The Alexandria herald. [volume] (Alexandria [Va.]) 1811-1826, 1822-10-09

the bank owed to Barring, Brothers & Co.
s. Thomas Wilson u Co. nearly 600 600
dollars, which it was bound to pay i'm
mediately, and which was equivalent to
charge upon its vaults to that amount. 1t
had, including the notes of the offices, a
circulation OF six millions OF dollars to
meet, 10 which was TO be added the de-
mands Of public and private, at
time too when the scarcity Of money CALI
ed forth every disposable dollar, * there
fore created demands upon the bank for
an unusual portion of the ordinary dcpo-
sites and circulation.
The sums which were collected daily
on account of the revenue, in branch pa
per were demandable the next day in Phi>
lade!phia, and at the same time, at every
office ofthe establishment, at the discre-
ton of the officers of the government.
The revenue was principally paid IN
branch paper, as well at Boston and n. Y.
as at Philadelphia, and while the duties
were thus paid at one compiler, i'll branch
paper, the debentures, which amounted
10 one million of dollars every three
months, were demanded and paid at the
other, in specie or us equivaIent.-Ho
ney ofthe place. Many additional de-
tails, increasing the difficulties o the mo-
ment, might be added The Southern
Offices were RENTING tardily, and the
| Western not al ali. All the resources
of the bank would not have SUI stained it
in this course and mode of bus mess ano-
Their MONTH! Such was the PROSTATE
state ofthe bank Of the nation, which had
OILY twenty seven months before COM
menced business with an untramrneied
active capital OF twenty eight milliOns Of
| dollars.
But II would have been fortunate Tor
the institution if its danger had ceased
here. There still remained in SOME oil
the trusts of the bank some Of the men
who had contributed most to involv,: it
in this state of things. AS | must be
brief, and the subject is very extens I'VE,
L will advert only to the principal in
stance of the mislortuncs and profligi .cy
to which 1 allude.
In the Office at Baltimore Of which
James A. Buchanan was president, and
IL 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 Office, or that Of the parent bank
.. Smith and buchanan, of which firm j.
A, Buchanan was member, James w.
M'Cul!oh and George Williams, 1.-THE
latter member of the parent board by
the appointment of the government had
obtained OF the parent bank, discounts, in
the regular and accustomed manner TO
me amount of l,957,7OO dollars, on Ct
pledge OF 1890 shares stock of the
bank. These men, without the know
edge OF either board, and contrary to
he resolves and orders of the parent
| bank, took out OF the Office at Baltimore,
under the pretence of securing il by
| lhedglng the surplus value Of the stocks
already pledged at the parent bank for
IT'S par value and more, and other like
snrplusses over which The bank had no
contronl, the sum Of 100000 dollars
this formed part Of the sum before sta
ted TO have been discounted BY the pre-
Hldent and cashier of the Office without
authority. When this stupendous fraud
was discovered, attempts were imuedi.
Ately made to obtain security, and il was
obtained nominally to the amount of
100000 dollars. twas probably really
"a "OO1OOO' tut lulS the Da0K IS
principally indebted to the good manage. f.
ment OF Messrs. Oliver, Hoffman and
n'Kim, of Baltimore, who were at the
Time members Of the parent board.
The losses sustained at the Office al /.
Baltimore alone, the great mass Of which !
grew out of this fraud, and others close. i,
ly connected with it, have been estimated |
at the immense sum of 81, 67I ,22l 81, i,
The aggregate of the losses Of the insti.
tuition growing out of the operation,
which preceded the 9th March, 1919
exceed considerably SS,5OO,OOO. Thu ,
dividends, during the same time, amoun {
to 100000. Of this sum 81 ,S4S, $50 Oh
were received as the interest on the pub
tic debt held by the bank, which leaves
as the entire profits on all the operationsi
OF banking, the sum of SS,O6I ,44I OF.
which is less by at least half million Of
dollars, than the losses sustained on the
same business
hen was invited, and consented tn
hill The station | now hold, C4) | was alike
Ignorant ,&unapPrehensive ofthe situation
ID which have just described the bank
truly be!ieve,) to have been. was al
the moment remotely situated from IN,
scenes OF ITS active business, and its i'm
important Transactions 4 hal b,tJ ;: