Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1824-07-02
Thomas Il. R;idick, s,ooyn, att c request Of IN.
Ed,cayrIs.

Thomas T. R;diick, yrsorn, at Hc request Of Nh.
EdrarrIS.
The Bank of Missouri had a capital of two
hundred aud fifty thousand dolla;s, OF which sum
& 20, 900 was placed in an oihce Of discount and
dcposite ut -. Gencvicre, which said office was
entirely under the control ofthc principal bank,
in all respects; the cashier and all the direc-
tors and officers were appointed by the mother
ban, and removed at pleasure. Their general
operations were also directed by the principal
bank, at st. Louis. The office at st. Genevievc
loaned money on personal security, but never
on pledge OF stock. Stockholders residing al
Genevieve pledged their stock at ST. Louis, if
they wished to borrow OH that security not more
than 80 per cent. was allowed Oh such pledge,
which was considered only as Collatcra sccuri-
ty. These loans were always considered safe,
aud bctterthan any personal security. l believe
that the stock has never fallen below 80 pcrc ct.
\ large nnout OF public moneys had accunu-
lated in bank prior to the 9th August, 1919, but
1t consisted, for the most part, iii notes of the
West, which had been received by the land Of
licers, and could not be used by the Treasury in
discharge OF debts due by the govern,nent.-
The Bank of Missouri, ut its own expense and
risk, land for which they haverot as yet been
allowed any compensatory convertGl those
funds to 4 large amount, say, S529,00o, into
such funds as would pay the Treasurer,s drafts
at st. Louis. But the government having no
occasion to disbursc any considerable amount
at st. Louis, Jas the bank were informed made
a proposition to the bank to transfer its funds TO
the Bank Of the United States, and certain of its
branches and, as 4 compensation for this SER
vice. agreed that SI5O,O0O should remain in
bank rs a permanent depositc, but which might,
nevertheless, be drawn on when disbursements
could be made ut st. Louis agreeing, also, that
further compensation should be made if the de-
posite should not be found adequate for the SER
| yI~n rrppnSp1 In hn ,apInrnl This ,u,e ~,
ccptcd in part on the 9th August, 1919, and a
sum, amounting to near S45O,000, before and
after that time, was paid TO the Bank of the u.
States and branches, or funds worth 4 per cent.
premium TO the bank. The permanent dcposite
was frequently drawn on, aud reduced TO an a
mount considerably below $4,000. The bank
has been allowed no compensation rs yet for this
service beyond what the uncertain benefit of
this deposite might have been worth to them,
which, under circumstances, ought TO be esti-
mated at 4 very small sum. Moreover, the
Bank of Missouri had to encounter the hostility
of nearly all the institutions of the West from
whom the bank of Missouri had TO mako de-
mand for specie funds or such other funds as
would satisfy the Treasurcr's drafts and al
SO from gentlemen connected with those banks.
This fact will be seen. by Il reference to the
printed correspondence with banks. Sec let
tiers from the President of the Bank of Ken
lucky TO the Secretary of the Treasury, Nav
~ Il OSIlCIiDSI ~Os 10 al L lEOUt non.
w. Ii. Crawford tn President of the Bank OF
Kentucky, July 80, 1919 also, letters from
hon. NInian Edwards, 4 Senator Of the United
States, May 10th and l2th, 1919, directed TO
TFio'nas f. Riddick, one of the Directors of the
Bank OF Missouri, which said letters last named
are filed with the of Ways& Means,
in support of 4 petition presented by Thomas f..
lidd;c&, as agent for the bank.
1t will, also, BE- seen, BY n reference TO the
several agreements made by the Bank with the
Treasury Department, and the general cores
pondcIce also, the original certificates of de-
positc, that the Bank OF Missouri never became
bound, untd the 9th Of August, 1919, to pay o..
vcrto the Treasury any other or better funds
than such as they should receive from the land
Offices, having it in their power, before the said
9Th OF August, TO direct what kind OF paper
should be received in payment for lands this
was, before that date, regulated, by n list fur
nishcd the different Receivers, BY the Treasury
department, and- whether at par or not, was
received from them by tbs Bank of Missouri. 6.
certificates of depositc, issued by the Cashier,
stating the amount received in par funds, and
tue amount received in such paper as had been
authorised by the Treasury Department. The
Bank, therefore, clearly had n right to pay over
such funds as was received by them an! the
government, IN common Justice, is bound TO
make compensation for the risk and loss in
Cured by the Bank, IN converting those funds
into such other funds as could be used by the
treasury, IN payment ofdcmands against them.
Whenever these demands of the bank shall
be lquidated and settled, the amount that will
be then found due the United States will be
much icsscncd, AMI the amount that has been
transferred by tae bank ample, and greatly more
Than sufficient to satisfy every cent Justly due
by the bank of the United States. The a.
mount that now stands charged on the books of
the Treasury, Is the nominal amount of the mo-
neys of every description paid into bank bv
the lam offices, without any deduction having
been made for services rendered, and for risk
and loss in exchange.
1t will also be seen, by referring T. the reports
OF the bank, and the report OF the committee of
The Missouri Legislature, that the Bank of Mis-
souri, did at all tunes conduct its operations with
great care and cirCunspectIon, never having
an average discount including notes on plcdres
OF stock, with the exception Of the dcposite of
S15O.OOO,) greater than the capital stock, and
never having its paper signed for circulation to
greater amount than S!0I,933 % of which
sum, If the books of the Bank were within NV
reach,) L ain satisfied 1t woIld be found that tI,e
average amount in circulation, from the com
piet'on oil the payment of the capital stock. 20
the day OF suspension, did not exceed $50. O1D:
Tie greatest amount that appears eve, to have
been In circulation, was Xt53,G so 80; of which
S<o,oOo, or near that amount, was specially
deposited IN the Branch Bank of tn u lied
states at Lexington, and belonged 90 the Bank
of hlissouri; at the time the bank suspended
payment, only $50 900, or tlIcrcabouts, was in
circulation.
The suspension, in August. 1921, cannot.
therefore, be attributed either to excessive
loans, but to an excessive issue of thc western
country. which rendered n i,,rose;tto = Al