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

ordered, from time TO time sat the southern
* western Offices 10 the amount of seven
millions of dollars and at the parsn
bank TO the amount OF two millions, tho
at the latter they were made TO the a
mount of $500 600. and upwards, be.
tween the 50th July, 1918, and the lst ~
pril, 1919. No curtailments were order
ed at the offices of NY. and Boston, be-
cause there was no room for them, yet
necessity obliged them to reduce their
business very much. The curtailments
at all points within the above mentioned
dates, CO. being eight months, were
Sc, 550,l59 40. Yet alter these i'm
mense and rapid curtaiIments, the most
sensible and vital points New-Y ork Phi.
ladelphia and Bos,on) were infinitely in
worse condition than when the remedy
was devised.
An accompanying exhibit (2) will
show the distribution of capital at the
close of this period. Atthat moment the
discount line of the important office at
Boston was only S94,5s4 81 And,
when in this wreiched state, the southern
and western circulation was pouring in
upon these weak points, and the govern
ment at liberty, according TO the practice
OF the time, TO draw on either office or
the bank for the gross amour. of Its &C.
posites throughout the whole establish
ment, whether south, north, east or west.
The southern and western Offices were
not restrained from issuing their notes
which they did most profusely. The
curtailm ents in many instances resulted
merely in change of debts, bearing in
terest for debts due by local banks, or the
notes of local banks, on neither Of which
was interest received. The western off,
ces curtailed their discounted paper, but
| they purchased what were called Race
Horse Bis, TO greater amount than
their cuttaiIments. Pfc bank Itself con.
tinued during the whole period, to pur-
chase and collect drafts OH the southern
and even western Offices, though almost
| the whole active capital already lay in
these quarters of the union, and though
the great object Of the curtalments was
to draw funds from these points. The
debt due in Kentucky and Ohio, instead
OF being reduced, was within this period,
actually increased upwards of half a mil.
hon OF dollars. An accompanying exhi-
bit (S) will shew, that instead of getting
relief from the southern and western of
ices generally, where curtailments had
been ordered, the bank was still further
exhausted by the intervening operations.
At the commencement of this period,
"a period commencing with the order for
curtailments, and ending March, 1870
the bank was indebted TO Barring, Bro
theirs and Co., Reed, Irving & Co, A
dams, Robertson * Co, and Thomas
Wilson Z Co. the sum Of 1,596.S45 dol>
lars AZ cents, growing principally, if Doi
entirely, out of its specie operations
Of this sum the greater part was paiy
during this period. 1t had, howeve, =,
contracted new debts with Barring Bro.
| theirs and Go. and Thomas Wilson and
Co., OF which there remained due IN
Guiding any balance which may have
been due on the former accounts, The
! sum OF 976,643 dollars and within the
same period 1t had disposed OF 2,27O,926
dollars 65 cents of its funded debt, fur
nishing, by these compound operations,
ways and means, in addition 10 its curtail
ments, to the amount of l,56l, 229 dol
lars | S cents, and making with these cur
tailments, a reduction in the productive
capital OF the bank, within the period OF
eight months, OF eight millions Of dollars
and upwards,
Attic close ofthis period the discounts
on personal security at Philadelphia, had
been so long the subject of curtailment,
that but small portion Of them admitted
OF further reduction, and after great eff
forts rule had been established to re.
duce the discounts which had been gran
Ted on The stock of the bank at the rate oil
i've per cent every 90 days. These las
ter constituted The bulk of the discounted
Paper,& so small reduction afforded no
material relief against great and imme.
date demand. Even this small reduc.
ION was the subjec: of LOUD, angry, and
constant remonslrances among the Dor
ro"ers, who claimed the privileges and
The favor which they contended were due
to Stockholders, and sometimes succeed.
ed IN communicating their sympathies to
The board. All the funded debt which
was saleable had been disposed Of and
the proceeds exhausted. The specie IN
the vaults al the close OF the day on the
LIST OF April, 1919, was only 126,745 dol
lars % cents, and the bank owed to the
city banks, deducting balances due to il.
al aggregate balance Of 1915 dollars 90