Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1835-04-17
POLITICAL.
rHE BANKS ADVANCEMENT


ing amounted within that month to -, -S5 9l2, making
altogether, during the FIVE months between the LIST of No
vrhnocr, le4 and LIST OF April 1885, expansion of its
business of Sli ,3460OI!!
To give complete view of the misconduct and mis-
management OF this Institution, and thereby enable the
public to judge of the evils which il has been the ca
OF nhicting upon the community, must go back to
the period OF ITS commencing business under IFS charter
ana bring to notice the most promLei changes which
nave since taken place in lis business either by contract
ing or expanding together with the causes which in
duced the adoption of those
The Bank OF the United States was chartered in lSl6
IL commenced business with the year 1917. At that
nie IL was directed and controlled by set Of men, who
sought only the advancement OF their individual into
rests, by the adoption OF such measures MS would lead
advance the price OF the stock in the market in which
large majority of them were deeply interested.
With snch rapidity tho loans made ny the Bank
anu ITS money lent out, that the LIST Of March, IclS
only fourteen months alerit had commenced operations,
the debts due to it amounted to ioyone millions Of dol
lars and this too when the country surcha with
n circulating medium of bank paper.
The cNtravagant, if not wild course, thus pursued by
the managers of the Bank, while advanced the value
OF the stock in market To hundred and ty-sx dol
lars per SHARE served but lead the of
y every one of those who then concerned in it's
management. AS predicted by experienced pru-
dent men. reaction suddenly followed this enormous
effort Of the Bank. On the first of April, 1919 its
loans reduced thirty three millions and half
OF dollars, and with this reduction of and half
Millions within the preceding thirteen months the
try was in state of uncXampcd distress from OK
rcmity to the other. The first who suffered were those
VINO had been most instrumental IN causing the mis-
chiefs The President and Cashier that limc of the
Bank, w. Jones and iona. Smith. were nearly or quite
ruined; many of those who then were who had pre-
viously been Directors, were entirely So among whom
can be named ID. a. Smith, George Williams. j. w.
AicCul!och, aud j. A. Buchanan; most Of whom, but
few years before were considered men of large fortunes,
who, IN their fall carried many others with them This
was not all the Bank itself ought the brink Of
destruction. The talents of that eminent and sllful
hnancier Langdon Chcycs, aided with the chO!e pOccr
IF Me Treasury, could for a time hardly sustain it.
The severe course Of measures which the Bank
o1ged during MS curtaiments TO adopt for the purpose
tons; that when it had recovered tsclfand had money
to lend ii could find no customers To borrow its loans
on the LIST of October 1871 to individuals reduced
to twcnty-six millions of dollars For the purpose of
investing its idle money it had been obliged to purchase
funded debt at high premium in the month of April
previous.
On the LIST of January, 1893, the present incumbent
was placed at the head OF the Bank From that time 10
the last OF the year 1880 the institution conducted
steadily and regularly that but shocks
were experienced during that period, and those of short
continuance in the years 1926 and soS.
Alter that period there continued expansion up
to May 1852. The loans on the LIST of December 1896
amounted to 42402 BOA; and the lst of May, 1892
to $50 5,O7O making increase in the loans Of the
Bank IN these seventeen months of S2s 700 This
was its maximum.
The Bank, in January 1892 while it was thus ncreas-
ing ITS loans came into Congress for renewal of its
charter, alleging that il it did obtain a renewal it
must immediately begin preparation for winding up It's
ING passed. bo houses Of Gon@TcssA wns sen to
the President aud by him returned with his on the
10th of July
The Presidential election followed in November of that
year. The Bank Immediately commenced a system of
rapid curtalment In December it reached lis minimum
Tor that year. The loans had been reduced from the
amount III May, to sol 81 kC25 in December making
cmrtailment in seven months of $5,s56445.
The Presidential election decided. General
Jackson had been reelected. The Bank had been de-
eated. 1t began to expand again notwithstanding
ITS previous declarations, that it prepare for winding
up IN case 1t could not obtain renewal of its charter
which, the re- election of General Jackson rendered nearly
certain 1T could not be for four years thereafter when its
corporate existence would have expired.
On the LIST of August, 533 it had extended its loans TO
vious Of So $751;
at tins PERIOD the Bank commenced the work of cur.
tllment again. IN consequence of the appointment of
agent to ascertain whether the State Banks ia the nr
cities would undertake the collection and disbursement
oil the pubic revenue This continued until the LIST
OF October; during which two months the Rank re-
duced IT'S loans to the sum OF $60094 ,202 Making
reduction of 81 0G6 ,l47 During the sa me period il col
vaults, To the amount Of $2,3309 SOB.
On the first OF October, the State Banks in the larger
cities, were employed - collect the revenue At this
period the public money in the Bank of the D. Stntcs
amounted to $9SGS 434 towards the payment of which
II had by anticipation, curtaed its loans and kept on
mana oil me COLLECTIONS On account of the revenue, the
above mentioned two sums making together SO 307 $50
Yet, after this period the Bank continued its curtal
ments, between which, and tho list Of December about
the time of the meeting of Congress il called in in
these two months, s. Gal 095 more; red, cine lis limo of
discounts 10 SD 453 O4 and having provided bv rcdnc
ing its loans, and holding in hand tile revenue collected
Sl25Sl15 TO meet the payment Of 81 SGS 434, Of which
sum S24G34S remained in the Bank the lst Of the
]
The LIST of December 1893, opened the evcr.meno.
rabe panic session Of Congress Ii curtailcd between
the LIST OF December 1888 and the LIST of July 1884 only
$342o 32; the effect Of which, aided as il was hy the
efforts OF its friends in and of Congress- was far moro
injurious to the country than the ten millions coft,ied
previous to the assembling Of Congress
We must now stop to examine tie reasons ASSIGNED v
the Bank for this course of conduct OF The sincerity
IN which they given, the public can Judge by OBJ
serving the time when they were made and The sTbse
qucnt conduct Of the Bank
In report OF tic committee cf the Bank on the Offices
made 20 the Boa.d and BY 1t adopted on the 9th March
| 1eN, we find the following:
" But they Ohe Commttec) cannot forbcar to express
their deliberate conviction that these reductions are
much less than required for IFS security during the
unsettled state of the currency, 0Hd that IL has a0o be.
come tie dty If the Bunk, gcat int stcadigfo diminish
me a'no''t ~ d0tmS "p0H IT, by continuing hssen its
business"
On the 9Th Of Aprl Che same committee made another
report TO The Board which was printed ON the motion Of
John Sergeant, from which extract the following:
On the LIST Of October 1898 the violation Of the th1r.
Ter OF the Bank put end to all that responsibility On
tbet day, tbc Bank o the United Statcs as corut nj
part Of the financial system established by Congress in
which the public to stain the public cur.
rcncy ceased to exist II became the property Of IFS
stockholdcrsaud whether that property should continue
10 be- lent, should be- recalled from the borrowers in
greater or less proportions a matter for them and
for them alone to decide II, therefore in the effort 10
sustain its credit the directors Of The Bank had reduced
IFS loans rapidly than consisted with public conve
| bad made this act Of sclfdelcncc necessary
"Ihe violation Of the laws committed by The Fxecn.
tive, is ofiisef clculdcd by destroying confidence and
breaking down the established currency TO afci and
convuise the country ln such crisis the Bank unvI
ling to aggravde ihcse evils, has orborne press its