The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-02-20

TO THE EDITORS or THE GLOBE
GENrLEMES:-i observe that paragraphs are being
circulated through the public prints, that at some
former period, | borrowed temporarily portion Of
The specie of the franklin Bank at Boston, 10 set
another bank in operation, at Westbrook, Maine,
and afterwards returned the specie 10 the franklin
Bank, and thus improperly passed off the capital Of
the one bank as that Of another bank and that this
is an operation Illustrative of the wckcdneSs and
weakness Of banking institutions
! wish to correct this representation, is untrue
IN az Us import and the investigating committee OF
the Massachusetts Legislature, who has been vouch-
ed in support of il, could not have examined sOi-
tary original paper or book, of the Franklin Bank,
TO which was even party, that 1rould mot hare
disclosed at once the utter jaisity Of he aJore repre@a
tatioa respecting myself
never made so much as an application to either
the directors Of the Franklin Bank, TO its presi
dent Tor bank Loan in my life; and my letter 10 the
president of that bank, upon which was based the
only loan ] ever had of him, will show this TRUTH
when produced
Mr.. Dunham the president Of that bank agreed to
procure me loan of fourteen or sixteen thousand
dollars, on trelre or eighteen months to enable me TO
| supply certain subscriptions Of stock TO The West
brook Bank which had been promised from other
quarters, and failed.
Through his kind interest, ] received from one
individual, to whom Mr. Durham made application
for portion Of the loan sought written assurance
that he would furnish part of il on the terms stated
in my letter TO Mr. Durham. When the loan was
completed, received the specie from no less than
three different sources and less than half of it was
delivered TO me at the Franklin Bank. From what
sources collected, know not
The terms of the loan were not ip any one par
ticular within The rules of bank loans. had made
no application to the bank for loan on any terms
had every TO believe, from the prefer made
by the third person already alluded to- as well
from the fact that the funds received were deliver
ed al different places in Boston, that Mr.. Durham
had procured the loans for me from his own and his
| friends resources; and in no wise did suppose
myself as connected in the transaction with the
Fraskin Bank But, says report, / returned some
of the Wesibrook Bank specie afterwards to the
Franklin Bank.
True !, and how and whyl Not in eztinguishment
OF one dollar Of the loan Mr.. DaRha,H had procured
| for me. Far from IL. II sent to Boston, where
every Maine bank was compelled 1.-THE time TO keep
| funds to redeem It's bills, be prescribed by the
\ great banking autocrat OF New England, NE Suffolk
Bank and deposited with the franklin Bank a
Opposite 10 redeem Tie bills Of The HestJrook Bank
hey should be taken mp by he SuBol to meet any
ether drafts of The Hes6rook B0nk parable al Boston
and the agreement with the president of the Frank
lin Bank, was made at the time for this redemption
by that bank Of tie bills Of he Hcst5rook Bank The
amount thus deposited was credited 10 the West
brook Bank by the Franklin Bank; and bank
book showing this amount of debt due TO the West
brook Bank (and not running in my name, as the
Massachusetts, Legislative Committees report erro-
neously states TO the pubic,) was returned TO the
Westbrook Bank. The specie, therefore, was the
property If the Wesibrook Bank alone, and it was
so credited to that bunk by the Franklin Bank, and
was SO deposited with the Franklin Bank TO meet
the specie liabilities of the Westbrook Bank in the
city Of Boston, as one of the associated banks under
the Suffolk system II in no wise extinguished my
loan, affected il in any shape and it in no way
lessened the capital actuallypaid into the Wesbrook
Bank
Now these are facts which the books of the West
brook Bank and every director Of that bank, and
which the original books Of the Franklin Bank sent
to the WeSlbrook Bank, il they have not been fals-
fed or improperly kept, WILL ENTIRELY suBsTASTI-
ATE; and the gross, wicked injustice that has been
done to myself, and also the Westbrook Bank, for
purposes and from motives that every wenfoTm-
ed man can rightly discern, by representing that
either the WeStbrook Bank or myself has been, in
any way at any times party to, or converSan Of
any improper or illegal transaction, or one which
either would be- or ought 10 BE-, unwilling that the
world should be witness Of, must be apparent to
every reader.
If had Obtained the specie Of the Franklin Bank
on temporary credit, and passed off as portion
of the capital of the WeSlbrook Bank, and after
wards had returned this specie TO the Franklin Bank
in extinguishment of my loan, and thus left the
Westbrook Bank capital minus to that amount, and
if the WeStbrook Bank had been under no liability
or necessity of redecmng its bills in Boston, and if
the Franklin Bank had not undertaken thus TO re-
deem them with funds credited to the Westbrook
Bank and If the franklin Bank had not credited the
Westbrook Bank with the funds deposited them and
in either view, a case Of imposition and fraud upon
the public would have been made out But not
shadow of truth is there in TINS representing the
matter; and in justice to myself and 10 the West
brook Bank-than whom there is not safer insu
ton in Maine or New England, or one who keeps
an equally large amount Of balance against the Bos
banks, in proportion TO its capital-those editors
who have given circulation 10 the statement have
corrected are requested 10 give place theI columns
to this statement and allow me TO add that the labor
that has been exerted in certain quarters to connect
my name with some censurable transaction OF some
rotten banking institution, being thus swept away,
can assure lis projectors that am no less fortified
against every new assault Of the kind. There is not
now and there never was, an instance within my re-
collection, in which have Obtained loan from
any blnking institution in New England, for my own
accommodation, in which bank ! was not owner Of
a greater amount Of stock than the aggregate OF my
loans and hence, no banking institution has ever
vet been made BY me (however they have been used
by others) an instrument of multiplying to any ex-
tent my pecuniary resources and the estimation in
which / hold these institutions, proceeds not and
never has proceeded from any such private or SIMS
ter motive, While dare 10 bid them defiance on
the one hand dare to do them justice on the other
Most respectfully, your obedient servant,
FRANCIS O. j. SMITH.
| Washington, Feb 3, 1888
From The Nc1 York GGzeiie.
INSTRUMENTATION is certainly becoming the bnne Of