Portland gazette and Maine advertiser., 1814-11-14
State Bank.

danship, we publish the following extract OF the
report which the Committee Of the Legislature,
appointed to examine into the doings Of the state
Bank, made and which was accepted and ordered
to be printed.
The Committee after mentioning the incorpora-
ton of the Bank and the provision in its charter by
which it is obliged to loan the Commonwealth
10000 dollars to be called for at any time provi-
ded the called forat any one time shall not ex-
coed 800, 900 dollars and that for the purpose of
meeting the demands arising from the late expendi-
lures of defence, the Treasurer of the Common
wealth had borrowed at different times of the other
banks in Boston 811 OPS dollars, S3i 600 dollars of
which was then unpaid on the 10Th day of Sep
ember last the Treasurer for the first time in be-
bali of the Commonwealth applied to the Directors
for loan oftteenty thousand dollars to complete the
payment Of warrant in favor of the Commission
ers for see-eoast defence. This request not gram
ted, on the account OF the inability of tie bank to
make any new loan. The Committee also state as
their opinion that at the time the application was
made :" the situation Of the Bank was and still is
such as to render it extremely imprudent 10 make
new loans, unless by means their specie capitai
could de increased.o
The Committee then state the causes of the
Banks being in this situation to be these -
BY an agreement ween the said Bank and
the Secretary Of the Treasury OF the United
Stsss, shortly after the commencement, Of the
present. war, the Treasury Notes of the United
States were to be received BY the sank, from
the Collectors of lmp0sts and Taxes. within
the District Of NJ ssschusetts, and passed 10
the credi, Of he United S ates, - DEPOSITS IN
specie.
In addition to the large amount of Treasury
Notes thus received. the Bank in 1912 loaned Nv
spec'sl contract to the United States one million
do.!a,s. tie half of which has since been oai,,
and tue other half of woich falls due in Deem.
be- next. AT the close Of The last wear the Bank
also spilled for and obtained direcliy from the
Treasury Department million tuo hundred
h0nssnd dollars, IN TressIr, Notes, which sum
was also passed to the credi, of the United
States az specie. From all these negotiations
the Bank OH he 12'h September last, when the
loan TO he commonwealth WAS frs, require d,
was creditor 10 the United States for more ,h.n
suo million seoen hundred thousand doia,s. or nine
tenihs Of its Whole capital stock No mar, of
this large smoan, ispaysbie by the United States
q an earlier period than LIST November n. xt and
Rom the refusal OF The Banks in the Southern
Males 10 pay specie, no reasonable expec stion
can be entertained, that the Treasury Notes ps,.
able those States, viii be discharged rs they
become due in manner 10 facilitate the opera
tons Of this Bank.
From the foregoing facts, it is obvious. tha,
az the entertainments under .vhch the and Ca,oo-
saaon nOso .abosrs may be ieued 10 the unL,yitsa,
asd. as The Conma!ee 5eieve misplaced confidence.
giher Directors. IN the Treasury ofthe United S.cres
How tar Eankiag Gel ,rot,on IN this Com
monweaitb may lawfully embark lis csp,txl in
'osns 10 the general government, or in the pur
chase Gifts funds tie Committee will not under
axe to decide. But they csnno, for a moment
dpub, that 10 employ in ibese wsys, so large
portion OF Capital IS appears in this instance TO
nave been done, on security Of any description,
and especially where The payment was distant
AND csnnot be compelled, WAS = most impruden,
exercise OF any discretion with which they were
vese ed.
appears 10 the Committee that since the 10
81 Sepe mber last, Treasury Notes have not be IN
received ~ the Bank. except as special deposits
ior the United Sta es and that since the IS h
OF August la-t no loans have been made TO ind,.
s'uuais. Indeed, since tbs, time gres, exc, lions
nave been made 10 reduce the amount previous
y loaned sud this amount, in he opinion q,
'ne Committee, has been reduced, in iu g,ss
sum, % last rs is consistent with the seeu,ty OF
tne BANK, the general ability OF borrowers, and
us established principles of oahk,ng. And
H.
Tue directors protes sreadincss, a. soon as the
state OF the Bank will permit, to make any such
loan to The CommoDwesl as may be re outrsd
IN pursuance OF their &C. Of incor 2oration, and
assured he Committee thai every exerlion should
oe made 10 place the Bank IN such snustion as
early ~ possitl,.
Inc Committee are fully aware of the impor.
uace q all times, and especially in times of
pun''ck pressure, OF the provision in the several
se,s Incorporating Banks. by which they are
oonged to aid the Common wealth with loans
suu OF the Inconvenience and embarrassment,
WHICH the government may experience by a re
.usai 70 comply with that provision when il be-
omes necessary, upon any sudden emergency TO
Ssvrt 70 u ior assistance. How far the situation
s"'s Bank rs to ex-use its neglectmg 10 con.
~, n .oa condition, without which it would pro. |
.soiy never have Obtained It's charter, or whelb.
should by some pecunisry sacrifice have
.seo from its extensive funds, The comparative.
smsn sum required as loan to the Common.
esu', The Committee wish not 10 determine.
among The PAPERS referred u this Commit |
inc letter of the Treasurer to His Excel |
smaey me Governor upon the suojec, of the re-
Ia tn said bank, 10 pay the in eres, on the
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