Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1832-05-25

stocks, with checks, which, at the eud of an indie
"hI'e number of days, we're taken up and the cash
| returned, with regular payment of interest upon
discounted notes. The checks being entered in
'he books under the head of Bills Receivable Sc
Ncra cases of this kind had occurred in the months
ot May and June 1921. Mr.. Wilson's testimony
was very clear and Nplict to the integrity of the
PRESIDENT of the Bank, and il totally contra
Lictory to the statements which the Chairman had
! framed into charges from the private information
which he had received, and the name of the in
former, OF which he had declined giving TO the
I Committee. But Mr. Wilson had named Mr. Paul
/ Beck, and Mr. Reuben VI. Whitney, two Of the
/ Directors OF the Bank in 1924, and to whom he
/ h"d incidentally communicated his slight discon-
tents at the ncriud immediately before his removal
/ MIR. Beck and Mr. Whitney were summoned TO
appear and testify. The character and rcspec,n
biIIty of Mr.. Beck universally known at PHI
!adelphn, that all remark upon thcm would he SUI
pcriluouS. He had been Il Director Of the Bank
IN 1921, - and '26, and again in the years lS.S
~, aud 80, and of course not only at tho time al
lndcd to BY Mr.. Wilson, but for five OF the wears
winch have elapsed since then, and TIL within less
than two years past, Mr. Beck remembered the
communications made to him by Mr.. Wilson,
shortly before his removal and had thought them
To proceed from irritation.
| lie had seen to doubt the correctness
OF the official conduct of the President and has
retained his perfect confidence in it unmpaircd to
| the prcsrn' day
! The testimony of MIR. Whitney was of a differ
eht character. Inns person had been q director of
! INC pinN IN the ycafS lSl2, '23, and IN a
/ ry active Member of the Board. He was n native
/ American, but from the year 1905 to 1916 had
/ ocrh resident IN Montreal in Canada-duriuu the
war, by permission Of the British Governments on
MS taxing an OATH to obey the laws of the cuun-
Try, which he did not consider an oath OF ale
| giancc-hut he had not asked or received thc NOR
niiSSit to remain i'll Canada from his own Govern
/ lhcht.-Ahomt Year after the expiration Of his
service as Director of the Bank he failed i'm hui
| *incsS. OF hrs present standing in the conn,uni-
! ", no evidence taken nv tho -,
Here follows statement OF Mr. Whitncv's tcs
/ Report
Other chlrgcs of partially by the President of
the Bank, in behalf OF his distant relatives Thomas
/ Blddic n Co. had also been scattered abroad upon
no better foundation than the fact that Thomas
| Didd'c ~ Co. arc and have for years, been among
/ the brokers of the first en,incncc and most oyten
slvo business nj Philadelphia in the Union
That their transactions of business have been and
arc every year to the amount of many millions
lhat their dcposiicS in Bank have bccu 10 similar
amount, and that they nave occasionally been re-
sponsblc TO the Bank for more than A million of
dollars at once Brokers of this description are TO
all essential purposes, bankers themselves as bank
/ in the pcnitudc of It's power and operations is but
Il broker upon Il large scale. Among the transact
| IONS OF McSSrs. Thos. Biddc & Go. with the B,nI-
there was dcpuSie made by them to consi,c ah!,,
amount upon which, by agreement an allowance
was once Tor short time made TO them for interest
IL appeared upon explanation, that tho money thus
/ Al
90. as agents of certain foreign government and
mat the pressure ON the money market YVES very
great nat the use OF the money for the time du-
/ rlnS which the interest was allowed would have
| been OF more value TO them than that interest and
the ban& having urgent occasion for the use of the
money, the interest upon it for few weeks was NJ
lo"cd, as consideration for it's being left in Bank
Tor employment there, instead OF being withdrawn
Tor the use OF the deposors. 1t was substantially
loan Tor time, the principal profit of which was
on the Slcc of the Bank, and in which the allowance
81 interest was not equivalent to the pfo.i which
ho'has hladc ~ Co. would have realized from
the same money by withdrawing it, As in the
cases OF moneys paid out to them from the tcllcrs
drawer, upon equivalent depOsitcs of stocks trans
irrrcd It was done for tran ,actiums in which the
biddcS were purchasing bills for the Bank actinn
Lot tor themselves, bat as agents for tho Bank In
such cases the cash was wanted TO pay for the bills
purchased The brokers not having the cash ON
hand received it from the Bank itself Ieayin Ini
tea States stocks of equal value in its place, for
lew days, until tl.e brokers', agents for the Bank
re'torcd the cash, took back Their certificates of
stock, and paid interest Cor thc cash they had re-
ceyed Tor every day during which it had been with
drawn. "
ms complicated character of the pecuniary ope
ratlons between the House of Thomas Biddie and
20 as brokers, and the Bank must also be rcmem
Oered IN considering the very large amount of their
notes discounted the Bank They might appear
OF the BOOKS of the Bank indebted to if for Inc
mount OF million when their real debt might no,
amount TO thousand dplurs-thc money for which
they appeared indebted being only the sums reoui.
site TO pay for the Bills purchased for the Bank IT,
self. ~
In reviewing tie whole Investigation bv tho
Commit ee Of the transactions between the BanI,
OF the United States and the brokers' there is one
consideration which most torciblv struck the mind
OF the subscriber, and which he thinks prc-emincnt
~ worthy OF the consideration of Congress- and of
the nation. The charge of fayortism tn certain
bF0hcrS OF connvancc with them, to speculate and
prey upon the public interests for purposes of usu-
ny ana eHtofhon, formed very prominent item in
the original resolutions of the Chairman of the
COMMITTEE upon which this investigation was insii
tutcd. 1t was one of those charges which, i'm its
essential nature, imported, not simple naclycrtcnce
lndIscrciion, error of judgement, or mismananc
mcnt III the President and Directors of the Bank
but the sord:d pcculations of swinGlcr. 1t was
impossible that those charges should be truc If the
resident of the Bank of the United States was 4
man OF common honesty.
There was no sparing Of commentary upon the
scantY CONC dcnCc of facts which the prnposer of
the resolution was willing to consider as giving
SuncIent color to the charge to enttlc it to the no
nor OF an enquiry. That there had been and still
were large dealings between the Brokers and the
Bank was sufficiently notorious
That the Bank and Brokers had councillors
rivals, and enemies, whose rancor was slarpcncd
by all the stlmulants of avuricc and ambition was
not less apparent. These passions never fail TO
have watchiul observers in their train. Whispers
IT now appears, had been in circulation even from
the year le2l, rpcning for a term of seven wears
into rumOurs of combined and concerted frauds.
and cmbc&z.mcnt of the funds OF the Bank to the
private purposes Of the President of the Bank and
the principal brokers of PhaGcpbi, What ,.,.
their foundation? Extensive dealings between the
Bank and the brokcrs-of course very large dis
counts to the Brokers. Interest TO tho amount of
few hundred dollars once twice allowed for the
use of money by the Bank to the Brokers Cash
taken out OF the Bank by the Brokers for few
days, upon deposit Of sioux left in its place Enor
nous loans to the Brokers, sometimes even at