Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1819-01-20

FROM me JNGl10adt inLetttSeHCeF' 81,
HOUSE OF REPRESENTATIVES,, JAN. 10.
BANK OF THE UNITED STATES
Continued.
In answer to an enquiry addressed by the
committee on this subject to the president
of the bank, they were furnished with bis
views, and letter from the Office at Boston
marked TX, and were referred to report Of
the committee of directors on the 28th of
August, 1918, marked X. Those docu-
ments exhibit the reasons of the bank for a
DOPING the resolutions of that date, by
which the notes Of the Offices were refused
acceptance. In the letter Of the Boston Of
fee much stress is placed upon the large
accumulation Of paper and drafts at Boston,
issued by the southern and western othces.
And this became an important object of en-
quiry The books Of the parent bank do
not furnish information respecting the drafts
made by, and upon, the Offices, excepting
those which were made on it. And the
committee have not ascertained their a
mount, except at the offices in Baltimore
and this city. From the local situation OF
Baltimore, the statements obtained at that
office, marked XII. MI. may be considered
as furnishing sufficient proof of the correct
ness Of the opinion expressed by the bos-
ton Office. To the Office al Boston, its de BIT
fluctuated between $4,000 dolls. and 215,-
900, dolls. until May last, since which it has
been indebted to Baltimore from 500 dolls to
$1,000 dolls. Its debt to the Office at New
York has varied from 100 900 to I ,947 900
dollars, and, until October last, it has gene
rally owed that office more than 100000
dolls. At that time the New York office
was brought in debt to Baltimore 97,278
dolls. ; its debt in November last was l0, 948
dols. The explanation Of these exlraordi-
nary reductions of the Baltimore debts is
given from the circumstances of treasury
drafts ON the north being delivered directly
to the Baltimore Office, or sent it through
the Office at this city by a check on New
York for more that million, given by the
parent bank in payment Of foreign bills of
exchange, hereinafter mentioned. The
Baltimore debt to the parent bank has vari.
ed from 1,5C0, 900 to nine millions, and has
generally exceeded six millions. Notwith-
standing their heavy debts to New-York,
Boston, and Philadelphia, the drafts of the
Baltimore Office on those places continued
uninterrupted, and excessive in amount {:
that Office was originally supplied with notes
to the amount of 87s, 900 dolls, and had re-
turned TO it from Philadelphia l,697 900
dols. in its notes, and yet it is stated by
the teller, that it never had sufficient guam
tity of notes to meet its demands; that they
did not remain lwenty-four hours in the Of
fee, but were constantly reunited 10 the
north with the drafts which it issued. And
there can be no doubt, on comparison of
the statements referred 10, connected with
these facts, that the drafts from Baltimore,
given for the proceeds of notes discounted,
were unwarrantably large, and much more
than the balance of trade required.
From this charge Of system, which pla-
eed the notes OF the offices on the same foot
ing with those of the local banks in their
vicinity, resulted greater difference in the
exchange between the different parts of the
Unicn. The offices at New-Orleans, Sa-
vannah, and Charleston, had never been in
Guided in the plan of equalizing the curren-
cy. They had always been lett TO their
IN discretion, in receiving OF refusing the
notes of the other Offices. In May, 1877, the
offices at Charleston and Savannah were
authorized to draw on those at the north,
at a premium. In April, those at Lexing-
ton and Cincinnati were authorized to pur-
chase bills on the eastern and northern CT
ties. In December, 1917, the southern off,
ces were authorized to draw at premium
on those at the north. In October and No
yember, 1917, the western Offices were au-
thorized to draw at premium on Phladel-
phia and the Offices south of it; and it APP
pears that the offices at Lexington and Gin
cinnati, before February 1918, were in the
practice of drawing on the eastern cities.
These facts show that the bank, and most
OF its Offices, sold drafts upon each other
long before the adoption of the resolution
of the 2S,h August, 1918, refusing the notes
of the Offices; and establish that, while the