Below is the OCR text representation for this newspapers page.

BY JAMES VAN NESS. PUBLISHED Every Thursday morning, in the “Granite Building,” on the corner of Oglethorpe and Randolph Streets. TERMS: Subscription —three dollars per annum, payable in advance, three dollais and a half at the end of six months, or four and dlars, (in all cases) where pay ment is not made before tne expiration of the year. No subscription received for less than twelve months without payment in advance, and no paper discon tinued, except at the option of the Editor, until all arrearages are paid. Advertisfments conspicuously inserted a! one dnl” lar per one hundred words, or iess, for the first in sertion, an 1 fifty cents for every subsequent contin uance’ Those sent without a specification of the number of insertions, will be published until ordered out, and charged accordingly. I 2. Yearly Advertisements. —For over 24 and not exr.ee ling and J lines, nfy dollars per annum ; for over 12 and not exceeding 24 lines, thirty-five dol lars per annum ; lor less than 12 hues, twenty dol lars per annum. 2. All rule and figure work double the above prices. Legal Advertisements published at the usual rates, and with strict attention to the requisitions of the law. All Sales regulated hy law, must be made before the court house door, between the hours ol 10 in the morning and four in the evening—those of find in the county where it is situate ; those of tiersonai property, where the letters testamentary, of admin istration or ofguardiaasqip were ob'am<0 —and are i reqiiued to he previously advertised in some public I gazette, as follows: Sheriffs’ Sales under regular executions fir thir- 1 ty days ; under mortgage ti fas sixty days, before the day of sale. Sales of land and negroes, by Executor®, Adminis- ■ trators or Guardians. for sixty days before the day ol sale. Sales of personal property (except Negroes) forty days. Citations by Clerks of the Courts ol Ordinary', upon application for letters of administration, must be pub lished foi thirty days. Citations upon application for dismission, by Exec utors, Administrators or Guardians, monthly for six months. Orders of Courts of Ordinary, (accompanied yvith a copy of the bond or agreement) to make titles to land, must be published three months. Notices hy Executors, Administrators or Guardians,! of application to the Court of Ordinary for leave to j sell the laud or negroes of an estate, four months. Notices hy Executors or Administrators, to the debtors and creditors of an estate, for six weeks. Sheriffs’, Clerks of Court, &e. will be allowed the usual deduction. 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