Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1824-06-29

/ Question. Has ,..c- Bank repaid any of these
! loans:
Answer. I went, tits morning, to look at the
books of the Bank, ami fi'.i that the amount APP
| pears to have been repaid.
Question, by Mr.. FORSYTH. When did you
| first call on TIE Secretary.
| Answer. II was on Friday--but, as under
stood lac much engaged. OH Saturdays, in
receiving visits of Members of Congress, 1 call
cd again on Monday, When received the SI7,-
900.
| Question, by Mr.. Forsyth. Were there any
| dspos,cs made, by government, III that Bank,
previously to those You have now spo!sen of?
Answer. There were not, believe, except
the money which had been loaned 10 the go-
vcrnnent previous 10 the time speak OF.
! JAS. SANDERSOS.
| June 0, 1923.
JaeoJ .Hsryxa, IF .7tern4F,i1, smosn, at the re-
| quest y III. Ea.ca,qi..
Twas Cashier OF the Mechanics Bank of a.
!eXardrla, for time after Mr. Sauicrson left it.
There were some loans obtained by Mr.. Swan,
President, from the Secretary of the Treasury,
and received by me. Mr.. Sandcrson had left it.
One loan, think, was of 10000, another of
$50, 900. The first was returned ina short time,
say 80 Oh ca days, and few weeks after the
| first the second loan was obtained. This latter
was not rcraii, when left the bank, which was,
| | think IN 1921. When ca,no into the Office
oil cashier, l found little specie aud avery small
amount of current money, and about $50, 900 of
notes in circulation. & reduced them, before
left, to less than S7o0U.) The second loan, Of
10000, was, as ! understand, subsequently
paid, or secured to DC paid, throu IA the Danl OF
| Alexandria, but when left the bank, the two
loans mentioned by Mr.. Sande:so;,, and the Sc
cond, mentioned by me, remained unpaid.-
This last was receive! i'll Treasury drafts on Ca
ro!iia and Virginia. went to Raleigh. in n. G..
AMI exchanged the drafts for Virginia paper
The Raleigh bank then paid specie, and was will
ling TO pay these drafts, but did not wish to
take away the specie. The first 4 1000 were
obtained 10 enable the bank to pay specie, bu,
this being found Insufficient, the second loan was
obtained. The Bank paid some OF its notes as
il was able, and rs fast as the notes were paid,
they were witIlrawn-but many notes were moi
paid when presented. / did understand from the
Secretary OF the Treasury, that the loans were
obtained in order 10 enable the bank to wind up
its affairs. The Secretary frequently applied to
me for repayment, and being told by me that the
bank was unable to do it, he insisted upon ia
tcrcst being allowed on Tie lean, which was a.
greed to by the bank. do not rccolect when
this agreement for interest was made-not, how
ever, before the money had renamed due for a
year. Nor do l remember from what date the
| interest was TO he calculated. The present
statement make from memory, inerely--not
| having had access to the books Of the bank for
several years.
JACOB MORGAN.
augustine .Ncoton, sco,a, at The request Of Mr..
E:ttcay'as.
was Cashier of the Franklin Bank, and be-
came so iii March, 1921. There is a credit on
the books OF the bank to the United States, for
| $4,000. The money WAS obtained before
went into Office. Mr.. Crawford was once at the
rbank while was cashier, s1y lii August, 1891
applying to nave the money either paid Sc
cured; at which time the bank agreed 10 trans
fer TO him all its property, security, and that
this loan was the first debt 10 be paid The char
ter OF the bank expired on The Isl Jan. 1922
j'but have the books in my possession.
The discounted nctes were first to be rcsortcd
TO, and II these proved insufficient, resort was Ia
be had to stock notes. \ small sum, less than
$1,000, has been collected The notes are now
IN suit, by Mr.. Swan, district attorney. The
stock notes arc notes gwen by stockholders fot
stock, for the payment of which stock is pledges
as security. know of no reason for the agree
mcnt that one class of notes was first to be sued
for unless it may have been the convenience OF
| the debtors on the stock notes. All the real
property was also transferred. 1t consisted of :.
| few houses, taken for debts.
The agreement was accepted by Mr.. Craw-
/ ford, before the expiration OF the charter and
| sent to Mr.. Swan to have a regular convey
ance drawn up. That conveyance was not
consummated till after the charter had expired
say in October, 1922. Many of the notes as
signed under protest. ana some of them III suit
/! Notes including stock notes, 10 the amount oi
| > i8o,uoO, and real estate to the amount oil
/ $1,000, were offered TO be transferred, but Mr.
| Crawford did not ut that time accent of the of
| fer, because it did not extent to the payment OF
interest; but afterwards, the interest being.
stipulated for, the agreement was accepted
aud the transfer made In October, 1922, as |
have above stated. The,stock notes are still in
my possession. They have never been enctors-
ed to the government by any one. If suits can
be sustained, there will be ample funds to repay
the loan.
When went into the Office OF cashier, was
uriicr the impression that provision had been
made BY Congress for continuing tue charter
oi Tie bank for five years beyond the time origi
! naliy limited for its expiration continued un-
dertiat impression for hong time, and [ be-
licYe the directors were under the same im,res-
| sion.
9Th June, 1921. AUG. NEWTON.
.u''. Merton agaein catlel, (l0M Jue.)
The transfer above referred to, from the bank
to the United States, was made on the Sd Oct.
1922.
The terms of The agreement were finally ar
ranged and asscatei to by the parties, on the 5t
| Dec. 1921.
a. NEWTON.
Charles T. CGtqpmaa, svo,1,, at The rertess Of
Mr.. Edtoartis.
! was Cashier of the Union Bank of Alexan-