Alexandria gazette & advertiser. [volume] (Alexandria [D.C.]) 1822-1824, 1822-10-15

months before commenced CUISINES Will
on untrammelled active capital OF TWEEN
ty eight millions of dollars
But il would have been fortunate for
the institution if its danger had ceased
here, There still remained IN some OF
the trusts ofthe bank some of the men
who had contributed most to involve 1t
in,this state of things. AS must De
brief, and the subject is very extensive,
I will advert, only to the principal IN
stance of the mistortunes and proiilgacy
to which allude.
In the Office at Baltimore, of which
James A. Buchanan was president, &
j. w. Nl'Culoh was cashier, there we're
near three millions of dollars discounted
or appropriated, without any authority
and without the knowledge Ofthe board
of the office, or that OF he parent bank!
s, Smith and Buchanan, of which firm
]. A. Buchanan was member, James
w. M'Culloh and George Williams,
(the latter a member of the parent board
by theappointment of the government
had obtained of the parent bank, dis
counts, in the regular and accustomed
manner to the amount Of s ,957,7oo
on pledge oils, 200 shares stock ofthe
bank These men, without the know
ledge of either board, and contrary TO
the resolves and orders OF ;he parent
bank, took out Of the Office at Baltimore,
under the pretence of securing |: by
pledging the surplus value OF the stock
already pledged at the parent bank for
its par value and more, and other like
surpluses over which the bank had nc
eontroul, the sum Of $40, 900 dollars {:
this formed part of the sum before
stated to have been discounted by the
president and cashier of the Office with
out authority. When this stupendous
fraud was discovered, attempts were
Immediately made to obtain security,
and 1t was obtained nominally to the a.
mount OF Goo, 900 dollars. 1t was proba-
bly, really worth 500, 900. For this the
bank is principally indebted to the good
management or Messrs. Oliver, Hdtt-
man and M'Kim, of Baltimore, VITO
were at the time members of the parent
board.
The losses sustained at the office at
Baltimore alone, the great mass of (which
grew out of this fraud, and others close
" connected with it, have been estima-
ted at the immense sum of 81 gu ,22l
81. The aggregate of the losses OF the
institution growing out OF the opera
items which preceded the 9th March,
1919, exceed considerably $4,000, 900.
The dividends, during the same time,
amount to 4,4lO,ooo. OF this sum Is
34S 55S eS were received as the inter-
est on the public debt held by the bank,
which leaves. as the entire profits on
all the operations Of banking, the SUN
Of 5 06} An 02, winch is less 6y at least
half a million Of dollars, than the Losses
sustained on the same business
When was invited and consented
to fill the station now hold, a. | was
alike ignorant, and unapprehensive OF
the situation in which | have ust des-
cribcd the bank(truIy | believe, ITO have
been, | was at the moment remotely
situated from the scenes of its active
business.and its important transactions
7 had held, it is true, shortly before, to
oblige my friends, place in the board
of the Office at Charleston, at which
occasionally attended and from what |
hua 90 we'll as from the public
facts concerning the transactions OF the
bank. I was satisfied that there was
GREAT want of financial talent in the
MANAGEMENT of it. But had not the
faintest idea that its power had been
so completely Frustrated, orthat It had
been thus unfortunately managed, or
grossly defrauded. never Imagined
that when it had, at SO much expense
and loss, imported so many millions OF
specie. they had been entirely exhauS-
ted and were not vet paid for nor hat
the bank was on the point OF stopping
navment 1t was not until the moment
| was about to commence my Journey
to Philadelphia, that | was apprized
by a letter l5) from friend, who had
been member of the preceding board,
that he feared, IN few months the
bank would be obliged to stop payment.
This was. indeed, appalling news =
When reached Washington, receiv-
ed hourly proofs of the probability OF
this event. In Philadelphia it it was
generally expected. My memory de-
ceives loe much if found any one in or
out of bank who entertained asanguine
belief of its being able to sustain its
payments much longer On the con-
nm, .hern ,uaa Il think il cannot be