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United ttlfttW Mauk- I
TK THE HOUSE OF HEPRESENFATIVttS.
iatn*r, mat 11, 18J2.
Mr. McDiifii •, fmm the Select Committee
appointed n» examine tlie bioks and pro-!
cecdm{r t H o! ih? Bank ot the United Slavs,
B'tb nitiel ilia following «g the view* of Ihe j
mmori'y nt the said committee.
The minority of the committee, appointed;
to eximinetlie books and proceedings of the ! 1
Bank < f ih* United Sta 6<, dissenting from
the report of the majority, beg leave to pre j
sen' (ho ground* ot their dissent, for the!,
consideration of the House, |
1 he mijurity ot the committee hav sub- ,
mlued, without expressi g any decided opin- ,
ion on them, six cases which they allege t>j (
have b come subjects of imputation aga’nst ,
the bonk, touching the violation cl it-, c fiar- ,
ter.
The ft st «f these CM" O relates to usuri ms
• osns, and nccui red as far b, ck as 1822, du-j
ring th" esidency t l Mr. Chove.a. I’he
Branch B.ok al L xdigton, had received a
larg' amount of h" notes of the U" kof
Kentucky, a portion of them hb G i rnnvjn ]
drpositea. Tm se notes were considerably ,
depreciated. The branch having declined
issuing any of its own notes, in obedience ,
to orders of the mother hmk an individual ,
applied fora 1 lan these depreciated bank |
notes, alleging ih it he wan ed hem to pay a ,
debt, and ton they wou d answer his pu
pose as well as any other bills. Tie lout/
was granted. The lln.k of Kentucky oes J
at the lime, regularly paying to the branch/,
interest on these no .8, and finally redeem ,
ed all the remainder, a few months after tho |
loan in question It thus appa-ra, that these!,
bills w ire as good as cash ,c the b nk, and 1 1
the botrower alledged (hat they were of IJ
equal vilue io hm. It is dHi ult to con I,
6'ire any solid g'ounil for ct Dstd-'riug this j
a case ot usury. 1- w mid be as reusottabe
to say, it a' it Would have been o-ury, for
the 11 .i kof K ucky iisell, to make a loan
o! i v owu depreciated notes Tlie u'mns/
fai no b was ex'' ; bi dby 'he branch bank, 1
iu ;h's Me .suction the loan was made wi hi
rein aoce after -rpcsted app'ica'i»ns, and
yet the di c irs ol the mother bank, in my
y ■r.rs a 'erw ( rds, and since M B dd> lus
been at the head of 'he in-♦ < u'ion, refund
ed to the h uowcrol lie Ken ui ky notes,
the lull amount f (lie dili rence between
tli ll r in ini.ial end thei real value, at the
tim*n( ih. loan, vv.th iri'eres'. This has
h i n al . d ne i i ».iether similar case so
tliat, i ihe only cases which have been
brouglu to t e view of the directors at Phil-
Bde'ptiia, lor the purpose ol having the
am >uoi nt he depreciation refu (led, the
• ('•p'ication has been granted wi. h a prompt
in 8s and I'ln l uvty highly crcniuiile lu the
ins iiu i n,
Ti>«- minority of the committee will bare
ly ivm k upon these transactions, that
Ini g free from all imputation ol lotenitoua!
usury, a d never hiving b j eo sanctiuuiul
by he dir c ors of the tuo her b . k, but, on
tiic contrary corrected, th»*y cannot furnish
tii sllghtevi ground f-*r alledgiog that the
cliariCi h . b en violated
Tie sec i , grou.id of imputation, no
ticed by the m j • i:y if the committee js,
“ the issut gol b inch orders as circula
tion,”
On this iioint, 'he minority deem it sufli
cieni to eiu k, that a hr-ii Ch eider is noth
ing iimri n r !e«o than a drat «■ bill of ex
change drawn by a branch upon the mother
bank: hikl 'list the cha tei expressly author
i?,e«, as one ot the primaly opera.ions of the
bank th • buying and selling of hills of ex
c> agc H live hank has a right to issue
th se ui tits at all, it cabndt, surely he made
aground itjus complaint ag-.inst ii, that
ti e are used as circulation Tliai io ex
c'usitely tlie aft’air of the communiiy. The
bark cair o h justly made responsib e lor
the use which me public may choose to
m kv i f these drafts. 1 's the high credit
nt ltie bank that gives the character i f iir
culauoo io this paper ; and it is the volun
tary act of the community retcivi g u as
such.
In fact, there is no part of the bank c , u
latioii which h s been so beneficial m he
pubic. It has, in . practice fumislifeii tlu
sou hern and western Sates with the mem :
of effacing their i nch ing » with ihe north
without ary expei se whatever.
It may be well d übted, however, wheth
er an <x ensive &. permfuie.it issu ■ of best
drafts mghi no' prove very inconvenieut tc
the bn k itsel.’, in a certain state of Ihe
domestic exchanges] <,nd it would be, there
lure, a judicious measure, to supercede the
nece sity, in which heae drafts originated
by authorising oilier offi-i rs than the pre si
dent ai d cashier of U.e mother bank, to sign
notes for circulation.
The diird ground of iniputa ibn, a* relates
to the viol l ion i f 1 e char er, is, “Belling of
coin, particularly Ame’ieaii coin.”
Tiie minority would respectfully suggest,
f at tlie majority have entirely overli' k;d
tne nature and essential puiposes ot me
bank. It m y be w II defined to be “an
institution est ablished for ihe purpose ot
dealii gin money. ’ Niw money is a cur
rent coin ; yet, a committee of Congress
very graveiy bring it forward as a charge,
touching the violation of its char'er, too,
t! -I it has been guilty of deviling it cur
rent coins, and, particularly, Aoieiicun
coins, the veiy end fur which it was cre- !
feted.
Ai relates to deslirg i n current coin, the
right to do so is involved iu the rigotof lend
ing money and of receiving it buck. The
(authority to deal in bullion is expressly
jgranted in the charter, because bullion is,
oof a current coin, and, of course, the right
Mo deal in it is not necessmily involvi d io
T,c right of carrying on bmking operations,
j 1 lie fourth ground of imputation is “the
sale of stock,i b'ained f omg'ivertißient, un-,
der special acta of CongiHas,”
| I his charge is, if postii *1 e, mTe ex'raor- 1
dinaiy than the lust. If hearts ot Con
gress. which expressly authoriz’d the bank
jto subscribe for Government stoi k had any
meaning ut all, they certainly memt toau-,
('uorize ,he hat k *o acquire the right of pro
p: r y in tin; 'stock for which it was auihoiiz-[
ed to ‘ubsetibe. Toe right to sell this stock
at pleasure, is of (he very e of the 1
r iv it ol property, and is as clearly convey-!
ed to the corporation by the act autho
riz ng a subscription, as the right to re
ceive ’he interes*.
The right to sell, therefore, is indispo’e j
hie.
But (he mej irity of the committee
[to suppose tha the policy which forbids Ihe
bank to speculate in s ocks, with its im
m'T.fe resource*, by which the prtce might
b‘ 'raised and d'pieased at plea-ure/e
--qua'ly futbade the bank to sell the stock for
which ii had vad ,-uhsonl) d ny the express,
au'hoiityif ifi- G •vtrnmen'. Nuw it is
apparent, that he evil nt dea mg in s'otks,.
by su«h an inatiiution, can only txisr in|
]Ci»isot buying and selling storks at the
pleasure of the bank. 'To raise and de
proi-, the bank must have 'he right, both to
sell alternately. a« may suit ns purposed ot
speculation. But it has never pieiernled to
claim, much less to exercise, the light of
[buying Government stocks, except under the
express authority ol Congress, and by un ez
p ess stipulation with ihe Treasury Depart
jOient. And after it has obtained a large
amount of Government stocks in this mode,
it is diffi ult to conceive h. w b could raise
the price of these stocks by coming into the!
market ns a seller, nr how it could promote!
the purpo» s of a stock j bbing speculation,)
by depressing the piica, the ..niy effect
which ci uld result liom oft’ring them fori
sale W hen ihese s'oi ks were sold in 1825,,
'here wa* an i xiraoulinary pressure upon
the money maiket of the who ; e commercial
world, i'ney constituted 'he very resource
winch tha bank in .st xquired in such an
emergency ; and it is now matter of history,
that it yeas partly by the wise, judicious,
and timely us<> ol ih'B resource, that the
bank ot the Uui'ed Stales averted from
1 this country the calamity of a general fail
-1 ure of the banks, a d a widely extended
scene of commercial bankruptcy.
The majority of the c mmi cc seem to regs'd
ii * rnnitr of comp'sini exit the Govcrome.).
perm tiM-tha b..n« i< aub'cnoe (< r these ‘•t./c'x,
iin preference to o dlwniuats. If (his i», h,U v! d „
just came of complaint, it should be made u
gainst Iho Govcrnmen', and not sgdnst 'he bia'.;
When Congress e*pressl} au'horiz s ibe Seer
; ‘ary of ihe Treatury to .ditain ■ .oan frm b
i bank, and he Secretary * ipu>ate» the terms of
i dial loan, it is imotissib'e to eui.caivn how any
, b.ame can bo imputed to die hanfe, if it fai'bfol
Ij !y perfnrras its engagements,
I h<-fif h ground of im nitation pr.'«coied Ju
* ‘he repor* of die in»i,.riiy i: •• makcig dcnaiim;
lor roads, canals, and other ol'jec's.'’
In two instances, the director subscribed
1 n '“H mms to ccria o i teroal improvemenlH in
lie vicinity of the real catto? of die Ixiik Th
hey did in the exercise of their pr .rie'y right
sod wi ha view to the itnproveme, ; ot beta
1- lue ol ihe iv property. Fir this es.-rcise of p,w
i- cr, ihey r.re responsible to the *■ -ckholders a
lone s and th queaii in is, whether they hav
or have no! im do a proper application of-die
funds of the corp rs io , with a view to he pr<
motion of jto inlere:; i ? To w'.ai extent the vx
eue of the r-*1 estate of 'he bank tux bi-n n
. creased, by the int* rn»t iitipr vmr.ents in qi h
dou, h»a not been aveertvim d . but it mey be
> '• supposed tbit it eacce >s mm app on-i
'■ a«■ ' by the dirt c:«.9 o indie construction
t ot th ve imp: iv menu.
The oth r ’• di to which the repm
e id rs, cuoaist of ma" soma contribute I to fi.-,
com an es, for the safety ot the b/k
pi ~ rr y. ai d againo, w’ ich it is not preiendrd
hat ar.y i bjec.ioo can he is -ty tsised.
1 j The iaat gr. und of impuiation. as to«chi> ff the
- iviolation or Ih charter o* “building heuaes u
,-in-nt or ell. and erecting other a ruo’urcs iu aid
s ol that object.’*
i The ha. k emtesfly »mh r red to purchase
I'" al esta e, which 1.-s been muriguged to i. t -ire
| del'.* prevu udy c.- iracted, and ala . such as miy
e i e un 'er judgnseois and CBecuiu na in i s
e j ow n avor., Ii ih- -xcrctse of th s r pbt, th.
3 Jebton «t die bank are as muc’i interested 3
), he h*2 f itsth For i musi apparent, th* 1,
in o k w-’re lot permitteu 10 b.d a< lh“s- at'ea,
'•’* P 'I *ily ot its debtors would br ir qnentlj
'• ...cr ( red, »i a .mm greatly below iu value. Ii
e us been onlv f r tip purpose of giving itseh
0 f l,r " I '* 1 ’tie p--iipprtv of its d b nfnm
e (h< iug bus saj ficed, that ti e fca. k h.sevi-r pur
hastdanyre. i s'ale, «xc< pi wba ha bee/nc
ce ary so. it* banking bouses. Th ;ro is no de-
C' Ci'i.ilio i 01 pi ip. riy winch h bs’king instilu
j -ioo »a > unwilfi gto nw »x r-a .stats, hud
1 j*" inst’ ufion : < tuirdy unauit. dto the manag...
,/rn rp of uc 1 p perty, aa imicn u as a farmer
j wou ■ be t. in mage mip discounts o bank,
O.vi.vg to I e ex enaive (adore* of the pvrso .»
a noebted he bo k, in the western country,
f ;’ >'»or .0 ISJ9 the directors were u'uvoiilab'’,'
| compelled to 1 ke a vry hTge quantity m real
jeaute, as th only means of *7OlOl g still greater
/losses diau th y hit* acusliy sustained. They
J h ive disposed of this estate as rapidly as uey
t could, coiisisteo ly with die interes s of the in
i Stiiution. On a portion of It they have erected
(irai rovcmp s, 1 preiure it for sale, and by
■ means of watch they will save the stockholders
■jirrrva g.cai pop-ion of the loss which wo'do
i h.vu otherwioe occu-red, and will recover a larg
'am unt ot ihp riebi« which were some years »g
'} iet down as desperate. If, for this court's? of con
'j’ ! uol, die directors are rend red obonsioua 1
ci nsnru, h 1 will fh?y be condemned 'or 01?
veiy ;»nh u ->ess of 'he r itewardship. Uis t.>
v Jin io r qu re, or to j ts.i'y the u e of argu
jment, tha 1 e right of the ba k to impruv. itsrea
estate, Is i separ-biy connected with the righ* .
„ rc'ias ■~ to bo! ', or to own it. Onthiisubj. c
,the House is referred to the exposition cf the
President, marked A. The nezt subject to which
'he report of the majority adverts, u the loan to
James Wet j U (Jo. It is proper to re
(msrk, in the first place, that the only sums ever
maned to Ihu c partnership, were the rum* 01 \
'wenty, and of fi tet-n thousand do'lars, the lor
mcr in August a id the latter in Uecemcitr, 1831 j
It is also proper to remark, thit the firat sum wauj
S educed to glB 090 at die maturity of the no t'
|R ven for it ; and tuai the Ist er sum wai entire (
hy ( aid off in March last, by Hr. Webb ; and, ax
'l - xprensly stale* oi oath, v/illiuut being re i
q te-fied by the bank to do go. The who ea
mount of the accommodations ever ob'ninedi
' m 'll • bank, by Mens s. Webb and N j»h, wat'J
g 15,000 i and the whole amount now due b; j
jiuem, in g 13,000.
| the g iuuiis and securities upon which these 1 1
Uccom-iiodsiioos were granted, will now no at at |
cd. Ur, Webb produced to the directors a full)
jsialr m-of of th" fforoof the c iparineraiitp, Boi i
jting torih tiie vaiua of their property, and the
:»"uual income derived from their p»pi;r. From i
this s'a'eipent, which w/aa authenticated .by the
oath of ibeir book keeper, it up eared that the i
nett annual income of the paper trim advertise
men's and sub,captions, was § 5 750, after de
ducting ten per cent, lor bad-aetns. and defrty
('"lf all 'he rap ■ lines of their establishment. U,i-j
Jon 'h : whine, it appears that th • was one of me
most tyrofi.able, sr it is certainly the largest com i
merciet newspaper mi the Union, with an im
men-e advem ,ii,g pstrnnugs, and a large and ca !
pidly increasing mb.cripiio < fist. !
With these exhibits, Mr. Webb produced th" |
letter >f Mr Walter Biwoe, Mayor of the city i
New V i t and fonnerly a ditector of the bank
jo( the United States, a man of wealth and high i
jcbsracter, enclosing the application for the loan, s
and staling that ‘the did so with pleasure, »no t
l' ;W r '° rca on again t this being treated an aJa r i
bu -.ness transaction " S.-veral ot the directors,
a* wen as the president or the Bank', wi re ex i
lamined on oath, in rcia ion to this traosnc ton,
,«nd an toe clearest mode of exhibiting us true- i
jcharacer to the ilmtse, extracts ir-m these ex
laminations will be given.
The following is tise testimony of Ur. Biddle,
in relation to these loins.
Quee. —“ Did you mns.der the loans made to
Jfcmcs Watson W-bt & Go. (sic bus iCs» trauaac
lions, such as you c-m'd not re u e without' sub
jectingthe ba-k to'the imputation ot t dnlgtng
| political partiality? State ful y tla*> views and
considerations on which you voied i i iavor ol
i those loans. ,f
1 Aits, —" I certainly considered them as f atr bu
siness transactions, or I shu-tid not ha,e c naent
jed to them. At - he r- quest of the Coir.miUee I
I will exp sin the re. vons of that cpiui m,
| ‘ I m making loins every transaction- was per
f city safe, a-.d < v ry borrower perfectly g •><)
banting w ,uld be an c»>-v-office j but as men
generally borrow to employ the on ) , in s me
profiab e pursuit, übject, of ecu- ■«, to vimsst
i tudet, au that can be txpec’i d in m k'ug leans is
a i*i' and rca'onub.e cauu n as to th si nation
and prospects of the borrow r Tried by the-.e,
> die only :eats ! th k he !oa in in q it-ation are
, unexceptionab'e. The first was done by » board
i r > f (.rectors, consisting, besidei the presiding
; officer, oi six geml-men, Mr Lippw.ott, U r. 1
i'tsiier, >t. Bolden, Mr Neff, Ur F'Slt b a,id Ur.
Wiling mere bant -»»vtd mervof busines-, with no
1 pa -a.ides toward 'he a inlicants, with whom
n nevf them had the least acquaintance, The
gr -uifls o' ifi it- ju giiiei) may. b' thus stated; 3')
hi king ord o*iy n ans, (he boor,! Judge by 'he
g-nrr.i - : ts di .ip of the par' es without any examt
ustia of their ufT. Irs. But n this case the parties 1
n gan b. an exposition of their whole situation.
I' tswasforw»'d dby iv»|ter Bowne. E'q. the
‘liyor of tho ci yo( N w York, wh. re the aptiln
cants r; sided who. in addition to hiabeingp.tr
i-o 'ally knew i ar«, cpected by aJi- he memuers
li,d been on • ifvt old st d retfers o* the Bank of
It. United K acs and tor m<t y y> ara Bie at the
board ir 1 uid wluch the dr> ctnra were then a* 1
i* n.bi d In this etier h s*vs. I cheerfully for- 1
ward ‘the a :er»,’ end I see no reason against the
ipplica'iun b irg treated as a lair baameai Iran- 1
I sc on” lit dies nrd exp-essly say it ough to 1
b, gra ited because he .raii- .ts at the sa n m>*
a me oi fh#> materials on which th • dirifi'-ors
were to for u their own judgm mt, to wl> «;tother*
"’ere added by Mr. H'ebo Eu. wh nu: old di
r ' cf rof he b 3t forwards “cheei tu 'y” »n ap
plication t h s' citMt c ileagn s, which he says
hi aid be ir ated aa a iair bnsin<-sa transaction
. 'mplit-s c r yno responaibili y—bu it miy
be wc'l regard daa a decLn 'ion, that wre he
sti I men-her oi'be board he w wild »s. ction it
Under these a-iB. iee* the b. ard tproeceJed to
consider it
. O» of the p»' i»s had been annnmted by the
Pre d :nt and Senate of the United States to a
, c lofideniial at d ii.eradve port under vern
m ii ( .he other had already invested gitOOO in
I be psper, and h:a father-ln law, Mr. Stewart,
whose letter accompanied the application, w»s
, knew itobe a wealthy mao. Both were *miid*
I 'red men of talents aid peculiar aptitude tor the
busini-aa hi which they were engaged. Then
'h.'.t n» that business ?
I f w’as the conduct irg of the largest aewspa
j riu the coutdry, req tiring of course, conside-i
1 b e mean*, si d givo g employment to a great
t in. *oi active industry. Its situatioi wsaTepre
, sewted to be ibis;
Y Mr Webb declared that there were then 3SOO
s dailv iubscri'>eri at g’O, jjld 000
2dOJ othera at an average of g I 56, 10, 550
2 5 vearly advertiser* at SU) j 8 250
. 3;0 days adveriiaing, at 55 per dey, 17,950
Making 66,659
t Deducting from fVi», 10 per, cent, on the
i d . y i üb'cr ptions sod advertisements,
i (of which about o .e fialh is paid in sd
v-tnee.) sny 5,830
and 20 per cent, on the other sub'c her*,
- ‘ V *,070 7 SCO)
Th»fe r.enains a grr*< income of 60 750]
the annual espenseo w re •'.ated at 35 0 0
r f.esving s nett snnoaf income of 35 750
I his sutement is confirmed by the afS iavits n,
, he bock-kceper* «i d pressmen of tbs establish
mt'Dt.
I I ’
i Tha total value of the paper was 'hus stated;
1 1. Is". Wstsm M ( bh had invented in ii 000,-fir
rjwb'ch g-0 000 had been ftVr d pr v ucd ,b
/ other list couid be had '• r §>J5 000 I htshed'-
dclmed, bu' it is mentioned to ,nv)ve hat tfie who.
■jmight h«v been void for 000
I; then it wu an improving ea abli hm.’ri
It ha I owed a deb- to the b, k ol g(5 000
- •h"h it had laid fi’ in xprll and Uaj,
IB.il, out of the collectin' » of the last six
,months, which nod mounted to 20 000
It had, in 1829 i” d a total debt of 29 000
j a'b'ch it had lines oT
j And at me present mumei 4 it* outstand
. ol» m- wer m.irc ;»au its debts by 10 000
I r its responsibilities and stood
‘ills—
t’u' n fig debts in ihc couitry, more
■<h 25,1.00
O ». cu could be sullected on presciita
: lion of bids, 10,000
Dua m New York, more tlsn 4 mont'u*
sub tiiption, v bieb, wi'h the unpaid arresn h
jt the lari f'x month,, maybe aafely ea'ims
jied at. •*. 20.000
i And ihe proper'/ owaed fcy the appli- *
I cants amounted to 8,000 i
—i ■■■ t
Mskmg 38,00(1 t
1 While the whole affiount of deb 1 wa* 28,909 <
t
i Leaving an exc-ss of 10.000 c
filial they h ve been deemed worky of credit
in New Y rk. appeared from two facts. • <
1 fiua. trie banka oi New York had lent them
2>15 090, wb c(i they bad repaid, (
2. 1 nat the rrapectob.c mercsntile house of J «
L, fc J. Joseph Bs, Co. a firm well known to tbo l
direct ,rs, had lent ih--m gJO 000, which had been
I repaid out o f the pri ft ♦oi ihe eatablubment, ai i
those gentlemen th mae ves certify in a document f
i accompanying the papers. t
Fi. aily, (hey h«d no accommodation, dis-Ct or >•
indirect, out of any bank. t
Th c sc then stood thus—Here are two per- t
sons of kill in their profession engaged in an es t
tubiishmcMit of which the capital is 65.000 c
The gross ino ime, €0 750 t
The expenditures, 35,000
And tluf nett income, 25,750 c
In conducing neb a business, where the re t
ceip i are semi annual, the payments daily and 1
weekly, they naturally require, like o’.b.r ni*:n in,»
buaincss some credi.. They accordingly apply ta|t
borrow g2J 000. ’Lhey wish to borrow it, not to;b
pay pri Tiou. Ueb s, not (c spend it on objects uu t
connected with the,r business, but for the purpose t
ot employing it all in a vv y to incr »se the prefi s p
of the concern itself, by proct ring a new pre.ra r
and enlarging iheir-ratanS of obiaonng eany com, ‘
mrreial iuiormation, and (hua make the paper
more valuable. I 1
‘Nov/ the statements m»y bt preiwmtd to pre' *
sent the most favorable aspect ot thecas;, font 1
the sanguine temper in which men are pr.u.e to •
es'tmate ihe : r own professions a d prospects, and »
yet unless they were wholly fallsc.ous, the board '
saw enough to warrant the .'can It was further r
iu-tified by the event; for wLe •> the note fell 1
§2090 were paid ofT at tlime when the demand t
tor mi.ncy induced many other debtors to ask for E
a run. wsl oi their notes. t
' S i much for the loan of giO 000 ” *
The other loan rested on me unit prinslplei, f
as the first, with this addition.—The par tss st»= r
ted, that owing to the part which they hid taken 1
n regard to the bank they had been deprived cf
their usual accommodation* in their business. *
Whatever night be the reas'jt), the tact of an a- '
itiridgmeni ot these facilities furnished a re&scc I
lor extending the lonn in addition to the belie "f
its safety—which w«s, that by an doing, any h.-S 1
ard to the origin* 1 loan might be prevented* a-d I
he best evidence of it*, security is, that the parties
hove since repaid the loan.
In regard iUr other ans, which aopear in
tl'eir t'ames, they we vn,hout any kr,mj’ c
edge of their being dntumitd at i he bank, l hey 8
were done at *he of a person oi tiudoubt 1
ed solidity, which hsa been proved in the most j
decisive way—li' (ho actual payment o'.'he notes. “
That ihpy inten 'ed to aid Mr. Noah, the, drawer [
of the rotes, In purchasing a share in a newspa- J
per, was stated at the time. But iha' termed no •
objection to th ra He borrowed sa mey as thous
aids borrow m >ney every ‘day, to emp oy it in hib *
active business. Ii Mr. Noah himself applied tc I
the bank for a loan o buy a share in a newspa '
per, and the security w»a satisfactory, tfce purpose ,
ot the l< s.t would have made no d fferen • Nine- l
tenths ct the loans made of the bank prob hlyare !■
rrsde to persons to buy something i r to pay for '
something already bought. Men borrow money £
o buy a i hare in a ship—a share in a cargo—s *
hare in a ba k- a share in a canal—why t a
hire in a newspaper ? The hank had n > diffitut
>y about th- loan, bresuse it was thought secure *
nor sb >ut the object, berautte that wts not the
concern of the bank. !• doea not inquire, snd ®
does not care, where its money goes—its only v
anxiety is. that it should come sifely back; and 1
whether, in the interval, it is employed by a *
metchant, or a farmer, or a farmer, or a lawyer,
ir an cd tor, is a matter of which tt tskea no cog g
ntzancc.*’ j (
“ I-.i rerpeti tn Sosns generally ta editors of
newspapers, the bank proceeds on the principle .
o ( k towing no class of citizens, and prescribing (
none. Even with this rule, its situation in regard
to such Sonus is a little peculiar. FroraThe na (
lure of tteir occupations, editors engaged in the (
discussion of matters of nations! concern, have ,
generally ejppossed opinions in regard to the (
bank , *nd vhoir dealings vrith the batik tender h
dtfiicu t to escape oerrure. When an editor,
inendlv to the b nb applies fora loan, if it is
granted it N ascrib' dto tsvnrit'sm if it U refused ,
the party naturally thinks it ingratitude. When f
sn editor rpp o! ,eri to the bank applies for a loan,
ts it is granted, it ia deemed an attempt to influ
t enco him, while if it is refused, it i« called a per- t
secu'ion cn acc ant of his free opinions. The t
, bsnts hss endeavoraed in t’cese matters rather ’
} not to deserve reproach than to escape ii lore- '
p'y to tha‘ prrl of the question which relates tc J
n''tines, I believe that, <i in granting the loans it j
■ question, there was inieneibly b'e.nded with the
’ mere busine'S consi-'erations any political feeli g j
it was prot ah’y this s tbst charged, as the bank (
habitnally is with hostility to the present admin- j
istralion, it was due to tho interest of the stock ,
) holders to correct so unfounded an impression,
)j when a fair opportunity occurred f giving aceom- ,
I'modatioato those who were considered as the (
I most strenuous and efficient supporters of tha’ (
) administration The directors of the bank uc- j
■ jdersfond too little of the sul'ject to attempt to ad» (
t just the balance o( accummodafion to political ,
parties, nor have I myself ever had even curiosity ,
sufficient to notice it, until the inquiry of the ,
committee has suggested it. But, undoubtedly
[as the committee cannot fail to perceive, by far the (
jgrea'est smount of loans to editors is to the friends .
i of the present ndminialratmn and a la’ge por- •
;Uon o r that to the decided opponents of the
bank.”
All the directors who were eiamined. teitifi
- d that thev granted those loans under the full
belief that they were safe loans, and Mr. Cope
a gentleman of intelligence snd high character,
gave the folJowitig exolanation of the views and '
motives by which he war governed in voting for i
. the second losn of §1.5 000.
•‘Documents," said he, ' were exhibited to the ,
committee, containing a statement of the mean*
if the partic.i 'O 'lie note by which they appear
ed to b? worth about g!0 000. with a prosperous- '
business and a Urge uoscription hst The loan I
1 was made »a all other loan-, are made, without any i
regard to the po'itics or cusineßts of tho parlies t
bu- solely because it was the business of the .
bank to lend on adrqiate security,
“ 1 W4S sware, at the tune, that they were
partisan printers, and I knew if wo made the
'"sti it might he ascribed to improper m-uives,
nd that it wt- rejected it, i f m ght be said we |
persecuted the individuals on account of their
politics.
Sue i are the g-nurds upon which the director- )
grsn'-d th. ss loan* to James Watson W;fib fc Co, l
( * w ' ,; B.t reodily perceived that the directors
of the bank w e. j iaend ■„ v,;ry peculiar otreutn
[stances by this replication. They had been ac
cused in various quarters of haring brought the
[power of the institution to bear upon the politic*
>f the country, ami panicu’arly with having taken
•.idea against the pmem adminiet ration. Having
invariably pursued a cour-e in their tranaactione
which recognised no d siinotion of political par
ties, it was very natural that, wbilu laboring un
derthe imputation just stated, they should have
been scrupulous to avoid g v'ng any color of foun
dation lor it.
A a the evidence and recommendation produ
ced saihfi-td all the directors of the sofely of the
osn, they c uld not btr feel that, if they re!u
ed to grant it, they would give countenance to
un 'reputation which they ware lautiibly anxioua
to avoid.
It is proper to add, that Jane* Watson We! b
& Co, in their p.psr, tie Ci urier Ik. E> q dree
had d' s' red themselves in favor of renewing the
chr.rer of the bmk. acme months before the
pplica'ion fo r their first loan, that they staled to
the director*, on making tppl'eition the first loan,’
that the bank of New York had cut them off frorri
their accustomed facilities ss they believed, iri
consequence of their espousing the Pause of \hr
bank of the United States,
Mui4. if not all of then, are men of in
dependent fortunes, having no Connexion with
politics, and being entirely independent ofbanks;
They are generally men who ire engaged in «
safe and successful buainess, with fortunes, which
they have made, not by adventurous speculations,
but by steady industry and moderate but cer
tain profits. This ia, indeed, ike general charac
ter of the merchants and capitalist* of ThiUdel
phW, a circumstance which renders the locaiioo
of be bank in that city peculiarly fortunate for
ihe stockholders and for the country.
It is also prooer to add, in this place, that the
loan o( §17,975 which was made in March, 1831*,
was nut a loan to Webb and Noah, or to either of
them. The money was borrowed by Silas E, Bur.
rows, » man of large fortune, upon his own re*
aponaibilitv* without the knowledge of either
Webb or IJuah. They both testify that they had
never been apprised that Mr. Burrows had ob
'ained this loan from the bank, until » very short
time previous to the visit ol this committee to
Philadelphia, They had, until that time, been
under the impression that the money was obtained
irom the father of Mr. Silas E. Burrows, in Con
necticut. The following entract from the testi.
mo’oy «f Mr. Biddle will exhibit • clear view of
this 'raneastion:
“These notss were discounted by the exchange
committee under the resulu'ions just referred to.
They were done at the request cf Mr. Silas E.
Banowa, of New York —Mr. Burrows had, some
tene before, brought me a particular letter of in*
(reduction from an old friend, Mr Monroe, tha
Ex President. Mr. Burrows bad been very liberal
to Mr Mtnne in his pecuna y misfortunes, and
t had recently received from the President of
he U tied States particular thanks and cummer."
dations for his generou. conduct towards a Bus*
sian ship of war. I understood him to be a very
r ch merchant of kind und benevolent disposition,
and conttantly engaged in doing acts of liberality..
In one ot his visits to Philadelphia, he said, h* w*e
desirous o' befriending Mr. Nosh, and agisting
him m the purchase off, share in a newspaper, U.
heasked if the bank would discop.it the notes of
hc» * parties, adding that, although as a mer*
chan?, be did n.it wish to appcnir ss ajborrower, or
pui his namu on a paper not mercantile, yet hs
wou d at any time do so whenever it might be
accessary to sehure the bank." “The committee
be ng authoTr’d to dine unt any paper, the at •
curity of w ii.cn they might approve, agreed to da ■
th-m, _ As Mr, Burrows was going out of town f:
gave him hs money out ot my own funds, and
the otos w-r . afterwards put in my possession,
1 hey remained with me for a long time, as i had
no occasion to use the funds, mar w»* it till the
close of the year that rev attend ,n was called to
them by the circumstance that, as a new board ol
diruc ors, and a new committee of exchange
would soon be appointed, the same committee
which made the kin should consummate it. i had
seen, *,so, in the public prints, many reproaches
against tho bank for landing money to printer*
and editors, aid I was unwilling that any loan
made by th eank phon'd seem to be a private
loan from cr.e of its fibers. Having no use so:
ho money, it would hive been perfectly convtn
ient to let the loan retmin e.s it yaa, but I thought
d right that ev. ry thing done by (he bank should
at ways be distinctly km. wn and avowed, and 3
therefore gave the notes to the chairman of the
committee, Mr. Thomas P, Cope, who entered
them on the books. On the Sd day of March, Mr.
Burrow* called at the ha' k and paid the notes, j
ought to ndd that the loan vas made at tha re
quest of Mr. Burrows, and that neither I nor anv
of the committee had ever seen Mr. Noah or Mr,
Webb, or had any communication with them d>*
rect or indirect about the loan. It was made an the
credo of Mr. Burrows, who afterwards paid it,’’
B appears that Me«ats. Webb and Noah avowed
themselves in favor of a renews! of the charter of
the Bank of the United States on (he Bth of April,
1831 It ia difficult, therefore, to conceive what
powik ; e influence cou’d have been produced upon
a course by a loan to J\*r. B’lrroitit , of which they
had no knowledge. It ia equally difficult to per*
cvive how the leans of Auguat and December,
UsJl, cou d nave bad any possible agency in pro
ducing the change which it ia alledged lco!l - p(
in the ccurae of these editors, upwards of four
months before,
Under all the circumstances of this satm the
mmonty of the committee declare, withou-’anv
reserve, tint there is nothingin these transaction*
calculated to induce ih-*m to doubt the honor and!
integrity ol the directors, and this, they feel «u
--thoriacd to say,, i<* the opir/ion of a ofr
the comm pc, from the opinion sin a’y uubliciv
expressed of one ot its members* They also
deem it to be due to the occasion, and to their
wn sense of justice, that they should add, that,
they do not believe there exists in tb? United
Stales a bank direction composed of more up.
right, independent & honest men, (ban tUt which
.'rallied the loar.a in q nation,
*CmT. R. M. Jchncor *
{ I o be concluded in our next )
The editor of the Oreenville Mountaneer
ezpresses the hope and expectation that ;hei
presep.t session of Congress will put an end
to all cause of further excitement on he
subject of the Tariff, by a satisfactoi y mo -
dification of the system—but, if South- *
Carolina should •veotuallj be compelled to
move in the business, it must be bv a Sou h
ern Convention, the course pointed out by
the people of 3urn<er, at their Itste pub ic
meeting, where Governor Manning p, e
We are informed (say the editors of the
National intelligencer) ihat bills of Indict- '
meet were ye«tei day found by the Grand '
3ury for the county of Washirg'on, now
sitting against Samuel Houston and Mo
hoan Heard, for assaults on Wm Ist an*
Br.»r and 1 homas D, Arnold, with in
tent to kill.