Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1832-05-18


h"t"crs alonc u the question is whether they have
not made proper application ofthe funds ottlie cor
Poration, with view to the promotion of It's inter
est! 10 what extent the value of the real estate
OF the bank has been increased, by the internal i'm.
Provcmcnts in question, has not been asccrtained;
nut II may be well supposed that it exceeds the
appropriated by the directors to aid in the comStruc-
tioh ot these improN cmcnts.
Inc other donations" to which the report
crS, consist of small sums contributed to fire nsu-
rance companies for the safety of the bank proper
| ~, and against which it is not pretended that any
Objection can he fairly raised.
The last ground of nputation, touching the
violation OF the charter is, ''bu lding houses to
rent or sell, and erecting other structures in aid of
| that object"
The bank is expressly authorized to purchase real
estate, winch has been mortgagcd to debts
previously Contracted and also such may be sold
under Judgments and executions in its own favor.
In the exercise OF this right, the debtors of the
bank are as much interested rs the bank itself. For
IL must be apparent, that the bank were not per
united TO bd at these sales, the property of its debt
ors would be frequently sacrificed, at sum great.
| ly below its value, 1t has been only for the pur-
pose OF saving itself from loss and the property
OF ITS debtors from being thus sacrificed, that the
bank has ever purchased any real estate, except
what has been necessary for its banking houses
There is no description of property which bank
ing institution is so unwilling to own real estate
Such an institution is entirely unsuited to the man.
agcmcnt OF such property, much as Il farmer
would be to manage the discounts of bank.
Owing to the extensive failures of the persons
indebted to tho bank, in the western country pri-
or to 1919, the directors were unavoidablv com
pcileu TO take very large quantity of real estate.
as the only means of avoiding still greater losses
than they have actually sustained. They have dis
posed OF this estate as rapidly they could,
slstcntly with the interests of the institution On
portion of it they have erected improvements to
prepare it for sale, and by means of which they
will save the stockholders from Il great portion Of
the loss which would have otherwise occurred, and
VIII recover large amount of the debts which
| RS n no SET
tor this course OF conduct the directors are rem
dercd obnoxious TO ccnsurc, then will they be con-
dcmned for the very iuithuness of their steward
snip LII is too obvious TO require, TO Justify the
use of argument, that the right OF the bank TO inn
prove lis real estate is nseparably connected with
the right to purchasc-to hold, to own it. On
this subject, the House is referred to the exposition
OF the President, marked Attic next subject to
which the report of the ority adverts is the loan
to James Watson Webb Il Co. 1t is proper to re-
mark, III the first place, that the only sums ever
loaned to this copartnership, the ftwcn-
ty and of fifteen thousand dollars, the former in
August and the latter in December, 1881. 1t is al
so proper to remark, that the first was reduced
to $4,000, at the maturity of the note given for
it; and that the latter was entirely paid Off in
| March last, by Mr. Webb; and, as lie expressly
states on oath, without being requested by the bank
to do 50. The whole amount of the accommoda-
| tons obtained from the bank, by Messrs Webb
and Noah, was $50, 900; and the whole amount
now due by them, Is y 900.
The grounds and securities upon which these
accommodations were granted will be stated
| Mr.. Webb produced To the directors a full staic
inent Of The affairs of the copartnership setting
forth the value OF their property, and the animal
income derived from their paper. From this st tc-
mcnt which was authenticated by the oath of their
Keepers, II appeared that the nett annual in.
| come Of the paper, from advertisements and sub.
| scriptons, was $i23,75O after deducting ten per
cent for bad debts, and dciray ing ali the expenses
| oil their establishments Upon the whole, ii APP
pcarcd That tins was one of the most profitable, as
1T Is certainly the largest commercial new spapcr i'm
the un;on, with an immense advertising patron
age aud large and rapidly increasing subscription
| list.
With these exhibits, Mr.. Webb produced the
letter of Mr.. Walter Bovine, Mayor OF the city of
New Y orl, and formerly director Of the Bank of
the United States, man of wealth and high cha
ractcr enclosing the application for the loan, and
stating that she did with pleasure, and saw no
reason against this being treated fair business
TRANSACTIONS" Several of the Directors as well as
the President of the b NIX examined oath, |
IN relation TO this transaction, and the clearcst
| mode OF exhibiting It's true character to the |
House, extracts from these examinations will be
given.
The following is the testimony of Mr. Biddle
relative to these loans
Qnes-"Dd you consider the loans made to
James Watson Webb X Co fair business transac-
tons, such as you could not refuse without sub.
jcctng the bank to the impuaton of ndulging |
political Partially? State fully the views and |
considerations which you voted in favor of those
| loans"
1HS.-" certainly considered them fair bust |
ness transactions, or | should not have consented
to them. At the request OF the Committee | win
explain the reasons of that opinion.
" Ii in making loans every transaction was per-
tcctIy safe, and every bOr perfectly good, bank
ing would be an easy Office but as generally
borrow TO employ the funds, in some profitable pur-
suit subject, Of course, to vcisStudcs, all that
be expected in making loans is fair and rcasona
7 bic caution the situation and prospcSs ofthc
borrower. Tried by these, the only tests, think
the loans in question ucxceptionablc. The
first was done by board of directors, consisting,
besides the presiding officer, of six gentlemen, MIR.
Lppincott Mr.. Fisher, Mr. Bohlcn, Mr. NeG,
Mr.. Platt. and Mr.. Willing, merchants and men of
business, with par .dticS towards the applicants,
with whom none OF them had the least acquaiut-
ancc. The grounds OF their judgment may be thus
stated. In making ordinary loans, tho board Judge
by the general standing of parties without any en-
animation OF their affairs. But in this the par
ties began by exposition of their whole situation.
This was forwarded 10y Walter Bovine, Esq. the
Mayor of the City of New York, where the up-
picants resided, who, in addition his being per-
SUualiy known and respected by all the members,
had been one Of the oldest directors OF the Bank
of the United States, and for many years sat at the
board around which the directors then assem-.
blcd. In tins letter he says " chCcriully forward
the papers and reason against this APP
picatiOn being treated a fair business transac-
ton" lie docs not expressly say it ought TO be
granted, because he transmits az the same time
some Of the materials which the directors
20 form their own Judgment, TO which 9th wcr"
added 10y Mr.. Webb. But when old director of
the bank, forwards " chccriuliy' Application 10
his ancient colleagues which hc says should be
] treated " fair business trausacon," 1t implies
certainly no rcsPonSiJIlfy--but IT may be well re-
gardCd a declaration, that were ho still a mem
Der of the board Inc would sanction IT. Under
tl,CpC dad