Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1832-05-04


We must. therefore, in justice, only publish a
synopyis of both-for we question whether read
ers, in general. would be willing to wade through
both reports. going into a variety Of dry and un'
interesting details.
The Committee made a very liberal construc-
ton of the terms of the resolution under which
they acted, and went into thorough examina-
ton of the affairs of the Bank. They directed
their inquiries to two general objects
LIST. Whether the provisions Of the charter had
been violated.
"a. Whether there have been any circum-
stances Of mismanagement against which future
legislation might guard, or which should destroy
its claims to further confidence.
On the first point, they submit the result ct
their examinations with regard to various Imputa-
tons against the Bank
LIST. In relation to usury.
Cd. In relation to the issuing OF branch orders,
as a circulation.
Sd. The selling coin, and particularly Ameri-
can coin.
9TH. The sale of stock obtained from Govern
ment under special acts of Congress-
5th. Making donations for roads and canals,
and other objects.
9th. Building houses to rent or sell, and erect
inc other structures in aid of that object.
OF the first, nothing definite is said The sub
ject of branch orders has been already discussed
in the newspapers, and settled by alesa decision.
On the other matters. the Report is adverse to
the proceedings Of the Bank, and the facts on
which they ground their opinion have already
been laid before The public.
The committee advert to the increase Of branch
banks during the last four or five years, and
seem to convey the idea that such increase is
not expedient or for the benefit of the country.
A complaint had been made. and the fact is ad
verted to in the report, that the mother bank, and
the Atlantic branches of the north and east, had
drawn large sums in specie from the south and
west.
The committee advert to the practice estab-
ished by the bank of selling bills Of exchange on
London, having the practical effect OF IL months
run, to answer the demands of merchants, and
counteract the evils induced in our East India
trade. The committee report an opinion, that
the effect of this practicei is injurious.
A comparison is made OF the resources OF the
Bank in 1919 and its present condition, designed
to show that the Bank is not able, as at present
| organized, to meet any emergency that may
| arise.
1t having been repeatedly alleged that the
| Bank had employed its funds for the purpose of
substituting the press, and the charge being reite-
rated during the debate upon the resolution au-
thorizing this inquiry, the attention of the com
mittee was particularly drawn to tins subject, at
an early period of their examination, by com.
munlcation from an editor of New York paper.
who had been accused tn member ut the COM
mittee. through the President of the Bank.
The report then goes into a history OF the
loans made to the editors of the Courier and En-
quirer, from which they infer hat the charge has
foundation in truth.
The various reports which, have. for long pc.
Rod past, charged the Bank with too frequent in
tercourse with brokers, and also of undue favor
itism to certain individuals, as we'll as the large
transactions which exhibited themselves upon
MANY documents called for BY the committee, in.
duced them to examine particularly the accounts
of the firms of which Mr.. Thomas Biddle was
and is the chief partner with the Bank, as bro.
ker.
By these it appears that. on the 9Th of Octo-
Der, 1880, he was dIscOunter upwards of I,l20,.
600 dollars. and has at no time since been less
than 400, 900 dollars. The committee doubt the
policy Of such large accommodations to individu-
ais or firms. at any time. as it deprives the Bank
of the power of fulfilling one of the great objects
OF its institution, which is to facilitate trade by
loans in time of pressure; and it may be proper to
add, that these large loans, at low rate of inter.
est. in times when money is plenty, are usually
followed by overtrading, which produces pecu.
MARY embarrassment and general distress.
Properly connected with this subject is the &C.
comodaton extended by the Bank to individuals
on the pledge of stock. In all the monthly state
ments of the condition of the Bank, prior to the
1st of March last, there was no column showing
these loans. In that month, for the first time,
so far as the Committee can discover, new col.
umn is exhibited, entitled "loaas On other
storks." and which appeared, at that time. to
have been transferred from the line called "biNs
discounted on personal security"
The supplying Of exchange by the bank. as
has been done for the last five months. and the
curtailng discounts, are but mere pall,aiiues, as
the committee fully believe; and they are per-
suaded that no measure can be inUented to re-
store sound currency, and regular state Of
things generally, and give solid and permanent
value to property. but the withdrawal Of large
portion of notes now in circulation. by the bank,
which will compel other banks TO do the same