Martinsburg gazette and public advertiser. [volume] (Martinsburg, Va. [W. Va.]) 1826-1833, 1832-05-17

toe PuhHCs
The committee advert to the increase Of
branch banks during the last four os i've
years, and seem 10 convey the idea that
such increase Is not expedieat or for the be-
nefit Of the country.
A complaint had been made, and the fact
is adverted 10 in the report. that the mother
bank, and the Atlantic branches OF the aorth
and east. had drawn large sums in specie
from the south and west
The conmttee advert 20 the practice Is.
tabllshed hy the bank of exchange on Lon
don, having the practical effect of II
months run, 10 answe the demands Of mcr
chants, ADD counteract the evils sudueed IA
our East India trade. lhc committee 10
port an opinion, that the effect OF this prac
tee is injurious
A comparison is made of the resources
of the Bank IN 1919, aud its present eondI-
lion, designed to show that the Bank is not
able, as at present organized, to meet any
emergency that may arise.
IL having been repeatedly alleged that the
Bank had employed its funds Tor the pur
pose of Substituting the press, and the
charge being reiterated during the debate
upon the resolution authorizing thls inquiry,
the attention OF the committee was particu-
larly drawn to this subject, at an early pc.
Rod Of their examination, by a
ton from an editor of a New York paper,
who bad been accused 20 a member OF the
COMMITTEE, through the President OF the
Bank.
The report then goes into a history of the
loans msde TO the editors Of the Courier and
Enquirer, from which they infer that the
charge has foundation in truth.
The various reports which, have, for q
long period past, charged the Bank with too
frequent intercourse with brokers, and also
of undue isvofitism 10 certain individuals, as
well as the large transactions which exhibit
ed themselves upon many documents called
for by the committee, induced them TO exam
inc particularly the accounts Of the firms Of
which Mr.. Thomas Biddle was and is the
chief partner with the Bank, as a broker.
by these IL appears that, on the l5th OF
October. he was discounter upwards OF |,
I3o. 900 dollars. aud has at no time since
been less than 400 900 dollars The cop,
mi'tee doubt the policy OF sach large aceo-
modations 10 individuals or firms. at any
time, as it depriyes the Bank Of the power OF
fulfilling one Of the great objects OF ITS inst.
tuition, which is to facilitate trade by loans
IN time OF pressure; and it may be proper to
add that these large loans. at a low rate Ut
interest, in times when money Is plenty, are
usually followed by overtradtag, which pro
duces pecuniary embarrassment and gene.
raj distress.
Properly connected with this subject is
the accommodation extended by the bank to
individuals on the pledge OF stock. Ia all the
monthly statements OF the condition of the
Bank, prior to the lst Of March last, there
was no column showing these loans. In that
month, for the first time, ofar as the con-.
mittee can discover, a new column IS exit
bited, entitled "lodRs oa other stocks,'i and
which appeared, at that time, TO have been
transferred from the line called bills dis
counted on personal security"
The supplying of exchange by the bank,
as has been done for the last five months,
and the curtailing discounts, are but mere
patiiatices, as the committee fully believe;
and they are persuaded that no measure eau
be iaeefted to restore a sound currency, and
a regular state Of things generally, aud give
a solid and permanent value to property, but
the withdrawal OF a large portion OF notes
now in circulation, by the bank, which viii
compel other banks TO do the same.
1t is evident, from the circulars addressed
to the branches, and correspondence with
them since October last, that the chief OBJ
ject OF the Bank has been 10 sustain itself
the statements accompanying this report,
they say, proving that The Bank has not in
creased IFS facilities to the trading cominuni
ty, In any part of the Union
BY a reference to the weekly statements
ofthe Bank Of the United States, the oifi
ces at Baltimore, New York. and Boston,
from July 1881, TO April. 1882, marked No.
Sc, il viii be seen that the amount OF reduc
lions on discounts and loans at those four
largest commercial cities during the last
quarter, taking the maximum amount in ia
nuary last, and ending on the lst Of April,
IS 2,493, 4s9 rs, or, IN round uumbers, two
millions aud half Of dollars; this reduction
on the part OF the State institutions, in pro
portion to the amount of their loans in each
of those places. In this, and in this alone,
the COMMITTEES are fully persuaded is TO be
found the true secret Of the pressure which
has existed. and does still exist, operating
upon the commercial community.
On the subject OF specie payments, do
mestic and foreign exchange, Investments in
public debt. BY the Bank, in 1897 and 1875;
and its AGILITY to make loans to the Govern
ment; the influence oi the operations OF the
Bank upon trade; on the increase Of the pa
per circulation Of the Bank; its agency 10 di
minlshing or charging the circulation Of 10
calbanks. and the means ofpermanently re
g~ulating our general circulation, so as to
prevent its injurious effects upon the trade
and currency Of the country; all matters of
vital importance IN the re organization of the
Bank; concerning which the committee sub
mitted a number of inquiries to the Presi
dent of the Bank. who has not been able.