Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1819-01-19
From the National Lutelligsncer.

From the National Entetttgencer.
HOUSE OF REPRESENTATIVES, JAN. 10.
BANK OF THE UNITED STATES.
Mr.. Spencer, from the committee APP
pointed to investigate the proceedings OF the
bank of the United States, made the follow
ing report:
The committee appointed to inspect the
books and to examine into the proceedings
of the bank of the United States, with di-
rections to report thereon, and to report
whether the provisions of its charter have
been violated or not, respectfully report
That, under the leave granted by the
house, the committee repaired to Philadel-
phi,, and there personally inspected the
books of the bank; and as further means
of examining its proceedings, they interro-
gated, on oath, the president, the cashier,
all the directors of the bank whose atten-
dance could be obtained, and several OF its
clerks and officers. Examinations also have
been made at the Office at Baltimore, at
Richmond, and at the city Of Washington,
in order to obtain specific information upon
certain subjects on which the books of the
parent bank were necessarily deficient
From these enquiries, conducted with great
labor, and, the committee trust, with great
care, they have collected mass OF infor-
nation. which they now submit to the house,
and which will be referred to in the course
of this report. This information consists OF
tables, statements, and extracts mace by
the committee from the books of the bank,
or by them compared with those books and
verified and of the testimony of witness
es, and of letters from the presidentof the
institution.
The committee are aware that from these
sources of information, various important
differences may be- drawn, and upon them
the most interesting opinions may be pre-
oicated it has been their intention, how
ever, to go no further than was required by
the resolution of the house to avoid spe-
culative opinions on general subjects; and
TO con6ne themselves to what they deemed
practical objects of inquiry, which they set
tied among themselves previous TO entering
upon the investigation. These objects SEEM
Ell 10 divide themselves into two classes
those which related to the general manage
ment of the bank, and the conduct of its
officers and those which were connected
with the question of violation of ills char
ter. As to the general management Of The
concerns Of the institution-among the
points ofenquiry which appeared to be most
immediately interesting, were those which
related to the refusal of the bank and its
Offices TO pay its notes in specie at any other
place than that where they were made pay
able, and TO the practice of selling drafts on
each other.
1t appears that the directors OF the bank,
on its first institution, and up to the 28th of
August, 1918, strenuously endeayored to re-
deem its notes at all its offices, indiscrimi.
nately, north of The city OF Charleston. On
the 7th day of January, 1877, il common
ced operations by discounting notes on
pledged stock, and to stockholders only,
and by the issue OF its bills. The officer at
the head of the treasury department had re-
peatedly urged the commencement of cpe.
rations, with the Iaudable view, as it APP
pears, of Fastening the redemption, by the
state banks, OF their notes, in specie. Vide
letters from the secretary of the treasury to
the president of the bank of the U. States,
18th August and 29th November, l8l6, mark
edI. II.
Efforts on the part of the treasury to in
duce the local banks to that measure, APP
pear to have been abortive, until the bank
of the United States made certain PROPOSE
tons which induced negotiations between
il and the state institutions, which finally re-
suited in compact contained IN the reso-
buttons of the board of directors, of the 3lst
January, 1917, herewith submitted, and
marked I'll and in order to exhibit how far
the bank complied with its compact,
statement of the loans and Of notes issued,
up to the goth February, 1917, is submitted,
marked w. 1t can be necessary, only, TO
refer to the state of the paper currency OF
the country at this period. The notes OF the
state banks were variously deprecated,
some as much as 90 per cent. while others
were at a premium. The excessive issue of