The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-01-18
THE BOSTON BANK FAILURE.

day last has the following article
Commonwealth BdHk-Our city was In commo-
ton all the forenoon Of yesterday in consequence OF
the failure Of the Commonwealth Bsnk--that is the
incsparity Of that institution pay its debts in current
bank bills The directors of the Associated Banks, Il
was understood convened on Thursday evening"
and again yesterday morning, to consider the We
have not been informed Of their proceedings in detail
but we understand that 1t found either impossible
or nexpedlent TO sustain the credit Of their ASSOCIATE
Many rumors circulation respecting the bank and
ITS Directors which il would be unknd and perhaps inn
| polite to repeat, committee appointed in the
| House Of Representatives. to be joined the part OF
the Senate, TO investigate the affairs Of the bank, with
power to send for persons and papers The report of
this committee will present the facts Of the case.
Some Of the other banks in the city refused yes
terday to take any bills, except their depose,
or payment Of notes II this practice should be per-
sisted IN, or become general calculate the
agitation and distress that must follow. We under
stand there general meeting Of Delegates from all
the banks last evening aid hope that something may
have been done TO restore confidence and quiet.
II appears by the bank returns that the bills Of the
Commonwealth Bank in cifc ulaton in October amount
| ed to S34O,694 The whole amount Of its liabilities,
at The same time, was 81 ,474,637 SO. It's specie on
hand, was S5f,l32 l6 On the first Monday in Octo-
Der the Stockholders received dividend Of three per
cent amounting to 900"
The same paper, in another article, says:
1T is Inmored that the Collector Of this port has
/
Of January, forty thousand dollars Of Commoa ,Geaih
Bank bills, and that the most OF those bills are now in
the hands OF the recipients IL is further said that
twenty thousand dollars Of this money is in the hands
Of the fishermen at Marbleheed and that from fifteen
twenty thousand is in the hands Of the fishermen Of
| Gloucester"
The Boston Courier then tells story Of person
from Cape Ann, who on "Wednesday last, to Bos-
| ton with bounty certificates amounting about five
thousand dollars and was paid by Mr.. Henshaw the
Collector, III draft on the Commonwealth Bank, " and
the bills, says the Courier are now in the hands Of
the poor fishermen" The same paper quotes from the
4 Yarmouth Register whig print an article censurng
the government IN violent terms because the fishermen
Of Cape Cod are also paid their bounty certificates in
| drafts the Boston Banks
| We beg readers to reflect moment upon the
lesson taught by these statements and these complaints
Could more convincing practical argument possibly
| be given OF the wisdom Of Mr. Van Burens recon-
mendaiion TO have nothing TO do with the banks the
administration OF the public finances! Could more
satisfactory disclosure be made OF the reasons which
led the Boston Banks, in conjunction with Mr. Bddle,
so strenuously TO resist, in the late Bank Convention
the specification of day for the resumption Of specie
payments In short, could pregnant common
ary be furnished on the dongs Of the Conservatives in
this city The extracts we have made would furnish
matter for pretty paragraph to wind up the Conserya
tive address and resolutions, copies Of which have been
so neatly put up IN red for the Of the bank
parors, and Tor distribution at the brokers' offices in
ed in the next edition.
We do not, in quoting from the Boston Courier
mean TO adopt its charges against the government
officers. But suppose the charges rue-they only go
to show strongly and convncngy, the utter folly
oil leaving the money OF the government IN the banks
subject to theschances OF such failure has beiacn
the Commonwealth Bank That bank was a deposi,e
bank Its late President, Mr.. Simpson, prom
hent candidate for the Colectoshp OF the port Of Bos
ton and is understood have had the support of the
IN CITY
banks, in other words the Conservative interest
Suppose the failure Of the bank had been delayed lit
tie longer, and suppose this candidate had been prev
ousy appointed The result we need not dwell
upon
We were prepared for the Civilizations Of
the loco foco Sub-treasury gentlemen, which
this bank failure in Boston would cause
and are also prepared to meet them.
II is true, that the Commonwealth Bank
was one Of the first selected deposite banks.
1t is equally true that it was at that time I'M
der the direction Of Office holders and decid-
ed friends of the administration. How far
Mr.. Simpson It's President obtained the sup
port of "the conservative. interest for the
Collectorship of Boston we know not but,
this we do know, he was thorough going
Sub-treasury advocate. The Post sig
nifcantly inquiries .. Suppose the failure Of
the bank had been delayed little longer, and
suppose this candidate had been previously
appointed" Well, suppose these things had
occurred what results would have been pro-
duced by it Does the Post intend to in
sinuate, that they must have been more dis
astrous fit does, it at once impeaches the
integrity of an individual which it admits (but
for his death, would probably have been APP
pointed to an Office connected with the pro-
posed Sub-treasury scheme.
1t is matter of history that Mr.. Henshaw
the collector of Boston, for long time, de-
posted the bonds in the Commonwealth Bank
for collection even while the United States
Bank had branch there, and years before the
depostes were removed Mr.. II. is SAID to
have been large stockholder at the time OF
the suspension, and, we believe, was at one
time director 1t may be supposed that he
knew something of the condition OF the bank
and believed it to be in sound and flourishing
condition otherwise he would not have acted
as faithful public servant.
We have seen it stated in some of the pa
pcrs that the Commonwealth Bank was IN
debted 10 the government at the time OF us
failure some; two or three hundred thousand
dollars. What the facts are we know not
We fndson looking at an official return