Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-02-17

uRESURRECTlON NOTES.
~ SENATE OF TIE UNITED STATES,
FEBRUARY IL, 1888.

Mr. Grundy from the Committee on the judiciary, made
the following report:
The Committee the Judiciary, TO whom was referred
that mart Of the Presidents Message which relates to
the issuing and ressuing Of the notes Of The late Bank
of the United States, by the bank recently chartered
by the State Of ylvania by and under The same
name have had the under consideration, and pre-
sent The following report
Bv the net Of Congress charering The Bank Of the
UniIed States passed the 10Th Of April 1876, that
institution was invested with all the usual privileges of
banking corporations; and was especially authorized TO
issue lis bills and notes, not less in amount than FIVE
dollars, in the ordinary form OF Bank notes, signed by
it's president and cashier These bills and notes. when
PAYABLE on demand made receivable in all pay
men,s to the United States For the security of these
and its other legal obligations, the capital stock was
created. amounting TO thirty five millions OF dollars
Twenty eight millions of this were 10 be raised and
paid by individuals, companies, or corporations. The
remaining millions were paid in by the w. States
The affairs Of the corporation were to be managed by
twenty five directors five Of whom were IN be appointed
BY the President of The u. S. committee of Congress
was authorized to examine into the transactions of the
bank and legal proceedings were 10 he instituted oy the
Executive whenever any Of The provisions oil The char
ter were violated The u States to receive halt.
yearly, portion Of the profits OF the institution cores
uondnp To- the portion of the capital they subscribed
1t will thus be seen that during the existence OF The
bank and during the period when Its bills ana notes were
issued under the charter the o. s. were deriving pro-
fiji from its transactions that their funds were pledged
for the security of those who received and held It's notes.
and that they invested a least so lar as the words
of the law wenD with control over It's management
By The same law a the banking powers OF the cor
poralion were Limited 10 the Sd ct March, lc3O, alter
which day they entirely ceased although It was auIho-
rzed for two years subsequent thereto to use It's copo-
rate capacity fr the purpose of suits for the lna settle
ment and liquidation Of the affairs and accounts OF the
corporation and for the sale and disposition OF lis cstae
but not for any other purpose in any other manner,
whatsoever" The objects Of this part OF the law are
too plain to be misunderstood. The intention OF Con.
gress was 10 preclude after the Sd March, 1885, every
banking lransaction-he issue OF 6ls The discount OF
notes The lending of money; in word, The continuance
OF all transactions for the profit of the stockholders lis
object was the bank from mourning, aer that
day any additional liability by which The property either
OF the United States individuals invested IN The cor
poralion might be directly indirectly bound, and 10
qur the bank fully 10 settle its accounts and dispose OF
it's property redeem its obligations pay lis debts, and
| collect its assets before the 81 OF March, 1888
It appears that on the 18Th Of February. lS31 the Le
gislaue of Pennsy vana by an act entitled IAN actto
repeal The State real estate and personal property
and to continue and extend the improvements "i the
State by railroads and canals and to charter Stale
bank he called The United States Bank Incorporated
the existing stockholders of the Bank Of the U lex
ceptng the u States and the Treasurer Of the Staes)
and such other persons might become stockholders,
according the provisions Of that act OF the Legislature
previously requiring the same, however, to be accepted
by the actual stockholders at general meeting On The
18th Of February 1885, general meeting oil these stock
holders was held, without, however any assent repre-
sena,ion, authority on the part of the u 5. AT
that meeting resolutions passed, accepting the
charter from the Legislature of Pennsylvania, and d.
reclinr the President of the bank 10 make that accept
ance known The Governor Of the State. At the same
meeting, the stockholders thus assembled directed the
President and Directors of the bank chartered by Con.
gress .to pay transfer. and deliver to this new nsu-
lon all and singular the shares parts purpafts interest,"
and property whatsoever Of The stockholders incor
porated by the Stale Pennsy ofand in the goods
chatels MONEYS effects and estate: real and personal OF
| ~ ,k,.
lice was given to the Government OF the U. S. no app.
cation was made TO- authority sought from, Congress
ahou Oh notorious that portion ct the effects Of
the bank. in addition TO the OF seven millions OF
dollars, belonged exclusively TO them that they were
and divided and that they were liable, IN me same pro-
portion for the proper settlement OF the affairs and dis
charge of the obligations which were thus sumrnariy
taken out Of their hands, and placed beyond their
troll Thourh in words the direction of these ossem-
bed ckhoders 10 their president and directors was to
transfer their own shares and parts Of the effects yet
those effects had never been divided, proposition
for their division had ever been made They consisted
of the great and mpicaled of property belong ing
to such an institution, and in the nature OF things in
capable without difficulty, of division, it was
in fact sudden and summary transfer Of the whole pro.
perty and effects belong 10 The people oil the Cnlled
States and invested by them in that institution under
carefully devised guards and stpualons, to Slate cor
poraon, suddenly created, in whose transactions lhey
had participation.
AS II 10 remove all Q0uol OF lnls
intention Of the transfer the President and Directors OF
the bank chartered by Congress- proceeded the I'd of
March, 1885, the very day before the charter expired,
soemnly resolve, that sail and singular lie money,
goods, chattes, rights credits and personal estate what
soever owned by, belonging TO- or IN The custody ~
is bank rhsresoe1er the may De- together win oil
evidences and securities fur the same be, and The sne
hereby are assigned transferred, and conveyed 10 The
President Directors and Company of the Bank OF The
United Staes incorporated by the State of Pennsyvu.
MIA, and they created that institution their trustee, TO
conduct aud wind up The business OF The bank
Thus, in direct violation of the spirit, 1t moi the let
ter of the act of Congress, which imposed upon Inc
bank chartered by itself the duty Of "selng and iqu
dating the affairs and accounts Of the corporation,
which had given il two years expressly Tor that purpose,
and which had retained for Congress the power OF eSa
mining, by lis committees, the correctness OF lis pro-
ceedngs and controlling it, if necessary by summary
judicial process in violation of this provision, and n
manifest Infringement of the rights of the people oil Inc
United States, whose property was invested IN Inc IN
sluon large amount, portion of the stockholders
excluding The United States, giving them no notice. nsk
ing authority from Congress, suddenly assuming with
high hand the management Of the whole affair, un
deukc the solemn fnce of passing resolutions TO create
themselves incorporated it is truc by another law,
though under another nae) their own trustees; and
having DONE they take possession OF ALL tile proper
IT, and assume the settlement of all the uiurs OF The IN
slluon, relieved they suppose from every respon
siiily and control to which Congress meant The bank
should be subiec. in winding up its business.
On the 4lh of March, 1886, when, in contemplation
Of the act of Congress, the Bank Of the u S. should
have ueen commencing the settlement Of lis affairs, in
GLIDING tho large interest Of the Government, we find
portion of its stockholders who nave cast off The rrs
Selling and keeping possession of every particle OF the
Joint property aud assuming the right to manage il, free
from The obligations Of the churte under which that pro-
perry was collected, and from the control Of those By
whom that charter granted and to whose cons,tu
ens very large portion Of that property belongs.
1t does moi appear that The time of this transfer by
portion Of the Stockholders Of the whole property OF
the bank 10 themselves, any inventory statement Of
the effects and of The institution made; and
no steps whatever taken for the regular settle
ment and lquidoton Of the affairs and accounts Of the
corporation, as the charter positively required. The
whole business was mixed up with that OF the in
sluton Although the Secretary Of the Treasury was