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


however, advised that it would be more expedens
to reserve the communication for committee, and
my opinion cheeriully surrendered. But as it
IS my determination IN few months to quit the
station with which you have honored me, and as
my silence on former occasion has kept you, as
well as the public, in great measure ignorant oS
the difficulties in which found the Bank, and has
subjected the administration, of which have been
la member, to censnres unlounded, and which have
fallen in many instances, from the lips Of the very
persons who the authors OF the errors and mis-
homogeneous, to use no harsher language, by which
this Institution brought TO the verge OF Bank
iuptcy and ruin, will now present to you shore
view oil the progress and present state OF the Bank.
You will probably raise committee ofinspection sS
investigation and far any facts circumstances
which shall prese1t, may be deemen material, their
accuracy or error may lie ascerained.
The institution commenced active banking ope-
ratons about the lst OF January, 1917, and In the
course oil that year established eighteen branches
being all that have been established One was pro-
lJected at Augusta but reconsideration was aban-
doned. The report OF the committee of Congress
made in December 16l8 has made you fully ac-
qualned with so many OF the leading details Of the
previous management, and The lapse of time has
made them so much less interesting than they
would have been al an earlier day, that mean to do
little more in relation TO the period which pleced-
ed 1872 than present the results as they VIII be
exhibited in the state Of the Bank, when I GANG
into it.
| The Bank Immediately on its commencement
did very extensive business, imported vast sums
OF specie, paid its notes and those oil the Offices,
without reference to the places where they were
payable, at the Bank, and all the principal Offices
north OF the Potomac, while they were, under the
charter, necessarily received every where in pay
ment OF debts to the government OF the U. States
and drafts were given without limit, on the Parenr
Bank and northern offices by the western Offices.
/ at par or at premium merely nomInal AS soois
| as The notes Of the southern and western Offices
were paid or received by the Bank and northern
offices, they returned to them and re-issued
lin perpetual succession. An accompanying exhi
/ bit (l) Will shew the enormous amount Of the notes
OF southern and western Offices which became
chal geab'e on The Bank, directly, and, indirectly,
through the northern Offices. The result was that
the Bank and the great northern offices were drains
ed OF their capital, and on the twentieth Of July
/ 1878, only eighteen months after the Institution
I began Its operations, it was obliged 20 commence
i rapid and heavy curallment OF the business oil thG
j Bank and its offices. During all this time it had
the advantage OF immense government deposits.
! At the moment these curtailmenls we're ordered,
I the government deposits in the Bank and Branches,
Unfolding the depes oil public officers, amounted
1 to eight millions OF dollars, Gay and they had been
1 larger at the preceding periods. Cuiailments were
ordered, from time to time, at The southern and
dollars, and at the Parent Bank 10 the amount Of
two millions, though at the latter they made
ito the amount of 100000 dollars, and upwards
between the 30th July, 1918, and the 1st April
II 1919. No curlailmen;s ordered AT the Offices
Of New York and Boston, because there was no
room Tor them, yet necessity obliged them to le-
Iduce their business very much. The cuitailments
at all points within the above mentioned dates, (b)
loeing eight months, were 6,53O,l59 dollars 4g
lcents. Yet after these immense and rapid curtail-
mens, the most sensible and vital points PhiladeI-
Ephia New York and BOSTON, were infinitely i'm
worse condition than when the remedy was de
i Yiseds
j An accompanying exhibit (s) will shew The dis
tribuon of capital at The close Of this period. Ae
i that moment the discount line Of the important Of
| flee at Boston was only 94,584 dollars 81 cents
! And when IT, TINS wfetched stale, the southern and
western circulation was pouring iii upon these weak
points, and the government at liberty. according TO
the practice Of the tme TO draw on either Office or
the Bank Tor the gross amount OF lis deposits.
hroug bout the whole establishments whether south.
north, east west. The southern and western of.
hces were not restrained from issuing their notes,
(which they did mus proiusely. The culiaiin,ents
IN many instances resulted merely in change of
debts, bearing interest for debts due by local Banks
Tor the notes oil local Banks, on neither of which
Twas interest received. The western offices curtails
ed their discounted paper, but they purchased bas
were called Race Horse Bills, 10 greater amount
than their cuitaIlmenls. The Bank itself continued
idurfng the whole period, 10 purchase and collect
ldraIts the southern and even western Office s.
though almost the whole active capital already lay
In these quarters of the Union, and though the
lgrea object OF The curtailments 10 draw funds
from these points. The debt due in Kentucky and
IOhio, insesd OF being reduced. was within this PEI
Rod actually increased upwards of half million OF
dollars. An accompanying exhibit lS) will shew,
bat instead OF getting relief from the southern and
western Offices generally, where curtalnents had