Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1832-05-22

"These were discounted nv the exchanr. commit
athe request OF Mr.. Sas r. Burrows Of New York Mr.
Burrows had, some time before brought me particular
eer oil Introduction from old friend, Mr.. Monroe, tn,
sx-Presdent. Mr. Burrows had been very liberal 4
MIR. Monroe in his pccuuary msoriumes aud lac had re
Gently received from the President of the United State
particular thanks and FOR bis generous con
ouet towards Russian ship OF war, understood him e
be very rich merchant, OF kind and benevolent d>po
ton and constantly engaged in doing Of libera,y
I'm one OF his visits 10 Philadelphia he said he wa,
desous obeiriendng Mr.. Noah and assisting him IL,
purchase Ola share in newspaper and lac asked fhe bank
would discount the OF these parties-adng that
though, merchant he did appear as Dor.
rover nor put his rane paper not mercantile he
would any time do so mir h be "a
secure The bank The Committee being horned tC
discount any paper the security OF which they might APP
prove, agreed TO do them.
As Mr.burro1yS going out Of town, gave him the
money out OF my own funds, aud the notes afterwards
put In my possession. They remained with me for long
nme, as nad no occaS'on TO use the funds it till
me close oil the year that my attention was called TO them
by the circumstance that board of directors and
new committee OF exchange would be appointed
me same committee which made the loan should
mate IT. had sccn also i'm the public prints, many re-
proachcs against the bank for lending money to printers
End editors, and unwilling that any Loan, made by the
bank should seem 10 be private loan from one of its off
GERS. Having for the money, il would have been
perfectly convenient 10 let the loan remain it was but
thought right that every thing done by the bank should
be distinctly known and uvowed, aud therefore gave the
notes TO the Chairman of the Committee, Mr. Thomas p
Cope, who entered them the books On 2 day of
March, Mr. Burrows called the bank paid the notes
ought to add that the loan made at the request of
Nr bufroWs ana mat neither OF the committee
had ever seen Mr. Noah Mi Webb. or hal any COM
nunicaon with them direct indirect about the loan IL
was made on the credit OF Mr. Burrows, who afcrw ards
paid il.
II appears that Mcssrs Webb and Noah avowed them
selves IN favor of renewal of the charter of the Bank
ths United States the Sh of April, 1921 Ii is diff
cult therefore, TO conceive what possible influence could
have been produced upon their by loan To Mr.
BTo,os OF which they had no knowledge. 1t is equally
scult TO perceive how the loans of August aud Decen-
her 1881 could have had any possible agency in producing
the change which it is alleged took place in the OF
these editors upwards Of four months before.
Under all the circumstances OF this case the minority
OF the committee declare without any that
houng IN these transactions calculated to induce them
DOUBT the honor and integrity Of the directors, and this
cy iee authorized TO say, is the opinion OF majority OF
the committee from the opinion already publicly express
CD oil one at Its members They also deem il 10 be due to
the occhSnn and TO their of Justice that they
should add, that they do believe there exists in the
United States bank direction composed of more upright
ihuepehdch and honest men, than that which granted the
loans IN question
Most, IT not all of them, are of independent for.
tunes, having connection with politics. and being en-
urely independent of banks. They are generally men
who are engaged in safe and successful business with
fortunes which they have made by adventurous spe-
cuGuons but by steady industry, and moderate but certain
prohS ms Is, indeed, the general character OF the
merchants and capitalists of Philadelphia circumstance
whch renders the location OF the bank in that city pecu-
Harry fortunate for the stockholders for the country
The next subject brought TO the view OF the House by
the report OF the majority, which it is now deemed neces
y 10 houcc, Is mat oil the Transactions OF the bank with
Thomas Biddle s. Co.
Mr.. Thomas Biddlc the principal member Of IN firm,
II distant relation OF the President Of the bank and was
owing TO this circumstance probably that his accounts
underwent most Prying not to say inquiSitoral
nation. ---
The first thing that struck the attention of part of the
S9nnIee Is verify OF scrutiny, the fact that this
House had obtained from the bank August loans to
the amount OF upwards Of million OF dollars OIL pledge
OF Stock',--a sum which had been gradually reduced
however, 10 about six hundred thousand dollars
On examination, II found that this loan had been
made at the special instance aud urgent solicitation of the
directors of the bank and that bank and not Thomas
Biddle & Co., the party accommoiated-Tbr Co
nffc al
Its stock which the bank had owned the consequence
was, that large portion Of the money capital of the n
tuOh was rendered unproductive, and il became matter
sIeI importance 10 nave II invested In this state OF
thngs the directors adopted resolution authorship the
loan OF large at less than the legal interest upon
me security OF any good stock tits be here remarked
that this was that portion OF the capital OF the bank which
had never been invested, and which was not deemed
sXpedient 10 invest IN the routine business OF discounts
The loan to Thomas Bdde s. CO. The pledge of stocks
was analogous to loan TO the Government The stocks
could, emergency sold aud converted into
80 that this investment had some sort the ,ood a,r
butte OF money i'll the vaults OF the bank any press
ing demands against it, and money, the time draw
Ing interest.
All the directors who were examined on the subject
stated that they considered this more for the
benefit and accommodation OF the bank, than of Thomas
Bddle Co.. and the President OF the Bank OF PennsyI-
ydna stated OATH that the bank over which he wa.
President would have been worry glad TO have made large
loans TO Thomas Biddle & Co.. at the same time, and
upon the tcrmshc board of directors Of that bank
ha,ylng authorised such loans at IL per cent
There was one occurrence during the examination of
the Transaction OF Thomas Biddle Co.. with the bank
which merits particular notice.
An iniormer and witness, by the Of Whitney who
had formerly becna OF the bank produce who
declared upon OATH that in July 1924 two of the cashiers
OF the bank and of the discount clerks had informed
him that Thomas Biddle s. Co had been in the habit of
drawing money out OF the bank, dcpostc of stock in
the ellers drawer, Without paying interest; that the
President OF the bank had discounted notes one
Thomas Blddle Co., and one for Charles Bdde, with
out the authority of the directors This witness stated
that he went with these officers of the bank and cxami
ned the elers drawer the discount book and found
the facts which had been stated him verified by the ex-
animation He also stated, give additional certainty to
his avermcnls that he made memorandum the time
with the dates OF the transactions, which memorandum
produced TO the committee Having thus unaterably *
cd the date of the Transaction if by some fatality he
went on TO say that he Immediately proceeded into the
room OF Mr.. B11le, the President, and demonstrated
with him against these irregular proceedings; and that
Mr. BIddle promised him that they should not occur
again.
Mr.. Bdde present during the examination Of this
witness On that day, being oath, he said that lac
utterly atonisled at the testimony of the witness and
word of truth in il from the beginning to the
end. lie added, that from the relation in which the wit
ness stood TO him, he would have sunk into the earth
than he would have dared him with such
Tcmonstrancc he pretended to have made The Off
Of the bank, from whom the witness alleged that he
derived this Information, examined, and all Of them
positively contradiced him. They testified and demon
strated from the books that Thomas Bddlc & Co had
obtained money in any instance, without paying i'll
terest, and that the two notes which Whitney asserted to
have been discounted by the President alone, had been
discounted regularly by the directors
In the interval between the adjournment Of the commit
tan fItuF Il IL