Northern Times.
Liverpool, Merseyside, England, 1857-10-21 00:00:00

DUBLIN CORN MARKET.—Oar. 20.

There was but a small supply of home grown grain to-
day. The first qualities of wheat and oats were a shade
higher than on Friday. Other articles, including Indian
corn, as last quoted.

CORK BUTTER MARKET.—Ocr. 20.

There were about 1,400 kegs and firkins at market to-
day, which were disposed of at— Firsts, 1153; Seconds,
109 s; Thirds, 103 s; Fourths, 100 s; Fifths, 91s ; and Sixths
63s per cwt.

GLASGOW PIG IRON MARKET.—Ocr. 19.

The shipments this week were 10,148 tons against
10,704 tons corresponding week. The market to-day was
steady at the following quotations :—Mixed Nos., buyers
58s, sellers 593 ; No. 1, buyers 61s, sellers 62s ; No. 3,
buyers 57s 6d, sellers 58s 6d per ton.

A SINGULAR OPERA somewhat extraordinary
rgical operation was rerformed last week by Mr. L.
Warrillow. While at Work, a man named John Fzekleton
unfortunately met with an accident, by which a piece of
steel entered his eye This was seven months ago.
Be came under the care of Mr. Warrillow, who, notwith-
standing the long period that had elapsed, succeeded in
extractirg from the ball of the eye the 'piece of steel,
which was no less than one inch and a sixteenth in length.
—.l3mningham Chronicle.

THE FINANCIAL CRISIS
IN AMERICA.

(Continued from yesterday.)

TH3 BANK (1, THE UNITED STATEs' IMMENSE FRAUDS
AND RoBBERIEs.—At the meeting of the sto.kholders of he
United Slates Bank in January, a committee of Eix had been
appointed " to ex mine the details of ,ha reports" submitted
on that day. When appointed, it consisted of Joshua Lippin-
cott, Joseph Kempton, 'I hos. P. Cope, Chas Massey, Richard
Wiling and David K rkpa rick. Messrs. Cope, ng and
Kirkpatrick, having declined to eerve, Eduard Co'es, James S.
N:wbo!d, and Jchn Ba-on, were cLosen in their stead.. There
gentlemen were acrive in their labours from the time of their
appointment until 'he meeting of the s'ockholders in April,
and dud ig that time they discovered evidences of fraud,
mismanagement and misapplica,ion of the funds of the inst:tu-
tion, the revelation of which s'artled and appalled the
community. The first object of the committee was to-verify
the condition of the assets as they were reported on the 4 h of
January to have teen on the 21st of December previous. In
doing this they es imwed the value of the assets arid the
p obable loss on the amount. This deprecia'ion they estimael
at the enormous sum of 17,751,946 dols 72e, out of what was
represented to have been once worth 69,531,742 dole 46c.
The liabilities being 36,959,539 dole 63c., and the capital
35,000,000 dole, it resulted that if the valuation was sustained

and there were no further losses, the stockholders would, in cue
of a winding up of the concern, be compelled to accept of
14,820,156 dole 11c for the 35,000,000 dole paid in—a clear
loss of over 20,000,000 dole. What became of this enormous
sum, it was difficult to discover; the means whereby some of
it was lost were apparent, but of the expenditure of a great
part of it there were no satisfactory traces. On the item
suspended debt, which amounted to 9,790,800 dohs 59c, it was
calcu'ated that there would be a probable loss of 5,046,211
dole 7c. Ou stocks of tie par value of 29,191,153 dole 66e
an estimated depreciation of 7,069,130 dole 90c was reported.
Of the amount due by State debts, which was nearly eight
millions and three-quarters of dollars, a loss of nearly three
millions four hundred thousand dollars was anticipated. Upon
the line " active debt," a large amount was due and heavy
losses were anticipated. Very heavy advances had been made
by loans to incorporated companies afterwards insolv.nt, and to
iudividua's who were without means of repayment. Seven
corporations had borrowed over a million two hundred
thousand dollars. Forty-eight individuals, firms and companies,
bad received more than twenty thousand dollars each. Of this
number twenty seven had disce,un's beyond 50,000 do'lars
each, and nine exceeding 100,000 dollars. On the "suspen-
ded debt" list were eighteen persons owing more than iOO,OOO
dollars each; Fix individuals and firms owed mere than
2,300 0000 dollars, two of them owing 650,000 dollars each.
On the Ist of Febeuraty, 1836, shortly after the bank had
been chartered ,loy the State, it was reported that the surplus
fund over the capital was neatly eight millions of dollars.
The startling cltaitge wh ch the stockholders were called upon
to deplore, had all been eff.eted in less than five years.
THE EXCHANGE COMMITTEE—HOW IT DISSIPATED THE
FUNDS.—The Committee of Inves igation attributed much of
the blame to " the Exchange Committee," which consisted of
three Directors appointed by the p esident. This body had
been authorized by the Directors of thoNaticral Bank a short
period before the expiration of the charter. The institution
had at that time a large fund accumulated by calling in its
debts, with a view of winding up its concerns. The Exchange
Committee were given power " to make loans on the security
of the stock of this bank, or other approved security, and, if
necessat y, at a less rate than six per cent, par annum. Under
this resolution the Committee made exceedingly largo loans
upon hypothecation of stocks of all kinds. So industrious
were they, and so complete aas their power over the funds, that
in one year the loans on stocks were increased from over four
millions, seven hundred, and flinty-seven thousand dollars, to
more than twenty million, tour hundred, and fifty thousand
dollars. This state of affairs existed when the charter was ob-
tained from the State, there being more than twenty million of
dollars of notes of the old bank liable to redemption, besides a
necessity to pay the Sta e of Pere sylvania five millions of dol-
lars as a bonus for the chart r. 'rho notes came rapidly in for
redemption, and the hat k, now crippled by the injudicious
course of the Exchange Committee, was compelled to seek re-
lief in loans. There were borrow, din England £1,000,000
sterling, and in France 12,500,000 francs. The services ofan
agent in England to manage these loans and to negotiate others
new became necessary; arid Samuel Jaudon, the cashier of
the bank, resigning his situation, was chow n for that trust, his
agency in Europe commencing November, 1837. At the
same time the bank entered the mat ket as borrowers on their
post no'es arid bonds, mode payable abroad—the whole amount
obtained in this way up to July, 1840, being more than
23 000,000 dole. These instrumen•s were drawn without
means of paying them being either on hand or in prospect, and,
in some instances, even without plevicus'y notifying parties
in Dr to, e of the drafts made upon them. Mess's. Hottinguer
and Co , upon whom principally the se bil's were so rashly
drawn, refused, like prudent men, to accept th m Without
security. Mr. Jaudon managed, by pledging large stocks,
in averting what would have amounted to a failure of the
bank. By doing so he ham Fer eel the means of the institution,
and the circumstances becoming generally known, the credit
of the Rank of the United States decreosed so much in Europe,
hat new loans were not to be procured on the former favour.
able t.Tms. 7he subsequent negociatiou of more than twelve
million of dollars, cost the bank, in discounts and commissions
to foreign h ankers, nearly one million ono hundred and fifty
thousand dollars. It was was one of the subjects of complaint,
by the committee of inTestigat inn, that the commissions allowed
Mr Jaudon were enormous. Baring and Brothers had
formerly realized for commi slows, on behalf of the business of
the bank about 28,000 dots per annum, they paying their own
expenses. Mr. Jaudon was allowed the expense of the agency
and a principal clerk. The large amounts of the loans in.
creased his Inc ,me extensively, besides extra allowance for what
were called " extraordinary loans," so that in three years the
payments made to him upon this account were 335,937
dollars 39c.

How THE BANK OFFICERS BORRGWED THZ MONEY ON
WO kTEILERS STOCILS.—WhiIst the institution was thus going
on borrowing money in Europe, until the sum it owed there
was larger than its loans in the United Sates, a system of
carelessness and recklessness seems to have had full license in
the direc.ion of affairs. In refer nee to the subject the
committee say :—" It seems to have been sufficient to obtain
money on loan to pledge the sock of an " incorporated
company," however remote its operation or uncertain its
prospects. Many large loans, originally made on the pledge of
stocks, were paid for in the same I(nd of property, and that, too,
at par, when in many instances they had depreciated in value.
It is very evident to the Committee that several officers 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 ce.mpanies in which they were interested, and to others
engaged in th s same kind of operation•, in amounts greatly
diepropor tionate to the means of t•.te parties or to their proper
and legi imate wants and dealings. The effect of this system
was to monopolize the active means of the institution, and
disoble it from aiding and accommce'at'ng men ergiged in
busin 'so re illy productive and useful to the cr mmunity ; and,
as might hove been anicipated, a large port of the sums thus
loaned were ultimately lost, or the bunk compelled, on
disadvantageous terms as to price, to take in payment stocks,
wild 'ands, and o her fragments of the estates of great specula-
tors." In proof of this allegation, concerning the officers,
facts were stated which showed that three of the principal
cashiers had, during the p WHOM three years, been in debt to
the bank, one of them to the. amount of 426,930 dols 67e,
another 408,389 dols 25c, and the third 326,382 dols 50c.
Portions of this indebtedness had been "settled," by the
payment of stocks and loans, but balances Mill remained against
the persons named.

.rIIE MODUS OPERANDI On TEE " EXCHANGEC COM-
MITTEE.—WIi'ISt these extraordicary proceedings were in
progress, the Directors of the bank were i❑ total ignorance of
them. The Exchange Committee met daily, and exercised
ful power to make loans and settlements. They did so without
keeping hooks or minutes. Veil) el directions were given to
the officers of the bank, who carried them into execution.
The initia's of the cashiers on their orders were placed on
notes, checks, due bills, and whatever dcscripton of vouchers
were given. These were placed in the drawers and counted as
so much cash, until just before the periodical counting of the
cash by the Standing Committee of the Board "on the state
of the bank." They were then taken out and entered as " bills
receivable," in a small book kept by ono of the clerks. These
b.lls were not discounted, but hoo-e interest semi-annually, and
wete generally accompanied by pledges of stock, or seine other
kind of property. The investigating Committee stated that
the very large business transacted iu that way did not appear
on the Lee of the di count book, was nevt r submitted to the
members of the Bcard of Directors at their regular meetings,
nor was it anywhere entered in the minutes as having been
reported to that body for their information or approval. As
illustrative of the extent of these transactions, it was stated
that the sum total of "bills receivable" on the 4th day of
March, in five consecutive years, stood as follows : In 1836,
6,221,660 dole. 85c ; in 1837, 8,183,445 dols. lc ; in 1838,

7,229, 503 dols. 23c ; in 18H, 6,772,731 dole. 80c; 'n 184(),
4,041,705 dols. To the "suspended. debt" there had been
transfer( d (and was then nnselled) from the account of " bills
lereivabe," 1,470,661 dols 75r, and large amounts fro the

same line had been distributed under other heads. The
debtors who were thus favoured, received large amounts, one
fi:re having been allowed to borrow, in a little more than two
years, 4,213,878 dole. 30c, more than one-half of which was
loaned them in a single year. This was finally settled for in
depreciating stocks taken at par, in real estate, and some cash.

Such was the general manner in which these large loans were
paid, and the bank rapidly increased its losses by such a policy,
its assets becoming less valuable evtry day.
THE COTTON TRANSAC LIONS —Revelations were also made
by the comtnitt,e which showed that certain officers of the
bank bad been dealing largely in cotton, which 017 bought
with money borrowed fawn the funds wiAllant the knowledge of