reported on the 21st
of December, 1840, which report, with the
accompanying accounts, is spread at large on
the minutes.
The first transactions were in July, 1837,
and appear as advances to A.G. Jaudon,to
purchase cotton for shipment to Baring, Broth
ers &, Cos., of Liverpool, the proceeds to be
remitted to their house in London, then acting
as the agents of the Bank. The amount of
these shipments was $2,182,998 23. The
proceeds were passed to the credit of the Bank,
and the account appears to be balanced. The
result as to the Profit and Loss, do not appear,
and the Commitiee had no means of ascer
taining them, nor the names of the parties
interested.
In the autumn of 1837, when the second of
these transactions commenced, it will be rec
ollected that Mr. Samuel Jaudon had been
appointed the Agent of the Bank to reside in
London. About the same time, a copartner
ship was formed between Mr. May Hum
phreys, then a Director of the Bank, and a son
of Mr. Nicholas Biddle, under the firm of
Biddle & Humphreys. This house was estab
lished at Liverpool, and thenceforward acted
as agents for the sale of the produce shipped
to that place, which comprised a large propor
tion of the whole amount.
In explanation of these proceedings, the
Committee annex to their Report a copy of a
letter dated Philadelphia, December 28,1840,
to the President and Directors of the Bank,
from Mr. Joseph Cabout, one of the firm ot
Bevan & Humphreys, and who became a Di
rector at the election in January, 1838. This
letter was read to the Board, December 29,
1840, but was not inserted in the minutes.—
(Appendix K.)
This arrangement continued during the
years 1837, 1838 and 1839, the transactions
of which amounted to $8,969,450 95. The
shipments made principally to Biddle & Hum
phreys, were paid for by drafts on Bevan &
Humphreys—the funds advanced by the Bank,
and the proceeds remitted to Mr. Samuel
Jaudon, Agent of the Batik in London.
It appears that there was paid to Messrs.
Bevan & Humphreys by the Bank in Phila
delphia during tho months of March, April
and May, 1839, the sum of eight hundred thou
sand dollars and the account was thus bal
anced. The Committee have reason to be
lieve that this sum constituted a part or perhaps
the whole of the profits derived from the sec
ond series of shipments. How, and among
whom, it was distributed, they have not been
informed, but from the terms ot* the final set
tlement to be adverted to presently, each one
will be at liberty to make his own inferences.
The third and last Account, amounting to
$3,241,042 83, appears on the books as “ Bills
on liOiidon, advances S. V. S. W.” These
letters stand for the name of S. V. S. Wilder
of New York. Messrs. Humphreys & B.ddle,
to whom these consignments were made, con
tinued their accounts in the name of Bevan &
Humphreys, but without the knowledge of
the firm, as appears by Mr. Cabot’s letter of
December 28,1849. The result of these last
shipments was a loss of $962,524 13. Os
this amount the sum of $553,908 57 was for
excess of payments by Messrs. Humphreys
& Biddle to the London Agency, beyond the
proceeds of sale, with interest thereon. The
parties interested, claimed and were allowed
a deduction for loss on $526,000 of Southern
Funds, used in the purchase of cotton, when
at a discount, the sum of $310,071 30, and
also this sum, being Bankers’ Commission to
Messrs. Humphreys & Biddle on advances to
Samuel Jaudon, Agent, $21,061 86, making
$331,133 16, and leaving to be settled by the
parties the sum of $631,390 97.
Before proceeding to state the particulars of
this settlement, it will be proper to precede it
by the remarks of the Committee of Directors,
by whom it was effected. They say: “ A
long and difficult negotiation has resulted in
the settlement of three-fourths of the Balance,
and an agreement for the settlement of the
remaining fourth. The payment of half the
amount, and the agreement for one-fourth, are
neither of them such as the Committee labored
to obtain ; yet the terms are better than at one
period of the negotiation they could reasona
bly have expected, and although unsatifactory
in themselves, are acceptable under the pecu
liar circumstances of the case.”
The settlement reported to the Board on
tire 21st of December, 1810, was as follows:
With Mr. Nicholas Biddle fur one-haif amounting
with interest to $321,220 14
For which there was received from him in
payment, three Bonds of the Republic of
Texas, for five thousand doiiars each,
and an Order on Gen. James Hamilton,
then in London, to deliver to the Ca'shier,
or his order, a Bond of the Republic of
Texas, payable in London, for 10,1261.
13s. 4d., and also 90 Bonds of the same,
for 250 pounds each; these with in’ere.st
due and Exchange, accord ng to a calcu
lation made by Mr; Samuel Jaudon,
amount to 201,642 20
Leaving a balance of $119,577 95
For the Balance, Mr. Biddle agreed to de
liver to the Bank within one month, Texas
Bonds, and on the delivery of the last men
tioned Bonds, the Bank agreed to give him a
discharge from its claim upon him for his share
of the loss on these operations. The contract
has been performed. The Committee of the
Board say, in reference to this settlement: —
“ Aware that the Texian securities were much
belo.v par in the market, the Committee re
luctantly agreed to the settlement under the
belief that a better arrangemtnt for the Bank
could not be (at least amicably) effected, and
in the hope founded on general information,
that the Bonds might at a distant day, be dis
posed of without serious loss. ’
The Committee also settled with Mr. Cowperthwaite,
for one-fourth of the loss. $157,647 74
For which was received in payment, Mr.
Cowpertbwaite’s share in ceriain L)uu|>-
nin county Coa Land, which cost $l2O -
000, less a mortgage thereon of §lO 000 110,000
Land in Cartaraugus County, New York,
which cost 5,000
Land in Lycoming Countv, Wisconsin and
Michigan 20,000
Boston and Illinois Land Cos. Stock, 17
shares, par 17,000
Commercial and Railroad Bank of Vicks^
burg, 350 sh res, par 35,000
Planters’ Bank of Mississippi, 59 shares, par 5,900
West Feliciana Bank, 100 shares, par 10,000
Germantown and Norristown Railroad Cos.
500 shares.par 25 COO
Camden and Woodbury Railroad Cos. 100
share*, par 5.000
Loan of Camden and Woodbury Railroad Cos. 15,000
§247,900
! And a cash payment, the Committee say,
ot •‘about” 16.GG0
. Making altogether $263,000
| The Committee state, in reference to heir
settlement with Mr. Cowperthwaite, that it
was made on the ground that, “with the ex
ception of a few thousand dollars retained to
pay other debts, the agreement comprised all
his remaining property.”
The Committee also settled with Mr. S. V. S. YY ilder
the rem.unin<i one-four ill, amounting with interest
to $161,“93 23
For the purprse o r cnabling Mr. Wilder to
settle this amount in cash, ihe Bank of
the United Sia es in New Yo;k. loaned
him the sum of $112.000 on security of
1. Real Estate at Green Hill,
Philadelphia County $20,003
2. Five thousand live hundred
acres of “ Iron land” and two
furnaces in Columbia county,
Pennsylvania, in operation and
producing a Rent equal to 6 per
cent, on $200,000 79,000
3. On his claim upon William 11.
Robertson of Mobile 7,500
4. On his claim on Air. Bigelow
of New York 5,500
The balance was settled by receiving the
whole amount from Mr. Wilder in cash 49,793 33 j
$161,793 33 j
Mr. Thomas Dunlap of Philadelphia guar- ■
antees under date of December 21, 1840, the i
faithiul and punctual payment of the loans to j
Mr. Wilder. The Committee of tiio Board I
add : “Under this arrangement we apprehend j
no loss to the Bank.”
Upon the presentation of the Report of the
Committee on advances, to the Board on the
21st December, 1840, a motion was made, to
recommit the same for the purpose of having
inserted therein, the name of the party really
interested in the one-fourth, for which the set
tlement was made with Mr. S. V. S. Wilder.
This motion did not prevail, but the Report
was accepted and the Committee discharged.
After the Report had been read, the follow
ing Preamble and Resolutions were submitted
by Mr. James Martin, and unanimously adopt
ed by the Directors present, who were Messrs.
John R. New, Joseph Cabot, Lewis Wain,
John Connell, Manuel Eyre, Richard Price.
Lawrence Lewis, James Martin, George Han
dy and Robert Taylor; Mr. Neff acting by
deputation as President pro. tern, in the ab
sense of Mr. Dunlap.
“As it appears by the Report of the Com
mittee on Advances, that large transactions
have been going on for several years without
the sanction or knowledge of the Board of Di
rectors, and as it further appears, that these
transaction were mostly if not wholly for the
account and to the Profit and Loss of the ex
ecutive officers of this bank at those times, it
is due from this Board, that their just condem
nation of such things, should be fully expres
sed, and recorded ; it is therefore
“Resolved, That the business of loaning
money exclusively and of right belongs to the
Board of Directors, and that all loans or dis
counts made by a Committee of the Board, in
concurrence with the officers, should be duly
reported to a regular meeting of the Board.”
“ Resolved, I'hat the loaning or discoun
ting, on the deposite of collateral security or
promissory notes of the officers oi the Lank
is unauthorized, and contrary in the proper
administration of the affairs of the Bank.”
“ Resolved, That the large advances made
by the Officers of the Bank, in the periods of
1337-8, and Board of Directors, merits and
receives our just censure and condemnation.”
By the thirteenth Standing Rule of the Bank
it is provided, that the Committee on the state
of the Bank, composed of five members, and
elected by Ballot ever'/ three months, should
“at least once during their time of service,
examine and count the discounted notes, aim
compare Uie amount thereof with the balance
of the amount of Bills Discounted in the Gen
eral Leger: they shall also count the cash, and
.the printed and the unprinted paper in the
possession of the Cashier —examine the evi
donees of the public debt and property of the
corporation, make an Inventory ot the .-same,
to be compared with the hooks, in order to
ascertain their agreement and report to the
Board.” The custom appears to have been
for this commitee to confine their examina
tion exclusively to the cash, Bills discounted on
personal and other security, the Issues, and
the Primed and Unprinted Bank paper on
hand. The account, however, of the gene
ra! state of the Bank, submitted to the D,rec
tors at every stated meeting, contained t ie.
items of“ Bills Receivable on Bank stock and
other security,” which included as well the
bills receivable lor sale of branches as the
loans made in the manner heretofore adverted
to, and “Foreign Bills of Exchange” under
which head, was contained the advances on
shipments of merchandise. Thus, on the
28th of June, 1838, ori which day an examina
tion was reported by the Committee on the
state of the Bank, mere stood to the debi of
“ Bills Receivable,” the sum of 13,10b,74 dol
lars,ss cents,and of “Foreign Bills of Ex
change,” the sum of 7,123,109 dollars, 34
cents. The Committee annex to this Report
a List of the D,rectors and the several stan
ding Committee of the Board since the re- j
charter. (Appendix L.
Not only in regard to loans and settlements,
but in relation to the purchase and sale ol
stocks, the establishment -f agencies, and
other important measures of general policy,
the Board of Directors were not regularly con
sulted. Os this the committee roust be per
mitted to present some instances as illustra
tive. In September, 183d, the Bank pur
chased the “Merchants’ Bank of New Or
leans” of the capital of one million of doiiars
for an advance o! 76.250 doiiars and estab
lished it, as the agent of this Bank, at that
piace. On ‘.be eight day of November, 1836,
in like manner a purchase was made lor
384,000 doiiars of “ The Insurance Bank of
Columbus, Georgia.” In August, 1839, ar
rangements were made for (he purchase ol the
charter of “The Hamilton Bank,” of Balti
more, and the purchase etiected ; but as the
Bank never went into operation the advance
was hut small. There was taken from Mr.
Joseph Cowperthtvaite, < n the Ist of Ala. eh,
1838, eighty-nine shares of Bank United
States Stock at 120 dollars, the Bank seeing
the same day at 118 doiiars, less brokerage;
and ori the 8;h January, 1840, there was re
ceived from him as cash one hundred and
thirty shares at 100 doiiars, the market price
of that day being 85 dollars 75 cents. On the
4th of March, 18 r 39, Messrs. Joseph Cov.per
thwaite, Thomas Dunlap and Joseph Cabot,
agreed to purchase of the bank two thousand
shares of Philadelphia and Reading Ralroad
Co’s Stock, at forty-five dollars per share, on
a credit of two years, and on the application
of these parties on the 13th of February,
1840, the said contract was annulled. It i |
s a edi a Report ofthe Exchange Comm le
of August 28, 1840, and entered on the min
utes of the Board, the Philadelphia and Read
ing Railroad Cos. had made a contract with
Mr. Joseph Cowperthwnite, for a loan of
500,000 doiiars in his individual capacity, (al
though supposed bv the company to have been
on account of the Bank.) to be convened into
sterling Bonds at 4 dollars 80 qents per pound
sterling. At the period of that report,
of 326,000 doiiars of (his loan had been taken
up, of which the Bank was then holders ol
272,000d011ars and on that day,(with the as
sent of die Board,) assumed the balance un
paid of the contract. Upon the eighteenth
day ol August 1838, the Bank guaranteed a
contract made by Mr. Nicholas Biddle in his
individual Capacity, lot the purchase of two
YOU. I. no. 12.
thousand five hundred Bonds of the Slate of
Mississippi, ot two thousand dollars each, a- ‘
mounting iu the whole to 5,000,000 dollars.—
i lie signature of Mr. Thomas Dunlap, then
second assistant Cashier, was affixed to the
guarantee, oil behalf of the Bank upon the
29th January, 1839, the Bank guaranteed to
the Stale of Michigan, the punctual fulfilment
of the obligations of (he Morris Canal and
Banking Company, for .lie purchase of Bonds
of that state, to the extent of 3,145 657 dollars
50 cents, for 2.700.000 taken at par, and in
cluding interest on the instalments payable
every three months up to January 1843. On
the 29th of April, 1839, the Bank guaranteed
a contract entered into by Mr. Thomas Dun
lap, in his individual capacity, for the pur
chase of one million of dollars of the “Illinois
and Michigan Canal Stock.” In regard to
these transactions, the Committe can find no
authority on the minutes of the Board, and
nave been referred to none, by the President
i upon whom they called for information.
The Committe submit herewith, (Appen
’ dix M.) a statement of the profit and Loss Ac
! count of the Contingent Fund, and an ab
| struct ot the losses chargeable thereto. In this
| last account there is a charge under date June
; 30, 1840, of 400,000 dollars to “ Parent Bank
notes account,” which lias not been explained
to the satisfaction of the Committee. It must
he also mentioned, that among the expendi
tures ot the Bank there is entered, at various
dates, commencing May 5,1556, sums amoun
ting in all to 615,640 dollars 15 cents, as paid
on the “ Receipts ot Mr. N. Biddle,” ot “ Mr.
N. Biddle and J Cowpertliwaile,” and “Cash
ier's and Vouchers.” As the Committee were
unable to obtain satisfactory information up
on the subject of these expenses from the
books or officers of the Bank, application was
made by letter io Mr. N. Biddle and Mr. J.
Cowpei thwaite, from whom no reply has been
received.
The Committee have now performed tli£
task assigned them by the stockholders. —
They have endeavored to select from the
mass of materials submitted to their examina
tion, only such as seemed sufficient to illus
trate the general course ul'ilie Bank. To have
gone more into detail, would have requred
more time than was allotted to the Committee,
and to have accompanied each particular
with full explanations, would have extended
their report beyond all reasonable limits.—
They have” given the simple facts without
comment; but enough has been presented, it
is believed, to enable each stockholder to form
a judgement of ihe manner in which the inter
ests committed by him to his trustees and a
gents, the directors and officers, have been
managed. To satisly mere idle coriosity,
the Commitee had no inclination, and would
have gladly omitted many of Ihe facts and
explanations they have given, could such a
course have been reconciled to their sense
of duty, to those by whom they were appoint
ted. Joshua Liffincott,
Moses Kempton,
Charles Massey, Jr.
Edward Coles,
John Bacon,
James S. Newbold.
Bank of the United States,
April 3, 1841.
Attest, George Sharswood, Sec’y;
A Singular Case. —A French paper call
ed the Audience contains a letter Irorn a pri
vate correspondent, dated Gibrulter, the 28lh
Feb. which states that an opulent British mer
chant, named James Boxtvell, long resident
there had been tried and convicted offiie mur
der of his daughter, on circumsantial evidence
and that on ttie way to execution the con
vict satv in the crowd another Englishman,
named John Keats, who had been extremely
active in collecting evidence against him. The
convict expressed a wish to die in peace with all
mankind and to pardon this person, whom lie
had considered his greatest enemy. VVlien the
convict reached the scaffold, the executioner
was preparing to execute the sentence of the
law. when a voice was heard in the crowd
exclaiming—“lt is I that am guilty and not
the convict!” This exclamation was made
by John Keats. He confessed that it v, as
he who carried off James Boxwell’s daugh
ter; that he had cut otfher hair during her
sleep, and stolen one of her dresses, which he
had steeped in blood ; and that the generous
pardon granted to him by his victim had
caused him to reflect on the enormity of his
crime. The executioner immediately with
drew the rope from the convict’s neck, and
the cap from his face, when it was discovered
that he was dead from the effects of terror. —
The atrocious John Keats was conducted to
prison amidst execrations of the
who wished to tear him to pieces.
Ingenious Theft.-Tlic French pickpockets
are ingenious fellows, as the following transla
tion of a story told in one of the Parisian pa
pers will show :
A few nights ago, at about eleven o’clock, a
great number of persons were attracted to the
Point du Carrousal by the exclamation of a
man who said his companion had fallen into the
Seine. lie called out “Edward, Edward,”
and presently a voice was heard to reply, “I
am here.” “Thank God,” said the man, “he
is not drownded, and may yet be saved ; but
how, we have no boat, if we had hut a
rope !” No rope being at hand the man sug
gested that a communication might be made
with his drowning friend by means of hand
kerchiefs, and taking his pocket handkerchief,
and his cravat, tied them together. The idea
was adopted by the crowd, and in a minute or
two more than thirty handkerchiefs were lent
to him for the purpose. Having tied them all
together, with a key at the end to give them
weight, he threw the line of handkerchiefs in
the direction from which the voice came ; it
was seized, and all who were present were’
waiting with anxiety to see the drowning
man drawn towards the quay, when the per
son to whom the handkerchiefs had been in
trusted dropped that which he held. “What a
misfortune,” said lie, “but Edward has I hope
succeeded in reaching this quay.” He then
ran off suddenly as if to look for his friend.—
lie was soon lost sight of in the dark, and re
tumd no more neither did the handkerchiefs,
for it appears that they were caught by a con
federate who was clinging to the bridge, and
who took care to get off at the same time.
John C. Calhoun, the Charleston Courier
states, was fifty-eight years of age on St. Pat
rick’s Day last, the 17th March, and being in
Charleston, he celebrated the Saints birth day
and his own at the time.
A Beautiful Currency.—The Natchez.
Free ‘Frailer says:— ‘ On Salurday, we saw
a ten dollar gold piece sold for SIOO in Alis
sissippi Rail road notes; and on Monday, a
common Alarseilles vest brought SIOO in
r.otes of the Mississippi Slipping Company.
1 Ins is going hack to continental quotations.
A desperate lover. —A despairing swain
; n a fit of desperation, recently declared to
his unrelenting lady-love, that it was his firm
determination to drown himself, or perish in
the attempt t