American watchman and Delaware advertiser. [volume] (Wilmington, Del.) 1822-1828, 1822-10-15


this sum the greater part was paid during this pc
Rod. 1t had, however, contracted new debts will
Barring, Brothers & Co and Thomas Wilson 6 Co
of which there remained due, including any balanc,
which may have been due on the former accounts
the sum Of 976,648 dollars and within the sam,
period 1t had disposed OF 2,270,926 dollars 90 cent
OF its funded debt, furnishing, by these COMPOUND
operations, ways and means, in addition TO its cur
tailments, to the amount OF 1861 229 dollars Is
cents, and making with these curtaiimens, re
ductlon in the productive capital OF the Bank, with
in the pei Tod Of eight months, oil eight millions o
dollars and upwards.
At the close OF this period the discounts on per-
sonal security at Philadelphia, had been so long the
subject of curtailment, that but a small portion oil
them admitted of tu Their reduction, and after great
efforts, rule had been established to reduce the
discounts which had been granted on the stock oil
the Bank at the rate Of per cent every 60 days.
These latter constituted the bulk of the discounted
paper and so small reduction afforded no mate
rial relief against great and immediate demand
Even this small reduction was the subject oil loud
angry, and constant circumstances among the bor-
rowers, who claimed the privileges and the favor
winch they contended were due to Stockholders.
and sometimes succeeded in communicating their
sympathies to the board All the funded debt which
was saeabe had been disposed OF, and the proceeds
exhausted The specie in the vaults at the close of
the day on the lst Of April, 1919, was only 1864
dollars % cents, and the Bank owed to the city
Banks, deducng balances due to it, an aggregate
balance OF 79,l25 dollars 90 cents.
Ii is true there in The Mint 267 1878 dollars,
9 cents, and in tranSitu from Kentucky and Ohio
overland. $50 600 dollars but the Treasury dvi-
bends were payable on that day to the amount of
near 100000 dollars, and there remained at the
close Of the day than one halt OF the sum sub
Ject to Grait, and the greater part oil the sum
winch had been drawn during the day, remained a
charge upon the Bank in the shape Of temporary
deposits, which were almost Immediately with
drawn. Accordingly, on the 18th Of the same
month, the Bank had IN It's vaults but II 522 dolla
AZ cents, and owed to the city Banks balance o.
1864 dollars &c cents; exceeding the specie in
ITS vaults l24,89j dollars cents Ii must De apa in
remarked, that 1t had yet the sum before mention
ed IN the Mint, as well as the sum In trdnsitu from
Ohio and Kentucky-this last sum (250,O0O dol
iars) arrived very seasonably on the next day or
day or two thereafter. The Bank IN this situation
the office at New York was little better, and The Of
flee at Boston a great deal worse. At the same
time the Bank owed to Barring, Brothers & Co. andl
Thomas Wilson & Co. nearly 100000 dollars
which 1t was bound TO pay Immediately, and which
was equivalent to a charge upon its vaults TO that
amount 1t had, including the notes of the offices
circulation OF six millions of dollars to meet, tol
which was 10 be added the demands of deposltors
public and private, at time too when the scarcity
OF money called forth every disposable dollar and
therefore created demands upon the Bank for an
unusual portion of the ordinary deposits and circu
lation.
The sums which were collected daily on account
oil the revenue, in branch paper. we're demandabIel
the next day in Philadelphia. and at the same time
at every Office OF the establishment, at the discre
lion OF the ohcers OF the government The reve !
nue. was principally paid in Branch paper, as WE'LL
Boston and y. York as al Philadelphia, and while
the duties were thus paid al one comper, in Branch
paper, the debenlures which amounted to one mil
ii'n oil dollars every three months, were demanded
AID paid at the other IN specie or its equisalen-
money OF the place. Many additional details, in
creasins the difficulties oil the moment, might be
added. The southern offices were RENTING tartly
and the western not at all. All the resou ces of the
Bank would not have sustained it in this course and
mode OF business another MONTH! Su Ii was the |
PROSTATE state OF the Bank of the nation which hadl
oay twenty seven months before commenced bu
sness with an untrammelled active capital of TWEEN
Iy-eight millions of dollars.
J. But II would have been fortunate for the Institu-
lion II IFS danger had ceased here. There still re
manned in some Of the trusts of the Bank some of
the men who had contributed most 10 involve il in
this state oil things. As | must be brief and The |
subject is very extensive, will advert only to the
principal instance OF the misfortunes and proAgacyl
10 which alude.
In the Office at Baltimore Of which James A. /
buchanan was Presiden:, and ]. w. M'Culloh was
Cashier, there were near three millions of dollars
discounted or appropriated, without any authority,
and without the knowledge Of the board of the Of
tice or that of the Parent Bank S. Smith s. Buc-
hanan, of which firm ]. A. Blu hanan was mem
Der, James w. M'CuIoh and George Williams.
(the latter member Of the Parent Board by the
appointment of the goyernment) had obtained oil
the Parent Bank, discounts, in the regular and ac
customed manner, to the amount of ,957, 200 dol
lars, on pledge of 1920 shares stock of the Bank
1 hese men, without the knowledge of either board
and contrary to the resolves and orders oil the Pa
rent Bank, took out OF the Office at Baltimore, un-
he mat 60 =. 1