True American. [volume] (New Orleans [La.]) 1835-18??, 1838-08-18
THE TRUE AMERICAN.
EDlTRD R1 JNsuN GIBSON.
FAITHFUL AND BOLD.
ME- w ORHE A VS.:
SATURDAY...AUGUST le, 1893
THE COMMERCIAL BANK & THE GLOBE

mercial Bank of this city, Of swndng, stating
that said bank had issued notes, payable at ce''
tain bank at New York, and then ordered that
bank not to pay them, al,ho' it had funds on hand
belonging to the Commerca Bank, this instltu'
ton preferring to realize those funds with 10 per
cent. prem, by selling its checks against them.
We must confess we did not credit this assertion
but set il down as one Of the thousand falsehoods
tibet monthly emana,e from that filthy and corrupt
source. We were, however, much amused that
The Globe should make such an attack on one Of
its pets, Whose President, from having been n
saunch wing, suddenly changed his opinions and
joined tho great sol disant Democratic party Of
which the Globe 10 tho organ, and as it is unver.
sally believed, solely with the view Of propi,iating
the friendly protection Of Pres,den, Jackson, and
thereby to ge, the Deposits Of the Government
Our remarks on this subject i. seems have not
been without their effect; the President, or the
ban's, we know no, which, addressed immediate.
" an apooge,ical letter to some in Washington
to lay before the Editor Of tho Globe land which
we fluid in its number of 28th July.
We give i, below with the comments of tina, pa.
per:-
Wehave seen n letter from the president of the
Comm rcai Bank of New Orleans, explanatory
of its refusal 10 pay certain notes issued by it, and
payable on their face a, New York. Ii seems
these notes were issued hefore the suspension nd
were considered coming within the law. Our
view of the matter was derived from the Journal
OF Commerce, which, il we remem Der RICH ly. re.
presented the banks az having m ca MS in N York
to meet them, and while refusing to pny the not s
making premium by drawing on the fuhd. 1t
seems, however, that the Comm rcial Bank did no
more than other banks on the suspension. After
some time j, stopped paying, as well those notes
redeemable on their face at New York, as else.
where, and turned its capital thus relieved trsm
the redemption Of its issues, into the profitable
business Of exchange This was the cour'e Of
most Of the banks, great and snail. In this, l
thl nix they all snned; bu, the Commerclal Bank
ought not to have been made the seapegoat We
give the banks explanation:
"Ini834, we issued, Tor the convenience oftra,
veers,notes Of the denomination Of S, 10, 20, and
$50, (none lnrger), payable their face either
the banking house in this city, or at the Bank OF
America in the city Of New York. These notes
proved to be very acceptable and serviceahe TO
the public. Notwithstanding the suspension OF
specie payments, and the high rate Of exchange,
York, at great loss TO our bank. After the re.
! sumption in New York, it became question: BILE
whether we could, without injustice to the hold,
ers Of our notes here, not payable in New York
continue to redeem in specie, its equivalent I,
those (which were payable in New York. We,
! therefore, (without much reflection on the cub
ject,) directed that in future these notes should
not te redeemed at the counter Of the Bank oi
America. We were s,il further induced 10 hi
step by .he fact, that few were actually in
circulation; that they were in the hanes OF rok-
ers who picked them up here and here and there
and sold them ct a premium, just as ,hsy have
our notes Of the denominations ef IS q. 10
which W have never ceased to pay in sp seie
from the first, and still continue to pay. So tina,
| measure adopted for the convenience Of the com
munity, TO furnish specie in small sums for ali
classes, hns been defea'ed by the cupidiiy oil
brokers who boug ht them up. Just 30 hos it beer
with the notes payable in New York and without
thinking much Of the matter, dreaming Of the
Glamour that would be raised by these people, W 9
directed that they should not be paid. Some were
presented, refused, protested, and then paid by
Bank Of America. MIR. Nrwbold then, with hi,
usual discretion in such matters, CAV. direction.
that they should b. paid unril further orders from
us, and we have approved Of the decision: and 8.
the matter ended II
ltaPpcars now that the Globe, for a wonder, ;ole
the truth, md that it is humilia,ing fac, tina
ono of our banking Institutions has been guilty O
the dishonorable and dishonest act imputed to i
by that print.
The explanation of the President 10 a mos
puerile and lame attempt to cover a premedtatet
ACT, fully deserving the term Of swindIing applied
to it by the Globe: and although it may be yer,
satisfactory TO Mr.. Blair, it certainly will not b.
satisfactory to our citizens, who feel some interes
and pride in the honest management of our public
Institutions.
First, it was a matter Of doubt it seems whether
the bank in justice to it's creditors, could moe, it,
positive engagements to pay small amount il
New York in the current money Of that city. Sc
eondly, that the amount was so small, il was mol
Of much Importance whether the bank acted in
good faith not. Thirdly, it was the opinion Of thu
Bank that that prescribed race Of bipeds y'cleped
Brokers, would DO the only sufferers. Fourlhly
il done wittout much reflection, it being evident
by this admission, that the above reasons are mo-
even satisfactory to tho bank.
Now we must say that all this appears very silly
TO US, and tina, the Bank in question would have
shown infinitely more wisdom by being silent.
The President of the bank also says, that Mr.
Newbold the President Of the Bank Of America
paid the notes alluded to when they ware protested,
notwithstandin the order of tho bank here to he
contrary. He showing more sclici.ude for tbs
honor of the Com Bank than it's Preside n,
and Directors had done. We are gra,i6ed to learn
that the Bank has approved of MIR. Newbold's act.
The editor Of the Globe with his usual regard for
truth gives it to be understood that the CONNER
ciaI Bank in this business has done no more than
the other Banks; now we will venture TO asse r,
that no such violation Of its faith has been com.
mitted by any Banking Institution in Louisin n a !;
and besides we know that ono Bank of this city a,
the time of the general suspension of specie pay-
ments had half million of notes out PAYABLE in
New York, all of which were promptly paid on
PRESERVATION.
We commend all this to the ghost Of tn. de-
funct cossypium as furnishing commentary GA
his project Of the State Banks furnishing general
currency by" tolerably good understanding among
themseices
THE ELECTIONS.
Kentucky.-The whole state has proved itself
" Wing" to the very core. Her legislature remains
staunch and true to the good cause. The proposed
alterations in the constitution have been frowned
down by IN overwhelming majority. 1t is with
great pleasure, all good wings will learn that
IL nry Clay, IT,, has been elected in Fayette, and