The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1833-10-02


ment on that of France for about S900,-
900, being the first instnlment of the
French indemnity. The purchase mon
ey was left in the use Of the Bank, being
simply added to the Treasury deposite.
The Bank sold The bill in England, and
the holder sent il to France for col &C.
tion, and arrangements not having been
made by the French Government for its
payment, it was taken up by the agents
Of the Bank in Paris with the funds of
the Bank in their hands. Under these
circumstances il has, through its organs,
openly nssailed the credit of the Govern
ment and has actually made, and per-
sists in demand of fifteen per cent. or
$l5S, ,S42 II as damages, when no dam
age, or none beyond some trif1ing ex-
pense, has in fact been sustained, and
when the Bank had in its own possession
on deposite, several millions of the pub
lie money which it was then using for its
own profit, Is fiscal agent to the
Government, which thus seeks to enrich
itself at the expense ofthe public, worthy
Of further trust
There are other important facts not in
the contemplation of the House of Repre-
sentatiyes, or not known to the members
at the time they voted for the resolution.
Although the charter and the rules of
the Bank both declare that mot less
than seven directors" shall be necessary
to the transaction of business, yet the
most important business even that of
granting discounts to any extent, is en-
trusted to a committee Of five members
who do not report to the Board.
To cut off all means of commune alton
with the Government in relation to its
most important acts, at the commence
ment of the present year, not one of the
Government Directors was placed on
any one Committee. And although,
since, by an unusual remodelling of
those bodies some ofthose directors have
been placed on some of the Committees,
they arc yet entirely excluded from the
Committee of Exchange, though which
the greatest and most Objectionable loans
have been made.
When the Government Directors made
| an effort to bring back the business of
the Bank to the Board, in obedience to
the charter and the existing regulations,
the Board not only overruled their at
tempt, but altered the rule so as to make
il conform to the practice, in direct vio-
Iation of one of tie most important pro-
visions of the ciiaiter which gave them
existence.
1t has long beer known that she Pre-
sident Of the Bank. by his slIgie WI,
originates and executes many OF the
most important measures connected dRith
the management and credit Of the Bank,
and that the Committee, as we'll as The
Board of Directors, are left in entne
ignorance Of many acts done, and cor
respondence carried OH, in their. names
and apparently under their authority.
The fact has recently been disclosed,
that an unlimited discretion has been,
and is now, vested in the President of
the Bank to sxpend its funds in payment
for preparing and circulating articles
and purchasing pamphlets and newspa-
pers, calculated by their contents to ope-
rate on elections and secure renewal of
its charter. 1t appears fr ,m the official
report of tho Public Directors, that, on
the 30th November, 1880, the President
submitted to the Board an article pub
lished in the American Quarterly Re-
view, containing favorable notices of the
Bank, and suggested the expediency Of
giving it wider circulation at the ex-
pense of the Bank whereupon the
Board passed the following resolution.
viz: -
"Resolvcd, That he President be au-
thorizcd to take such measures in re-
gard TO the circulation Of the contents
of the said article, either in whole or IN
part, as he may deem most for the inter-
est of the Bank"
BY an entry in the minutes of the
Bank, dated March Ilth, 1888, 1t ap-
pears that the President had not only
caused large edition Of that article TO
be issued, but had also, before the reso-
luton of 3Oth November WAS adopted,
procured, printed, and widely circulated,
numerous copies Of the Reports of Gen
cral Smith and Mr.. McDuffie in favor Of
the Bank, and on that day he suggested
the expediency of extending his power
to the printing of other articles which
might subserve the purposes Of the in-
stitu,ion. Whereupon the following re-
solution was adopted, viz:
"Rcsolucd, That the President is here
py authorized to cause to be prepared
and circulated, such documents ond pa
pers as may communicate to the people
information in regard to the nature and
operations Of The Bank
j The expenditures purpor,ine to have
been made on the authority of those re-
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