Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1819-01-21
Frornthe National htelkgencsr.
HOUSE OF REPRESENTATIVES, JAN. 10.
BANK OF THE UNITED STATES.
lCOntinued.1

BANK OF THE UNITED STATES.
(Continusd)
The statement before referred to, mark
ed XIV. will shew the payments in coin
at Philadelphia; and abstractmarked AAVl
will exhibit the nominal payments on all
the instsIm MS, of which 1872 ,6l0 dolls.
was paid by the stockholders in funded debt
(exclusive of the 100000 subscribed by
the government, instead of 100000
which were required by the law and H.
1901 dollars was paid, as stated in the
abstract, in coin. But, in that abstract, a
check on the bank, or on other banks sup
posed to pay specie, is deemed a payment
in coin and as the payments on the second
instalment continued to be made and re-
ceived for six months and more, after it was
due, and, as during that time, large dis
counts on stock were constantly made, IT IS
obvious that the abstract cannot be relied
on as exhibiting an actual amount paid IN
specie. Nor, on the other hand, could the
whole amount of the discounts on stock be
considered as having been applied to the
payment of the srcond instaIment. BY
statement marked (B) referred to in the
cashiers answer, and by this committee
market XXVl!. it appears that the dis.
counts ON the 3nth July, 1917, on pledged
stock, amounted TO 8,0l6, 932 dollars; OF
tn / amount, part was applied 10 the pay
ment of the third in>talment, and part
drawn out of the bank by the discounters.
A large portion of it, is believed, however,
to have been used TO pay the second install
ment. Ofthe 2,Eo0,O 900 dollars, which was
TO have been paid at the third instalmen,,it
is believed that very thrilling amount was
paid in coin, and as little oflhe funded debt,
but that nearly the whole OF both was paid
BY the proceeds of notes discounted on the
pledge OF stock. The total amount OF sPe-
Gle imported from Europe by the bank since
It's institution 10 this time, appears, by state
ment marked XXVII. to be 1911, $50 So,
tie expense Of which, including interest,
premium, and 10000 dollars paid to the
agent for going to London, amounts to $685.
o97 %. The contract made tor a part OF
that specie, and the authority OF Mr.. Ser
ecant, the agent, are submitted, marked
xxx. NIX. To the reason urged by the
officers of the bank, that such was the scar
CITY of specie, that it could not have been
obtained, and that, without facilitating the
payments by making discounts, the bank
could not have gone into operation-the
committee observe that they are at loss
TO perceive how the simple act OF discount
jng could make the specie more plenty
that if it was not actually in the bank at the
time of making those discounts, the checks
of the discounters could not be considered
as equivalent to specie.
The amount Of the specie in the bank ct
the United States in January, 1877, was l.
724. LOG dollars 324 900 dollars more than
the coin part of the first instalment and
which may fairly be presumed TO have been
received for The second insta!ment. II then
the checks of stockholders toun'ied upon
discounts were equivalent to specie, they
wore nv them authorised to draw out OF the
hank the very coin which had been paid IN
he other stockholders, in order to pay 1t
into The bank again, for their own beneht, (
and to complete the payment OF the specie
mart of the second instalment--an opera ,
ton of more potency, in creating specie,
than was ever ascribed TO the tabled finger I
of Midas. The general statement in Feb
ruary, 1917, shews that the total amount OF
bills discounted, was 2,93O,067 dollars,
making an excess Of ,2o5, 1853 dollars of
discounts over the specie in the bank From
which il would result, that the checks Tor
tbe proceeds of those discounts were not in
all cases equiva ent to specie. AS to the
difficulty OF the bank going into operation
without those discounts being made, to ia
cilitate the payment of the second install
ment, il is not perceived how that measure
removed the dificulty-for il is obvious that
it did not add single cent to the specie in
the vaults of the institution. What other
difficulty than the want of specie the bank
had to encounter, is not known, as all other
distractions seem to have yielded almost
without an effort.
The effect of these discounts was, very
obviously, to enable those who had made