Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1832-10-26
POEHEsCAE.
TFiom the Globc.I

from the GloJcj
THE VETO AND THE BANK-No VIII
In the frauds and abuses OF the Bank of the United
States, during the first years its existence NAV h,
found ample reasons why should be chartered
all its operations, il dcmoraizng as any of IN,
gambling establishments OF Paris. To sustain it, the 90
vernmen paid out of the Treasury, during the first 81,
S SeTe;, sE' hundred and J0'y thousand fire hueo
The condition of The Bank believed to be now very
much the same as il was ia 1917 aud 1918.
Then, combination OF spectators, by division of
their stock among icous stockholders and bv pretended
proxies giving fraudulent votes, elected the Directory
and controlled the institution. They loaned millions OF
money To each other and to their lavortes upon made
quate security, which resulted in loss the Bank of
fourteenth part of its whole capital. BY loanng upor
pledges OF stock, paying dividends in Eng land free o
chage ann Other devices, the price OF stock
about Sl60 for 500 paid in, and afterwards fell down 10
SSS Loans were made almost without limit and i'm the
latter part OF ISIS, suddenly contraced the bank
from ruin Such were the consequences, them of con.
eenaton OF the whole power OF the Bank in the hands
OF spectators.
Now, Nicholas BidAIe alone by concentrating tbe
votes of real stockholders his hands through the use
OF proxies elects the Directory, makes himself Pyesi-
dent, and virtually controls the whole institution lie is
rendered more in his power by few family con-
nexons and interested friends planted around him who
proht by the management not by the abuses of this
shtuon We have heretofore shown, from the table of
proxies furnished by the bank itself during the late nves
igaon, that Mich. Bidie, I. CadcdIader and Horace
Kinney, can make Directory in open and direct opDo
ton TO every vote which they do CONTROL Cay ala
der married Biddle, and his son j. Cadwalaer married
daughter OF Binney This little knot of family conuex
ions have absolute power in this bank. Nicholas BIde
H. Cadwalader, and Horace Bnney, may now he found i'm
the Directory BY running Tie list of Directors for
many years past, two, all three of these names may be
almost uniformly found. Cadwalader is President pro
tenn In Bdde's absence, aud Biney ALWAYS counsel
and ~ The absence OF Sergeant, Attorney for the Bank
JOhh sergeant the Clay candidate for Vice President
Is intimately associated with these men, and perhaps no
one profits more by their interest and favor He was one
OF the hrst directors elected in November IS6 has
director since in 1918, 10, 90 20 90 80 and '3
lie was onc OF those who aided in projecting the runos
Of 1918, 10 which involved the Lodns
o. oil mill fCCl-k ct,o, A..
GATES TO avoid the consequences himself He even pro-
flied by the abuses he aided ia Introducing
Among the documents accompanying The report of the
Committee of Investigation of 1919 the following Re-
solution adopted by the Board OF Directors on the ooh
November, 1916 viz:
ReSOiUed, That this Bank will pursuc nron,pt emil Of
hcent measures TO import into the United States from En-.
rope, sum IN specie, not exceeding five millions of dol
John Sergeant was present. ASSERTING TO the nassoge
OF the resolution He Immediately employed as agent
OF the Bank to 90 To Europe and make the purchase
Gle he whole object OF this was to make nm
the deficiency OF specie which the Directors knew would
be caused by the arrangement permitting the spectators
IN STOCK TO pay OIL their specie instruments by stock notes
oh 'he Zo'h November resolution was adopted de-
clarng it eXpedent to establish an agency in England
Tor the purpose of paying the foreign dividends and shat
John Sergeant, Esq be instructed to make such ar.
'dngementsJor the payment there at the par of erchang
at the RISK and expense IF the dnk."
Ihe notorious object OF this resolution was TO raise the
price OF stock by creating foreign demand for IT, The
yeas and nays taken upon the resolution and il was
adopted by vote Of III TO l0John Sergeant voting in
the affirmative.
On the 10Th November, IslOs John Sergeant appears
again in The Board Of Directors, when the following
luton was adopcd-vZ:
Resolved That tie compensation TO be allowed Jobn
Sergeant ESQ for his services Agent of this Bank be
TWENTY THOUSAND DOLLARS, to include all his
expenses together with the compensation and expenses OF
his Assistant and that he shall be employed on The busi
ness OF SAID Agency fora longer period than twelve months
he shall he allowed pro rata compensation"
Mr. Sergeant, thus authorized and commissioned TO form
an alliance between the astocFacies of England and the
United States With an outfit aud salary greater than
lie et,. ,s.,fsI a..
by his Secretary OF Legation set sail for Europe The
particulars OF this Mission have not vet become matters Of
history, ana are therefore to us inaccessible. We only
know tat an agency was established in England TO pay TO-
reign dividends tnt in the succeeding March he made
contract with the Earrings Tor considerable amount OF
species that upwards OF millions were imported from
various quarters; and that The cost OF the importation 10 te
soekhoder', including the government, upwards Of
halt million of dollars.
Having pocketcd his i,Cenfy thousand Mr. Sergeao,
again appeared ~ te Board in 1915 aiding and abetfnp
his specializing friends in their various devices.
In the session OF Congress commencing in that wear he
appears as Gdfendcr OF the bank in all its frauds and
abuses upon e various propositions repeal Tie charter
toorder SciTe Jdcids 10 amend to charter &C lie made
long speech ~ which lac defended all the acts of fine
bank. He vndicaicd The paying of The foreign dividend
in England at the chage o4e bank the loans upon be
pledges Of stock, The evasion Of the specie istaInent u,
imitation OF The price OF The Stock tie speculation and stock
jobbing Of tbc Directors, the large loans Ia them and oc
dealers IN stocks the fraudulent election OF tie first Di
Tectory OF which lac member, by tie votes of 6cd
tous Stockholders, aud complained as paf,ecov az an,
bank advocate now does, Of the inquiries made ,v IN,
committee mo PiU"c H"as0citOpH II any has
curiosity 70 examine h- speech, he will find in hc sup
plement 10 Niles, Vol. XVI, p,ge I23-It5. ''P
MT sergeant dd not meet with any Immediate retyart
for this speech Soon after, Laugon Cheves was MACE
AZ me mead OF it bink, The Whole specializing concern
was broken mp, aud c5uncuancc shown 10 tlei cc,
aers ana adYoc e. Few fees paid TO Counsel dur
ing Mr. Cheves administration Of tAe bank and psoab,
Mr.. Sergeant received none Of them. 10 him lie cleo
ton Of Nichols B,ddlc in 1523 was fortunate ncdcn
"a sort OIL restoration Of the Bourbons. He has sinr
been standing counsel and attorney for the Bank In yhic
capacities Is confidently believed, that biz annual fee
have exceeded $1,000. One year he had eieh suits \
the Supreme Court 40 $500 cach. amounting la ali ~ 4
OOO, ana received about $@O'O or other services W
that Mr. Sergcauts receipts from tie bank for his acme
IN Europe, au Ofrr service. OF professional chafactc
have exceeded FORTY THOUSAND DOLLARS
Thsis the man WHOM hlr .bJcbOios Biidie presents
the people OF ihc s.. Sar- Tor ticr Vice President y
The dUt0cTai N tie Bnh llcy are commanded to ta,
BIN or feel ihe p9gcr of 'lc institution which he wie,
This ' sisi 'a ria'si .,7,r ,.t o,op,, co1eos.